Managerial Strategy Through Classification and Coding

by Edward Koch



Many of the advantages to be gained through automation are nullified by an unnecessary variety of materials, parts, and tools. The techniques of scientific management in the form of simplification and standardization are useful to reduce, as well as to control, variety. This article suggests how these techniques may be implemented by a logical system of classification and coding, and presents case histories of variety reduction through classification and coding by manufacturing company managements. In this discussion, simplification means the process of reducing the number of types and varieties of items produced or bought. Standardization means the process of securing the maximum utilization of preferred varieties of items after agreement on standards of performance, quality, composition or dimensions, and the application of those standards. The close relationship between simplification and standardization is readily apparent because the very process of reducing variety should automatically result in the greater utilization of the remaining variety.

California Management Review

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