STANDARDIZATIONS AND SIMPLIFICATIONS OF MATERIALS AND COMPONENTS NOTES

2.1 Introduction: What is a Standard

A standard is defined as a model or general agreement or a rule
established by authority, consensus, or custom, created and used by
various level of interest. Standardization is the orderly and systematic
formulation, adoption, application and review of industrial standard
which lead to simplification or variety reduction. This implies reducing
unnecessary varieties and standardizing to the most economical sizes,
grades, shapes, colour or types of parts. The word “standard” is
multivalued as it may means physical standard prototype of mass or a
technical document. Industrial standard s is the generally accepted
statement of the requirement.

Standardization eliminates the rule thumb method as the width of the
thumb varies widely from one individual to another. Simplification is
the process of reducing the variety of items. It reduces the number of
types and sizes of item s to a minimum; consistent with the needs of an
organization. Simplification in company operators is an essential
process of standardization.
Standardization is the process of formulating and applying rules for a
beneficial and orderly approach to specific activity. It is based on
consolidated efforts of science, technology and experience, reflecting in:

units of measurement
Terminology
Products
Process
Safety of persons.

The term “standard,” or “technical standard” includes:
Common and repeated use of rules, conditions, guidelines or
characteristics for products or related processes and production
methods, and related management systems practices. The definition of
terms; classification of components; delineation of procedures;
specification of dimensions, materials, performance, designs, or
operations; measurement of quality and quantity in describing materials,
processes, products, systems, services, or practices; test methods and
sampling procedures; or description of fit and measurements of size or
strength.

2.2 Types of Standards

Standards may be classified in numerous ways. Standards can be
differentiated based on purpose.

A basic standard has a broad ranging effect in a particular field,
such as a standard for metal which affects a range of products from
cars down to screws.
Terminology standards (or standardized nomenclature) define words
permitting representatives of an industry or parties to a
transaction to use a common, clearly understood language.
Test and measurement standards define the methods to be used to
assess the performance or other characteristics of a product or process.
Product standards establish qualities or requirements for a product
(or related group of products) to assure that it will serve its
purpose effectively.
Process standards specify requirements to be met by a process, such
as an assembly line operation, in order to function effectively.
Service standards, such as for repairing a car, establish
requirements to be met in order to achieve the designated purpose
effectively.
Interface standards, such as the point of connection between a
telephone and a computer terminal, are concerned with the
compatibility of products
Standards on data to be provided contain lists of characteristics
for which values or other data are to be stated for specifying the
product, process or service.
International Standards have been developed through a process that
is open to participation by representatives of all interested
countries, transparent, consensus-based, and subject to due process.
The existence of non-harmonized standards for similar
products, processes, and services in different countries or regions
can create barriers to trade. Therefore, export-minded countries and
industries have recognized the need for internationally accepted
standards to help rationalize the international trading process.

Standards may also be classified by the intended user group. Some
examples include:

Company standards are meant for use by a single industrial
organization and usually are developed internally.
International standards are developed and promulgated by
international governmental and non-governmental organizations, such
as the North Atlantic Treaty Organization (NATO) or the
International Organization for Standardization (ISO).
Harmonized standards can be either an attempt by a country to make
its standard compatible with an international, regional or other
standard or it can be an agreement by two or more nations on the
content and application of a standard, the latter of which tends to
be mandatory.
Industry standards are developed and promulgated by an industry for
materials and products related to that industry.
Government standards are developed and promulgated by Federal,
State, and local agencies to address needs or applications peculiar
to their missions and functions.
Another distinction among standards is the manner in which they
specify requirements.
Performance standards describe how a product is supposed to
function. A performance standard for water pipe might set
requirements for the pressure per square inch that a pipe must
withstand, along with a test method to determine if a specimen meets
the requirement.
Design standards define characteristics or how the product is to be
built. The specification that a pipe be made of a given gage of
copper would characterize a design standard. Government agencies are
encouraged to write technical regulations and standards in terms of
performance, rather than design characteristics.

Still another classification scheme distinguishes between voluntary
standards, which by themselves impose no obligations regarding use, and
mandatory standards. A mandatory standard is generally published as part
of a code, rule or regulation by a regulatory government body andimposes
an obligation on specified parties to conform to it. However, the
distinction between these two categories may be lost when voluntary
consensus standards are referenced in government regulations,
effectively making them mandatory” standards.

It is clear, then, that standards cover a broad range of types and serve
a wide variety of purposes. Where appropriate purchasing should work
with design, engineering, and operation to seek opportunities to
standardize materials, components and supplies to increase the usage of
standardize items. For example, a car manufacture could design different
models of automobiles to use the same starter mechanism, thus increasing
its usage and reducing the need for multiple items storage space. While
allowing for large quantity price documents. This will also reduce the
number of small value purchases for less frequently used items.

PROCEDURE OF STANDARDIZATION

The task force, responsible for standardization must follow procedure to
get the items standardized. They should get all relevant facts from the
concerned executive. They should develop standards which are easy to
understand and to implement. There should be a constant reviewing,
updating and monitoring committee so that best benefits accrue to the
company. The process of standardization can be conceived on a three
dimensional plane. To include factors such as levels, aspect, subject
and there interrelation .the level includes individual, departments,
company, industry, nation, international, and universe. While the
aspects may include forms, ethics, code of conducts procedures,
contracts, inspection, testing sampling, agreements or reporting, notes
etc. The third dimension, namely the subjects, encompasses industry,
education, agriculture, communication, transport, mining, trade,
commerce, energy, family planning, construction and administration.

The standardization process may take the form of a document containing a
set of conditions to be fulfilled, a fundamental unit or physical
constant or an object for physical comparison. The apex body of
standards in Kenya is the Kenya bureau of standards (KeBS).
At international level, international standard organization is based in
Geneva.

Items to be standardized

The warehouse and inventory manager should involve executives from
design, maintenance, inspections, operations and costing department in
order to ensure that the recommended standards are implemented. This
team should update its knowledge on the latest available technological
development to effectively implement the process of standardization. If
the standard is approved as a company standard, the standard department
should make necessary reproduction and distribute copies as mandatory to
all concerned.

We have the kilogram as standard of weight, meters as the standard of
length. Keeping to the right as the standard of the road, motors are
made only in certain ratings, bulbs only in specific voltages, etc.
Procedures, formats, reporting system, sampling inspections plans,
letter heads, operating manual, standard costing method, etc. are the
examples one comes across in the field of standardization. It is
advantageous to tackle non critical high value, easily available item
for standardization, as otherwise there will be opposition from design
department. MRO-maintenance, repair and operation items like fasteners,
hardware items, maintenance, etc. are a good starting point to impose
standardization.

2.3 METHOD OF STANDARDIZATION

When ever published standards are available from outside sources the
same can be applied. The frequency distribution of demand for each type
and size of an item in terms of quantity of materials purchased/used /or
products sold, would be an excellent starting point for standardization
and variety reduction in an organization. For instance, consider the
example where the diameters in millimeters of pipes are 5.0, 5.1, 5.2,
5.3, 5.4 and the past pattern shows that only two sizes 5.1 and 5.4 are
often used. Then the orders for the remaining three dimensions can be
gradually discontinued if these items are not critical from performance
and safety angles.
The preferred number series-a series of standard sizes is suitable steps
used in the bulbs and currency-developed by Renaud and known as R-5,
R-10, R-29, R-40 etc is another way of stating the standardization process.

2.4 Simplification

Simplifications refers to reduction of the number of the company,
supplier, or standard materials used in the product or process during
product design. For example, an engine starter manufacture could design
all of its starter model to use a single type of housing or solenoid.
Thus, simplification can further reduce the number of small value
purchases while reducing storage space requirements, as well as allowing
for quantity purchase discounts. Simplification can achieved as follows;

Accumulating Small Order to Create a Large Order
Number small orders can be accumulated and mixed into a large order,
especially if the material request is not urgent. Otherwise,
purchasing can simply increase the order quantity if the ordering
cost exceed the inventory holding cost. Larger orders also reduce
the purchase price and unit transportation cost.
Using a fixed order interval for specific categories of
materials/supplies
Another effective way to control small orders is to group materials
and supplies into categories and then set fixed order intervals for
each category. Order intervals can be set as biweekly or monthly
depending on usage. Instead of requesting individual materials or
supplies, users request the appropriate quantity of each item in the
category on a single requisition to be purchased from a supplier.
This increases the dollar value and decreases the number of small
orders.

2.5 Benefit of standardization

The warehousing and inventory manager must
have an unambiguous nomenclature for identifying the terms, in order to
serve the customer promptly.

In this process, standardization which reduces the variety plays a
vital role by reducing the number of varieties of the same item held
in the warehouse.
More than any other executive, the stores in charge comes into
direct contact with a variety of materials. He can gain knowledge on
the uses of materials in the store and can contribute significantly
to achieve standardization.
Standardization enables one to concentrate on large quantity of
fewer items.
It is possible to place economic order quantity or orders of
staggered deliveries with bulk discount.
Economic lot size at manufacturing will not be a problem as items
can as items can be manufactured with the same set up timings for
standard items.
Since the inventory is likely to be less, the working capital
commitment of the organization will also be less.
The items can be easily identified by all persons in stores as the
bin location can also be standardized.
Standardization reduce the time involve in negotiation process with
the suppliers as communication is better with prompt delivery schedule.
The procurement lead time gets reduce as everyone knows the item
clearly.
The buyer-seller relations can be improved as all dimensions
including price analysis. Specifications lead time etc, are
standardized without scope for disputes.
Standardization promotes healthy competition amongst vendor as
standard items can be bought by several companies.
Standardization minimizes obsolescence
It is possible to have rate running contracts for standardized items.
Standardization reduces design time by concentrating on fewer parts.
It minimizes draft time through respective of standard drawings.
It expands the engineers list of known and power items.
It reduces specification writing by repetitive use of standard
specifications.
Interchangeability of parts is assured through standardization.
Lower cost of production through continuous manufacturing run with
less material handling problems and increased capacity utilization
is achieved by standardization.
The workers at all levels and departments become more efficient by
repeated handling of items and it is possible to utilize less
skilled workers for standard operations.
Standardization enables reduced inspections and quality control burden.
Since methods are standardized, it ensures safety to all.
Standardization directly reduces the variety and improves the
information system of the warehouse manager.
Standardization enables reduced number of maintenance tools and
improves maintenance practices.
Standardization aims at maximum variety of finished product with minimum categories of assemblies, sub assemblies and components
- In general, standardization result in simple operations, minimum
  paper work, improve inter departmental coordination, ease of
  computer application and pinpoints areas involving inefficiency. In
  short, standardization is a means to faster and better understood
  communication, with fewer mistakes and hence smoother life.

2.6 Roadblock to standardization

Standardizations should not lead to monotony and prohibit innovations.
For instance, it is not possible to introduce standardizations of end
products in job shops, but assemblies/parts constituting a final product
may be standardized. Similarly, it is possible to standardize items like
shoes in terms of seven, or eight sizes. Standardizations must not lead
to rigidity in design or restrict technical development.
Standardizations is also based on previous practices.

In summary, the following points should be borne in mind;

Identify the relevance of standardizations in warehousing and
inventory management
Discuss the benefit of standardization to different departments in
the organizations
Explain how you will identify the items of standardizations
Describe the procedures for standardizations
Enumerate the pitfalls of standardization
Elucidate the applications of the concept of frequency distributions
to standardizations
Clarify the concepts of preferred number series in relations to
standardization
Specify the interrelationship between standardizations
,simplifications and specifications
Explain the role of Kenya bureau of standards in development of
standards
Examine the scope of standardizations in job shop, office and
administrations.

THE PURCHASING AND NEW PRODUCT DEVELOPMENT NOTES

THE PURCHASE DESCRIPTIONS NOTES

THE PROCUREMENT PLAN NOTES

STANDARDIZATIONS AND SIMPLIFICATIONS OF MATERIALS AND COMPONENTS NOTES