Walk into any large manufacturing plant, offshore oil platform, or central MRO warehouse, and you’re looking at a vast ecosystem of materials — from a box of O-rings worth a few cents to a high-pressure turbine worth millions. Without structure, it’s just stuff. But with the right Material Classification Scheme, it becomes an organized, intelligent network of assets that can be tracked, sourced, reported, and controlled with surgical precision.
This isn’t just about “grouping things together.” It’s about creating a shared understanding between humans, machines, and systems, so when someone in one part of the world says “carbon steel flange,” the person on the other side instantly knows exactly which one, with no ambiguity.
1. What Material Classification Scheme Really Means
A Material Classification Scheme is a structured method of organizing materials into categories, subcategories, and further detailed groups based on properties, usage, or industry-specific requirements.
Think of it as a map for your materials database — one that allows you to navigate from the broadest level (“Piping Components”) down to the most specific item (“3-inch 150# Weld Neck Carbon Steel Flange, ANSI B16.5”).
Without such a scheme, your material master becomes a minefield of duplication, confusion, and wasted resources.
2. Why This System Is the Backbone of Material Master Data
In the world of MRO, procurement, and supply chain, decisions are only as good as the data behind them. A solid classification scheme:
- Makes material searching faster and more accurate.
- Reduces duplicate entries in the material master.
- Aligns with industry standards like UNSPSC or eCl@ss for interoperability.
- Improves spend analysis by grouping similar materials for procurement strategies.
In other words — it’s not just a data management tool, it’s a business enabler.
3. The Anatomy of a Good Classification Scheme
A functional Material Classification Scheme usually consists of hierarchical levels, such as:
- Class – The broadest grouping (e.g., Electrical Equipment).
- Subclass – More specific grouping (e.g., Switchgear).
- Group – Focused category (e.g., Circuit Breakers).
- Type – Exact kind (e.g., MCCB, 250A, 3-Pole).
Field Example:
In a petrochemical plant, an MCCB (Molded Case Circuit Breaker) could be classified as:
Electrical Equipment → Switchgear → Circuit Breakers → MCCB 250A 3P
This not only tells you what the item is but also where it fits in the overall ecosystem.
4. Different Approaches to Classification
There’s no one-size-fits-all — but there are common strategies:
- Property-Based Classification – Based on physical characteristics (size, material, pressure rating).
- Function-Based Classification – Based on what the material does in the system.
- Industry Standard-Based Classification – Using global standards like UNSPSC or ISO codes.
- Hybrid Models – Combining property and function for maximum clarity.
Functional Use Case:
A mining operation adopted a hybrid model, classifying bearings first by function (e.g., Conveyor Bearings) and then by property (e.g., Load Capacity, Material). This allowed quick identification and reduced downtime caused by wrong part deliveries.
5. The Role of Hierarchy in Searchability
Imagine searching for a specific valve in a catalog with 250,000 entries. Without a hierarchy, you’d rely on text search, which is prone to errors. With a classification scheme:
- You start from “Valves” (Class).
- Narrow to “Ball Valves” (Subclass).
- Select “Full Bore” (Group).
- Then choose “Stainless Steel, 2-inch” (Type).
This structured drill-down reduces search time from minutes to seconds — a big deal in maintenance-critical situations.
6. Practical Rules for Building an Effective Scheme
When designing a Material Classification Scheme, consider:
- Consistency – Use the same logic for all materials.
- Scalability – Make sure it can handle growth in catalog size.
- Uniqueness – No overlap between categories.
- Relevance – Categories should reflect actual business needs.
- ERP Integration – The scheme must fit within your system’s field limits and search functions.
Field Principle:
A classification scheme should be rigid in structure but flexible in content — you can add new items, but you don’t change the way the structure works.
7. Common Pitfalls to Avoid
- Overcomplication – Too many levels can slow down classification.
- Misalignment with Industry Standards – Makes data exchange harder.
- Mixing Attributes with Classification – Keep material properties in attribute fields, not in the classification code.
- Neglecting User Training – Even the best system fails if users don’t follow it.
8. Functional Use Cases Across Industries
- Oil & Gas – Classifying valves by API standard and material to streamline procurement.
- Manufacturing – Organizing fasteners by material grade and thread type for rapid assembly-line replenishment.
- Utilities – Categorizing electrical components by voltage rating and mounting type for quick outage recovery.
- Mining – Grouping conveyor components by belt width and load rating for preventive maintenance planning.
9. Integration with Cataloguing and ERP Systems
For a classification scheme to deliver its full value, it must be:
- Embedded in the cataloguing process so every new item is classified at creation.
- Mapped to ERP search functions for quick retrieval.
- Linked to standardized naming conventions so descriptions and classifications tell the same story.
Functional Use Case:
A global cement manufacturer integrated their scheme into SAP MM, reducing duplicate material creation by 85% in 12 months.
When applied with discipline, Material Classification Scheme turns material chaos into order. It bridges the gap between operational teams, procurement, and data managers — ensuring that everyone sees the same truth in the system.
If your organization needs a classification framework that is both industry-proven and future-ready, Panemu’s Cataloguing Service and SCS Key Feature provide structured, scalable, and enforceable classification solutions — ensuring your material data stays accurate, searchable, and aligned across every site you operate.