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The concepts of simplification, standardization and specialization (known as three S’s) are closely interrelated and lead to interchangeability. These concepts can be effectively used in industry to minimize unnecessary activity, reduce inventory costs, simplify controls and improve product quality. All these factors lead to higher efficiency in production. Simplification Simplification is a process of product analysis through which unnecessary varieties and designs are eliminated. Only a limited number of grades, types and sizes of the product are retained. Standardization Standardization is the second step after simplification towards interchangeable manufacturing. Having selected the varieties and grades of the products to be retained as much of its manufacturing details are standardized as possible. Since manufacturing involves a large number of decisions from selection of raw material to the process used for finishing, standardization of some of these items reduce unnecessary repetition of work. Use of standard components reduces inventory costs, ensures interchangeability and makes future maintenance easier. It also reduces component cost since standard components are manufactures by mass production methods and are cheaper. Selection of standard materials ensures physical performance and guarantees failure-free operation. Use of standard methods of production enables comparisons to be made of the standard and actual manufacturing time. The purpose of standardization is, therefore, on one hand, efficiency and economy in the use of human effort and on the other economy of material varieties and stock quantities and therefore reduction in cost and increase in turnover.