Cellular Manufacturing by Gemba Academy

Cellular Manufacturing
Lean Manufacturing Series

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Sigma training videos to over 2,000 companies worldwide.
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Contents
1.
2.
3.
4.
Introduction
Background and History
Components and Implementation
Knowledge Check
Introduction
Cellular Manufacturing is a workplace design reflecting
concepts of lean manufacturing. Waste is reduced and
resources are combined to provide maximum efficiency.
Cellular manufacturing, sometimes called cellular or
cell production, is the idea of manufacturing an entire
product or small product line in the same work cell.
Process and product changeovers are minimized and
part operations are linked to help reduce waste and
eliminate overproduction.
Background and History

At Toyota in the 1950s Taiichi Ohno and Shigeo Shingo
began to incorporate Ford production techniques into
what would become the Toyota Production System
Toyota soon discovered that factory workers had far
more to contribute than just muscle power. This
probably originated in the Quality Circle movement.
This culminated in team development and cellular
manufacturing.
Components & Implementation
Types of Factory Layouts

Fundamentals of Cellular Layouts
Advantages and Limitations
Advanced Cellular Manufacturing
Effective Facility Layout
Minimize material handling costs

Utilize space efficiently & effectively
Utilize labor efficiently & effectively
Eliminate bottlenecks
Eliminate wasted or redundant movement
Incorporate safety & security measures
Basic Layouts
There are three basic types of layouts:
Process
Product
Fixed-position
Fixed-position
Flexible and Mixed-Model manufacturing systems
Cellular
Process Layout
A layout that groups similar activities together in
departments of work centers according to process or
functions that they perform.
Advantages
Deep knowledge of the process
Common tooling and fixtures
Most Flexible -- can produce many different part types
Disadvantages
Spaghetti flow -- everything gets all tangled up

Lots of in-process materials
Hard to control inter-department activities
Can be difficult to automate
Product Layout
A facility layout that arranges activities in a line
according to the sequence of operations that need to
be performed to assemble a product, while minimizing
material handling costs.
10
Product Layout
Layout corresponds to the sequence of operations, smooth
and logical flow lines result
Work from one process is fed directly into the next, small inprocess inventories result
Total production time per unit is short
Machines are located as to minimize distances between
consecutive operations, material handling is reduced
Little skill is usually required by operators at the production
line; hence, training is simple, short and inexpensive
Simple production planning and control systems are possible
Less space is occupied by work in transit and for temporary
storage
Lower variable cost per unit
11
Product Layout
Advantages
Stable rate of output.

Work-in-process inventory is low.
Total production time/unit is reduced.
Space is effectively utilized.
Labor pool is large
Disadvantages
If one machine fails the whole process stops.

Changes in product design can render the layout obsolete.
Bottlenecks govern the speed.
Large support staff required.
High fixed costs.
12
Fixed Position Layouts

The product remains stationary for the entire
manufacturing cycle.
Equipment, workers, materials, and other resources are
brought to the production site.
Advantages
Material movement is reduced
Promotes job enlargement by allowing individuals or teams the
perform whole job
Continuity of operations and responsibility results from team
High flexibility; can accommodate changes in product design,
product mix, and production volume
Independent of production centers allows scheduling to achieve
minimum total production time
13
Fixed Position Layout

Disadvantages
Increased movement of personnel and equipment

Equipment duplication may occur
Higher skill requirements for personnel
General supervision required
Cumbersome and costly positioning of material and machinery
Low equipment utilization
14
Hybrid Layouts
Flexible & Mixed-Model
High level of complexity
Mathematically intensive
Cellular
15
Cellular Layouts
The cellular approach is to organize the entire
manufacturing process for particular or similar products
into one group of team members and machines known
as a "Cell".
These "cells" are arranged in a U-shaped layout to
easily facilitate a variety of operations.
Parts or assemblies move one at a time (or in small
batch sizes).
The parts are handed off from operation to operation
without opportunity to build up between operations.
16
Cellular Layouts
Fast setup and quick changeovers are essential to
Cellular Manufacturing systems since production runs
are shorter.
Setup reduction principles are used to achieve one
piece flow and mixed model synchronization.
All cells concentrate on eliminating waste.
17
Work Cells - Advantages

Increased machine utilization
Team attitude and job enlargement tend to occur
Compromise between product layout and process
layout, with associated advantages
Supports the use of general purpose equipment
Shorter travel distances and smoother flow lines than
for process layout
18
Work Cells - Advantages

Reduced work-in-process inventory
Less floor space required
Reduced raw material and finished goods inventories
required
Reduced direct labor costs
Heightened sense of employee participation
Increased utilization of equipment machinery
Reduced investment in machinery and equipment
19
Work Cells - Limitations

Higher skill levels required of employees than for
product layout
Compromise between product and process layout, with
associated limitations
Depends on balanced material flow through the cell;
otherwise, buffers and work-in-process storage are
required
Lower machine utilization than for process layout
20
Functional vs. Cellular Material Flow

Element
Moves
Functional
Many
Cellular
Few
Travel Distance
More
Less
Routings
Complex
Simple
Route Structure
Variable
Fixed
21
Functional vs. Cellular People

Element
Responsibility
Functional
Fragmented
Cellular
Focused
Problem Solving
Difficult
Team
Quality
Erratic
Consistent
22
Functional vs. Cellular Inventory

Element
Lot Sizes
Queues
Stocking Policy
Scheduling
Functional
Large
Cellular
Small
More than 10
Less than 10
Make to Stock
Make to Order
Complex
Simple
23
Functional vs. Cellular Customer Service

Element
Response
Delivery Speed
Delivery
Reliability
Functional
Cellular
Weeks
Hours
Weeks-Months
Days
Erratic
Consistent
24
Creating Cells
First, define the cells by the following criteria:
Processes required
Part numbers and attributes
Market segments / customers
Degree of automation
Good intuition
Careful study
Group Technology (GT)
Production Flow Analysis (PFA)
25
Creating Cells
Selecting the Products

Engineering the Process
Designing the Infrastructure
Layout the Workcell
26
Creating Cells
Team selection is crucial
Identify important skills needed such as teamwork and
leadership skills
Create a process map
Develop a checklist for selecting members
27
Part Families
Part families with
similarity in
manufacturing process
Part families with

similarity in shape
28
Part Family Formation

Various levels macro and micro
Macro entire factories (focused factories) can
specialize in a particular type of part
Micro families can be based on similarities in part
geometry (group shafts, flat parts, gears, etc),
process requirements (castings, forgings, sheet metal
parts, heat-treated parts, printed circuit boards)
29
Finding Part Families

Visual Inspection of physical parts or photographs to
identify similarities.
Coding and Classification of parts by examining design
and/or manufacturing attributes.
OPITZ System
MICLASS System
Here a code is assigned to specific features of the part.
Is the part cylindrical or prismatic?

Does it have threads?
Does it have through slots?
Does it require heat treatment?
This requires a large initial time investment in coding

and classifying all parts.
30
Visual Inspection
Easiest and least expensive method
Classification takes place by looking at their
photographs or physical parts
31
Parts Classification And Coding

Coding is done by a system called OPTIZ SYSTEM
Digit sequence for the code is
12345 6789 ABCD
Form code
Supplementary
Code
Secondary
Code
32
Production Flow Analysis

PFA is a technique that uses Operation Routing
Summaries as input. It clusters the parts that require
the same processes. These parts can then be
assembled into a part family. The processes can be
grouped into a cell to minimize material handling
requirements.
33
PFA - Organizational View

1. Production Flow Analysis consists of 5 different
analyses:
2. Company Flow Analysis
3. Factory Flow Analysis
4. Group Analysis
5. Tooling Analysis
34
Company Flow Analysis

A Planning technique used for the division of large
companies into factory components. It aims to simplify
the flow of materials between factories.
Uses FROM-TO charts and frequency charts and a flow
analysis
Is not a decision making model, but presents data in a
way that decisions can be made based on a companys
goal.
35
Factory Flow Analysis

An attempt is made at this stage to find major groups
of departments, and major families of components
which can be completely processed in these
departments
The goal is to change factories from process
organization to product organization and to minimize
interdepartmental material flow
36
Factory Flow Analysis - Methodology

Study and map the existing flow system
Identify the dominant material flows between shops (or
buildings)
Determine the Process Route Number (PRN) for each
part
Analyze the part by PRN.
Combine closely associated processes at departments
that complete most of the parts they make
If parts are observed to backtrack then such flows are
eliminated by minor redeployment of equipment
37
Group Analysis
The flows in each of the individual shops (identified by
FFA) are analyzed.
Operation sequences of the parts that are being
produced in a particular shop are analyzed to identify
manufacturing cells.
Loads are calculated for each part family to obtain the
equipment requirements for each cell
38
Group Analysis
Essentially, while forming and rearranging the PFA
matrix we were performing Group Analysis.
Those same algorithms are also employed in PFA
activities other than Group Analysis (namely CFA, FFA
etc..)
Choice of algorithm or technique that is best suited is,
for the most part, a problem specific issue
39
Line Analysis
A linear or U-layout is designed for the machines
assigned to each cell.
The routings for each part assigned to the cell and the
frequency of use of each routing are used to develop a
cell for:
Efficient transport
Minimum material handling and travel by operators.
40
Tooling Analysis
A Tooling Analysis helps to schedule the cell by
identifying families of parts with similar operation
sequences, tooling and setups.
It seeks to sequence parts on each machine to
sequence all the machines in the cell to reduce setup
times and batch sizes.
This increases available machine capacity on
bottleneck work canters in the cell.
41
PFA: Assumptions
Each component is equally important in terms of cost
Lot size & its associated cost are not directly related to
grouping procedure
Routing is assumed to be optimal
42
PFA: Advantages
Reduces flow distances
Better suited to JIT and pull manufacturing as the
overall flow is much straighter
Simple and Easy to implement
Experience: Lots of Research and Background and
support software
43
PFA: Weakness
PFA is suitable mostly for small-sized applications, but
it has difficulties coping with some large cell formation
problems when the Machine-Part Matrix becomes more
complex because of problem size
44
Line Balancing
Line balancing a important part in Cellular System
Improper balance leads to several effects
Excess Inventory
Idle Equipment
Idle People
Individual Frustration
45
Empowered Employees in Cells

Goals and tracking charts are maintained and posted.
Problems are solved through daily cell meetings and
problem solving teams.
The inventory management system is a KANBAN instead
of a work order/kit picking system.
Cells are responsible for planning, scheduling and
expediting directly with vendors.
They establish and maintain a KANBAN system with the
vendors.
46
Advanced Cellular Manufacturing

The cell operates like an independent business with
total responsibility for quality, manufacturing and
delivery of the product to the customer.
All cells have the resources within their organization to
accomplish their mission.
The requirements are known and goals are established
Cell members are flexible and work in teams to
accomplish their goals including continuous
improvement.
47
Knowledge Check
What are some results of effective facility

layout? (Mark all that apply)
1. Minimize material handling costs
2. Utilize space efficiently &
effectively
3. Utilize labor efficiently &
effectively
4. Eliminate bottlenecks
49
What are the basic types of layouts?
(Mark all that
apply)
1. Process
2. Product
3. Fixed-position
50
What are some of the disadvantages of process

1. Spaghetti flow -- everything
gets all tangled up
2. Little in-process materials
3. Hard to control interdepartment activities
4. Can be difficult to automate
51
What are the advantages of product layout?
(Mark
all that apply)
1. Stable rate of output.

2. Work-in-process inventory is
low.
3. Total production time/unit is
increased.
4. Space is effectively utilized.
5. Labor pool is large.
52
What are the disadvantages of fixed position

1. Increased movement of
personnel and equipment
2. Equipment duplication may
occur
3. Higher skill requirements for
personnel
4. Cumbersome and costly
positioning of material and
machinery
5. Low equipment utilization
53
What are the advantages of cellular layouts over

product and process layouts? (Mark all that apply)
1. Increased machine
utilization
2. Team attitude and job
enlargement tend to
occur
3. Supports the use of
general purpose
equipment
4. Shorter travel distances
and smoother flow lines
than for process layout
54
What is the purpose of the U shape of a cell?

(Mark all that apply)
1. Easily facilitate a variety

of operations.
2. Parts or assemblies move
one at a time (or in small
batch sizes).
3. The parts are handed off
from operation to
operation without
opportunity to build up
between operations.
55
How can you determine which parts should be in

which cell?
o A) Company Flow Analysis

o B) Factory Flow Analysis
o C) Production Flow Analysis
o D) Group Analysis
56
How can you implement cellular manufacturing in your

current organization?
57
Congratulations!!!
You have completed the course.
Visit Superfactory (www.superfactory.com) for more
information on manufacturing excellence.
58

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Cellular Manufacturing

Lean Manufacturing Series

2013 Gemba Academy LLC. All rights reserved.

Disclaimer and Approved Use

This presentation is copyrighted by Gemba Academy LLC.

Current contact information can be found at: GembaAcademy.com

2013 Gemba Academy LLC. All rights reserved.

2013 Gemba Academy LLC. All rights reserved.

2013 Gemba Academy LLC. All rights reserved.

Background and History

2013 Gemba Academy LLC. All rights reserved.

Components & Implementation

Types of Factory Layouts

2013 Gemba Academy LLC. All rights reserved.

Effective Facility Layout

Minimize material handling costs

2013 Gemba Academy LLC. All rights reserved.

2013 Gemba Academy LLC. All rights reserved.

Spaghetti flow -- everything gets all tangled up

2013 Gemba Academy LLC. All rights reserved.

2013 Gemba Academy LLC. All rights reserved.

Stable rate of output.

If one machine fails the whole process stops.

2013 Gemba Academy LLC. All rights reserved.

Fixed Position Layouts

Fixed Position Layout

Increased movement of personnel and equipment

2013 Gemba Academy LLC. All rights reserved.

2013 Gemba Academy LLC. All rights reserved.

2013 Gemba Academy LLC. All rights reserved.

2013 Gemba Academy LLC. All rights reserved.

Work Cells - Advantages

2013 Gemba Academy LLC. All rights reserved.

Work Cells - Advantages

2013 Gemba Academy LLC. All rights reserved.

Work Cells - Limitations

2013 Gemba Academy LLC. All rights reserved.

Functional vs. Cellular Material Flow

2013 Gemba Academy LLC. All rights reserved.

Functional vs. Cellular People

2013 Gemba Academy LLC. All rights reserved.

Functional vs. Cellular Inventory

2013 Gemba Academy LLC. All rights reserved.

Functional vs. Cellular Customer Service

2013 Gemba Academy LLC. All rights reserved.

2013 Gemba Academy LLC. All rights reserved.

Selecting the Products

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2013 Gemba Academy LLC. All rights reserved.

2013 Gemba Academy LLC. All rights reserved.

Part families with

Part Family Formation

2013 Gemba Academy LLC. All rights reserved.

Finding Part Families

Here a code is assigned to specific features of the part.

Is the part cylindrical or prismatic?

This requires a large initial time investment in coding

2013 Gemba Academy LLC. All rights reserved.

Parts Classification And Coding

2013 Gemba Academy LLC. All rights reserved.

Production Flow Analysis

2013 Gemba Academy LLC. All rights reserved.

PFA - Organizational View

2013 Gemba Academy LLC. All rights reserved.