Group Technology

Basic Production Layouts

Process Layout

Product Layout

Group Technology (Cellular) Layout

Fixed-Position Layout

TYPES OF PRODUCTION

Product Layout

Work Centers are arranged in a linear path;

continuous flow; high volume; L, O, S,U shapes

Product Layout

Station 1

Station 2

Station 3

Station 4

Process Layout

What factors might we consider when

determining the locations of process areas, or
departments?

Process Layout

Groups workstations according to function

(Functional Layout)
Most common when the same operation
(milling operations) must intermittently
produce many different products or serve
many customers.

Process Layout
Lathing

Milling

Drilling

M
Grinding

Assembly

Receiving and shipping

Group Technology
Transition from Process
1.
Grouping parts into families that follow a
Layout
common sequence of steps.

2. Identifying dominant flow patterns of parts

families as a basis for location or relocation of
processes.
3. Physically grouping machines and processes
into cells.

35

Group Technology Layout

Product layouts with low-volume processes.

Creates cells not limited to just one worker
and groups parts or products with similar
characteristics into families and sets aside
groups of machines for production.
Goal is to minimize setup or changeovers for
similar processing requirements

A GT Cell

Machine 2
Machine 3
Machine 1

Materials in

Finished
goods out
Machine 4
Machine 5

Group Technology Layout

Cell 1

Receiving

Cell 2

Assembly area

Cell 3

Shipping

Process Layout
Lathing

Milling

Drilling

M
Grinding

Assembly

Receiving and shipping

Group Technology
Benefits
1. Better human relations
2. Improved operator expertise
3. Less in-process inventory and material
handling
4. Faster production setup
34

Benefits of CM application

Set-up time reduction

Work-in-process inventory reduction
Material-handling cost reduction
Direct and indirect labor cost reduction
Improvement in quality
Improvement in material flow
Improvement in machine utilization
Improvement in space utilization
Improvement in employee morale

Cellular
Layout
1.

2.

3.

4.

Identify families of
parts with similar
flow paths
Group machines into
cells based on part
families
Arrange cells so
material movement
is minimized
Locate large shared
machines at point of
use

HM
VM
Worker 3

VM
L

Worker 2

L
Final
inspection

Worker 1

In

Finished
part

Out

Revised Cellular Layout

[Figures 5.8 & 5.9]
Parts

A
B
C
D
E
F
G
H

8 9 10 11 12

x
x

x
x

x
x
x

x
x

12

10
3

9
8

x
x

6
5

x
x x
x

Assembly

Machines
4 5 6 7

11
Raw materials

Assembly

Parts

Machines
8 10 3 6

A
D
F
C
G
B
H
E

x
x
x

x
x

x
x
x

x x
x x
x

9 5

7 11 12

10

12
11

x
x

x
x

x
x

Cell 2

Cell 3
7

x
x

Cell 1

x
x

x
x

x
x
x
x

A B C
Raw materials

Advantages/Disadvantages of Cellular
Layout

Advantages
Reduced material
handling and transit
time
Reduced setup time
Reduced work-inprocess inventory
Better use of human
resources
Easier to control
Easier to automate

Disadvantages
Inadequate part families
Poorly balanced cells
Expanded training
and scheduling
of workers
Increased capital
investment

Objective of CM

Identify machine cells and part families

simultaneously
Allocate part families to machine cells in a
way that minimizes the intercellular
movement of parts.

CM Concept in Layout

Develop the layout of machines within the

cells so as to minimize inter- and intracellular
material-handling costs.

A GT Cell

Machine 2
Machine 3
Machine 1

Materials in

Finished
goods out
Machine 4
Machine 5

Group Technology and

Cellular Manufacturing

Group technology (GT)

A management philosophy that attempts to group

products with similar design or manufacturing
characteristics, or both.

Cellular manufacturing (CM)

An application of GT that involves grouping

machines based on the parts manufactured.

Traditional Job Shop vs CM

Job shop environment

Machines are grouped on the basis of their

functional similarities

CM environment

Machines are grouped into cells, with each cell

dedicated to the manufacture of a specific part
family

Clustering Approach

Attempt to uncover and display similar

clusters or groups in an input object-object or
object-attribute data matrix.
Rearrange rows and column of the input
matrix typically a binary matrix that
determines whether or not a part is
processed on a particular machine (i.e., a
block diagonal is identified)
Use process plan or part routing information

Arrangement of Cells in
a Job Shop Environment

BM = broaching machine
DM = drilling machine
TM = turning machine
VMM = vertical milling machine
Routing of parts P1, P3, P9
Routing of parts P2, P4, P7, P8
Routing of parts P5, P6, P10

TM

TM

DM

DM

TM

TM

DM

DM

VMM

VMM

BM

BM

Arrangement of Cells
in a CM System
TM

BM = broaching machine
DM = drilling machine
TM = turning machine
VMM = vertical milling machine

DM

VMM

TM

BM

DM

BM

DM

VMM

TM

TM

Routing of parts P1, P3, P9

Routing of parts P2, P4, P7, P8
Routing of parts P5, P6, P10

DM

Sample Part-Machine
Processing Indicator Matrix
Machine

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

P1

P2

P3

P4

P5

P6

Rearranged Processing
Indicator Matrix
Machine

[aij ]

P
a
r
t

M1

M4

M6

M2

M3

M5

M7

P1

P3

P2

P4

P5

P6

Case of Exceptional Parts

The rows (parts) corresponding to the 1s that

lie outside the diagonal block.
When exceptional parts are removed, a block
diagonal structure is easily identified.
If it is wanted that cells are completely
independent with no intercellular movement
of material, exceptional parts must be
subcontracted out.

Processing Indicator Matrix

(Case of Exceptional Parts)
Exceptional part

[aij ]

P
a
r
t

Machine
M1

M4

M6

M2

M3

M5

M7

P1

P3

P2

P4

P5

P6

Input Matrix

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

P1

P2

P3

P4

P5

P6

Common Clustering
Algorithms

Rank order clustering

Bond energy algorithm
Row and column masking
Similarity coefficient
Mathematical programming approach

Rank Order Clustering (ROC)

Algorithm

ROC algorithm:

Determine a binary value for each row and

column
Rearrange the rows and columns in descending
order of their binary values
Identify clusters.

Steps of ROC Algorithm

Step 1:
Assign binary weight BWj = 2m-j to each
column j of the part-machine processing
indicator matrix.
Step 2:
Determine the decimal equivalent DE of the
binary value of each row i using the formula
m

DEi 2 m j aij
j 1

Steps of ROC Algorithm

Step 3:
Rank the rows in decreasing order of their DE
values. Break ties arbitrarily. Rearrange the rows
based on this ranking. If no rearrangement is
necessary, stop; otherwise go to step 4.
Step 4:
For each rearranged row of the matrix, assign binary
weight BWi = 2n-i.

Steps of ROC Algorithm

Step 5:
Determine the decimal equivalent DE of the
binary value of each column j using the formula
n

DE j 2 n i aij
i 1

Step 6:
Rank the columns in decreasing order of their DE
values. Break ties arbitrarily. Rearrange the
columns based on this ranking. If no
rearrangement is necessary, stop; otherwise go
to step 1.

Example
Part-machine processing indicator
matrix

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

P1

P2

P3

P4

P5

P6

Step 1:
Assign binary weight (BW) to each column
j of the part-machine processing indicator
matrix
Binary Weight

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

64

32

16

P1

P2

P3

P4

P5

P6

Step 2:
Determine the decimal equivalent (DE) of
the binary value for each row i

Binary Weight

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

Binary Value

64

32

16

P1

74

P2

52

P3

10

P4

48

P5

17

P6

37

Step 3:
Rank the row in decreasing order of their
DE value and rearrange them based on
this ranking

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

P1

P2

P4

P6

P5

P3

Step 4:
Assign binary weight (BW) to each row i

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

Binary Weight

P1

32

P2

16

P4

P6

P5

P3

Step 5:
Determine the decimal equivalent (DE) of
the binary value for each column j
M1

M2

M3

M4

M5

M6

M7

32

28

26

33

20

33

P1

32

P2

16

P4

P6

P5

P3

Binary Value

[aij ]

P
a
r
t

Binary Weight

Step 6:
Rank the column in decreasing order of
their DE value and rearrange them based
on this ranking (Break ties arbitrarily).

[aij ]

P
a
r
t

M4

M6

M1

M2

M3

M5

M7

P1

P2

P4

P6

P5

P3

Step 1:
Assign binary weight (BW) to each column
j
M4

M6

M1

M2

M3

M5

M7

64

32

16

P1

P2

P4

P6

P5

P3

Binary Weight

[aij ]

P
a
r
t

Step 2:
Determine the decimal equivalent (DE) of
the binary value for each row i
M4

M6

M1

M2

M3

M5

M7

64

32

16

P1

112

P2

14

P4

12

P6

11

P5

P3

96

Binary Weight

[aij ]

P
a
r
t

Binary Value

Step 3:
Rank the row in decreasing order of their
DE value and rearrange them based on
this ranking

[aij ]

P
a
r
t

M4

M6

M1

M2

M3

M5

M7

P1

P3

P2

P4

P6

P5

Step 4:
Assign binary weight (BW) to each row i

[aij ]

P
a
r
t

M4

M6

M1

M2

M3

M5

M7

Binary Weight

P1

32

P3

16

P2

P4

P6

P5

Step 5:
Determine the decimal equivalent (DE) of
the binary value for each column j
M4

M6

M1

M2

M3

M5

M7

48

48

32

14

13

10

P1

32

P3

16

P2

P4

P6

P5

Binary Value

[aij ]

P
a
r
t

Binary Weight

Row and Column Masking

(R&CM Algorithm)

This clustering algorithm begins from any

arbitrarily selected row and masks all column
that have a 1 entry in that row.
It then masks all row with 1 entries in the
masked column.
This procedure continues until it is not
possible to go to new unmasked rows or
column and then a cluster of machines and
corresponding part families is formed.

R&CM Algorithm

A major disadvantage of this algorithm is that

when the matrix contains one or more
bottleneck machines or exceptional part, the
algorithm may provide a solution with all the
machines in a cell and all the parts in a
corresponding part family!

R&CM Algorithm
The R&CM algorithm:
Step 1: Draw a horizontal line through the first
row. Select any 1 entry in the matrix trough
which there is only one line.
Step 2: If the entry has a horizontal line go to
step 2a. If entry has a vertical line go to step
2b.
Step 2a: Draw a vertical line through the
column in which this 1 entry appears. Go to
step 3.

R&CM Algorithm
Step 2b: Draw a horizontal line through the row
in which this 1 entry appears. Go to step 3.
Step 3: If there any 1 entries with only one line
through them, select any one and go to step 2.
Repeat until there are no such entries left.
Identify the corresponding machine cell and
part family. Go to step 4.
Step 4: Select any row through which there is no
line. If there are no such row, stop. Other wise,
draw horizontal line trough this row, select any
1 entry in the matrix through which there is only
one line, and go to step 2.

Example
Part-machine processing indicator
matrix

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

P1

P2

P3

P4

P5

P6

1
5

Example
Part-machine processing indicator
matrix

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

P1

P2

P3

P4

P5

P6

1
5
8
6

M1, M4, and M6 are in cell 1

M2, M3, M5, and M7 are in cell 2

Similarity Coefficient (SC)

Algorithm

SC algorithms are derived from numeric

taxonomy and attempt to measure the
similarity coefficient (SC) between pair of
machines or parts.
Most of SC algorithms use the Jaccard
similarity coefficient.
For a pair of machines, the Jaccard coefficient
is defined as the number of parts that visit
both machines divided by the number of parts
that visit at least one machines

Similarity Coefficient
The

Jaccard coefficient:n
sij

k 1

k 1

ki

ki kj

akj aki akj

where aij = 1 if part k requires processing on

machine i, aij = 0 otherwise.

Example
Part-machine processing indicator
matrix

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

P1

P2

P3

P4

P5

P6

SC values for machine

pairs
Using a threshold value
of 0.66, combine machines
{2, 5} and {4, 6} into
separate cells.

SC values in the second iteration

Using a threshold value

of 0.5, combine machines
{1, 4, 6} and {2, 3, 5} into
two cells, respectively

max SC( 2,3) , SC(5,3)

SC values in the third iteration

Using a threshold value

of 0.33, combine machines
{2, 3, 5, 7} into one cell

SC values in the fourth iteration

Using a threshold value

of 0.01, no further combining of cells is posible
A solution with two cells is obtained;
cell 1 consists of machines 1, 4 and 6.
cell 2 consists of machines 2, 3, 5 and 7

Dendogram

Mathematical
Programming Approach

A mathematical programming model to

identify part families.

p-median model

Mathematical
Programming Approach

The Jaccard coefficient (see below)

measures the (processing) similarity of parts:
n

sij

a
a

k 1

k 1

ki

ki kj

akj aki akj

where aij = 1 if part k requires processing on

machine i, aij = 0 otherwise.

Mathematical
Programming Approach

The weighted Minkowski metric measures the

dissimilarity (for parts)

d ij

k 1

1/ r

aki akj

where:
i,j: index for parts
r = a positive integer
wk = the weight for machine k

Mathematical
Programming Approach

If wk = 1 for k = 1, , n the Minkowski

metric.
For the Minkowski metric (i.e, wk = 1, k)
r = 1 the absolute Minkowski metric
r = 2 the Euclidean metric

p-Median Model
Using the absolute Minkowski metric:
n

Minimize

i 1 j 1

Subject to

x
j 1
n

ij

x
j 1

jj

(1)

ij ij

1, i 1,2, , n

(2)

(3)

xij x jj , i 1,2, , n; j 1,2, , n

(4)

xij 0,1 , i 1,2, , n; j 1,2, , n (5)

p-Median Model

P = a parameter that represents the number

of part families desired.
xij = a decision variable that takes on 0 or 1
integer values only (i.e., xij = 1 indicates that
part i belongs to part family j, xij = 0
otherwise) [Constraint (5)].

p-Median Model

Constraint (5) ensures that each part belongs to one

part family only.
Constraint (6) specifies the desired number of
families.
Constraint (7) guarantees that part i is assigned to
part family j only when this family is formed.
If xjj = 0 for some j, then this part family j is not formed, so
due to constraint (7), no other part i can be assigned to it.

The objective function (1) minimizes the overall

dissimilarities of parts.

Example
Part-machine processing indicator
matrix

[aij ]

P
a
r
t

M1

M2

M3

M4

M5

M6

M7

P1

P2

P3

P4

P5

P6

Dissimilarities Coefficient Matrix

(using the absolute Minkowski metruuc)

Optimal Solution

Solution

Solution: two part families

PF1 = {1, 3}
PF2 = {2, 4, 5, 6}

From part-machine processing indicator matrix,

machine cells can be identified:
MC1 = {1, 4, 6}
MC2 = {2, 3, 5, 7}