Integrated Systems Management

CT068-M-ISM

Cellular Manufacture

MSc in Information Technology Management

MSc in Technology Management
 Topic and Structure of Lesson

Cellular Manufacture
• Objective
• Definition
• Product Criteria
• Planning
• Developing the cell layout
• Pareto analysis
• Benefits
• Success Constraints

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 Learning Outcomes

By the end of this lecture, you should be able to:

• Define cellular manufacture
• Define cell
• Relate layout, process and capacity planning
• Evaluate problems using Pareto Analysis
• Critically appraise benefits of cellular manufacture
• Analyse the constraints on the success of cellular
manufacture

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 Objectives

• Minimise material flow

• Simplify material flow

• Maximise communications

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 Cellular Manufacture – Key Features

• Product oriented

• Autonomous “small business”

approach

• Simplification

• Flexibility

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 Cellular Manufacture requires changes
to:
• Factory layout

• Production control system

• Organisation structure

• Manpower flexibility

• Cost accounting systems

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 Cellular Manufacture prerequisites:

• Clearly defined product strategy

• Clearly defined process strategy

• Resources for feasibility study,

implementation and training

• Senior management commitment to change

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 Cellular Manufacture - Definition

• A cell is a near self-contained small

business unit within the overall
manufacturing organisation

• It focuses on the manufacture of a family of

similar products

• Work flow is as simple as possible

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 Product Criteria for Cell Definition

• Common process route

• Material
• Special processes
• Size
• Shape
• Function
• Customer
• Demand
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 Cell Definition

• Product based strategy –

Benefits:
 Ownership and accountability
 Monitoring and control
 Flexibility and responsiveness
 Customer/supplier relationship
 Focused support services
 Effectiveness

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 Cell Definition

• Product based strategy –

Concerns:
 Sensitivity to volume changes
 Sensitivity to technology changes
 Duplication of resources
 Efficiency

USED FOR COMPETITIVE ADVANTAGE

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 Layout, Process and Capacity
Planning are interrelated

PROCESS CAPACITY
PLANNING PLANNING

LAYOUT
PLANNING

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 Planning for Flow

• Minimise number of product families

and process
• Avoid backtracking
• Consider dedicating multiple
resources
• Use extra resources if necessary, to
improve flow
• Revise process plans of low volume
parts to suit layout
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 Space is required for:

• Production machines
• Support processes
• Inspection and test
• Material handling
• Work in progress buffers
• Tool storage
• Passageways
• Maintenance access
• Offices
• Rest areas
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 Developing the Cell Layout

• Rank families in Pareto volume order

• Plan process layout for highest volume family
• Add resources for second largest family
• Repeat previous step for remaining families
• Stop at 20% families / 80% volume level
• Compare resources required and available
• Replan as required
• Adjust to minimise backtracking for other
families

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 Pareto Analysis

• To identify which problems we should address

as a priority
• Also known as 80/20 rule
• Find the important few and eliminate the trivial
many causes of problems
100%

TRIVIAL 80%
MANY

20%

IMPORTANT
FEW
0%
CAUSES PROBLEMS
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 Cellular Manufacture Benefits

• Increased competitiveness through:

• Reduced product lead time
• Reduced WIP inventory
• Reduced non-conformance
• Reduced surplus production and
obsolescence
• Reduced overheads
• Improved productivity

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 Constraints on Success

• Lack of management and operator

commitment

• Lack of planning

• Lack of resources

• Lack of training

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 Quick Review Question

Discuss using an example of a manufacturing

or services based organisations that apply
the cellular manufacture concept.

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 Follow-up Assignment

Using the 80/20 rule of Pareto analysis

evaluate the problems faced in the case
study assigned to you.

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 Summary of Main Teaching Points

Cellular Manufacture
• Objective
• Definition
• Product Criteria
• Planning
• Developing the cell layout
• Pareto analysis
• Benefits
• Success Constraints

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 Next Lesson

JIT (Just-In-Time)
• Philosophy
• Elements
• Goals
– Zero defects
– Zero inventories
– Zero setup times
– Zero lead time
– Zero parts handling
• Definition of waste

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 Next Lesson

JIT (Just-In-Time)
• Manufacturing techniques supporting JIT
• The Traditional Push system
• The Pull system
• The Kanban system
• JIT “Pull” system

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 Question and Answer Session

Q&A

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