Cellular Manufacturing (Layout)

Cellular manufacturing is a manufacturing process that produces families of parts within a single line or cell of machines operated by machinists who work only within the line or cell. A cell is a small scale, clearly-defined production unit within a larger factory. This unit has complete responsibility for producing a family of like parts or a product. All necessary machines and manpower are contained within this cell, thus giving it a degree of operational autonomy. Each worker is expected to have mastered a full range of operating skills required by his or her cell. Therefore, systematic job rotation and training are necessary conditions for effective cell development. Complete worker training is needed to ensure that flexible worker assignments can be fulfilled.
Cellular manufacturing is a hybrid system that links the advantages of a job shop with the product layout of the continuous flow line. The cell design provides for quick and efficient flow, and the high productivity associated with assembly lines. However, it also provides the flexibility of the job shop, allowing both similar and diverse products to be added to the line without slowing the process. Figures 1 and 2 compares a cellular layout to that of the typical job shop (process layout). 
Figure 1 Process Layout
Figure 1 Process Layout 
Figure 2 Cellular Layout
Figure 2 Cellular Layout

Benefits of Cellular Layout
Many firms utilizing cellular manufacturing have reported near immediate improvements in performance, with only relatively minor adverse effects. Cited improvements which seem to have occurred fairly quickly include reductions in work-in-process, finished goods, lead time, late orders, scrap, direct labor, and workspace.
In particular, production and quality control is enhanced. By breaking the factory into small, homogeneous and cohesive productive units, production and quality control is made easier. Cells that are not performing according to volume and quality targets can be easily isolated, since the parts/products affected can be traced to a single cell. Also, because the productive units are small, the search for the root of problems is made easier.
Below table compares cellular and functional layouts along 13 key dimensions. It is typical of the improvements possible with this approach. Cells negate many of the tradeoffs of conventional manufacturing approaches.

Key Element
Functional
Cellular
Inter-department Moves
Many
Few
Travel Distance
500'-4000'
100'-400'
Route Structure
Variable
Fixed
Queues
12-30
3-5
Throughput Time
Weeks
Hours
Response Time
Weeks
Hours
Inventory Turns
3-10
15-60
Supervision
Difficult
Easy
Teamwork
Inhibits
Enhances
Quality Feedback
Days
Minutes
Skill Range
Narrow
Broad
Scheduling
Complex
Simple
Equipment Utilization
85%-95%
70%-80%


An Example

A firm that assembles air-handling products faced high inventories and erratic delivery. They originally assembled units on a traditional line. Long setups and logistics required long production runs. Often, they pulled products from finished goods and rebuilt them for custom orders.
We built twelve small (1-3 person) assembly workcells that were always set up and ready. People worked in different cells each day and assembled to customer order. Finished Goods Inventory dropped by 96%. Lead-time was 24 hours. Productivity improved by 20%-30%.