Cellular Manufacturing is a model for workplace design, and is an integral part of lean manufacturing systems. The goal of lean manufacturing is the aggressive minimisation of waste, called muda, to achieve maximum efficiency of resources. Cellular manufacturing, sometimes called cellular or cell production, arranges factory floor labor into semi-autonomous and multi-skilled teams, or work cells, who manufacture complete products or complex components. Properly trained and implemented cells are more flexible and responsive than the traditional mass-production line, and can manage processes, defects, scheduling, equipment maintenance, and other manufacturing issues more efficiently.
Cellular manufacturing is a fairly new application of group technology, although the Portsmouth Block Mills offers what by definition constitutes an early example of cellular manufacturing. By 1808, using machinery designed by Marc Isambard Brunel and constructed by Henry Maudslay, the Block Mills were producting 130,000 blocks (pulleys) for the Royal Navy per year in single unit lots, with 10 men operating 42 machines arranged in three production flow lines. This installation apparently reduced manpower requirements by 90% (from 110 to 10), reduced cost substantially and greatly improved block consistency and quality. Group Technology is a management strategy with long term goals of staying in business, growing, and making profits. Companies are under relentless pressure to reduce costs while meeting the high quality expectations of the customer to maintain a competitive advantage. Successfully implementing Cellular manufacturing allows companies to achieve cost savings and quality improvements, especially when combined with the other aspects of lean manufacturing. Cell manufacturing systems are currently used to manufacture anything from hydraulic and engine pumps used in aircraft to plastic packaging components made using injection molding.
The goal of cellular manufacturing is having the flexibility to produce a high variety of low demand products, while maintaining the high productivity of large scale production. Cell designers achieve this through modularity in both process design and product design.
In combination, each modular part is designed for a particular work cell, or dedicated clusters of machines or manufacturing processes. Cells are usually bigger than typical conventional workstations, but smaller than a complete conventional department. After conversion, a cellular manufacturing layout usually requires less floor space as a result of the optimized production processes. Each cell is responsible for its own internal control of quality, scheduling, ordering, and record keeping. The idea is to place the responsibility of these tasks on those who are most familiar with the situation and most able to quickly fix any problems. The middle management no longer has to monitor the outputs and interrelationships of every single worker, and instead only has to monitor a smaller number of work cells and the flow of materials between them, often achieved using a system of kanbans.
The hard issues are a matter of design and investment. The entire factory floor is rearranged, and equipment is modified or replaced to enable cell manufacturing. The costs of work stoppages during implementation can be considerable, and lean manufacturing literature recommend that implementation should be phased to minimize the impacts of such disruptions as much as possible. The rearrangement of equipment (which is sometimes bolted to the floor or built into the factory building) or the replacement of equipment that is not flexible or reliable enough for cell manufacturing also pose considerable costs, although it may be justified as the upgrading obsolete equipment. In both cases, the costs have to be justified by the cost savings that can be realistically expected from the more flexible cell manufacturing system being introduced, and miscalculations can be disastrous.
The soft issues are more difficult to calculate and control. The implementation of cell manufacturing often involves employee training and the redefinition and reassignment of jobs. Each of the workers in each cell should ideally be able to complete the entire range of tasks required from that cell, and often this means being more multi-skilled than they were previously. In addition, cells are expected to be self-managing (to some extent), and therefore workers will have to learn the tools and strategies for effective teamwork and management, tasks that workers in conventional factory environments are entirely unused to. At the other end of the spectrum, the management will also find their jobs redefined, as they must take a more "hands-off" approach to allow work cells to effectively self-manage. Instead, they must learn to perform a more oversight and support role, maintaining a system where work cells self-optimize through supplier-input-process-output-customer (SIPOC) relationships. These soft issues, while difficult to pin down, pose a considerable challenge for cell manufacturing implementation; a factory with a cell manufacturing layout but without cell manufacturing workers and managers is unlikely to achieve the cell manufacturing benefits.
Part movement, set-up time, and wait time between operations are reduced, resulting in a reduction of work in progress inventory freeing idle capital that can be better utilized elsewhere. Cellular manufacturing, in combination with the other lean manufacturing and just-in-time processes, also helps eliminate overproduction by only producing items when they are needed. The results are cost savings and the better control of operations.
There are some costs of implementing cellular manufacturing, however, in addition to the set-up costs of equipment and stoppages noted above. Sometimes different work cells can require the same machines and tools, possibly resulting in duplication causing a higher investment of equipment and lowered machine utilization. However, this is a matter of optimization and can be addressed through process design.