Cellular Manufacturing

4C must be present in cells to achieve self-generating continuous improvement in cost, quality and delivery.

Cellular manufacturing is widely accepted. The trend is towards product focused cells equipped with all the machines, controls, people and support needed to make a finished product, sub-assembly or component. Payment schemes, incentives, performance measures and accountability are also aligned with the requirements of a responsive business, rather than with the traditional functional organisation with incentives orientated towards maximising process output whether needed or not.

The objective of cellular manufacturing is to create and maintain a small business culture in which the cell is seen as the only place where real work is done. We believe that there are four dimensions to cell manufacture. They are interdependent and together they set in motion a continuous, self-generating spiral of improvement. Each must be tackled consecutively in order to reap the benefits of getting cell-manufacturing right.

People - The readitional approach of trying to improve cost, quality and lead time by regrouping machines or processes is being overtaken by attention to the people issues. Most companies that have implemented cells suggest that people issue to be an important factor for success. They suggest gaining commitment at all level as a key task. In fact, the most successful companies made significant more investment in communication and training.b

Engineering - Everything that happens in a cell can be considered as one operation. All process are physically located in one area and managed as a single entity. Inputs to the cell are work instructions, and workable work with all materials, tools and specifications. The cell's output is a completed component, assembly, or product. Teaming between cell leaders and the specialist quality, production, and mainte nance engineers supporting them enables all processes to be physically located closer together and quickly highlights areas which need attention. Most companies which have implemented cells have seen improvements in distance traveled, number of times handled, productivity, quality and changeover times, and in many cases these are judged to be significant.

Logistics and Control - Each cell is both a supplier and a customer to other cells or functions. Cell team members need to recognise this and develop ways of working with their suppliers to give their customers satisfaction. Most companies achieve a lead time reduction of up to 25%, and some reduce lead-time by more 50%. Reductions in work in progress and inventory are equally impressive. It is important to break down any remaining barriers between functions. For example, reductions in manufacturing lead time achieved by the application of cell manufacturer need to be matched in other areas of the business, such as sales and marketing, product design, and procurement.

Accountability for Performance - Most companies who have implemented cells suggest that traditional performance measures are inadequate. They have moved from measuring standard cost variance, direct labour utilisation, and overhead recovery. They now favour more meaningful reports geared towards customers’ drivers, for example:

Percentage achievement of plan

Throughput time

WIP and inventory levels

Percentage quality performance

The inclusion of support activities within the cell, often being undertaken by the operators, enables accountability to be clearly defined. Material movements and inspection are the most common inclusion, although some cells have incorporated tool management and production control. Flexibility is the key to successful cells. Not only must the operators be willing to be flexible but all concerned must be flexible in their attitude and approach. 

By Paul Simon          Enterprise Change Consultant

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