"Group technology is the technique of identifying and bringing together related or similar parts in a production process in order to utilize the inherent economy of flow production methods." Group Technology layout is also called manufacturing cell layout.
¡ Example:
A plant producing 10,000 part numbers may be able to group the parts into 50 or 60 families. Each family would possess similar design and manufacturing characteristics.
Hence, the processing of each member of a given family would be similar, and this results in manufacturing efficiencies in the form of:
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