Cellular manufacturing is an approach that helps build a variety of products with as little waste as possible. Equipment and workstations are arranged in a sequence that supports a smooth flow of materials and components through the process, with minimal transport or delay.

• A cell consists of the people and the machines or workstations required for performing the steps in a process or process segment, with the machines arranged in the processing sequence.
  
  
• Arranging people and equipment into cells helps companies achieve two important goals of lean manufacturing ­ one-piece flow and high-variety production.
  • One Piece Flow: One-piece flow is the state that exists when products move through a process one unit at a time, at a rate determined by the needs of the customer. The goals of one-piece flow are to make one part at a time all the time, without unplanned interruptions, and to achieve this without lengthy queue times.
    
    
  • High-Variety Production: Given the fact that customers expect variety and customization, as well as specific quantities delivered at a specific time, it is necessary to remain flexible enough to serve their needs. Cellular manufacturing offers companies the flexibility to give customers the variety they want. It does this by grouping similar products into families that can be processed on the same equipment in the same sequence. It also encourages companies to shorten the time required for changeover between products. This eliminates a major reason for making products in large lots ­ that changeovers take too long to change the product type frequently.

• Converting a factory to cellular manufacturing means eliminating waste from processes as well as from operations.
  
  
• Cellular manufacturing can help make your company more competitive by cutting out costly transport and delay, shortening the production lead time, saving factory space that can be used for other value-adding purposes, and promoting continuous improvement by forcing the company to address problems that block low-inventory production.
  
  
• Cellular manufacturing helps employees by strengthening the company's competitiveness, which helps support job security. It also makes daily production work go smoother by removing the clutter of WIP inventory, reducing transport and handling, reducing the walking required, and addressing causes of defects and machine problems.
  • Common benefits associated with cellular manufacturing include:
    • WIP reduction
    • Space utilization
    • Lead time reduction
    • Productivity improvement
    • Quality improvement
    • Enhanced teamwork and communication
    • Enhanced flexibility and visibility