Design Considerations of Automated Guided Vehicle Systems in a Cellular Manufacturing Environment

Describes a company‐based PhD project into the use of automated guided vehicles in a small‐batch manufacturing environment. The project led to a balanced‐cell methodology to facilitate the use of guided vehicles in a difficult environment. The methodology itself was found to provide benefits for material flow. Having formulated the above approach, a theoretical model is presented, analysing the operational effects of improved workflow. The above theoretical analysis showed the potential benefits of balanced cells on the factory floor, and these were confirmed by a simulation study. This being so, a DCF analysis showed that balanced cells enabled the economic use of guided vehicle systems in multi‐product batch manufacture, by transforming an AGV project from a negative to a positive net present value. An analysis of the wider effects of cellular manufacture enabled the value of the investment to be increased.