An Empirically‐based Simulation Study of Functional versus Cellular Layouts with Operations Overlapping

Cellular and functional layouts were investigated under a variety of real‐world conditions via a two‐stage computer simulation study. In the first stage, simulation models were developed for three actual companies. Six different cell formation procedures were used to develop the cellular layouts and CRAFT was used to develop the functional layout. The following six variables were used to measure shop performance: average flow time, maximum flow time, average distance travelled by a batch, average work‐in‐process level, the maximum level of work‐in‐process, and the longest average queue. Factors observed in the first stage of the study that appear to make cellular manufacturing less beneficial than might otherwise be expected were found to be small batch sizes, a small number of different machines the parts require in their processing, short processing times per part, the existence of bottleneck machines (i.e. machines with insufficient capacity), and the absence of natural part families (i.e. sets of parts with similar processing requirements). In the second stage of this study, earlier assumptions associated with sequence‐dependent setup times and move time delays were relaxed. These two parameters were identified as important factors as well.