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The formation of machine‐part families is an important task in the design of cellular and flexible manufacturing systems. The formation results in the creation of many benefits for manufacturing systems. Among the many methods utilized in machine‐cells formation, the similarity coefficient method (SCM) is most widely used. When SCM is used, the rearrangement of machine and part components is required to form machine‐part families. This process of rearrangement has been considered as being subjective and difficult and may result in improper assignments to parts families, resulting in a negation of benefits promised. This paper presents an effective algorithm to identify part‐families and bottleneck‐parts, given machine groupings, rather than addressing the machine grouping problem in general.

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