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Purpose

The purpose of this paper is to present an application of cellular manufacturing techniques and the evaluation of alternative production scenarios.

Design/methodology/approach

Advanced techniques were implemented in the production process of a company and then the efficiency of the effected changes on its operation were evaluated. Group technology was adopted as the (re)organization tool of its production. Indices concerning the performance of the system were identified using “real world” production results and statistical data. The operational characteristics of 12 alternative production scenarios were evaluated using the cellular manufacturing approach. The behavior of the manufacturing system as a whole, for each one of the different scenarios, was investigated using the discrete events simulation technique for a period of two years. Finally, data envelopment analysis was employed to evaluate the efficiency of each scenario.

Findings

Results indicated that more than one of these scenarios could be efficient, while significant improvements can be achieved without actually changing the basic production parameters.

Practical implications

The proposed procedure was implemented in a company from the cosmetics industry.

Originality/value

The paper presents a successful application of cellular manufacturing techniques together with the evaluation of alternative production scenarios.

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