Group Technology
GROUP TECHNOLOGY
A component of CAD that allows for the
cataloging and standardization of parts
and components for complex products.
(Foster, 187)
TWO MAIN TYPES OF GROUP TECHNOLOGY
(GT) SYSTEMS:
• Cellular Manufacturing
• GT Coding and Classification Systems
Cellular Manufacturing
 Placing parts with the same requirements
in a GT cell
 Producing small and more flexible
assembly lines in a production operation
 Manufacturing similar parts in a small area
Group Technology Coding and
Classification Systems
 Assigns codes to different parts based on a
descriptive coding system
 Parts are categorized into groups based on
similar characteristics
 Codes can be used to search for parts in a
Group Technology database
Group Technology Advantages
 Group Technology (GT) has a competitive
advantage:
• The quality of products are improved
• Profits are improved
• Improved customer service
Quality Improvement Advantage
 Operators work with a limited amount of
parts; increasing their skills in these areas.
 Smaller batches lead to smaller amounts of
defective parts.
 Operators detect more mistakes when
working in a small work area.
Improved Profits
• Reducing production costs can lead to
increased profits.
• An increase in the production of parts
• Simplified estimation of costs
Improvements in Customer
Service
•
•
•
•
Shorter Lead Times
Deliveries are more reliable
Easier tracking of the status of an order
Access to a Group Technology database
for salespeople
Group Technology in
Organizations
• Manufacturing organizations
– GT cell layout is most suitable for batch
processes
Group Technology in Batch
Processes
• Offers more flexibility
• Decrease in setup times
• Decline in work-in-process inventories
Offering more flexibility in Batch
Processes
• Reduction in lead time allows for more
flexibility in certain areas
- Areas can include the reaction to
market demand
Decrease in Setup Times
 Group of similar parts in each cell leads to
smaller setup times
Decline in Work-In-Process
Inventories
 Smaller batch sizes allow for less work-in-
process
Example of a corporation using
Group Technology
Harley-Davidson Inc.
• Cell-based cylinder machining resulted
in a 29% reduction in scrap, and
productivity increased 26%
(Frazier, 86)
Exercise
1.
2.
3.
What are the two types of Group Technology Systems?
What assigns codes to different parts based on a
descriptive coding system?
Cellular Manufacturing places what type of parts
together?
-Cellular Manufacturing
- Similar
-Group Technology
Coding &Classification
Systems
-GT Coding & Classification Systems
Summary of Group Technology
 Group Technology (GT) is a component of
CAD (Computer Aided Design).
 Categorizes similar parts in a GT work cell
 There are two main types of GT systems
 GT offers a competitive advantage
 GT cells tend to be more suitable for batch
processes
Bibliography
Foster, Thomas S. Managing Quality: An
Integrative Approach. New Jersey: PrenticeHall, Inc. , 2001.
Frazier, George V. “Achieving Competitive
Advantage Through Group Technology.”
Business Horizons V39 May/June 1996:
83-90.