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Cellular manufacturing is a production strategy that aims to create efficient work cells, each consisting of a limited number of machines and workstations that are dedicated to a family of products or processes. The main goal of cellular manufacturing is to reduce lead times, increase productivity, and improve product total quality management excellence by organizing work in a manner that minimizes waste and optimizes workflow.

The manufacturing system approach is often credited to a renowned production expert who is considered one of the key architects of the Toyota Production System. Ohno's idea was to create a "station" or "cell" that was capable of producing a specific product or family of products, where all the necessary machines and workstations are located in close proximity to each other.

The production process in a cellular manufacturing system is based on a pull system system, where the cell's production rate is adjusted based on customer demand. This approach eliminates the need for a large supply chain and reduces the risk of overproduction, which in turn reduces waste and minimizes lead times.

When designing a cellular manufacturing system, several factors need to be considered, including product flexibility, volume requirements, and the complexity of the production process. A cellular manufacturer must also consider the equipment requirements for the cell, including evaluating the performance of the machines, the capabilities of the workers, and the training requirements for the operators.

Some key characteristics of cellular manufacturing work cells are:

1. Limited in scope.
2. Autonomous, with its own production schedule.
3. Highly effective, machines and workstations are positioned to minimize waste and maximize output.
4. Market-led, production rates are adjusted based on customer demand.
5. Low inventory levels are kept low, as production is pulled through the system.

To establish a successful cellular manufacturing system, companies need to invest in training their employees, as well as improve their skills. This allows the workforce to understand the requirements of the cell-based production method and integrate their expertise seamlessly into the workflow. Team members should possess a range of competencies, one that emphasizes teamwork among cell members in order to maintain peak productivity throughout the production process.

The outcomes of cellular manufacturing include reduced operating expenses, increased output, reduced lead times, improved product performance, and reduced scrapping generation. Overall, cellular manufacturing systems reward companies with increased ROI and a more disciplined approach that equips the production process to respond to changes in consumer requirements by maximizing efficiency.

By combining the employees, facilities, and production processes into a single, efficient cell, cellular manufacturing enables companies to achieve greater efficiency in their operations.