DESIGN AND IMPLEMENTATION OF CELLULAR MANUFACTURINGIN A JOB SHOP ENVIRONMENTbyLiana María Alvarez LópezB.S., Naval Architecture and Marine Engineering, Massachusetts Institute of Technology, 1987M.S., Naval Architecture and Marine Engineering, Massachusetts Institute of Technology, 1993Submitted to the Sloan School of Management and theDepartment of Mechanical Engineeringin Partial Fulfillment of the Requirements for the Degrees ofMaster of Business AdministrationandMaster of Science in Mechanical Engineeringin Conjunction with theLeaders for Manufacturing Programat theMassachusetts Institute of TechnologyMay 1997 1997 Massachusetts Institute of TechnologySignature of Author Sloan School of ManagementDepartment of Mechanical EngineeringMay 23, 1997Certified by Professor Eugene E. Covert, Thesis AdvisorDepartment of Aeronautics and AstronauticsCertified by Professor Stephen C. Graves, Thesis AdvisorSloan School of ManagementAccepted by Professor Ain Sonin, Chairman, Graduate CommitteeDepartment of Mechanical EngineeringCertified by Larry Abeln, Director of Master’s ProgramSloan School of Management23Design and Implementation of Cellular Manufacturingin a Job Shop EnvironmentbyLiana María Alvarez LópezSubmitted to the Sloan School of Management and theDepartment of Mechanical Engineeringin Partial Fulfillment of the Requirements for the Degrees ofMaster of Business AdministrationandMaster of Science in Mechanical EngineeringAbstractThe thesis proposes a method for introducing cellular manufacturing in an operating job shop. Byapplying cellular manufacturing to produce part families with similar manufacturing processes andstable demand, plants expect to reduce costs and lead-times and improve quality and deliveryperformance. The thesis outlines a method for assessing, designing, and implementing cellularmanufacturing, and illustrates this process with an example. A manufacturing cell that producesaluminum parts for commercial customers is implemented at Boeing’s Defense and Space GroupMachining Center. The conclusions of the thesis highlight the key lessons learned from thisprocess.Thesis Advisors:Professor Eugene E. Covert, Department of Aeronautics and AstronauticsProfessor Stephen C. Graves, Sloan School of Management45AcknowledgmentsThe author gratefully acknowledges the support and resources made available to her through theMIT Leaders For Manufacturing Program, a partnership between MIT and major U.S.manufacturing companies.I would like to express my sincere thanks to Al Koszarek and all those at Boeing who helped andencouraged me through my internship, and made the “cell” come true.The author is also grateful to her thesis supervisors, Prof. Graves and Prof. Covert, for theirguidance through the internship and thesis process.To my classmates and friends at MIT and away, thank you for being there for me, I could nothave done it without you. Last but certainly not least, I thank my parents, my sister and Michaelfor their love and strength, the surest signs of God’s kindness.67Table of Contents1. Introduction .........................................................................................................................111.1 Linking Boeing’s Defense and Space Group Business and Manufacturing Strategies...............111.2 Background on the Machining Center .......................................................................................141.2.1 Customers.......................................................................................................................................... 161.2.2 Business Process Flow........................................................................................................................ 191.2.3 Capacity Planning Systems ................................................................................................................ 201.2.4 Metrics............................................................................................................................................... 231.2.5 Current Situation ............................................................................................................................... 241.3 Goal of Project ...........................................................................................................................252. Assessment of Cellular Manufacturing................................................................................262.1 Product-Process Matrix .............................................................................................................262.2 Functional and Product Flow Layouts: Benefits and Limitations..............................................272.3 Cellular Manufacturing: Benefits and Limitations.....................................................................292.4 Is There a Match?......................................................................................................................302.5 Cell Design and Implementation Process ...................................................................................313. Cell Planning Phase ............................................................................................................363.1 Assessment .................................................................................................................................363.2 Assessment at the Machining Center .........................................................................................383.2.1 Machining Center’s Current Situation................................................................................................ 393.2.2 Why a Cell at the Machining Center?................................................................................................. 403.3 Design.........................................................................................................................................413.3.1 Assemble Leadership Team................................................................................................................ 423.3.2 Identify Feasible Part Families ........................................................................................................... 433.3.3 Design Cell Process............................................................................................................................ 453.3.4 Launch the Performance Analysis