Grouping and placement of machine cells

We consider a real-world machine grouping and layout problem in which the objective is not only to identify machine cells and corresponding part families but also to determine a near-optimal layout of machines within each cell and the cells themselves. The three-stage approach developed incorporates materials flow considerations while determining machine groups, considers alternative process plans, exploits part routing information and allows the user to perform sensitivity analysis. The menu-driven, interactive program has been applied to four test problems and an industrial problem. Our experience with applying the approach to the industrial problem is also reported.