Management of product variety in cellular manufacturing systems

In today's markets, non-uniform, customized products complicate the manufacturing processes significantly. In this paper, we propose a cellular manufacturing system design model to manage product variety by integrating with the technology selection decision. The proposed model determines the product families and machine groups while deciding the technology of each cell individually. Hedging against changing market dynamics leads us to the use of flexible machining systems and dedicated manufacturing systems at the same facility. In order to integrate the market characteristics in our model, we proposed a new cost function. Further, we modified a well known similarity measure in order to handle the operational capability of the available technology. In the paper, our hybrid technology approach is presented via a multi-objective mathematical model. A filtered-beam based local search heuristic is proposed to solve the problem efficiently. We compare the proposed approach with a dedicated technology model and showed that the improvement with the proposed hybrid technology approach is greater than 100% in unstable markets requiring high product varieties, regardless of the volumes of the products.