Group TechnologyGroup TechnologyBy: Abdul LatheefBy: Abdul Latheef

Oct 23,2010Oct 23,2010

CalicutCalicut

What will be Covered?What will be Covered?

An introduction to group technology.An introduction to group technology. Group technology coding structures.Group technology coding structures. How group technology will help How group technology will help

improve quality.improve quality. The benefits and obstacles for The benefits and obstacles for

managers using group technology.managers using group technology.

IntroductionIntroduction Group technology was introduced by Group technology was introduced by

Frederick Taylor in 1919 as a way to Frederick Taylor in 1919 as a way to improve productivity.improve productivity.

One of long term benefits of group One of long term benefits of group technology is it helps implement a technology is it helps implement a manufacturing strategy aimed at manufacturing strategy aimed at greater automation.greater automation.

What is group technology?What is group technology?

Group technology (GT) is a Group technology (GT) is a manufacturing philosophy that manufacturing philosophy that seeks to improve productivity by seeks to improve productivity by grouping parts and products grouping parts and products with similar characteristics into with similar characteristics into families and forming production families and forming production cells with a group of dissimilar cells with a group of dissimilar machines and processes.machines and processes.

BackgroundBackground

The introduction of GT techniques in: The introduction of GT techniques in: General ElectricGeneral Electric Lockheed Missiles and Space Co.Lockheed Missiles and Space Co. Boeing Boeing

GT viewed as:GT viewed as: An essential step in the move toward An essential step in the move toward

factory automation.factory automation. A necessary step in maintaining a high A necessary step in maintaining a high

quality level and profitable production.quality level and profitable production.

**Brainstorming****Brainstorming**

How can group How can group technology be technology be used in your used in your organization?organization?

Group TechnologyGroup Technology Group technology implementation Group technology implementation

can be broken down into 3 different can be broken down into 3 different phases:phases:

Actions on the manufacturing processActions on the manufacturing process Changes to the production processChanges to the production process Results for the organizationResults for the organization

Examples of the impacts group Examples of the impacts group technology has had on the technology has had on the production process.production process.

Implementation PhasesImplementation PhasesGroup technology Group technology has the following has the following actions on the actions on the manufacturing manufacturing process:process:

Part SimplificationPart Simplification

Process Process StandardizationStandardization

Production ControlProduction Control

Implementation PhasesImplementation Phases

The changes group technologies can The changes group technologies can have on the production process.have on the production process.

Tighter Parts ControlTighter Parts Control

Close physical layout of machine groupsClose physical layout of machine groups

Orderings tied to productionOrderings tied to production

Implementation PhasesImplementation Phases

The results that group technologies The results that group technologies have at the organizational level.have at the organizational level.

Systematic design and redesignSystematic design and redesign

High-quality levelHigh-quality level

Less process planning time and setup timeLess process planning time and setup time

Impacts of Group TechnologyImpacts of Group Technology

Different impacts group technology Different impacts group technology has on the production process:has on the production process:

Reduced purchasing costReduced purchasing cost Less redundant purchases.Less redundant purchases.

Accurate cost estimationAccurate cost estimation A more efficient process A more efficient process

Quicker design changesQuicker design changes Standardized PartsStandardized Parts

Improved customer serviceImproved customer service Classification builds customer relationshipsClassification builds customer relationships

A Classification SchemeA Classification Scheme

Coding Structures for PurchasingCoding Structures for Purchasing GT coding is the process of GT coding is the process of

assigning symbols, numerics, and assigning symbols, numerics, and letters to a particular attribute of a letters to a particular attribute of a particular itemparticular item There are 3 different coding There are 3 different coding

structuresstructures MonocodesMonocodes PolycodesPolycodes Hybrid(mixed-mode) codesHybrid(mixed-mode) codes

Effects of ClassificationEffects of Classification

The automated GT coding The automated GT coding system using bar-code system using bar-code technology can:technology can:

Improve accuracy and productivity in Improve accuracy and productivity in identifying similar purchased itemsidentifying similar purchased items

Facilitate communication between Facilitate communication between the buyer and the vendorthe buyer and the vendor

Improving QualityImproving Quality

The cluster algorithms of Group The cluster algorithms of Group Technology can be classified into Technology can be classified into two major classes.two major classes.

Design-oriented approachDesign-oriented approach Relies on the design features of parts to Relies on the design features of parts to

perform the necessary analysisperform the necessary analysis

Production-oriented approachProduction-oriented approach Based on routing information to group parts Based on routing information to group parts

or machinesor machines

Improving QualityImproving Quality

The production-oriented approach can The production-oriented approach can be divided into two phases:be divided into two phases:

A design phaseA design phase The number of completely new designs can The number of completely new designs can

be kept to a minimumbe kept to a minimum Workers are more familiar with the parts.Workers are more familiar with the parts. Quality can be maintained at a high level by Quality can be maintained at a high level by

using proper designusing proper design A manufacturing phaseA manufacturing phase

The grouping of parts based on similar The grouping of parts based on similar characteristicscharacteristics

Geometric featuresGeometric features Processing RequirementsProcessing Requirements

Implementing a Classification Implementing a Classification SchemeScheme

The three steps of implementing The three steps of implementing Group Technology in the process Group Technology in the process based approach:based approach:

1.1. Analyzing the flow of parts through the Analyzing the flow of parts through the shopshop

2.2. Coding parts and then grouping them into Coding parts and then grouping them into families based on their manufacturing families based on their manufacturing processesprocesses

3.3. Making machine group selections.Making machine group selections.

A Real World ExampleA Real World Example

Using GT to improve quality.Using GT to improve quality. Peony Corporation, in JapanPeony Corporation, in Japan

Currently: Produces television setsCurrently: Produces television sets Problem: Customers requested different Problem: Customers requested different

sizes and functionssizes and functions Challenge: To maintain a high level of quality Challenge: To maintain a high level of quality

due to many new partsdue to many new parts Implementation: At the design phaseImplementation: At the design phase Results: Peony kept the number of parts Results: Peony kept the number of parts

small by increasing part standardization small by increasing part standardization lowered costslowered costs

Managerial BenefitsManagerial Benefits

The Benefits of Group The Benefits of Group Technology Classification:Technology Classification:

1.1. Reduced Purchasing Cost Through Reduced Purchasing Cost Through Volume PurchasingVolume Purchasing Can purchase fewer different items at Can purchase fewer different items at

higher volumeshigher volumes

2.2. Faster Lead TimeFaster Lead Time Can quickly identify the materials or Can quickly identify the materials or

materials neededmaterials needed

3.3. Better Negotiation LeverageBetter Negotiation Leverage Value Analysis Value Analysis

Managerial BenefitsManagerial Benefits

The Benefits of Group Technology The Benefits of Group Technology Classification (cont.):Classification (cont.):

4.4. Accurate Cost EstimationAccurate Cost Estimation Estimate the future price range with a Estimate the future price range with a

standard cost databasestandard cost database

5.5. Quicker Reaction to Design ChangesQuicker Reaction to Design Changes Quickly identify newer material or parts that Quickly identify newer material or parts that

conform to newer designs and conform to newer designs and specificationsspecifications

6.6. Better Communication Between the Buyer Better Communication Between the Buyer and the Supplierand the Supplier Eliminate the human errors with GT Eliminate the human errors with GT

classificationclassification

Potential ObstaclesPotential Obstacles

The Obstacles of Group The Obstacles of Group Technology Classification:Technology Classification:

1.1. Management Resistance to ChangeManagement Resistance to Change Unwilling to devote the time and energyUnwilling to devote the time and energy

2.2. Extensive Data RequirementsExtensive Data Requirements The proper identification needs detailed The proper identification needs detailed

item descriptions item descriptions extensive purchase extensive purchase records/datarecords/data

3.3. High Start-Up CostHigh Start-Up Cost Item characteristics are not available Item characteristics are not available

without the aid of automated information without the aid of automated information storage and retrieval systems which usually storage and retrieval systems which usually incur high expenses until GT is in placeincur high expenses until GT is in place

ExerciseExercise Reflecting back, each person write Reflecting back, each person write

down:down: How group technology can improve your How group technology can improve your

organization?organization? List potential obstacles an organization List potential obstacles an organization

might face when implementing a group might face when implementing a group technology system and explain how each technology system and explain how each obstacle can be overcome?obstacle can be overcome?

How does this exercise relate to your How does this exercise relate to your organization?organization?

Discuss your answers with the group.Discuss your answers with the group.

Exercise DiscussionExercise Discussion

Improvements Group Technology can Improvements Group Technology can make on an organization:make on an organization:

Improve quality levelsImprove quality levels More profitable productionMore profitable production Reduces costsReduces costs

Ways to overcome obstacles an Ways to overcome obstacles an organization might face:organization might face:

Promote the change from within the Promote the change from within the organizationorganization

Properly train the individuals who work with Properly train the individuals who work with the system the system

SummarySummary

There are many benefits and obstacles There are many benefits and obstacles toward the use of group technology toward the use of group technology in an organization.in an organization.

All things considered, GT is viewed as:All things considered, GT is viewed as: An essential step in the move toward An essential step in the move toward

factory automation.factory automation. A necessary step in maintaining a high A necessary step in maintaining a high

quality level and profitable production.quality level and profitable production.

BibliographyBibliography Bourke, Richard and Kempfer, Lisa. Bourke, Richard and Kempfer, Lisa.

“Achieving Success with Mass “Achieving Success with Mass Customization: The Vital Contribution Customization: The Vital Contribution of Engineering.” of Engineering.” Computer – Aided Computer – Aided Engineering.Engineering. (Oct 1999). (Oct 1999).

Ham, Inyoung, Katsundo, Hitomi and Ham, Inyoung, Katsundo, Hitomi and Teruhiko, Yoshida. Teruhiko, Yoshida. Group Group Technology: Application to Technology: Application to Production Management.Production Management. Boston, Boston, MA: Hingham, 1985.MA: Hingham, 1985.

BibliographyBibliography Kroll, Denis and Wang, Xiaoli. “Using Kroll, Denis and Wang, Xiaoli. “Using

group technology to improve quality group technology to improve quality and response time.” and response time.” Industrial Industrial ManagementManagement. (July 1994).. (July 1994).

Manocher, Djassemi. “An efficient Manocher, Djassemi. “An efficient CNC programming approach based CNC programming approach based on group technology.” on group technology.” Journal of Journal of Manufacturing Systems.Manufacturing Systems. (2000). (2000).