With the current emphasis on short product delivery lead times and customized product configurations, there is a need for systems that can quickly assemble small batches of customized product. While some plants are converting their assembly lines to assembly cells to achieve this goal, the reasons for the performance improvement resulting from conversion have not been well documented or understood, making it difficult to know when and where assembly cells are applicable. This research adds to the sparse body of literature in this area by examining the planned conversion of an assembly line to a set of parallel assembly cells in a real plant. Analytical and simulation models are used to explain why the proposed cells are expected to outperform the current assembly line.

During the last several decades productivity improvement measures have received increased recognition as important performance measures. This study analyzes and empirically estimates traditional productivity measures. Using data from sixteen countries, the results of this study indicate that the Hayes and Clark total factor productivity measure [2] is weakly associated with labor and investment in equipment, but more strongly associated with material productivity.

Despite the potential advantages of cellular manufacturing, most plants with cells have only partially converted their systems. This study examines factors that limit cell penetration within plants using a mail survey of cell users. The existence of service processes, lack of a strong champion who would push the design and implementation of more cells, and low cost of tracking non-cell parts/ products on the plant floor were found to be significant predictors of cell penetration for plants with cells and no plans for further cells. Factors limiting penetration in plants planning to implement further cells could not be determined.