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Benefits of Group Technology
1.Reduced Flow Times: Compared to the earlier process layout, there are very few halts. Hence flow times are reduced considerably.2.Process Time Saves: Unnecessary fresh setups of modifications to setups are eliminated. This saves process times significantly.3.Inventory Reduction: Very few halts translated to a drastic reduction in inventories of work in process.4. However al the required variety can be produced. Group technology does not compromise on the variety of items.5. Even a sudden rush order can be produced without causing much problems 6. Employees in the cells derive much job satisfaction.7. Cells satisfy several other psychological needs of its members a sense of belonging. Self esteem and security. This in turn reduces absenteeism labor turnover and labor unrest.8. Job enlargement: An employee of a cell is free to do any operation within the cell provided he has developed that skill multi skilling is commonly observed in cellular manufacturing . so there is job enlargement for the employee.9. Quality improvement: Since the employee is familiar with a known range of components that come to a cell, the employee tends to make less errors; this can improve the quality of the item. 10.Since cell mean a modular approach to organizing production it is easier to manage/ direct/reorient/repair a cell than either a huge elephantine flow line or the amorphous process layout.11. In times of crisis such as sudden demand changes or labour unrest the crisis can be contained because of the modular nature of production.12. Production control methods: Could be simpler there could be even visual methods of production control in some cases. Because the product being worked upon goes quickly through the system.
operating costs with quarterly breakup
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