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Cellular Manufacturing System Implementation: A Case Study of Nail Production Company
Authors: Okpala Charles Chikwendu, Chukwumuanya Emmanuel Okechukwu, Aguh Patrick Sunday
Number of views: 485
The paper examined the challenges that led to low profitability, high scrap rate and production cost in a nail manufacturing company. The results which revealed the wastage of floor space and unplanned plant layout, as well as the wastes of waiting, transportation, excess inventory, and unnecessary movement in the shop floor led to the need for Cellular Manufacturing System (CMS). Referred to as a stepping stone to attaining world class manufacturing repute, CMS which is an application of Group Technology (GT) is a tool and technique of Lean Production System (LPS) that optimizes performance measures like lead time, unit cost, throughput, cycle time, productivity, etc. through enhanced work cells design. After the first three months of the successful implementation of CMS in the company, the resulting improvements for raw materials, work in progress, lead time, manufacturing space, late orders, defects, and scraps were $43,935, $37,650, 3 days, 223 square meters, 26 days, 42.9%, and 40% respectively. Also, the outstanding improvements recorded in throughput or average number of orders concluded per month after the implementation of CMS which enhanced the company’s overall profitability is a direct reflection of the benefits of the manufacturing system. Due to the outstanding improvements that led to the reduction in the wastes that were inherent in the nail manufacturing company, as well as the attendant increase in the firm’s goodwill and profitability, the paper concluded by advocating the implementation of CMS to manufacturing companies that are bedeviled by similar production challenges.