Group TechnologyGroup Technology

By: Ryan BouchardBy: Ryan BouchardFebruary 19, 2001February 19, 2001OISM 470WOISM 470W

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 improve How group technology will help improve

quality.quality.• The benefits and obstacles for managers The benefits and obstacles for managers

using group technology.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 greater manufacturing strategy aimed at greater automation.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 with grouping parts and products with similar characteristics into families similar characteristics into families and forming production cells with a and forming production cells with a group of dissimilar machines and group of dissimilar machines and processes.processes.

BackgroundBackgroundThe 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 factory An essential step in the move toward factory

automation.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 can Group technology implementation can

be broken down into 3 different phases:be broken down into 3 different 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 production technology has had on the production process.process.

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

– Part SimplificationPart Simplification

– Process Process StandardizationStandardization

– Production ControlProduction Control

Implementation PhasesImplementation PhasesThe 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 PhasesThe results that group technologies have The results that group technologies have at the organizational level.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 Impacts of Group TechnologyTechnology

Different impacts group technology has Different impacts group technology has on the production process: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 SchemeCoding Structures for PurchasingCoding Structures for Purchasing

– GT coding is the process of assigning GT coding is the process of assigning symbols, numerics, and letters to a symbols, numerics, and letters to a particular attribute of a particular itemparticular attribute of a particular item• There are 3 different coding structuresThere are 3 different coding structures

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

Effects of ClassificationEffects of ClassificationThe automated GT coding system The automated GT coding system using bar-code technology can:using bar-code technology can:

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

• Facilitate communication between the Facilitate communication between the buyer and the vendorbuyer and the vendor

Improving QualityImproving QualityThe cluster algorithms of Group The cluster algorithms of Group

Technology can be classified into two Technology can be classified into two major classes.major classes.

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

necessary analysisnecessary analysis

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

machinesmachines

Improving QualityImproving QualityThe production-oriented approach can be The production-oriented approach can be

divided into two phases:divided into two phases:• A design phaseA design phase

– The number of completely new designs can be kept The number of completely new designs can be kept to a minimumto 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 using Quality can be maintained at a high level by using

proper designproper 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 Implementing a Classification SchemeClassification Scheme

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

1.1. Analyzing the flow of parts through the shopAnalyzing the flow of parts through the shop2.2. Coding parts and then grouping them into Coding parts and then grouping them into

families based on their manufacturing processesfamilies based on their manufacturing processes3.3. Making machine group selections.Making machine group selections.

A Real World ExampleA Real World ExampleUsing 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 sizes and Problem: Customers requested different sizes and

functionsfunctions• Challenge: To maintain a high level of quality due Challenge: To maintain a high level of quality due

to many new partsto many new parts• Implementation: At the design phaseImplementation: At the design phase• Results: Peony kept the number of parts small by Results: Peony kept the number of parts small by

increasing part standardization increasing part standardization lowered costs lowered costs

Managerial BenefitsManagerial BenefitsThe Benefits of Group Technology The Benefits of Group Technology Classification:Classification:

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

volumesvolumes2.2. Faster Lead TimeFaster Lead Time

– Can quickly identify the materials or materials Can quickly identify the materials or materials neededneeded

3.3. Better Negotiation LeverageBetter Negotiation Leverage– Value Analysis Value Analysis

Managerial BenefitsManagerial BenefitsThe 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 standard Estimate the future price range with a standard

cost databasecost database5.5. 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 specificationsconform to newer designs and specifications

6.6. Better Communication Between the Buyer and Better Communication Between the Buyer and the Supplierthe Supplier– Eliminate the human errors with GT classificationEliminate the human errors with GT classification

Potential ObstaclesPotential ObstaclesThe Obstacles of Group Technology The Obstacles of Group Technology Classification: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 item The proper identification needs detailed item

descriptions descriptions extensive purchase records/data extensive purchase records/data3.3. High Start-Up CostHigh Start-Up Cost

– Item characteristics are not available without the Item characteristics are not available without the aid of automated information storage and retrieval aid of automated information storage and retrieval systems which usually incur high expenses until GT systems which usually incur high expenses until GT is in placeis in place

ExerciseExercise– Reflecting back, each person write down:Reflecting back, each person write down:

• How group technology can improve your How group technology can improve your organization?organization?

• List potential obstacles an organization might face List potential obstacles an organization might face when implementing a group technology system when implementing a group technology system and explain how each obstacle can be overcome?and explain how each 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 DiscussionImprovements 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 organizationPromote the change from within the organization• Properly train the individuals who work with the Properly train the individuals who work with the

system system

SummarySummaryThere are many benefits and obstacles There are many benefits and obstacles

toward the use of group technology in toward the use of group technology in an organization.an organization.

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

automation.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 of Customization: The Vital Contribution of Engineering.” 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 Technology: Group Technology: Application to Production Management.Application to Production Management. Boston, MA: Hingham, 1985.Boston, MA: Hingham, 1985.

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

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

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