A cellular manufacturing system is defined as a system which has one or more manufacturing cells. A manufacturing cell is a collection of dissimilar machines dedicated to a collection of similar parts. An important problem with the design of cellular manufacturing systems is how reasonable manufacturing cells can be constructed. This problem is considered as an application of group technology, that is, a problem of part family definition and machine assignment. A concept called group efficiency has been proposed as a quantitative criterion for a manufacturing cell formation. But, this is not a measure for a unit cell which is formed with a part family and a machine group. Thus, a new measure, that is, a "coefficient of bond degree", has been introduced for a unit cell. Manufacturing cells can be compared using a "bond degree" defined for each cell. Also, a new cell formation method based on the bond degree has been proposed, and a numerical example has been shown.