Nowadays, many Japanese companies introduce cellular manufacturing in their plants as new manufacturing systems in order to cope with the market competition for multi-item and small-batch products. At the same time, shorter product life cycles and increased demand for customization have reduced the viability of conveyer assembly line as a way to meet these requirements. These demands are expected to continue in the future, requiring systems that can quickly manufacture small batches of customized products in a cost-effective manner. Cellular manufacturing is considered as a new system to achieve these goals. Against the conveyer assembly line system in which a large number of workers are arranged at sequent workstations and the product moves from one station to the next until it is finished at the end of the line, cellular manufacturing needs only a small number of workers to carry out the assembly operation of a product continuously from start to finish. There are a lot of documented reports which described the advantages of cellular manufacturing, such as the viability of handling multi-item small-sized products, improvement in productivity, shortened lead time, saved work space, increase in worker motivation, and so on. However, converting assembly line to cellular manufacturing is not an easy matter because there are a lot of control factors to be considered. In fact, some companies are not able to accomplish performance improvements by converting their assembly lines to cells. The reasons for the improvement resulting from conversion have not been well documented or understood, making it difficult to know when and where cells are applicable. In this paper, we propose a theoretical study to analyze the main control factors of converting assembly line to cellular manufacturing. Most of the control factors are reported in previous documents but with only a very limited viewpoint. In our model, additional tasks, cross work training, work difficulty, the difficulty of increasing of tasks and the degree of performance of a work support system are discussed when converting assembly line to cellular manufacturing. Moreover, we also discuss productivity and the product inventory of each production method by the simulation that uses various product mixes. Assuming work task and worker's skill are probability variables, simulation models based on data collected from the previous documents are then used to estimate the marginal impact each factor change had on the estimated performance improvement resulting from the conversion to cells. The simulation results can clarify the relationships among these control factors and give a fundamental indicator of manufacturing system selection.
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