1. What will be Covered? An introduction to group technology.
Group technology coding structures.
How group technology will help improve quality.
The benefits and obstacles for managers using group technology.
Introduction into what will be discussed.

2. Introduction
Group technology was introduced by Frederick Taylor in 1919 as a way to improve productivity.
One of long term benefits of group technology is it helps implement a manufacturing strategy aimed at greater automation.
Introduction
Benefits of a greater automated system:
reduces costs, maintains higher quality, more profitable production.

3. What is group technology?
Group technology (GT) is a manufacturing philosophy that seeks to improve productivity by grouping parts and products with similar characteristics into families and forming production cells with a group of dissimilar machines and processes.
Definition of group technology.

4. Background The introduction of GT techniques in: GT viewed as:
General Electric
Lockheed Missiles and Space Co.
Boeing
GT viewed as:
An essential step in the move toward factory automation.
A necessary step in maintaining a high quality level and profitable production.
GT was introduced in GE, Lockheed and Boeing and allowed them to deal with enormous problems of classifying and designing hundreds of thousands of parts. GT was then viewed as helping implement factory automation strategies and helps maintain high quality levels along with profitable production.

5. **Brainstorming**
How can group technology be used in your organization?
I would have a 5 minute break and have them write down how they could use group technology in their organization. Have a quick discussion about what they wrote down.

6. Group Technology
Group technology implementation can be broken down into 3 different phases:
Actions on the manufacturing process
Changes to the production process
Results for the organization
Examples of the impacts group technology has had on the production process.
There are 3 phases of group technology implementations – Action, Changes, Results. Explained in next slides.
4 impacts of GT on the production process – Slide.

7. Implementation Phases
Group technology has the following actions on the manufacturing process:
Part Simplification
Process Standardization
Production Control
1st phase of implementation is the action phases
Group Technology Actions:
Part Simplification accomplished through:
- Coding and classification
- Selection of part Families
-Analysis of redundancy
Process Standardization accomplished through:
- Selection of machine groups
- Analysis of complex routings
Production Control accomplished through:
- Flow control ordering
- Determining tooling and machining families

8. Implementation Phases
The changes group technologies can have on the production process.
Tighter Parts Control
Close physical layout of machine groups
Orderings tied to production
2nd step in the implementation phases.
Changes of group technologies on the production process:
Tighter parts control through:
- Reduction of new designs
- Elimination of redundant parts
Close physical layout of machine groups through:
- Elimination of complex routings
Orderings tied to production through
- Changes to family processing and scheduling

9. Implementation Phases
The results that group technologies have at the organizational level.
Systematic design and redesign
High-quality level
Less process planning time and setup time
3rd step in the implementation phases.
Results of GT on the organization.
Systematic design and redesign
- Less part proliferation
- Less obsolete inventory
High-quality level
- Less rework and scrap
- More familiar with the similar parts
Less process planning time and setup time
- More familiarity

10. Impacts of Group Technology
Different impacts group technology has on the production process:
Reduced purchasing cost
Less redundant purchases.
Accurate cost estimation
A more efficient process
Quicker design changes
Standardized Parts
Improved customer service
Classification builds customer relationships
Impacts of group technology
Reduced purchasing cost
- not as many redundant purchases, more efficient process, more familiarity with the parts
Accurate cost estimation
- A more efficient process, familiar with process, Process Standardization
Quicker design changes
- Standardized parts, lower setup and process planning times
Improved customer service
- Classification helps provide reliability and high quality due to less rework ( familiarity with parts) Customer knows what to expect.

11. A Classification Scheme
Coding Structures for Purchasing
GT coding is the process of assigning symbols, numerics, and letters to a particular attribute of a particular item
There are 3 different coding structures
Monocodes
Polycodes
Hybrid(mixed-mode) codes
GT classification addresses the structuring of part attributes into a set of clusters with similar features  GT coding.
Group technology coding – the process of assigning symbols, numerics, and letters to a particular attribute of a particular item
3 different coding structures: monocodes, polycodes, hybrid (mixed-mode) codes
Traditional coding structures are useful for:
Identifying similar parts in manufacturing  bar code system.

12. Effects of Classification
The automated GT coding system using bar-code technology can:
Improve accuracy and productivity in identifying similar purchased items
Facilitate communication between the buyer and the vendor
GT coding system using bar-code technology can:
improve accuracy and productivity in identifying similar purchased items and can also facilitate communication between the buyer and the vendor.
Example: Once all the purchased items are categorized on the basis of similarity and then bar coded by the buyer, it will be much easier and faster for the buyer to handle them because they can be scanned for sorting, order picking, cycle checking, warehousing space arrangement, printing of bills of lading, and so forth. Recognizing these numerous benefits, we propose the incorporation of traditional coding structures into the computer-based supplier bar-code system.

13. Improving Quality
The cluster algorithms of Group Technology can be classified into two major classes.
Design-oriented approach
Relies on the design features of parts to perform the necessary analysis
Production-oriented approach
Based on routing information to group parts or machines
2 major classifications of GT cluster algorithms
design-oriented approach – relies on the design features of parts to perform the necessary analysis
production-oriented approach – based on routing information to group parts or machines
-- design phase
-- manufacturing phase
* on next slide *

14. Improving Quality
The production-oriented approach can be divided into two phases:
A design phase
The number of completely new designs can be kept to a minimum
Workers are more familiar with the parts.
Quality can be maintained at a high level by using proper design
A manufacturing phase
The grouping of parts based on similar characteristics
Geometric features
Processing Requirements
The design phase:
- new designs can be kept to a minimum
- shop floor workers and inspectors know the existing parts very well and also know which parts need more attention.
- Quality can be maintained at a high level
A manufacturing phase:
- The groupings of the parts can be done using geometric features and processing requirements
Geometric groupings can be done automatically with the innovative CAD systems to generate the geometric code for the newly designed part.
Processing based codes contain more useful and accurate information, but are more time consuming as well.
In the manufacturing phase, standardization of manufacturing processes reduces the amount of new molds significantly. Therefore, it reduces costs and shortens the period from design to market  very important to maintain high quality production.

15. Implementing a Classification Scheme
The three steps of implementing Group Technology in the process based approach:
Analyzing the flow of parts through the shop
Coding parts and then grouping them into families based on their manufacturing processes
Making machine group selections.
Implementations of the process- based approach:
- analyzing the flow of parts through the shop
- coding parts and then grouping them into families based on their manufacturing processes
- making machine group selections
By, applying GT, a shop floor worker can be divided into several cells based on the machine groups. Since all the parts within a family will be manufactured through the same machine cells, it is possible for shop floor workers and inspectors to become familiar with a part family quickly. This is a key to producing high quality products because workers know these parts very well.

16. A Real World Example Using GT to improve quality.
Peony Corporation, in Japan
Currently: Produces television sets
Problem: Customers requested different sizes and functions
Challenge: To maintain a high level of quality due to many new parts
Implementation: At the design phase
Results: Peony kept the number of parts small by increasing part standardization  lowered costs
Example -- how GT improved quality
Peony Corp. produces television sets. Since customers requested different sizes and functions of color television sets, several new models were designed each year. It was a challenge for Peony to maintain a high level of quality due to the many new parts that were developed every year. In addition, time and money to be spent on training shop floor and assembly line workers was limited. However, during the last decade, by implementing GT in the design phase, Peony has successfully kept the number of completely new parts to a significantly smaller number by dramatically increasing part standardization.

17. Managerial Benefits The Benefits of Group Technology Classification:
Reduced Purchasing Cost Through Volume Purchasing
Can purchase fewer different items at higher volumes
Faster Lead Time
Can quickly identify the materials or materials needed
Better Negotiation Leverage
Value Analysis
Managerial Benefits
Reduced purchasing cost through volume purchasing. By identifying purchased materials serving the same function, GT enables the buyer to purchase fewer different items at higher volumes. Subsequently, the buyer can take advantage of substantial volume or shipping discounts.
Faster lead time. By computerizing the coding system, the buyer can quickly identify the materials or the parts needed. Thus, the buyer can speed up the ordering process, thereby reducing order cycle time.
Better negotiation leverage. On many occasions, the buyer repeatedly purchases similar items. Since the GT classification and coding system can be a basis for value analysis, the buyer can not only discover substantially less expensive items from other suppliers, but also estimate the supplier’s actual profit margins. This information can be used as a valuable bargaining tool for negotiating with the suppliers when the purchase of similar items recurs.

18. Managerial Benefits
The Benefits of Group Technology Classification (cont.):
Accurate Cost Estimation
Estimate the future price range with a standard cost database
Quicker Reaction to Design Changes
Quickly identify newer material or parts that conform to newer designs and specifications
Better Communication Between the Buyer and the Supplier
Eliminate the human errors with GT classification
Managerial Benefits (cont.)
4.Accurate cost estimation. GT provides the buyer an opportunity to accurately estimate the future price range during the inflationary periods by establishing a standard cost database for certain families of materials and parts serving a similar function.
5. Quicker reaction to design changes. Especially for high-tech items, today’s rapid technological strides often force a company to change its product design and technical specifications as quickly as it can. Herein, the GT-based coding system will be of great use because it can help the buyer quickly identify newer materials or parts that conform to newer designs and specifications.
6. Better communication between the buyer and the supplier. Unwanted or wrong items may be delivered to the buyer if the buyer miscommunicates with the supplier. Very often, human errors in the various processes of ordering and procurement are the main causes of miscommunication. These human errors can be eliminated by using the systematic, automated GT classification and coding system.

19. Potential Obstacles The Obstacles of Group Technology Classification:
Management Resistance to Change
Unwilling to devote the time and energy
Extensive Data Requirements
The proper identification needs detailed item descriptions  extensive purchase records/data
High Start-Up Cost
Item characteristics are not available without the aid of automated information storage and retrieval systems which usually incur high expenses until GT is in place
Potential Obstacles:
Management resistance to change. Since the introduction of an innovative GT concept requires new mind-set and training for the buyers, they may be unwilling to devote their and energy to GT applications in purchasing. That is to say, unless GT is introduced gradually to a purchasing department, the buyers may resist due to their tendency to rely on conventional wisdom rather than the unknown and unproven concept, namely GT.
Extensive data requirements. The proper identification of purchased items often dictates their accurate classification and coding with respect to design, engineering, and functional similarities. The proper identification, however, necessitates detailed item descriptions which can only be found in extensive purchase records and data.
High Start-up Cost. GT coding is almost impossible without the help of interactive computer graphics and automated information storage/retrieval systems because: (1) graphical images may better help the buyers recognize similarities in design and engineering specifications and (2) the long list of item characteristics such as geometry, shape, dimensions, tolerance, functions, and bills of materials cannot be readily available to the GT users without the aid of automated information storage and retrieval systems which usually incur high expenses until GT is in place.

20. Exercise Reflecting back, each person write down:
How group technology can improve your organization?
List potential obstacles an organization might face when implementing a group technology system and explain how each obstacle can be overcome?
How does this exercise relate to your organization?
Discuss your answers with the group.
Group discussion:
How group technology can improve your organization.
How to overcome the potential obstacles a manager might face.
Question and Answer Session.
Relate discussion on the impact GT can have on their organization.

21. Exercise Discussion
Improvements Group Technology can make on an organization:
Improve quality levels
More profitable production
Reduces costs
Ways to overcome obstacles an organization might face:
Promote the change from within the organization
Properly train the individuals who work with the system
Discuss the answers to the exercise and any different ideas the group has come up with.

22. Summary
There are many benefits and obstacles toward the use of group technology in an organization.
All things considered, GT is viewed as:
An essential step in the move toward factory automation.
A necessary step in maintaining a high quality level and profitable production.
Summary of group technology and its importance to an organization in its quest for excellence.

23. Bibliography
Bourke, Richard and Kempfer, Lisa. “Achieving Success with Mass Customization: The Vital Contribution of Engineering.” Computer – Aided Engineering. (Oct 1999).
Ham, Inyoung, Katsundo, Hitomi and Teruhiko, Yoshida. Group Technology: Application to Production Management. Boston, MA: Hingham, 1985.
Bibliography slides – list the sources I pulled my information from.

24. Bibliography
Kroll, Denis and Wang, Xiaoli. “Using group technology to improve quality and response time.” Industrial Management. (July 1994).
Manocher, Djassemi. “An efficient CNC programming approach based on group technology.” Journal of Manufacturing Systems. (2000).
Bibliography slides continued.