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1
Group technology is a management
strategy to help eliminate waste caused by
duplication of effort.
BENEFITS OF GROUP TECHNOLOGY
2
BENEFITS OF GROUP TECHNOLOGY
It affects all areas of a company, including:
• engineering
• equipment specification
• facilities planning
• process planning
• production control
• quality control
• tool design
• purchasing
• service
3
BENEFITS OF GROUP TECHNOLOGY
Some of the well-known tangible and intangible benefits
of implementing GT :
1. Engineering design
• Reduction in new parts design
• Reduction in the number of drawings through
standardization
• Reduction of drafting effort in new shop drawings
• Reduction of number of similar parts, easy retrieval
of similar functional parts, and identification of
substitute parts
4
BENEFITS OF GROUP TECHNOLOGY
2. Layout planning
• Reduction in production floor space
required
• Reduced material-handling effort
5
BENEFITS OF GROUP TECHNOLOGY
3. Specification of equipment, tools, jigs,
and fixtures
• Standardization of equipment
• Implementation of cellular manufacturing
systems
• Significant reduction in up-front costs
incurred in the release of new parts for
manufacture
6
BENEFITS OF GROUP TECHNOLOGY
4. Manufacturing: process planning
• Reduction in setup time and production
time
• Alternative routing leading to improved
part routing
• Reduction in number of machining
operations and numerical control (NC)
programming time
7
BENEFITS OF GROUP TECHNOLOGY
5. Manufacturing: production control
• Reduced work-in-process inventory
• Easy identification of bottlenecks
• Improved material flow and reduced
warehousing costs
• Faster response to schedule changes
• Improved usage of jigs, fixtures, pallets, tools,
material handling, and manufacturing equipment
8
BENEFITS OF GROUP TECHNOLOGY
6. Manufacturing: quality control
• Reduction in number of defects leading to
reduced inspection effort
• Reduced scrap generation
• Better output quality
• Increased accountability of operators and
supervisors responsible for quality production,
making it easier to implement total quality
control concepts.
9
BENEFITS OF GROUP TECHNOLOGY
7. Purchasing
• Coding of purchased part leading to
standardized rules for purchasing
• Economies in purchasing possible
because of accurate knowledge of raw
material requirements
• Reduced number of part and raw
materials
• Simplified vendor evaluation procedures
leading to just-in-time purchasing
10
BENEFITS OF GROUP TECHNOLOGY
8. Customer service
• Accurate and faster cost estimates
• Efficient spare parts management, leading
to better customer service

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Benefits of GT

  • 1. 1 Group technology is a management strategy to help eliminate waste caused by duplication of effort. BENEFITS OF GROUP TECHNOLOGY
  • 2. 2 BENEFITS OF GROUP TECHNOLOGY It affects all areas of a company, including: • engineering • equipment specification • facilities planning • process planning • production control • quality control • tool design • purchasing • service
  • 3. 3 BENEFITS OF GROUP TECHNOLOGY Some of the well-known tangible and intangible benefits of implementing GT : 1. Engineering design • Reduction in new parts design • Reduction in the number of drawings through standardization • Reduction of drafting effort in new shop drawings • Reduction of number of similar parts, easy retrieval of similar functional parts, and identification of substitute parts
  • 4. 4 BENEFITS OF GROUP TECHNOLOGY 2. Layout planning • Reduction in production floor space required • Reduced material-handling effort
  • 5. 5 BENEFITS OF GROUP TECHNOLOGY 3. Specification of equipment, tools, jigs, and fixtures • Standardization of equipment • Implementation of cellular manufacturing systems • Significant reduction in up-front costs incurred in the release of new parts for manufacture
  • 6. 6 BENEFITS OF GROUP TECHNOLOGY 4. Manufacturing: process planning • Reduction in setup time and production time • Alternative routing leading to improved part routing • Reduction in number of machining operations and numerical control (NC) programming time
  • 7. 7 BENEFITS OF GROUP TECHNOLOGY 5. Manufacturing: production control • Reduced work-in-process inventory • Easy identification of bottlenecks • Improved material flow and reduced warehousing costs • Faster response to schedule changes • Improved usage of jigs, fixtures, pallets, tools, material handling, and manufacturing equipment
  • 8. 8 BENEFITS OF GROUP TECHNOLOGY 6. Manufacturing: quality control • Reduction in number of defects leading to reduced inspection effort • Reduced scrap generation • Better output quality • Increased accountability of operators and supervisors responsible for quality production, making it easier to implement total quality control concepts.
  • 9. 9 BENEFITS OF GROUP TECHNOLOGY 7. Purchasing • Coding of purchased part leading to standardized rules for purchasing • Economies in purchasing possible because of accurate knowledge of raw material requirements • Reduced number of part and raw materials • Simplified vendor evaluation procedures leading to just-in-time purchasing
  • 10. 10 BENEFITS OF GROUP TECHNOLOGY 8. Customer service • Accurate and faster cost estimates • Efficient spare parts management, leading to better customer service