Group technology is a management strategy that aims to eliminate waste caused by duplicated efforts across all areas of a company such as engineering, equipment, facilities planning, and production control. It provides benefits such as reducing the number of new part designs, drawings, and machining operations. It also standardizes equipment, improves material flow and reduces inventory which leads to faster response times, improved quality control, and lower costs.

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Group technology is a management
strategy to help eliminate waste caused by
duplication of effort.
BENEFITS OF GROUP TECHNOLOGY

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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

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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

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BENEFITS OF GROUP TECHNOLOGY
2. Layout planning
• Reduction in production floor space
required
• Reduced material-handling effort

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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

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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

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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

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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.

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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

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BENEFITS OF GROUP TECHNOLOGY
8. Customer service
• Accurate and faster cost estimates
• Efficient spare parts management, leading
to better customer service