Business Case Analysis Essay

Superior Essays
7.1 Conclusion
The objective of this research is to analyze if there is a business case to create cells in Company X.
The conclusion is based on some assumptions about the location. We assumed that the first cell is located in the sheet metal center and the second cell is located in the painting department.

First of all, it can be concluded that it is possible to create cells in Company X. The similarity coefficient algorithm and the direct clustering technique result in the same three cells. By using the similarity coefficient algorithm we validated the results of the direct clustering technique. Since the two different clustering methods result in the same cells, we can say that the clustering that results from these two methods is a good clustering.

The proposed facility layout that results from the three cells does not differ too much from the current layout. The changes between the factory layout with the three cells and the current facility layout is summarized below:
1) Seven machines in the first cell are currently placed in the same location. Only the stainless steel
…show more content…
That is why this analysis does a recommendation based on the routings. Based on the routings we can recommend to create cells within the factory. There are other factors that might influence the suitability of manufacturing cells. It is possible that is not beneficiary for Company X to create cells because of some other factors like space requirements. For sure there are other layouts that can be investigated as well. The hybrid of the functional layout and the cellular layout can be suitable for the company. Therefore it is good to develop layout alternatives. Some nice to know research areas that might affect the decision to create cells are the following: space requirements, layout alternatives and the cost and investment in the

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