Group technology

From CEOpedia | Management online

Group technology involves using of typical processes for production of a set of similar products. This technology is a way of connecting production of little small batches of goods, in one larger group of production processes. Group technologies shall apply where part of the technological operations shows a resemblance to most of the technological operations performed during production.

Similar technology allows to "artificially" increase of length of production series. Thanks to this a reduction in unit costs is achieved while maintaining the flexibility. The basic step in creating group technology is to identify processes having technologically similar requirements. For each of the products production processes in developed. Some of them was performed previously and hence those processes will be fetched from the database of all processes (organizational knowledge base). Then managers develop matrix of operation in technological processes, and use method for grouping based on similarity of technology. Group technology allows to connect a lot of individual products in four groups of similar technology, which can be manufactured together due to the same technological operations.

Group technology in manufacturing

Where several products requires technological process having no matches with created groups then the items is produced separately or grouping criterion is changed. There is also the possibility of changes in the technological process of those parts to fit in the previously generated technology groups.

Main advantages of group technology:

Examples of Group technology

  • In manufacturing, group technology is used to reduce costs by grouping similar parts into one production process. For example, in the automotive industry, a manufacturer may use group technology to produce several models of cars that use the same engine. This allows the company to reduce the cost of production since they can use the same parts and production process for multiple models.
  • In the software industry, group technology is used to develop applications that can be used across multiple platforms and devices. For example, a software development team may use group technology to create a single application that can be used on both iOS and Android devices, as well as on Windows and Mac computers. This allows the team to develop one application that can be used across multiple platforms, reducing the cost of development.
  • In the food industry, group technology is used to reduce production costs by grouping similar items together. For example, a food company may use group technology to produce several different types of snacks that use the same ingredients. This allows the company to reduce costs by using the same ingredients and production process for multiple products.

Advantages of Group technology

Group technology has many advantages, including:

  • Improved productivity - Group technology eliminates wasteful and unnecessary operations, simplifies production and reduces the amount of time needed to produce a product. This makes it easier to produce more goods in a shorter amount of time.
  • Reduced costs - Group technology reduces the cost of production, since fewer resources are needed to produce a product. This means that fewer materials and labor are needed, resulting in lower costs for the company.
  • Improved quality - Group technology helps standardize the production process, resulting in higher quality products. This means that fewer defects are produced and that the products are consistent.
  • Increased flexibility - Group technology can be adapted to changing customer needs and demands. This allows companies to quickly and easily adjust their production process to meet new demands.
  • Enhanced communication - Group technology makes it easier to communicate between departments and employees, helping to ensure that all parts of the production process are working together effectively.

Limitations of Group technology

Group technology has several limitations. These limitations include:

  • Inability to adapt quickly to changes in the production environment: Group technology relies on the ability to plan and organize production processes in advance, which can make it difficult to respond to changes in customer demand or production needs.
  • Difficulty in determining the best group technology: Group technology requires careful consideration of the products that will be produced and the tasks that need to be completed. This can be difficult to determine in advance and can lead to inefficient production processes.
  • High cost of implementation: Group technology requires significant investment in equipment, labor, and materials, which can make it expensive to implement.
  • Risk of over-standardization: Group technology can lead to a lack of flexibility in production processes, which can make it difficult to adjust to changes in customer demand or production needs.
  • Limited scalability: Group technology is typically used for production of small batches of goods, which limits the ability to scale up production to meet increased customer demand.

Other approaches related to Group technology

In addition to the Group technology, there are several other approaches which can be used to produce similar products in batches. These include:

  • Automation: Automation is the use of machines and technology to automate production processes. Automation can help to reduce labor costs, increase productivity, and reduce errors.
  • Lean Production: Lean production is an approach to production which focuses on reducing waste and increasing efficiency. It is based on the principle of eliminating or reducing any activity or process that does not add value to the customer.
  • Just-in-Time Production: Just-in-time production is an approach to production which focuses on reducing inventory and increasing customer satisfaction. It is based on the principle of producing only what is needed, when it is needed.
  • Total Quality Management: Total quality management is an approach to production which focuses on ensuring customer satisfaction. It is based on the principle of ensuring quality at every step of the production process.

In summary, Group technology is one approach to producing similar products in batches. Other approaches to consider include automation, lean production, just-in-time production, and total quality management. Each of these approaches has its own benefits and should be evaluated based on the needs of the business.


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