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Group Technology (GT) is a manufacturing strategy that reduces costs by manufacturing similar parts together. It was proposed by Frederick Winslow Taylor and involves standardizing parts, rearranging machinery, and linking production to ordering levels. GT also involves classifying parts using symbols or barcodes for easier ordering and fewer errors. GT is a necessary tool for successful businesses and is strongly linked to growth and automation.
Group Technology (GT) is a manufacturing strategy that aims to reduce costs by improving the efficiency of manufacturing methods. This is often achieved by taking parts that are similar in design, known as part families, and manufacturing them together rather than separately. The goal of group technology is to reduce production time and maximize profits, both of which can otherwise suffer when various parts of an overall design are built and assembled separately. Once created, group technology can dramatically reduce costs by leveraging the benefits of automation.
First proposed by business innovator Frederick Winslow Taylor in the early 20th century, group technology was one element of what he called the scientific management approach to business and industry. Taylor was among the first business consultants hired by companies specifically to evaluate manufacturing techniques and suggest improvements. Many of his recommendations, including the use of GT, were generally based on a transition from manual work to more automation.
The rationale for group technology is that a reduction in unit costs through greater efficiency means greater profits. To this end, GT can involve a number of specific changes to the traditional manufacturing approach. This includes standardizing various constituent parts with the same shapes and sizes, rearranging production machinery on the factory floor to improve assembly flow, and linking production levels to ordering levels to free up capital.
A modern initiative often undertaken as part of a group technology approach is to classify parts according to their particular characteristics. These classifications are then applied using symbols or barcodes, making parts easier for customers to order and for workers to identify. This means fewer errors in the factory and easier ordering of new and replacement parts. Taken together, the various aspects of a group technology approach applied by a company mean faster order fulfillment, fewer parts to keep on hand, and more accurate cost estimates for new products. With less reliance on the expertise of individual workers, the unpredictability of human error is also reduced.
Group technology and other scientific management techniques have established themselves as necessary tools for successful businesses, and their principles have become part of the curricula of many higher education institutions. Automation and standardization are strongly linked to growth as human labor costs continue to rise. Companies continue to pay consultants to help them improve and automate their production methods.
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