Abstract
The cellular manufacturing system is a popular and effective method of redesigning a less profitable production layout into a more cost-effective production layout by rearranging the machines of having similar operations and develop a machine cell. In this research, the main goal was to find out the effectiveness of cellular manufacturing systems in the wooden furniture industry, whether it is valid or not to use at such type of industry. First, an existing layout of a wooden furniture industry has been redesigned using the Cellular Manufacturing System (CMS) and clustered into several machine cells as part family. Rank Order Clustering (ROC) has been used to develop the existing layout and establish the part family with machines of having similar operations. The Hollier method has been used to find the layout of the improved design that follows the characteristics of CMS. The feasibility test was done with the use of ARENA simulation software. The simulation showed the result as the amount of production at a unit of time. Finally, a new model was found, which is developed by ARENA Simulation software comparing with the previous one.