Work Cell

AAA

DEFINITION of 'Work Cell'

The logical and strategic arrangement of resources in a business environment, organized so as to improve process flow, increase efficiency and eliminate wastage. The concept of work cells is based on the platform of lean manufacturing, which focuses on value-creation for the end customer and reduction of wastage. Work cells are typically found in the manufacturing and office environments.

INVESTOPEDIA EXPLAINS 'Work Cell'

In a manufacturing facility, the machines involved in the production process would be arranged so that the goods being produced move smoothly and seamlessly from one stage to the next. This would only be possible if the machines are grouped in work cells that facilitate the logical progression of the goods being produced, from raw materials at one end to finished product at the other.


Similarly, in the office context, work cells may facilitate better flow of communication and more efficient use of shared resources.

RELATED TERMS
  1. Manufacturing Cells

    Sets of machines that are grouped by the products or parts they ...
  2. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  3. Enterprise Resource Planning - ...

    A process by which a company (often a manufacturer) manages and ...
  4. Kaizen

    A philosophy that sees improvement in productivity as a gradual ...
  5. Service Mark

    A brand name or logo that identifies the provider of a service. ...
  6. Plant Patent

    An intellectual property right that protects a new and unique ...
Related Articles
  1. Fundamental Analysis

    Vital Link: Manufacturing And Economic ...

  2. Investing

    Doing More With Less: The Sales-Per-Employee ...

  3. Investing

    What are Business Ethics?

  4. What is globalization?
    Investing

    What is Globalization?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center