In this paper, we develop a mixed integer program for the design of ce
llular manufacturing systems. We assume that there are alternate proce
ss plans for each part and that each operation in these plans can be p
erformed on alternate machines. The objective of the model is to minim
ize the sum of investment, processing and material handling costs. Pro
cessing times, capacities of machines and cell size restrictions are c
onsidered in the process. Part families, machine groups and part plans
are identified concurrently. For the efficient solution of the relaxe
d linear program an efficient column generation scheme is provided. In
the problem under consideration columns are generated by solving simp
le semi-assignment problems. Three different strategies are tested for
generating the columns and the best scheme is selected for subsequent
use in the branch and bound procedure developed. Finally, computation
al experience is provided for randomly generated test problems.