The vector perturbation approach is introduced for addressing the generaliz
ed parts grouping problem, identifying part families for a general set of s
uppliers, not just a single supplier. This method is driven by the need for
flexible and lean supply chain systems. A vector space model is used to re
present a set of operation sequences as opposed to the traditional matrix a
nd integer programming models in group technology. Using this approach, we
find that we are able to generate part groups from 90% of the available par
ts, in which all the operation sequences are preserved. This contrasts the
traditional methods using which only 66% of the available parts can be grou
ped. Furthermore, a vector representation of operation sequences provides a
n intuitive means for discovering the natural structure of the part data. F
rom these results, we conclude that this technique can dramatically improve
the effectiveness of the entire supply chain. (C) 2001 Elsevier Science Lt
d. All rights reserved.