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The present work applies Principal Component Analysis (PCA) for grouping of machines and parts so that the part families could be processed in the cells formed by those associated machines. An incidence matrix with binary entries has been chosen to apply this methodology. After performing the eigenanalysis of the principal component and observing the component loading plot of the principal components, the machine groups and part families are identified and arranged to form machine-part cells.doi:10.5267/j.msl.2012.03.003 fatcat:h5ncahgts5hane6fw2dmba5vpi