An analysis of a product line of small and medium-sized enterprises (SME) shows that products (component parts or assemblies) are quite similar in terms of design and technology, thus clusters of products are formed. For each cluster a production cell can be organized. According to the product line of a company a certain number of individual production cells is organized, while workshop production is retained for the remaining product line. The paper shows how clusters of products are designed

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... n the basis of a product line data and how an ideal layout optimization is determined on the basis of the intensity of material flow. Layout optimization of a production cell is based on a combination of Schmigalla modified triangular method and the Schwerdfeger circular process. The method was applied on a cluster of 20 orders similar in design and technology that are processed at 10 workplaces. At the end of the article a transition from a theoretical O-cell to a real U-cell is suggested.