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A number of simulation studies were conducted by several researchers in order to compare performances of cellular and functional layouts. The methodologies used by these studies either present several objectivity lacks or are highly time‐consuming. The purpose of this paper is to propose a novel and objective methodology, based on the coupling of simulation and the Taguchi method.

Simulation models for both layouts are first developed. Simulations are then conducted following a standard Taguchi orthogonal array. Subsequently, the obtained results are analyzed using the analysis of variance technique. Finally, a mathematical model is built, and validated by the confirmation test.

The proposed comparison method permitted to obtain a valid mathematical model used to predict the superiority rank of the two layouts within the scope of the paper.

This paper presents a novel objective methodology for comparing functional and cellular layouts.

A number of simulation studies have been conducted previously by several researchers, in order to compare the performance of cellular and functional layouts. The purpose of this paper is to highlight the lack of objectivity of a number of these studies, in order to explain the origin of their conflicting conclusions.

A taxonomy of the main experimental factors and performance measure used in the main simulation comparative studies is followed by a critical assessment of ten of these studies. The analysis is focused on the objectivity of the layout comparison methodologies. Then, the determined shortcomings are categorized and some of them are illustrated by way of simulation.

The revealed shortcomings are most likely responsible for the conflicting conclusions of the studies and may well explain what is called in the literature the “cellular paradox.”

This work sets up the basis for an objective comparison methodology between the two manufacturing system layouts. Such a methodology should in fact be free of all the highlighted objectivity flaws.