Today, every company wants to curtail its expenses. Productivity being the main criteria, the daily demand plays a major role and based on this production takes place. This paper shows how cellular concept has contrasting approach in India and Japan and also, it gives detailed information about cell and cellular layout. Also, it consists of problem identification in the existing layout, objectives and methodology followed to achieve the objectives .In India, few companies like TVS, Maruti etc. have implemented it and other few are in a way of implementation (like Mahindra & Mahindra). A "Cell" is a collection of dissimilar machines or processes, located closely together in a sequential operation manner and dedicated to a set of a similar part and product. Cell is that in which two or more machine should be arrange such that receiving and shipping should be present at same location. Each machine has fix position and dissimilar machines are arranged in a cell so, the layout is known as cellular layout. CMS emphasis on : 1)To reduce through put time of the component, 2)To increase the target of manufacturing component and completion of target as per demand, 3)To maximize manpower utilization, 4) To minimize space utilization, 5)To reduce investment per unit output, 6)To reduce manpower requirement, 7)To improve Material Flow Control, 8)Cell Design, 9)Design Standardization .