THIS PAPER ANALYZES THE EFFECTS OF A CELLULAR AGV MANUFACTURING SYSTEM ON THE MANUFACTURING/ASSEMBLY INTERFACE. SYSTEM EXTENSION INTO THE ASSEMBLY AREA AND ITS EFFECT ARE EXAMINED IN ORDER TO CREATE A CELLULAR JUST IN TIME MANUFACTURING SYSTEM WITH ITS OUTPUT CONTROLLED BY ASSEMBLY DEMAND. THE DATA LINKS REQUIRED FOR ADEQUATE MATERIAL CONTROL ARE EXAMINED, SINCE THE JUST IN TIME/MRP SCHEDULE NEEDS TO BE ASSEMBLY DIRECTED TO MATCH ACTIVITIES TO PRODUCTION PROGRAM NEEDS. ALTHOUGH AGV USAGE CAN PROVIDE BENEFITS THROUGHOUT THE ORGANIZATION, UNLESS MANUFACTURING IS MATCHED TO ASSEMBLY NEEDS, THE RESULT MAY BE THE WRONG COMPONENTS IN THE WRONG SEQUENCE.