The absence of a design and manufacturing template that can be used to develop a product is the basis for this paper. A machine grouping algorithm based on machine utilization factors is discussed. The algorithm was developed based on traditional machine grouping models, but has been modified to use the machine utilization factors to group machines into cells. Different floor layouts for a factory are considered and an optimal floor layout is determined. The WPI World Formula SAE manufacturing facility is used as a model to demonstrate the algorithm. The FSAE competition required the design of an optimal factory layout manufacturing 1000 cars/year. Total costs and times of manufacture for each sub-component of the WPI FSAE racecar are determined. These total times and costs are used to develop the machine and labor requirements for a fictitious company producing 1000 racecars/year. The proposed algorithm is used to group machines into cells on the factory floor. The algorithm is capable of handling small machine groupings. A machine utilization factor is used to determine machine placements rather than a binary mode of machine selection that can be found in standard literature.