This paper provides an heuristic for the planning and study of machine-component groups in flexible production cells and flexible manufacturing systems. The problem of group formation defined on master-component process routes is undertaken in terms of minimum differences between masters and maximum combinations of masters. Group formation is a ‘hard’ combinatorial problem subject to exponential growth of complexity as the number of decision-making variables increases. The heuristic is designed to search the solution space of the problem in monotone-increasing order of solution costs so as to avoid the enumeration of solutions for cost minimization.