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Cellular Manufacturing (CM) is an approach to harness the benefits of high production rate of a flow shop while maintaining flexibility, and utilizing facilities, of a job-shop. CM necessitates that parts and machines are allocated into cells to produce the identified part families so that productivity and flexibility of the system can be improved. Most of the research work on cellular manufacturing is focused on binary part machine matrix, however in past few decades a spur has been observed in the literature considering the comprehensive data to design the cellular manufacturing system. In this work authors have critically examined the literature available on cellular manufacturing design based on operation sequences, production volume and machine availability and other important parameters. Various performance parameters have also been discussed which play important role in the cellular manufacturing design. Paper also discusses the key areas which need to be explored for efficient and economic implementation of cellular manufacturing on the shop floor level.