In Factory Automation environments such as FMS, the formation of machine-part based on GT should be considered. The purpose of this study is to develop a economic heuristic algorithm which considers various elements such as unit processing time, subcontract cost, and functional operation cost, machine processing capacity etc. When this proposed approach is applied to the real situation expected benefits are as follows: the reduction of production lead time work in process, labor force, tooling, rework and scrap, setup time, order time delivery, and paper work, etc.