The purpose of this paper is provide a vision for Small and Medium Sized Enterprises (SME’s) in Turkey, trying to gain competitive advantages by implementing major changes in the manufacturing process. It is necessary that, manufacturing process should be changed from functional layout to synchronous flow system to achieve competitive advantages.Cellular Layout is one of the basic tools for implementation of synchronous flow system and KANBAN system is other basic tool for this implementation. Meanwhile, Cellular Layout and KANBAN system are important elements of Just In Time Manufacturing (JIT) Systems.