This paper describes a procedure for optimizing the route selection and production conditions in alternate process plans under a cellular manufacturing environment. The type of production is mainly production-to-order which deals with unexpected products as the changes factor. The flexible cellular manufacturing can be viewed as a complete unification of both flexible manufacturing process and flexible production management. The integrated problem for designing flexible cellular manufacturing associated with determining the optimal values of the machining speeds, overtime, and intercell flow is formulated as Nonlinear Mixed Integer Programming(NMIP) in order to minimize total production change cost. This is achieved by introducing the marginal cost analysis into the NMIP, which will compute the optimal machining speed, overtime, intercell flow, and routing. The application of this procedure offers greater flexibility to take advantage of the cellular manufacturing due to the optimum use of resources. A solution procedure for this problem was developed and a numerical example is included.