This study is concerned in manufacturing cell formation with operation sequences. Operation sequences must be reflected for manufacturing cell formation anyway, because the primary aim of cellular manufacturing system is to minimize the inter-cell flows, and inter-cell flows are differed by operation sequences. In this study we propose flow-similarity(FS) of reflecting both inter-machine similarity and direct/indirect flow, and then apply the modified P-median model for grouping machines. We also use machine cell-part handling frequency(CPH) so as to be assigned parts to the machine cells having the most CPH. We confirm this approach through an application example. The performance of this approach(FS-model) is evaluated and compared with P-median model and F-model through computational experiments.