The first step to design a cellular manufacturing system is to make part-families and machine-cells. This process is called the machine-part grouping. This paper considers a machine-cell size when grouping machine-cells. By considering a machine-cell size, an unrealistically big size of machine-cell which may be caused by the chaining effect can be avoid. A heuristic algorithm which minimizes the number of inter-cell movement of parts considering a machine-cell size is presented. The effectiveness and performance of the proposed heuristic algorithm are compared with those of several heuristic algorithms previously reported. The comparison shows that the proposed heuristic algorithm is efficient and reliable in minimizing the number of inter-cell movement of parts and also prevents the chaining effect.