The Cellular Manufacturing System (CMS) is considered as an efficient production strategy for batch type production. The CMS relies on the principle of grouping machines into machine cells and grouping machine parts into part families that is named cell formation. Cells are formed based on presuming fixed single route and parts demand (traditional cell formation) or fluctuation of parts demand (dynamic cell formation). This research work attempts to solve a developed comprehensive model which integrated cell formation and process planning problem meanwhile taking into consideration important cell design issues. In addition, one of the main challenges has been development of efficient algorithm for solving aforementioned model to find exact feasible optimal solution. Therefore, for this proposes good benchmarked algorithm, bacteria foraging algorithm is selected and developed to solve multi-objective cell formation model and traced constraints satisfaction handling to produce feasible optimal solution.