Team-oriented approaches are widely being used in modern real life assembly systems, as are other modern systems. In this paper, first the literature of single and mixed model assembly line balancing, which plays an important role for the design of assembly systems, is reviewed. The associated literature matrixes reveal that team-oriented approaches do not have an intensive research area. Second, a team-oriented mathematical programming model for creating assembly teams (physical stations) in mixed model assembly lines is devised. Owing to the fact that this model is NP hard, a scheduling based heuristic algorithm is developed. The mixed model assembly line design methodology, which includes a team-oriented algorithm as a step, is proposed. Both model sequencing and worker transfer systems are included in the methodology. The algorithms for each step of the methodology arc also coded by using MATLAB and MS Excel is used as the user interface. Furthermore, the presented methodology was applied in a chosen segment of a real life mixed model tractor assembly system. (C) 2007 Elsevier Ltd. All rights reserved.