Simulation studies of job shop scheduling have typically assumed that either setup times are zero (subsumed within the processing time), or that every part has such a unique setup that no setup advantages can be gained by better scheduling policies. These studies also assume that the shop has exactly one copy of every machine. Some researchers have proposed heuristics that explicitly consider setup times and parallel machines in the context of a one stage shop with static arrivals. In contrast, family-based scheduling centred around setup time reduction has been credited with achieving economic savings in batch production industries where GT is employed. We motivate this study by the case of an existing realworld semi-conductor testing facility that has family setups, parallel machines and dynamic job arrival. Using this setting, we investigate whether benefits can still be obtained by using a family-based scheduling philosophy in those environments which do not permit the physical creation of cellular layouts due to the presence of process related or other constraints. We propose and evaluate two new dispatching procedures in a functional job shop that is modelled after the semiconductor testing facility. Results show that a family-based scheduling philosophy centred around coordinating machine setups is advantageous at relatively high setup to processing time ratios, while classic job shop rules suffice otherwise. Based on these results, we present recommendations for managing such environments. We also suggest future research directions in this area.