This Thesis addresses Factory Layout Problems, and reviews and evaluates the available layout techniques. Manufacturing as a system has been studied and reclassified for factory layout: space demands and spatial relationships have been considered as main principles of Factory Layout Planning. This forms a basis for the introduction of a new, more efficient Factory Layout Planning Methodology, denoted as SPACE MANAGEMENT. A new COMPUTER AIDED FACTORY LAYOUT PLANNING system is formulated as a tool for: - preparing 3-D templates of Work Station Modules and Equipment Modules; - drawing a requested interior of an industrial hall/bay in 3-D; - positioning any 'objects1 (spaces), via manual interactive programs i n 3-D; - automatic positioning of work stations and equipment in the bay, in 'technological' order (in 3-D), using an automatic positioning program, with a facility for: collision course finding(with objects within the bay), manual override for corrections, and finding an optimum size (width) of the bay. The resulting layout scene can be observed from any required Position and distance. The system includes a set of auxiliary programs for Manual Feeding of lines of work stations in 'technological' order and for basic capacity calculations. CAFLAP also opens a new way of economic evaluation of Projects and alternatives. CAFLAP is implemented in FORTRAN 77 and uses the Computer Graphics System PICASO.