Computer-aided layout technique, which appears to be the best approach to solving complex layout problems, is not commonly used in practice. One of the important reasons may be the generation of unrealistic layouts which results from ignoring the important practical constraints and objectives involved in layout problems. As one possible solution to this problem, a human planner can develop layout using a computer routine with those constraints and objectives in mind. However, the development of a heuristic procedure which incorporates human-like layout processes into a computer program could be a better solution;This dissertation provides the means of a realistic or a close to realistic layout development using important practical objectives and constraints involved in facility layout. Instead of ignoring those factors due to the difficulties of implementing them into mathematical statements, using them in the process of layout development will be helpful to reach an optimum or a near-optimum solution;An experimental system, FLUKES, has been constructed for testing purposes. This system develops layouts which include the practical factors involved in layout problems. These factors include architectural limitations, health/safety, user preferences, utilities, department shapes, future expansion plans, and energy savings as well as material handling costs. FLUKES uses these factors not only for the evaluation of a layout, but also for the search for a solution.