This paper describes a novel method based on genetic algorithms (GA) to solve thernfacilities reâ€“configuration problem. Developing a proper floor layout is an important steprnin designing manufacturing facilities due to the impact of the layout to material handlingrncost and time, and its direct consequence on the overall productivity of the shop floor.rnPoor layout would result in having more parts spending longer time in moving from onernfacility to the other, and results in increased material handling costs. In contrast to thernblock layout the objective of facilities re-configuration is to find the appropriate placementrnof facilities with in the existing boundary of the factory floor for the new product comingrnin to the manufacturing system.rnThe genetic algorithm based method developed to solve this uses the objective ofrnminimizing the movement of materials being processed in the factory.rnThis thesis investigates the potential of genetic algorithms in re-configuring factory floorrnfacilities and presents a computer automated system for performing facilities reconfigurationrntask of an existing factory floor. The system integrates the powerful graphicalrncapabilities of AutoCAD and the intricate search and optimization abilities of geneticrnalgorithms for the purpose of solving facilities re-configuration problem.rnThe computer automated system is implemented via Visual Basic 6.0. The interfacernfeatures of Visual Basic and AutoCAD are utilized to capture the geometrical details of thernexisting factory floor layout and to represent the final solution graphically.rnAkaki Spare Parts and Hand Tools factory is selected as one of the factory which isrnsuffering from re-configuration of its factory floor facilities. The final part of this thesisrnshall validate the systems performance taking ASPSCâ€™s hand tools and cutlery divisionrnfacilities as a case which is mostly dedicated to produce one type of product at a time.