In this paper we have proposed a semi-heuristic optimization algorithm for designing
optimal plant layouts in process-focused manufacturing/service facilities. Our proposed
algorithm marries the well-known CRAFT (Computerized Relative Allocation of
Facilities Technique) with the Hungarian assignment algorithm. Being a semi-heuristic
search, our algorithm is likely to be more efficient in terms of computer CPU engagement
time as it tends to converge on the global optimum faster than the traditional CRAFT
algorithm - a pure heuristic. We also present a numerical illustration of our algorithm.