It is noticed that the performance of SME’s can be improved even with some redesigning the existing layout. A careful study can make it possible to just change the process layout into a cell layout. It is more beneficial to first form cells and then design a layout using CRAFT. For the SME’s where cell formation is not possible, CRAFT can be used by replacing the department with facilities and layout of plant with departments. Working on this program is easy and simple. Anyone who has basic computing knowledge can work upon the problem of layout planning. The process of designing a layout for SMEs should be as follows: Collect the data; decide the objective of layout design; compute the performance of the existing layout using simulation; generate alternate layouts by using layout generation technique; again evaluate the performance of each alternate layout and select most optimal layout by comparing performances. SMEs would be benefited immensely if clear design procedures and simulation software are made available to them. Extensive application of simulation techniques is suggested for improving plant layout and enhances productivity.