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Facility layout optimization is to set best physical configuration of the site facility to perform high production capacity and improve the performance of the organization. Marin fabrication yard is one of factory consists of several fabrication activities using a large area. Construction activities varied to produce different types of marine units and offshore platforms like decks, jackets, subsea guides, piles, deepwater oil and gas structures, and ships. This hug structure needs a suitable site area with a good arrangement of a fabrication facility to achieve best and fast production flow. The objective of this study is to optimize the yard facility layout for building and fabrication of marine and offshore units using Computerized Relative Allocation of Facilities Technique algorism. In this paper facility layout problem (FLP) for the marine fabrication yard (Alexandria yard) was verified as study work case. Computerized Relative Allocation of Facilities Technique algorism (CRAFT) used to improve the already existing marine yard layout. Also, Sample data project was collected to determine the amount of fabricated material as real data input for required calculations. Alternatives layout produced by CRAFT algorithm and compared with existing marine yard layout (Alexandria yard) to defined best layout design, the comparison found that the computerized layout design provided by CRAFT algorithms provides better layout design results and improves the initial material transportation from 187608.64 Birr to 76163 Birr By applying different types of iteration like switch, relocating and resizing the department. [ABSTRACT FROM AUTHOR]