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The Functional, Flowline and Cellular Layouts are traditional facility layouts that have been discussed in the literature and implemented in industry. Selection of an appropriate layout for a multi-product facility poses a major challenge since the best decomposition of its material flow network is usually achieved by a hybrid layout that must combine the flow and machine grouping attributes of the three traditional layouts. Unfortunately, the Systematic Layout Planning (SLP) design process does not describe specific methods for product mix segmentation and department planning for design of jobshop layouts. It lacks a systematic method for varying the manufacturing focus of the different planning departments (or activities) into which the jobshop can be decomposed. We enhance the SLP process by integrating Production Flow Analysis (PFA) into SLP. Adoption of algorithms and principles of PFA in the process of SLP can eliminate the two limitations of SLP: (a) incapability of using product routings, instead of the From-To chart, as input data, and (b) incapability of generating layouts that are a hybrid combination of Functional and Cellular layouts. A review of the literature shows that a fundamental requirement for the design of modern facility layouts is the distribution of identical machines at multiple locations in the facility. Our research shows that the material flow network in any facility layout can be decomposed into a network of layout modules, with each module representing a portion of the entire facility. A layout module is defined as a group of machines connected by a material flow network that exhibits a flow pattern characteristic of a specific type of layout, such as the Flowline, Cellular or Functional Layout. The concept of layout modules extends current thinking on input data requirements and methods for facility layout, and supports the need for a new generation of facility layouts beyond the three traditional layouts that continue to be studied and implemented in industry. We propose a group technology based heuristic approach as an alternative method for generation of layout modules and design of modular layouts, based on a new similarity measure for comparison of operation sequences.