Interest in the implementation of AGV-systems (Automated Guided Vehicle) has in recent decades increased. The reason is that it allows companies to perform reliably and secure internal transport while reducing the need of personnel. It is one of todays most advanced and complex material handling system that can independently make their own decisions regarding flow paths and traffic control. An AGV-system consists of transport units carrying cargo from point A to point B, and communicates using a computer.

The purpose of this study is to develop a model on how to proceed in order to design an AGV system in heavy industry. The model is tested by a case study of a company in the metal industry to determine if the model works and gives the correct result. Relevant literature has been collected through scientific articles, books.

In order to find relevant information, a flow mapping on Billet preparation of Sandvik AB was performed. The information was summarized in a situation analysis. In order to design the AGV system, we found that analytical approach and simulation was according to the literature's most successful approaches. By using these methods in the theoretical model and adjust their performance against one another the results from the model should be a sufficiently accurate reflection of the design needed to serve the Billet preparation.