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A systematic approach to the automatic generation of schematic diagrams for digital systemsÂ¿diagrams described as networks of modulesÂ¿provides useful CAD applications. This approach transforms guidelines. traditionally followed in manual drawings of schematic diagrams, into quantitative objectives. In view of the complex relationship between these objectives, the schematic design process is broken into a lengthy sequence of steps. We will attempt to give the precise formulation for each step, along with efficient solutions, making suitable approximations where necessary. An illustrative diagram is included, generated using these algorithms, showing that our results compare well with hand-drawn diagrams.