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Application of robots and their operation in various industries, as well as involvement of Computer Integrated Manufacturing (CIM) in production systems and processes have been widely used internationally in the last couple of decades. The most important advantage of operating robots and automated systems are acceleration in production speed, higher efficiency, and solving workforce problems involved in the production process, while maintaining standardized levels of safety in dangerous and unfavorable working environment. In the present article different stages of design, building, and operational tests of an Automated Guided Vehicle (AVG) is to be reviewed. Initially, various stages of developing the design of different parts of the robot, with respect to the operational requirements, standards and existing criteria's are considered and duly presented. Additionally, a fuzzy controller is designed, having taken into account the robot operational objectives. Upon finalizing the design development the project shall enter into manufacturing phase, by completion of which, the robot undergoes operational testing process. The test results indicate an acceptable good performance of the robot in path following capability, reduction in error levels, and operation in un-programmed conditions.