A systematic approach to the automatic generation of schematic diagrams for digital systems?diagrams described as networksof modules?provides useful CAD applications. This approach transforms guidelines. traditionally followed in manual drawingsof schematic diagrams, into quantitative objectives. In view of the complex relationship between these objectives, the schematicdesign 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, generatedusing these algorithms, showing that our results compare well with hand-drawn diagrams.