The objective of this study is to develop a general design and performance evaluation model for the system designers in the initial design phase of the integrated automatic manufacturing system based on the RAM(Reliability, Availability and Maintainability) and life cycle cost(LCC). The methodology proposed in this research includes the following two stages. First, a deterministic approach to the solution of optimal work station arrangement for the initial system configuration is considered under the assumption that the system availability is one(no failure and maintenance), and then a stochastic simulation model based on RAM and LCC is developed. Using the results of these two stage simulation, a system performance index(SPI) was developed for the performance evaluation of the proposed system. Also a computer program is developed.