Automated systems include devices such as processing machines, handling/transfer mechanisms, and robots with dexterous hands or custom built grippers. Design of processing machine tools and of handling systems are generally conducted independently. Subsequently they are integrated with each other. This conventional approach does not allow exploring and exploiting the possibilities of new conceptual designs in which handling mechanisms are an integral part of machine tools, or processing devices are an integral part of handling systems. This thesis contributes to the development of a systematic methodology for conceptual design for automation (DFAM) by extending the application of the axiomatic design theory. The work has resulted in formulation of a methodology enabling design data to flow between product design, process design, and automation system design, so that they are not performed in exclusivity. The relevant issues, namely, conditions of automatability, feedback between the different design domains, process design for automation, and integration of automation are investigated. A criterion to evaluate competing design alternatives is also proposed, based on the issues associated with the information model of an automation system, namely, precision of motion, and partitioning of travel. The framework of the methodology includes six axiomatic propositions to guide the design of integrated automation systems or cells, and two axiomatic propositions to compare the alternate designs. To establish its generic scope, the DFAM methodology is applied to several case studies of industrial projects resulting in new integrated designs.