Abstract: A five-level planning strategy is proposed for the bidding-based flexible transfer line (FTL) schematic design system. It includes the selection of manufacturing feature machining operations, part set-up planning, feature sequencing, operation sequencing and process plan generation. Based on the blackboard architecture of stepwise reasoning, the method of synthetical operation sequencing is introduced. According to the requirements of manufacturing system design, the CAPP system for FTL schematic design is developed.