A problem of design of rotary transfer machines with turrets is considered. Operations are partitioned into groups which are performed by spindle heads or by turrets. Constraints related to the design of spindle heads, turrets, and working positions, as well as precedence constraints related to operations, are given. The problem consists in minimizing the estimated cost of the transfer machine, while reaching a given cycle time and satisfying all constraints. The proposed method to solve the problem is based on its reduction to a constrained shortest path problem. An industrial example is presented.