| The problem that is faced by company is less of material handling efficiency at production facility because there are some processes which been doing at second floor. The warehouse is located far enough, supposed not suitable for material handling, that causes process of production become less optimal, so the writer propose the facility lay-out design to increase the efficiency of material handling at this company. The steps that be taken are; making the operation process chart to know the steps of process, and then make the material handling planning sheet to get to know the material handling activity. After that writer makes from to chart frequency, inflow and outflow to describe how big is relation frequency of each machine and then make the scale of priority to know how important is relationship of each machine. The next step is making the activity relationship diagram to arrange new machines positioning which is minimizing the dummy. At last is making the area allocation diagram that describes the actual production and warehouse lay-out, to get new material handling distances. From the analysis above, we get the difference of material handling distance about 390,715 m, with this distance difference causes time saving at about 4028.97 seconds and material handling saving costs about Rp. 10.072.500,-/year. With this proposal of facility lay-out design, will save distance, time, and cost at about 38,57 % for PT. Limanto. Because of that, we need to evaluate and compare between these two lay-outs, to increase the efficiency of material handling |