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Abstract
PT. XYZ Pekalongan is a producer of sarongs (Greige) operating in the manufacturing sector, from the initial production of raw materials (Greige) to the inspection and storage processes. An important factor that can affect production performance is the layout of the facilities. The placement of facilities in the form of rooms or machines in the industry that is not optimal has significant impacts such as production process obstacles due to inappropriate travel distances, productivity affecting company performance, and increased production costs. The Activity Relationship Chart (ARC) method is used to solve problems at PT. XYZ Pekalongan by analyzing the activity relationship map based on proximity levels. The Activity Relationship Chart (ARC) method is useful for identifying the level of relationships between activities and making decisions regarding space layout changes. The purpose of the research is to save travel distance by identifying the workflow to optimize the facility layout. The facility layout at PT. XYZ Pekalongan reveals an issue with the placement of the Sectional Reaching area, which is too far, namely 172 meters from the Sectional Sizing area. Therefore, the relocation of the Sectional Reaching area is proposed. The research results using the Activity Relationship Chart (ARC) method show a reduction in the workpiece travel distance by 142 meters. The improvement of the production facility layout using the Activity Relationship Chart (ARC) method requires a travel distance of 30 meters from the Sectional Sizing area to the Sectional Reaching area, resulting in an efficiency value of 82.56%.