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Abstract
Effective facility layout design is key in improving productivity and operational efficiency, especially in the face of fierce competition and dynamic market demands today. Productivity is closely related to the production process, which is the processing of raw materials into finished products. Inventory management is needed in managing production scheduling, ordering, and inventory in storage and warehouse. PT Tegal Road Construction is a company engaged in the production of concrete and asphalt. The company often faces challenges in operational efficiency and productivity due to a less than optimal facility layout. As a result, a better facility layout design is needed to improve production performance. The Activity Relationship Chart (Nadira Marsandri Ratnakaniya et al., 2024) (ARC) Method was used in this study. to design a more efficient facility layout. Data was collected through observations, literature reviews as well as interviews. Findings indicated that a good facility layout change (Casban & Nelfiyanti, 2019) can reduce product completion time and improve operational efficiency. By optimizing the distance between work stations and raw material warehouses, the production process becomes smoother and production costs can be reduced. The conclusion of this research is that the proposed design of a more effective facility layout at PT Tegal Road Construction can have a favourable effect on the production process.