Abstract: This study presents a study about a design of an effective and efficient facility layout of production department in the health drink industry to improve productivity. Because of the existing layout of facilities did not support the company to achieve the specified target. Repetition of processor and collision between operators when handling material causes problems on the shop floor. So, it is necessary to redesign the layout of production facilities. The Computerized Relationship Planning (CORELAP) algorithm is used to develop a new design. And computers simulation by using Flexim 6 and statistical analysis are conducted to test the hypothesis. The results of this study show that the proposed layout design is valid to reduce distance from 69 m into 48 m and material handling costs in the amount of 30%. Thus, the proposed design is more effective and efficient to improve productivity of production.