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Material transfer is one of the most important activities in the production process activities and has a close relationship with the design of the layout of production facilities. A manufacturing company engaged in the manufacture and assembly of machine spare parts at the oil palm plant constraints in terms of material handling so that the decline in utility of the production floor layout and the increasing cost of moving raw materials. To improve the utility on the production floor using group technology method that is Rank Order Clustering (ROC) and Similarity Coefficient (SC). From the result of matrix rank calculation in pairs or between machines then SC method is the best layout design with decreasing material displacement moment by 56,86%. And to improve the layout of facilities on the production floor using BLOCPLAN algorithm that is the value of the degree of Adjency Score of 0.5317. This proposed layout provides a smaller displacement moment so as to shorten the processing time of all parts by 338 minutes and increase utility on the production floor.

Redesigning layout in the palm oil tank plant to enhance the utility