In this study, the application of a systematic plant layout planning (SLP) to assist the optimum design of process areas and locations is proposed. The number of machines and space requirement in pulley factory is determined. The operation process chart, flow of material and activity relationship chart have been investigated. The relationships between machines, operation sections and material flow are used to determine the suitable position of each activity. The SLP method has been employed to design the two alternative plant layouts and compare the performances between new layout and present layout in term of material flow. The new plant layout is modified by moving a disassembly and surface finish that significantly decrease the distance of material flow, so it is effective increasing production.