In this paper ongoing production process layout of jute industry are studied and a new
layout will be developed based on the systematic layout planning pattern theory to reduce
production cost and increase productivity. The number of equipment and travelling area of
material in yarn production have been analyzed. The detailed study of the plant layout such as
operation process chart, activity relationship chart and relationship between equipment and area
has been investigated. The new plant layout has been designed and compared with existing
plant layout. The new plant layout shows that the distance and overall cost of material flow from
stores to dispatch area are significantly decreased.