It is important for the manufacturing and service industry to reduce their costs and expenses to maintain a sustainable
position in the global marketplace. Selecting the right manufacturing strategy and planning is a critical decision
for production managers in the industry. The layout problems generally exist in the manufacturing industries. In the
industries the layout problems deals with the facilities like departments, machines etc. As a case study, this paper
presents a machine shop producing molds for local based bottles production industry. The mold making machine
shop capacity is enhanced to fulfill the annual requirement by minimizing travel distance, removal of bottlenecks
during production, material handling and losses. Firstly, several layouts were generated using Systematic Layout
Planning (SLP) method and efficiency rate is calculated. The cost analysis of the modified layout was calculated by
giving a payback period also. The results show that the proposed layout performs efficiently for the annual demand.