This has an impact on reducing handling costs for one product which was originally Rp. The proposed new layout is the location between processes into one Production Line, which was previously on different Production Lines. This study uses the CORELAP (Computerized Relationship Layout Planning) method to determine the best factory layout. The purpose of this research is to propose to improve the best factory layout with a comparison of the total distance of material movement between the initial layout and the proposed layout, which has an impact on changes in material handling costs. The addition of these new facilities requires re-planning the boom component processes and maximizing the distance between processes, which are currently less efficient, marked by long distances, and requiring a long time to move components between processes. The Engineering Department invests by adding one welding robot unit to support the production process to match the target. Often the delivery time for boom components is not by the predetermined target, so it is necessary to improve to support the delivery target to the customer on time because the welding process is not optimal. According to the target, PT Heavy Equipment Ternama needs a good and smooth production system to support the fabrication process.

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