This research focuses on the leather shoes' semi-finished product storage facility designing in the rural small industry, Magetan, East Java, Indonesia. The workstation of this industry needs to be improved, due to the lack of storage space for the semi-finished product of leather shoes. Besides limited space, the material arrangement was also unstructured. This condition impacted the process inefficiency, among others the production operator take more time for searching the semi-finished material to process become finished leather shoes. Therefore, this research resolves that problem by designing a storage facility using the Value Engineering method. Using this method, the SIMILAR stages on the system and process design were utilized to generate several alternative facility design solutions. A systematic analysis was conducted for two design facility alternatives, with criteria achieving the desired function, fulfilling the industry requirement such as appearance, quality, ease of maintenance, and acceptable cost. Alternative 1 of the semi-finished product storage facility was chosen, with the circle shape design using Aluminium material, installed underside wheels to easily moved, and the storage facility could be rotated. This design was expected could support the industry to produce leather shoes more efficiently.

Keywords
leather shoe industry, product design, product storage, production tools, value engineering