P.T. Alpha Jaya Manunggal Mandiri is a manufacturing company enganged in the furniture sector. In the spring beds production line, several problems occur with the old Layout as high material handling costs. The distance between workstations is far from each other, and alternating process flow made the production less efficient. In creating a new alternative Layout, a systematic layout planning method was used. In creating a new alternative Layout, the first thing to do is to measure the floor area, make production flow, and measure the production standard time to make the flow process chart and operation process chart. After that, the following process is to forecast the product demand for the next year, which would be used on the routing sheet. The routing sheet is used to calculate the number of machines needed to fulfil the product demand. After that, the alternative Layout can be made using the S.L.P. method by making Activity Relationship Chart, Activity Template Block Diagram, Activity Relationship Diagram, and Area Allocation Diagram. After the new alternative Layout is created, the next step is counting the material handling costs and moving moments to find the Layout with minimum material handling costs and moving moments. Then the last step is using the Promodel software to simulate the new alternative Layout and old Layout to find the increase of products that can be made by using a new alternative layout before the new Layout is implemented in the factory.