The simulation analyses numerous situations to discover if the layout would be more effective for the workers to work at the workstations. The main objective of this paper is to design a proper facility layout for the Erul Food Industry according to Makanan Tanggungjawab Industri (MeSTI). A simulation is needed regarding the facility layout designed for optimizing the time and cost by using FlexSim software. This paper was held at Erul Food Industry, a small industry that produces frozen smoked meats located at Rembau, Negeri Sembilan. SketchUp and FlexSim software are the tools used to design and analyze the developed layout for Erul Food Industry. Besides, processor stay time, processor operation, content against time, processor time, and financial analysis data are being gathered and observed. ,The total running time for current layout design, Design 1, and Design 2 was recorded in minutes which are 765, 741, and 730 respectively. Meanwhile, the cost analysis recorded for the current layout design, Design 1, and Design 2 are RM22893.68, RM21908.75, and RM21542.81 respectively. The percentage improvement of the time analysis shows the current layout design, Design 1, and Design 2 are 1.9%, 5%, and 6.4% respectively. Finally, a comparison was done to select the developed layout with efficient time and cost analysis. The chosen developed layout; Design 2, is then proposed to Erul Food Industry based on the lowest time and cost. This paper is anticipated to assist Erul Food Industry in developing the real layout to optimize the time and cost analysis at the workstations.