In manufacturing systems, facility layout design has an importance has it help to improve the productivity of layout, influences manufacturing costs, WIP and lead times. The present work aims at improving the productivity of engine cylinder block line and achieving the increased demand by design of mixed product production line. Two production line has been considered for present work. After the detailed analysis of every activity at each workstation, merging of both production line has been done and new workstation sequence and proposed cycle time for each workstation has been evaluated. The Yamazumi chart was used to compare the average proposed cycle time at each workstation and the new takt time for balancing the line. New layout established the possibility of reducing the manpower and number of workstations for new demand. New layout was analyzed by using Witness simulation software which helped to determine the operators and workstations idle and busy time. Simulation results of new layout brought about reduction in manpower and reduction in idle time of operator. The proposed new layout demonstrates an increase in yield and productivity compared to the current layout.