Facility layout design has an important function in manufacturing systems because it affects manufacturing costs, work in progress, lead times, and production output. This study presents facility layout designs for multi-product and small-lot-sized production lines. This research focuses on the development and analysis of layout alternatives on the basis of performance measures and aims to improve production efficiency. Thus, the tools and techniques available for the layout designed were investigated. Related data were collected, and alternative layouts were developed using the WITNESS simulation software. Finally, the alternative layouts were ana1yzed and evaluated using the analytic hierarchy process to identify the best possible layout. Two important parameters observed in the alternative layouts: the ability to produce a desired output and the flexibility of each layout coherent with the fluctuation of product demands in the industry. Results from analysis shows that suggested Model 3 with the combination of flow line and job shop configurations is the most suitable layout. This model has the highest machine utilization rate and the highest labour utilization rate yet requires only 21 operators, the lowest number of workers. For future work, this type of layout should be tested with different variation in lot sizes. © 2016 Penerbit UTM Press. All rights reserved.