Workstation arrangement is one of the factors that can give a significant impact on the company’s performance. Poor implementation of the workstation can lead to an ineffective and inefficient work system which may limit the rate of productivity, poor utilization of resources, high rate of rejection, and many more. For the company of this study, which is XYZ Furniture Sdn Bhd, they face limited production over a certain period by using existing machines which can make the production rate become inefficient. Thus, this study is conducted to solve the problem by proposing several solutions to the company. Based on the findings obtained from this method, the researchers found that there are some shortcomings in the workstation layout that has been used in the factory that causes them to be unable to maximize daily production and cause them losses due to having to work overtime to ensure their daily targets are achieved. The use of this ARENA simulation method is important because this application can create an overview of the movement of a process with more organized and accurate simulation results. Thus, this study is conducted to solve the problem by proposing several solutions to the company. Based on the result, there was a positive increase of 34 units of wood pieces equivalent to 7.08%. This improvement is very good and gives a considerable impact on the company and can help the company in growing its business in the future.
