The design of the layout of the production floor facilities in this study aims to solve the problem on the production floor, namely that there is an irregular material flow pattern due to alternating flow and crossing paths with high frequency resulting in total material transfer moment which is directly proportional to high material handling cost. To solve the problem is used Urban Algorithm and WinQSB Software. This method was chosen because it can exchange between departments and move departments so that distant parts can be re-adjacent. In addition, this method uses from to chart which is then inputted to produce alternative layout proposals. The results obtained after repairing the production floor layout using the Urban algorithm and WinQSB software in XYZ Company of wood processing factory shows that the total displacement moment is 546,745 times/month. This has decreased compared to the total moment of displacement of the initial layout of 1,211,335 times/month. The total OMH in the initial layout was IDR 1,321,902 after improvements and adjustments were made using the Urban algorithm, the total OMH was IDR 574,083. The results showed that the layout improvement with the Urban algorithm has an efficiency of 56.57% and the best alternative is layout II.