In order to improve the production process based on the reduction of total transport distance, this paper provides insight from a theoretical approach, elaboration, analysis of several variants of the company TMT Ltd. plant layout designs, as well as decision process of choosing the most appropriate among them. The first part of this paper provides a theoretical approach related to production systems, the requirements and impact of changes on production systems and the basics of designing production systems. The concept of material flow is described as a fundamental approach that connects all elements of the production system with the aim of achieving the production system as a cohesive system capable of high output performance. Here is also given an overview of methods and tools for various plant layout design problems in addition to an introductory overview of current computer applications used for this purpose. In the second part of the paper, the company TMT Ltd. is introduced which provided it's production data on a representative product sample. The product sample provided the basic input information for further material flow analysis and application of the above-mentioned methods and tools. The material flow analysis follows in several phases: recording and analysis of the existing case study where the problem of the microlocation of the observed plant originated from, the selection of the representative product and the analysis of the product structure and, in order to determinate the production planning process, the flow of materials (transport intensity matrix, and transport distance matrix) is quantified. The third part deals with the construction of several plant layout variants of the production system, their analysis and, with the help of the company employees, selection of the most appropriate layout for the plant layout design problem. The presentation of the constructed five plant layout variants is given in a detailed view. The last part deals with the initiation of additional criteria in evaluating the created plant layout variants and the selection of the chosen multi - criteria decision - making method to support the selection of the most suitable production system plant layout.