UMKM often face challenges in improving production efficiency and competitiveness, especially in selecting locations and designing optimal production facility layouts. This study aims to design an optimal production facility plan for a fish skin cracker UMKM in Kenjeran Fisherman Village, Surabaya. The focus includes selecting a strategic location for a new branch, designing an efficient facility layout, and streamlining the production process to improve efficiency and market competitiveness. The research methods involve field surveys, interviews, and qualitative analysis to determine a strategic location. The analysis identifies Sukolilo as the optimal site based on proximity to consumers, infrastructure availability, operational cost, and market competition. The facility layout was designed using SketchUp software with a straight-line material flow approach to minimize material movement and reduce production time. This study is expected to provide practical benefits for UMKM in optimizing production processes and enhancing operational efficiency, as well as serving as a reference for future research.