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As the modernity and sophistication of production and manufacturing are being enhanced exponentially, competition and rivalry among the companies to grasp the market is growing accordingly. Reducing the final production cost and producing exactly according to customer value, are the most crucial challenges which the companies are normally facing presently.

It is crystal clear that synchronizing with the new production systems and methods plays an undeniable role in keeping manufacturing companies alive and able to compete. Survival is totally dependent on continuous improvement and implementing development projects to elevate the capability of compatibility of the company with the other competitors. An optimized layout, designed completely in accordance with customer/market demand (both quality and quantity), maximizes the ability of a company to conquer the market and increase profitability.

This thesis project is mainly focused on a development project implemented in an Italian household appliances factory, Tecnogas, for analyzing and optimizing their assembly department. Flow analysis, Rebalancing the assembly line and applying 5S as the starting point of lean manufacturing, were the core activities fulfilled during this project. Improving efficiency and utilization of workers, equipment, and production space, as well as elevating flexibility of the assembly line by minimizing the number of workstations, are some of the positive results of implementing this development project.

In this study, readers firstly will get acquainted with the factory and its problems, and then theoretical aspects of implementing this project will be clarified by reviewing Plant Layout Planning, Flow analyses, Assembly line balancing, and 5S. As the last stage, the "applied solution procedure" will determine how the improvement tools and techniques are utilized, and to what level the results are satisfactory.