Material handling process is affected by planning and setting layout facility since cost of material handling can reached 30-90% total production cost. In a metal furniture factory products were made without good setting layout facility. The machines and material were set at empty places. Distances between machines were not set so the traffic would get traffic jam. Unfinished material must wait until the number requirement for handling is reached. The layout setting of machines will be set with Group Technology. The methods used are Rank Order Clustering, Similarity Coefficient and p-median. The result of this method can reduce distance of material handling until 68%