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Effective layout in agro-industry is an important agro-industrial production management system that can expedite the production process and reduce the potential risk of work accident in the production area. The objectives of this research were: (1) to identify the potential hazards and Occupational Health and Safety in Tempe Chips Small and Medium Enterprise (SME), (2) to analyze facility layout in Tempe Chips SME to shorten production lines and improve work productivity. Bu Nurjanah Tempe Chips SME Malang, East Java was selected as research location because of poor lay out system and it has same character with Tempe Chips SME that had fire accident. This research used Occupational Health and Safety Analysis and Systematic Layout Planning approach in designing agro-industry layout that consist of activity relationship chart, activity relationship diagram, and area needs. The results of the research showed that Tempe Chips SME has potential fire hazards and food contamination. Layout recommendations in accordance with Occupational Health and Safety standards included the fulfillment of production facilities such as: access to drinking water, toilets and laundry facilities, and clean cafeteria. First layout design had 13.3 meters track length by process link considering and second layout design had 12.5 meters track length that reduce material handling.