The aim of this Master thesis is to explore the impact of design parameters on material flow efficiency in terms of space and time utilization. The factory material flow design process is an essential part of any manufacturing. The challenge for this project was to expose the components for the assembly operator within the space designated for materials at the workstation, meanwhile minimizing non-value-adding work and creating good ergonomics so that operators can achieve high workstation performance. In this study a new General Motors Powertrain manufacturing plant was considered as a case study for the design of internal material flow and implementation of lean principles. The research work was based on action research strategy where the researcher starts with a particular problem that he wants to solve, or understand better, usually within the environment where he is working. The ?ndings underline the importance of each design parameter in the application of lean principles. The main conclusion to be drawn from this study is that the material flow design process can still require a continuous improvement based on production targets and the best practices from other companies.