The article presents a methodology for using augmented reality in the design of a manufacturing system layout. It describes the software and hardware tools Autodesk Factory Design Utilities with AutoCAD Architecture, Inventor Professional, and 3ds Max, as well as HoloLens 2 and the workflow from selecting 3D assets, through converting 2D models to 3D representations, to optimizing polygonal geometry for the HoloLens 2 augmented reality headset. An experiment conducted in a real manufacturing environment demonstrated realistic placement of and interaction with machine models such as a lathe, drill press, milling machine, and grinder enabling faster iterations and safe verification of the production layout design. The identified benefits include visual verification, support for training, and flexibility, while the limitations are cost, the need for user training, a limited field of view, and tracking sensitivity. The results confirm that augmented reality is an effective tool for workstation design, simulations, and training.