Abstract: A material handling system for forming an air bag in a plurality of workstations. The system includes a pallet for holding a workpiece in a predetermined orientation and a locator for locating the pallet in a plurality of workstations for performing different operations on the workpiece. The pallet is provided with structure for aligning the pallet in at least two workstations for performing different operations on the workpiece. The workstations preferably include a sewing station and a punch press station wherein the pallet is adapted to be accurately aligned in each of the stations for performance of respective sewing and hole cutting operations. The locator is operable for moving the pallet from a loading station to the sewing station and then to the punch press station. Further, the locator is operable to subsequently move the pallet to an unloading station or to a further workstation.