The military aircraft manufacturing at Saab is ready to enter the future of production systems and become ahead in their field. Saab predicts an increase in demands of military aircrafts, to meet this new higher customer demands this master’s thesis is a part of a project which creates a new production system. This Master’s thesis includes following steps, which has been validated thoroughly:• A simulation model of a production system for military aircraft manufacturing. • A system analysis and identification of bottlenecks by investigating the queues in the simulation model. • Testing of improvement suggestions.• A simulation model which tests different production volumes.• Recommendations for how to increase production volume by time, with solutions from two different development processes.The result of this master’s thesis is concepts on how to build a production system for military aircrafts, including number of stations, improvement areas and results of improvement suggestions on a general level. The simulation model created possibilities to test a lot of scenarios and improvement suggestions and therefore find the best solution. To use a simulation software as an initial part of a project has been proven successful and is recommended to use initially in project in the future.