1 Simulation Modeling for Balancing and Optimizing a Digital Measuring Device (DMD) Production Line Rohana Abdullah, Adi Saptari, Isa Halim, Effendi Mohamad Manufacturing Management Dept., Univ. Teknikal Malaysia Melaka rohana_abdullah@utem.edu.my Abstract In today’s competitive manufacturing environment, companies are constantly looking for ways to improve. Because of this, many companies are striving to reduce waste by implementing lean manufacturing, which is a difficult process. Line balancing is part of the lean manufacturing. To aid in the implementation, simulation can be used to reduce the trial-and-error process in balancing and optimizing the production line. Towards achieving a lean assembly line, the optimum amount of resources in terms of the workstations and labor will need to be determined. In addition, the identification of the bottleneck area is critical before opportunities for balancing the production line can be determined. Using Witness simulation modeling, these objectives were able to be achieved and the details of the results will be presented in this paper. Through this study, the SME participating in this study was able to confidently manage their equipment capacity more efficiently and attain a highly productive workforce. Keywords: Line balancing, Lean Manufacturing, Productivity, Simulation 1 Introduction Lean principles are fast becoming the preferred method being utilized by companies to achieve optimum production systems. Lean is all about eliminating waste and Rawabdeh (2005) defined waste as “anything other than the minimum amount of resources which are absolutely essential to add value to the product”. Dennis (2002) asserted that this can be achieved by utilizing the productivity improvement techniques and Toyota is an example of a company that has successfully proven that this method really works. Standardized work at each manufacturing and assembly process also ensures high level of productivity, quality, and safety to the employees (Tapping, et al., 2002). Line balancing is a lean tool that can be used to optimize the workstation or assembly line throughput. This tool will assist in the reduction of the production time and maximizing the output or minimizing the cost. Assembly line is a flow oriented production system where the productive units performing the operation referred to the workstation and the work pieces move from one station to one station with some kind of transportation system. Normally there will be a problematic area in an assembly line or technically known as the bottleneck workstation. Bottleneck is based on the analogy of the shape of a bottle. When liquid is poured into a bottle, the liquid will flow slowly at the bottlenecks that have a smaller parameter compare to the wider body. That is the concept or application that is used for the term bottleneck in assembly line. At an assembly line, bottleneck is will create a queue and a longer overall cycle time. The example of the bottleneck concept can be referred at Figure 1.