Focuses on the integrated use of simulation tools, particularly discrete‐event simulation, in the design and development of manufacturing systems in Japanese industry. The results are based on questionnaires and visits to seven large Japanese manufacturers and show that most of the visited companies do not use simulation to any large extent, particularly not discrete‐event simulation. Some of the reasons for this are general, while others are specific for Japan. However, the use of simulation is believed to increase in Japanese industry. Furthermore, argues that there is a large potential for increased use of advanced simulation techniques in Japanese manufacturing companies, mainly for two reasons. This would result in improved communication, reduced time‐to‐market and higher flexibility in volume and product‐mix.