THE USE OF COMPUTER SIMULATION TO ANALYZE DISCRETE MANUFACTURING SYSTEMS IS INCREASING SIGNIFICANTLY. THE MAJOR FACTORS BEHIND THIS TREND ARE: HIGHER LEVELS OF SYSTEM COMPLEXITY AND INTEGRATION, AN ECONOMIC CLIMATE WHICH DEMANDS HIGH RETURNS ON INVESTED CAPITAL, INCREASED AVAILABILITY OF SIMULATION SOFTWARE OFFERING TIMELY AND COST-EFFECTIVE RESULTS, AND THE ADDITION OF ANIMATION GRAPHICS WHICH PERMITS MEANINGFUL INVOLVEMENT BY INTERESTED PARTIES. SIMULATION IS AN EFFECTIVE SYSTEM ANALYSIS TECHNIQUE WHEN PROPERLY APPLIED. THIS PAPER PROVIDES AN INTRODUCTION TO THE BASIC METHODOLOGY, IDENTIFIES THE MAJOR PITFALLS TO BE AVOIDED, AND ILLUSTRATES THE BENEFITS TO BE REALIZED THROUGH CASE EXAMPLES.