Modeling and Analysis of Production System of A Steel Plant- A System Dynamics Approach K.R.Divakar Roy Department of Mechanical Engineering, A.U.College of Engineering (Autonomous) Visakapatnam-530 003 Mail Id: divakarroy@rediff.com, krdroy@hotmail.com Abstract In the fast changing economic scenario world over, the economic strength of any company depends on the managementís ability in improving quality, cutting production costs and providing better customer services to compete effectively in the global market. Even though every management aims at improving the productivity, there is a limitation on the part of various production facilities located in any plant as they cannot be stretched beyond a point. However, management can exploit the existing facilities to the maximum extent possible by introducing the latest state of art technology. Against this backdrop, present production scenario of a local integrated steel plant is described. The key variables considered for the simulation of steel plant production activities are: production of hot metal, liquid steel, prime blooms, bar mill products and wire rod products over a period of 20 years from 1994 to2013. The results obtained from the SD modeling are validated. Further, the model is utilized to explore alternative policies, which have been compared for their relative effectiveness.