Abstract: Required production output of an alternator plant was carried first. From this study it was clear the plant could not produce even half the required alternators. Present layout was simulated using the discreet simulation software arena and the bottleneck station was identified. next aim was to identify whether the plant layout is flexible to occupy a new VTM . By the CRAFT technique we could find an economic area for the new machine. Then the simulation was done based on the new layout and the utilization of machine, product output of the plant and bottleneck station was determined. From the simulation results it was clear that the production of the plant has increased but could not satisfy the full requirement. Some ratings of alternator production was not enhanced by the new machine were another was the critical machine whose alternator output was not enhanced. Then the layout was again simulated by increasing the number of critical machine and the result was compared.