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This paper has described the improvements of the bottleneck problem in the production process of small and medium-sized enterprises and introduced a new simulation teehnology--Flexsim simulation software.The latest process interaction simulation which is suitable for the practical situation of production procedure has been used to establish a discrete event systematic model for each element and process,and the model can reflect the whole production courses vividly in the virtual circumstance.Consequently,a production procedure simulation modeling approach--production procedure object modeling simulation has been proposed in small and medium-sized enterprises based on Flexsim.Then take the hydraulic steering gears production procedure of one enterprise in Chengdu as an example,the Flexsim simulation software has been used to set up a 3D cartoon simulation model of production procedure for the material warehousing,transmitting and distributing,etc.Through analyzing the simulation statistics,the bottleneck cell has been found out in the production process,the output of enterprises production system has been predicted,and the equipments processing rate,idle rate and blocked rate have been reported.On this condition,a countermeasure has been proposed to improve production process.Finally,the inventory and production costs have been reduced and the profit has been increased sharply.