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Production system is a highly complex, discrete event dynamic system, so it is difficult to build mathematic model of it, and simulation has become one of good method for studying it. Flexsim, which has been widely used in manufacturing, logistics, transportation, service system and so on, is a DEDS simulation software based on Object-oriented idea. UML is a object-oriented modeling language, which can describe production system. A Modeling, Simulation and Optimization method of production system, which is based on UML and Flexsim, is proposed firstly. Then by this method, An air conditioner manufacturing company's production system is studied. The production system is simulated and improved, and finally the output is improved.

With further developing of service economy, Boundary between service and manufacturing is more and more dim. Service-oriented manufacturing, which is presented by some Chinese scholars, is a new advanced manufacturing model for catering to integration and fusion of service and manufacturing. One of key problems in service-oriented manufacturing is operation mode. A mode of service-oriented manufacturing, which is by grid, is presented in this paper. And Architecture of service-oriented manufacturing system based on OGSA is also presented.

Choosing satisfactory cooperative partner, i.e. supplier or retailer, and constructing excellent supply chain are important for success of manufacturing enterprise in today's global highly competitive business environment. Grid, which stands for developing trend of next generation of Internet, make enterprise use global manufacturing resource more easily. Model of common supply chain construction is presented in this paper firstly, then method of searching for supplier based on OGSA, i.e. Open Grid Services Architecture, is proposed. Finally, algorithm of evaluating supplier is discussed. In this way, a model of supply chain construction based on OGSA and its key research topic is presented.