A production system in domestic shoes companies has difficulty in achieving automation and information because of insufficiency of flexibility and standardization. Particularly small and medium sized shoes companies producing by OEM have tendency to chase the given production schedule blindly without considering major factors that may affect the production. Therefore, the production schedules or the process conditions can not be optimally set and are extemporized by the experience in the past. These behaviors cause low productivity and financial loss. To maximize efficiency and productivity of the shoe-making process, we develop a simulation model based on a production system in small and medium sized shoes companies. The model has been developed using ARENA which has been demonstrated to be a powerful tool to simulate various manufacturing systems. Using the simulation model, we find out several problems for the production process, and then suggest several alternatives to improve the system.