In recent days, global shipbuilding companies have been increasing their productivity or expanding their shipyards for a large amount of orders. Though, few researches about the shipyard layout designs have been studied. This research presents a simulation-based shipyard layout design framework to resolve the problems of the shipyard layout design. The shipyard layout design framework was developed on the basis of systems engineering method. The disciplined system engineering technique was guided by ISO/IEC 15288 during the planning phase of the shipyard layout design framework development. This framework suggests that how efficient and effective shipyard layout design could be got, that can satisfy the stakeholder of the layout. Furthermore, it is recommended that how the proposed shipyard layout should be verified and validated by digital simulation model. It is expected that the framework will contribute to not only the improvement of the existing shipyard but also the construction of the new shipyard.