The management of a panel block shop in a shipyard is a complex process that entails the largest amount of work and in which many decisions are involved. Shipbuilders have considered the process as a bottleneck since every panel for every ship and offshore hull structure must be processed through the shop. In order to maximize process productivity, simulation-based ship production execution system(SPEXS) is proposed for panel block operations utilising discrete-event simulation and simulated annealing. An application of panel block assembly shop, called SPEX-Panel supports production planners by general dispatching rules and metaheuristics to make better scheduling decisions on the shop floor. In addition, the system will help increase productivity in the yard with continuous improvement.