Most of manufacturing industries in our country practice the traditional production systems.rnEffective management of the steady state operation is no longer enough to ensure the survival,rnlet alone the success, of an organization. The performance of the operations has to bernimproved continually in all its aspects, and it is driven by the quest for increased productivity,rnflexibility and continuously changing competitive environment.rnThe increasing global character of market for goods and services, is stimulated by the factorsrnlike improvements in transport, telecommunication and data communication systems, thernrapid technological advancement, and primarily the automation of manufacturing operationsrnto decrease cost of manufacturing, product life and dependable deliveries. These features ofrnthe competitive environment certainly point to the need for continuous performance analysisrnand improvement of manufacturing systems. Therefore, whether it is a manufacturing-basedrnor a service-based company, the key to stay at the apex of global competition is to meet therndynamically changing need of customers.rnManufacturing systems simulation and performance analysis using Petri Nets is one of thernpromising tools employed for assessing performance and then taking the necessary measuresrnfor improvements of existing deficiencies. Petri Nets are graphical and mathematical tools forrnstudying discrete event systems and have been under extensive development since Petrirndefined the language in 1962. Petri Net models are now common place within the sphere ofrnperformance modeling of manufacturing systems due to reasons like graphical and precisernrepresentation of system activities and models at various levels of detail and ability to capturernthe existence of concurrency, parallelism, resource constraints and process dependenciesrnaccurately.rnThis study therefore, focuses on Modeling and analyzing the performance of thernmanufacturing process of Addis Engineering Center, one of the manufacturing industries inrnthe country, using Petri Net so as to evaluate various performance parameters such asrnutilization rate of machines, bottleneck detection, cycle time, and throughput rate of systemrnunder consideration and providing solutions and recommendations for the pitfalls andrnramification for attaining the optimum productivity.