The construction industry is increasingly adopting off-site construction to achieve better quality buildings, to reduce the environmental impact of construction activities, and to attain less schedule variability. When shifting the construction process to a factory, the project is less vulnerable to uncertainties, such as unexpected weather conditions, labour turnover, and material delivery disturbances. Panelized construction is a method in which walls, floors, and roofs are built-in panels at the factory and shipped for on-site assembly. This paper describes the simulation of a production line in a panelized modular home manufacturing facility with the aim of better understanding and improving the production processes associated, in particular, with the first phase of production, namely the multiwall panel production line. Discrete event simulation (DES) is used to investigate and analyze the existing facility processes in terms of production time. The goal is to enhance productivity, reduce work-in-progress, and decrease idle time. The panelized manufacturing facility in the presented study produces dozens of multiwall panels per day, ranging in length from 3 to 13 meters, and both interior and exterior walls are produced on the same production line, each having different physical properties. Applying lean concepts and philosophy, the simulation tool is used to explore various scenarios where the idle time can be identified and minimized as much as possible from a practical perspective.