Manufacturing is an important part of the modern economy. It is characterized by complexity in terms of systems, approaches, and interactions with intrinsic and extrinsic factors. Numerous efforts have been developed to use modeling and simulation tools to improve manufacturing efficiency and productivity and to achieve maximum quality, especially with the different mutations in the factories of today. This paper reviews the conventional and modern tools used in manufacturing system design and production improvement. Challenges that need to be addressed by the simulation community are discussed in depth. Finally, the evolution, advances, current practices, and future opportunities are discussed in the context of the contemporary manufacturing industry.