The objective of the article is to establish the significance of a simulation laboratory especially simulation exercises for continuing education students in lean manufacturing course. Subsequently, identify the influence and analysis of these simulation exercises in exploring, understanding and implementing lean strategies in various contexts. The research is carried out through the following steps: enhancing the course handout and course outcomes, identifying the various lean concepts and proposing relevant exercises, mapping the course outcomes with the proposed exercises, identifying the appropriate simulation tool and developing the proposed exercises, deciding the mode of simulation laboratory offering, offering the selected critical exercises in simulation laboratory, conducting a critical review of simulation exercises with a team of experts and performing a comparative study on the student performance. The study has identified that there was a significant improvement in the performance of the students after participating in the simulation laboratory, especially in achieving the course outcomes. This was established by the analysis of the various examination scores, feedback on simulation exercises and instructors. This attempt is the first of its kind to analyse the student performance after incorporating simulation laboratory in a lean manufacturing course. The focus is on evaluating student performance based on the scores in the examinations. A population of 488 students enrolled in a masters’ degree programme is considered in the analysis 234 (without simulation lab) and 254 (with simulation lab).