In today's world, simulation is becoming increasingly significant because of the necessity to create or improve projects more quickly and effectively without incurring any financial risk. Autoliv Thailand, with vision of Saving More Lives and Mission of Providing World Class Life-saving Solutions for Mobility and Society, manufactures and delivers airbags, seatbelts, and steering wheels to all the automotive industries in the world. The goal of this research is to improve the flow of materials at Autoliv in Thailand. By first analysing the current system's flaws and providing improvements that may be adopted, this has been accomplished. In addition, the goal will be achieved using previous research and in the direction of the research questions. Adding AGVs (Automated Guided vehicles) to their internal logistics system is part of an effort to keep up with the most recent industrial technology advancements while also lowering long-term operating costs, improving material movement and worker’s safety as part of their Lean manufacturing strategy. In addition, they plan on using simulation in their projects to get this data more correctly and quickly, as well as to improve their working methods.This thesis relies on prior research and publications to learn about the implementation of AGVs, the most recent varieties of AGVs. To determine the top AGVs, a market study was undertaken, assessing the primary aspects of each manufacturer. By using Tecnomatix plant simulation to simulate plant operations using AGVs since it gives excellent results in an easy to-use manner. For this reason, the simulation results were compared to actual operational data to determine if the simulation produces accurate and reasonable interesting data that can be used by the firm. Material flow, storage, and retrieval system issues have been identified, and solutions such as AGV deployment, AGV simulation software, and automated storage and retrieval systems may be used to enhance the production flow. By following established implementation steps, a model for improving wasteful processes and enhancing production flow may be implemented in this study. To make it easier for businesses to apply it, it includes three distinct stages. The study is carried out in the production facility of the case company and disregards the other facilities of the company. Also, the study revolves around the existing process flow of the assembly floor and infrastructure changes required to implement the AGV System. Furthermore, the study will focus specifically on AGV Selection, Vendor selection criteria, practical solutions as per the process. In addition, the authors will study the movements and calculate the cycle times of manual operators and compare with the digital model simulation. Furthermore, the advantages of simulation are touted as a potential solution for next initiatives by the business.