This study investigates how to improve production performance in a small-scale motorcycle footrest manufacturing factory using virtual simulation technology. Four different layout configurations were modeled and assessed using Siemens Tecnomatix Plant Simulation to assess the impact of layout redesign and process automation. The original facility setup served as the baseline for multiple design models that included combining the press and welding shop into one integrated area that decreased material handling and reduced the travel distance. Subsequent models of production automated material handling conveyors and robotic arms that enhanced the productivity and reduced the human intervention. Through on-site observations, real-world production data gathered such as cycle times, worker travel distance and material flow and utilized to create precise digital representations. The simulation results showed considerable performance benefits in improved layouts. Specifically, throughput increased from 3,124 parts/day in the existing production line to 12,541 parts/day in the recommended production line that included the conveyor. Worker traveling was also decreased significantly in recommended production lines that included conveyors and robots which demonstrate improved operational efficiency and decreased labor reliance. Furthermore, the overall simulation time for creating 1,000 components was reduced from 7 hours 40 minutes to less than 2 hours in all recommended production lines. The study validates that use digital technologies help pinpoint manufacturing bottlenecks while optimizing workflow patterns to produce notable gains in operational speeds and productivity alongside space usage efficiency. When automation systems align with smart layout design the result becomes the reduction of manual work and associated ergonomic problems.