This paper proposes a modeling and simulation process of a panel production line (PPL) in a shipyard. The panel production line is an assembly process to produce a main panel of a flat block and a curved block. In this paper, its activity analysis is carried out using expression of IDEF0, and its process is qualitatively and quantitatively analyzed and modeled by Petri Nets. A commercial discrete event simulation tool, $QUEST^{TM}$, is used for virtual PPL and simulation. The modeling results by Petri Net are mapped to elements of the simulation tool. Finally, an integrated simulation environment of PPL is implemented in order to efficiently utilize the virtual PPL model. With the help of IDEF0 and Petri Nets, we could systematically analyze and describe the PPL process that are characterized as being concurrent, asynchronous, distributed, parallel, nondeterministic, and/or stochastic. Also, the dynamic and concurrent activities of a PPL system were able to be simulated. A timing concept can be included into the Petri nets model to evaluate performance and dependability issues of the system.