This paper introduces a new methodology for the design, analysis, and optimization of production systems. The methodology is based on the Innovization procedure originally introduced for unveiling new and innovative design principles in engineering design problems. Although the Innovization method is based on multi-objective optimization and post-optimality analyses of optimized solutions, it extends the scope beyond an optimization task and attempts to discover new design/operational rules/principles related to decision variables and objectives, in order to enable a deeper understanding of the problem. By integrating the concept of Innovization with discrete-event simulation, a new set of powerful tools can be developed for general systems analysis, which is particularly suitable for production systems. After describing the Simulation-based Innovization procedure and its difference from conventional simulation analysis methods, the results of an industrial case study, carried out for the improvement of an assembly line at an automotive manufacturer in Sweden, are presented.