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The current trends of digitalization and Industry 4.0 are bringing ample opportunities for manufacturing industry to fine tune their products and processes at will, to meet changing market needs within short notice. However, the characteristics of advanced production systems, such as dynamic interactions between machines and reconfigurations, if not carefully orchestrated, could potentially lead to production failures or mishaps, making them safety-critical. Previous studies on hazard analysis, safety-performance tradeoffs and assurance cases have not specifically considered the dynamic reconfiguration scenarios in production systems. In this paper, for the hazard identification and mitigation/elimination, the principal characteristics of highly reconfigurable production systems have been given special consideration. Even if the hazard analysis results are incorporated in the initial designs of production systems, operational changes, such as adding/removing machines in response to market demands, system failures, or unanticipated hazardous conditions may still adversely impact the production safety and operational performance. For the operational changes, we perform the quantitative assessment through configuration analytics to determine the corresponding impacts on safety, performance and production demands. After that, the assurance case models are obtained with production line to cope with the potential problems during the dynamic safety assurance. The applicability of the proposed methodology is demonstrated in the context of a quarry site production scenario.