Sandvik coromant at Gimo is one of the main manufacturers of cemented carbide inserts in the world. Thousand types of cemented carbide inserts are producing in different production lines at Sandvik coromant.GHZ is a department at Sandvik coromant which is responsible for PVD coating and some other finishing operations at the end of production lines. GHZ is criticized of producing low-volume production at PVD coating in comparison with what is supposed to produce according to production schedules. To be more accurate about this problem the availability of PVD-furnaces is acceptable but utilization of them is low. This master thesis project carries out an analysis of the flow at this department in order to find appropriate solution for the problem.Value stream mapping is chosen as the technique of mapping and analyzing the flow. During the analysis phase it was found that the root cause of the problem originates from outside of the GHZ. Since this department was seeking for immediate local solutions, the project offers two levels of solutions: short term and long term solutions.Then in order to show the result of implementing short term solution, modeling and simulating of current and future state of PVD department with the help of Extendsim was executed. Simulation shows 32 percent of improvement for this solution.