In the fast changing environment companies have to be more and more flexible, agile and lean in order to keep the current position on the market, to stay competitive or to become even bigger and to grow market share. The challenges and the cost pressures are very high in the automotive industry and with the globalization and new markets suppliers are facing not only tough customer requirements but also tough competition. In order to improve the most important three focuses of each company: quality, delivery time and costs in constantly changing and very unpredictable times, it is necessary that companies form their own production system. As there is no concrete information in the literature how to build an effective production system, the main objective is to develop the production system for the component manufacturer in the automotive industry. With different research methods: inductive and deductive method, comparative method, descriptive method, analytical method, compilation method, analysis and synthesis; and various literature studies and sources the main research questions were analyzed and answered. The result is developed effective production system model with specific design and 10 elements for the component manufacturer in the automotive industry. The elements are divided into three groups: basics elements (5 elements), pillar elements (4 elements) and roof element (1 element). The developed production system model can be a helpful tool for all those companies or suppliers which would like to progress even faster and manage all the market and customer challenges without much stress and risks.