This paper describes the use of a flexible full-scale simulation environment for Lean Production training and education called “KLF Karlstad Lean Factory^®”. Instead of using the PDCA cycle as model for improvement cycles, the authors have developed a model that is more descriptive; it supports training transfer to the work environment in a more intuitive way. Recently, the authors have started to use the simulator as a testbed for innovative production solutions. Together with a company, the simulator is configured so as to emulate their envisaged future production solution. This participatory modelling & simulation process consists of three main stages: (i) creating a common view on aim and scope, (ii) configuration modelling, and (iii) simulations. After the simulations, participants tend to continue seeking improvements, which illustrates the effectiveness of the approach. Future work will include developing a model for measuring lean production maturity in SMEs.