This licentiate thesis deals with effective simulation of multibody dynamic systems in the product development process. Previous work to make simulation more effective has concentrated on developing faster calculation methods. Instead, this approach is to make the process of multibody dynamics simulation more effective by structuring of products, simulation models and their usage. Efforts have been made to clarify how computer tools are used in product development in industry today. Insight into the two domains of product development and multibody dynamics is given. These domains have traditionally been separated but the introduction of concurrent engineering and faster computers puts new demands on the integration of computer support and analysis in the development process. A proposal for performing the multibody dynamics methodology in a modular way in the product development process is given based on the performed work.