The production of fully operational munitions in the country is currently only capable of producing small caliber with a production capacity of 120 million rounds per year and will be 290 million, nearly 300 million rounds per year with the addition of new machines. The production, which has almost penetrated 300 million rounds per year, has not been able to meet all the needs of TNI munitions. This study aims to simulate the production process system of PT Dahana’s propellant mini plant in Subang for a capacity of 1.5 tons/year in producing small caliber munitions (MKK) to meet the needs of the TNI and the defense industry. The research was conducted using quantitative methods using HYSYS simulation. The simulation results show that the propellant produced is 0.194 kg/hour or 4.646 kg/day or if it runs in one year the product is 1.5 tons/year. The optimal process simulation proposed is the Warren L Plunket Process using a mixed acid process, namely HNO3 and an acid catalyst H2SO4 because it has advantages in a short time, high temperature relatively not too high and the resulting yield is greater. This product can be used to support the needs of small caliber TNI munitions, especially for blank ammunition which requires little propellant.