Digital Factory (DF) technology is one of the most important part of manufacturer enterprise information systems, its core technology is modeling & simulation. This paper introduced the digital factory concept and its functions with multi-level multi-resolution modeling and simulation method; we established a new framework of the digital factory technology. It combines with the features of DF and simulation technology which expands the development of DF and application of simulation technology. A case was taken to show the feasibility of multi-level modeling & multi-resolution simulation technology attaching to the DF technology.