The finite elements are extensively utilized to solve various problems in engineering fields with the growth of computing technologies. However, there is a lack of methodology for analyses of huge assembled structures. The mechanics on the interface of each components, for instance, contact, bolt joint and welding in assembly is a key issue for important huge structure such as nuclear power plants. On the other hand, it is well known that as finite element models become large and complex, construction of detailed mesh becomes a bottleneck in the CAE procedures. To solve these problems, the authors would like to introduce component-wise meshing approach and bonding strategy on the interface of components. In order to assemble component-wise meshes, the penalty method is introduced not only to constrain the displacements, but also to introduce classical spring connection on the joint interface, although penalty method is claimed that it is not suitable for iterative solver. In this paper, the convergence performance of an iterative solver with penalty method is investigated and the detailed component-wise distributed computation scheme is described with numerical examples.