The following procedure is used to add a submodel to the model diagram.
Note that the submodel you make may or may not enclose existing model elements. When making a submodel, you can either make it to enclose some existing model elements, or it can begin life empty, with the intention of adding elements later on. The following notes apply to the two situations:
The elements must be arranged so that it is possible to enclose them in a rectangle. You will need to move them around prior to drawing the submodel envelope if this is what you wish to do. The elements are then deemed to be enclosed inside the submodel. Any influence arrows coming from outside this new submodel to elements inside it, or vice versa, will be redrawn to show a break at the submodel boundary.
Note that temporarily enclosing some model elements in a submodel is an easy way of moving a block of elements around the model diagram. You enclose them in a submodel envelope, select the move tool, move the submodel around (thus moving the contained elements at the same time, then delete the submodel boundary.
You need to find an empty area of your model diagram that is big enough to contain the new submodel. You may need to move existing model elements around in order to create some space.