Based on unemployment data revealed by Novrian (2018) that until August 2018 the unemployment rate for SMK reached 24.74% of the total open unemployment of 7.069 million. This indicates that the learning materials in vocational schools are not in accordance with the needs of the world of work, so efforts are needed to improve the quality, relevance and revitalization of vocational education in forming qualified, highly competitive human resources. Thus creating a link and match between learning in schools and the needs of the business world/industrial world (DU/DI). The factory teaching model is one solution to prepare students to have competencies that are in accordance with the competency needs of the industrial world. The teaching factory learning developed can be integrated into the production unit organized by the school. Based on this, the purpose of this study was to analyze the implementation of teaching factory model learning in SMK in an effort to improve the quality of graduates. This research is a literature study that reviews the development of the teaching factory model in a vocational school. The results of the study concluded that teaching factory management includes planning, organizing, implementing, and evaluating. The developed teaching factory is integrated with the production unit for the implementation of student practice.
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