<![CDATA[Vocational education is crucial in providing skilled workers ready to challenges of the Industrial Revolution 4.0. Indonesia currently faces a low graduate competency, leading to a gap in meeting Business and Industrial World (DUDI) demands. As a solution, vocational institutions have begun adopting an effective learning model, the teaching factory (TEFA). The challenge in implementing the TEFA model is that the program has not been systematically mapped, so its effectiveness has not been clearly illustrated by vocational institutions. This study aims to synthesize implementation models, identify challenges, and analyze the impact of TEFA on improving the competency of vocational students. This study uses a systematic literature review method, with the 2020 Prisma protocol of 31 relevant articles from the DOAJ and Google Scholar databases for the 2021-2025 period. The synthesis results classify TEFA implementation into four models: Production-Based Education and Training (PBET), Project-Based Learning (PjBL), Competency-Based Training (CBT), and Dual System, with the PBET model dominating. Challenges identified include educators' human resources (HR), the speed of technology/infrastructure adaptation that is not yet aligned with industry standards, and a lack of close collaborative partnerships. The impact of competency shows that TEFA is effective in improving student competency, particularly in soft and hard skills. The literature review concludes that TEFA is an effective learning program that increases curriculum relevance and student competency. However, for optimal effectiveness on job readiness, a collaborative/hybrid model (dual system, PBET, CBT) and human resource development through managerial optimization are required.]]>
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