This paper presents a Markov chain approach for investigating the steady-state production capability of manufacturing systems in terms of specified reliability and maintainability characteristics. Three general classes of models are developed. The first model considers a system with only elements which cause the system to immediately shut down when the first failure happens; the second model considers a system with only elements which cannot be repaired while other elements are functioning; the third model considers a system with only elements which can be repaired while other elements are in operation.