Production Systems Engineering (PSE) is a relatively new branch of system science intended to study fundamental properties of serial lines and assembly systems. Since the machines on the factory floor are typically unreliable and the buffers are finite, these systems are nonlinear and stochastic. Their analysis is carried out using the Markov chains approach for machines with exponential reliability models and an empirical approach for non-exponential ones. The problems of analysis, design, and continuous improvement are addressed. Along with theoretical developments, the program at Michigan is involved in numerous applications at automotive plants. In addition, Michigan is one of very few schools that offer a course on PSE.