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This research aim to determine the design of teaching factory, analyze the design manual and analyzing teaching factory quality control and follow-up in the development of the management model student training Diploma Mechanical Engineering Faculty of Engineering, University of Medan. This research uses descriptive method with qualitative approach. The collection of data through interviews, observation and documentation. Qualitative data analysis techniques using the theory of Miles and Huberman. The results of this study indicate that the design of teaching factory on three diploma students of mechanical engineering design was grouped based learning, competence of graduates, the curriculum has been adopted, industry cooperation in the production process, the works carried out in the industry, and infrastructure. presented the results obtained as well as get feedback (feedback) from the lecturer / instructor. Evaluation should assess overall than contains, input, process and product. Quality control and follow-up is still limited communication between faculty, and student production unit. Quality teaching factory activity in management training should be able to create industrial culture in the workshop and become one of the sources of funding for faculty. Need invented ongoing cooperation with the industry to expand the field.