This study was based on the fact that it is important to synchronize the competences of vocational school students or graduates and workplace requirements. The students should actually be equipped with abundant learning experiences tailored with the industrial requirements. The aim of this study was to produce a model production unit with the approach of Knowledge Based Industry Vocational Skills Competency in dressmaking. Specific targets to be achieved from this research is to produce: (1) The findings concerning the characteristics of the business management field of fashion in the opinion of the expert and practitioner, (2) Findings of the routine activities of the production units of clothing in Vocational Skills Competencing dressmaking, (3) Design models Unit Production Approach Knowledge with Based Industry Vocational Skills Competency in dressmaking, (4) Strengthening training programs in vocational competency fashion expertise. This research uses a descriptive method with the approach of Research and Development. This development studies are carried out in three stages, comprising: a preliminary study phase, the model development and validation of test models. The subjects consist of the students and master teachers on entrepreneurship subjects and productive skills in the vocational field of dressmaking. The data were collected through interviews, observation and documentation study. The results showed that, the design model of a production unit with the approach of Knowledge Based Industry in Vocational Skills Competency is designed to combine dressmaking boutiques and mass product system adapted to the adjustment in production processes adapted to the demands of working in the fashion industry and consumers needs. To implement the model developed should be supported by adequate competence, in order to obtain the findings and strengthen the need for training of fashion competency skills for learners in business practices at the production unit that pioneered SMK. The outcomes of this study are: (1) Design Approach models Production Unit with Knowledge Based Industry Vocational Skills Competency in dressmaking, (2) training program strengthening competence in vocational fashion expertise, (3) the results of the research article is to be published in international journals. Keywords-Model, Production Unit, Knowledge Based Industry, SMK Clothing Design