A hybrid manufacturing system which consists of two machines is examined. Unreliable buffers and multiple stochastic failure modes of the machines are introduced to the system. A new method of the system performance evaluation is presented. The states of the system are analyzed in detail based on a discrete model and a new solution technique is given to determine the state probabilities. The method can be used to analyze the cases arising from two or more stochastic events or longer (or more complex)production lines. Numerical results are also offered to testify the method and show some characteristics of the system.