This paper presents the development and implementation of a LEGO robotics based project in an undergraduate-level class on manufacturing systems. In industrial engineering (IE), which includes manufacturing as a major application domain, advanced IT technology and automation science have recently been integrated with manufacturing. As modern manufacturing becomes more complicated and relies increasingly on automation, a new approach is required for IE education. The Department of Industrial and Systems Engineering at Korea Advanced Institute of Science and Technology (KAIST) has developed a LEGO-based Automated Production System ( LAPS) design project module for a manufacturing class, using a LEGO robotics kit and MATLAB LEGO support software. In this project, students design and develop an automated production line using LEGO. The aim of the project is to motivate the students to learn about the dynamic flow behavior of production lines and about the design and analysis of manufacturing automation by working through the LAPS design activity. After two years of pilot trials and official implementation in an undergraduate manufacturing class with 32 students, it is found that the LAPS project is significantly effective in motivating students. A survey and class evaluation also shows that students are very satisfied with the class involving the LAPS project. This paper describes how innovations in IE education are possible with new educational technology such as LEGO robotics kits. It also demonstrates how LEGO robotics can be used to effectively teach the dynamic flow behavior of manufacturing systems and how to design manufacturing systems while taking account of this dynamic behavior.