The paper proposes a decomposition method for evaluating the performance of transfer lines where machines can fail in multiple modes and can be repaired with nonexponential times. Indeed, while times to machine failure can be often modeled using exponential distributions with acceptable accuracy, times to repair are very rarely observed to be exponentially distributed in actual systems. This feature limits the applicability of existing approximate analytical methods to real production lines. In this paper, the discrete acyclic phase-type distribution is used to model the repair process, for each failure mode of the machines composing the system. The exact analysis of the two-machine system is used as a building block for the decomposition...