We propose to use engineering models for Bayesian Network (BN) learning for fault diagnostics at the factory-level using key performance indicators (KPIs) such as overall equipment effectiveness (OEE). OEE is widely used in industry and it measures sustainability by capturing product quality (e.g., less scrap) and measures resilience by capturing availability. A major advantage of the proposed approach is that the engineering models are likely to be available long before the corresponding digitalized smart factory becomes fully operational. Specifically, for BN structure learning, we propose to use analytical queueing theory models of the factory to elicit the structure, and to carry out intervention we propose to use designed experiments based on discrete-event simulation models of the factory. For parameter learning, we apply a qualitative maximum a posteriori (QMAP) method and propose additional expert constraints based on the law of propagation of uncertainty from queueing theory. Furthermore, the proposed approach overcomes the challenge of obtaining balanced-class data in BN learning for fault diagnostics. We apply the proposed BN learning approach to (i) a 4-robot cell in our laboratory and (ii) a robotic machining cell in a commercial vehicle factory. In both cases, the proposed method is found to be efficacious in accurately learning the BN structure and parameter, as measured using structural-hamming distance and Kullback–Leibler divergence score, respectively. The proposed approach can pave the way for a new class of resilient and sustainable smart manufacturing systems.