This paper presents a method for deadlock avoidance algorithm used in Flexible Manufacturing System(FMS). This method is an improvement of the Banker algorithm. The Banker algorithm is commonly used in the Operating System (OS), but some improvement will have to be made on the algorithm if this algorithm is used in FMS. The difference between the process in operating system and the job in the FMS is fully discussed. Based on this difference, the improvement is made. In order to improve the algorithm, formal methods are adopted to the manufacturing systems. The simulation model is translated into a format suitable for model checking. That is, the model is written into PROMELA, the input language of the popular model checker SPIN. After that, SPIN is used to verify that the model does not have deadlock. This algorithm proves to be highly effective in practice.