A system engineer must design a system in the following phases in sequence of order: 1. Understanding the Problem 2. Considering the Alternative Solution 3. Choosing the most Optimum System 4. Synthesis of the System 5. Updating Equipment Characteristics and Data 6. Testing the System and Refinement 7. Application and Operation.

Phase # 1. Understanding the Problem:

In first phase a system engineer must understand the problem and he is required to determine the overall system requirements and objectives. While determining the system requirements he must consider the different factors like performance, reliability schedule, cost, maintainability power consumption, life expectancy and operating requirements and then give due weightage to each of these functions.

Phase # 2. Considering the Alternative Solution:

The next step is to consider alternative solu­tions. System engineer must be able to find out as many solutions as possible, as the more solutions are considered at initial level; greater will be the probability of getting a good system at final level.

Then most promising and potentially useful solutions are given further consider­ation. Technical and financial feasibility study is conducted on these selected solutions. Gener­ally the promising solutions are reduced to three for conducting the feasibility study.

Phase # 3. Choosing the most Optimum System:

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In the next step, one solution is finally selected which is best among all the solutions. This selection be made by using the correct and reliable data and information so that correct decision be made. Accuracy in characteristics and data at this level is very important.

Phase # 4. Synthesis of the System:

This consists of the complete theoretical and physical design of the system. In this, effects of environment or internal forces on the stability of the system are determined. Socio-economic conditions at the time when the product is expected to be put are also considered.

Phase # 5. Updating Equipment Characteristics and Data:

For further evolution of the overall system more emphasis is payed on the actual conditions and the system is further improved accordingly. For this purpose, feedback method is very useful. In feedback method, the informa­tion from each step is feedback to the previous steps for modification. This is repetitive in nature.

Phase # 6. Testing the System and Refinement:

Experimental models are then tested to check the entire ideas, Component and proto-types are also tested as need arises. These tests data are the basis for redesign and refinement and the process is continued till a process-design is ac­complished as per requirements.

Phase # 7. Application and Operation:

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In the end the system design is applied for planning the production, distribution of goods etc. After getting the green signal from all corners the opera­tion from business point of view is started.