An introduction to the life cycle costing concept for equipment acquisition, operation, and replacement decision-making. Designing for reliability and determination of optimal maintenance and replacement policies for both capital equipment and components. Introduction to quality engineering, statistical process control and process capability analysis. Topics include: identification of an item's failure distribution and reliability function, reliability of series, parallel, and redundant systems design configurations, age and block replacement policies for components, the economic life model for capital equipment, provisioning of spare parts.