This course, SDM224 “Fundamentals of System Engineering”, introduces the main concepts and techniques in the establishment and operation of a system. It aims to develop students' ability to use system thoughts and methods to address complex problems. Students will first learn the classification of systems and the development of system engineering, study the main principles and methodologies of system engineering, and understand the application value of the system engineering. System design exists in each stage of the development and maintenance of a system, while the system analysis is the basis of system design. Therefore, this course will also introduce the basic procedures of system analysis and design and presents some commonly used system evaluation methods, such as the basic benefit method and the cluster analysis method. Project management is an essential element in the development of a system, and the basic steps, implementation skills and precautions in the project management will be introduced in this course. Meanwhile, students will also learn the widely used techniques in system modeling and simulation, such as the mathematical simulation and the computer simulation. System evaluation and prediction can provide a scientific basis for the planning and management of a system. This course will introduce the commonly used methods in the system evaluation and prediction. In addition, students will also learn the knowledge about the system decision-making and optimization. Currently, as the system is gradually becoming more complex, large-scale, and multi-objective, traditional optimization techniques are becoming increasingly overwhelmed. Therefore, this course will also introduce some advanced intelligent optimization and decision-making techniques.