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We present a novel method for cost analysis of an engineering system, which consists of two subsystems, viz. subsystem-1 and subsystem-2 with controllers. Subsystem-1 works under the k-out-of- n: good policy. Subsystem-2 consists of three identical units in parallel configuration. Both of these subsystems are connected in series. The controllers control both the subsystems. The operator who is assigned to operate the system may not be satisfied with the organization and hence may fail the whole system deliberately. The system is studied by supplementary variable technique. Various measures of reliability have been discussed.