Abstract: A method and apparatus for prediction of system reliability is disclosed. The method comprises the steps of: (a) identifying the minimal path set of components which must function for the system to function; (b) constructing a minimal path set matrix by representing the minimal path sets as binary numbers in the matrix; (c) constructing a design matrix from OR operations on sets of columns of the minimal path set matrix whose results are appended to the original minimal path set matrix; (d) constructing a vector of ones having signs related to the position in the vector; and (e) calculating the system reliability from the design matrix, vector of ones and the reliabilities of each of the components of the system. The method of the present invention also determines the structure function of the system from the design matrix, vector of ones, and the states of the components of the system. The apparatus for performing the method of the present invention comprises a programmable processor.