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This paper presents some techniques for fault diagnosis in aerospace and automotive systems. A diagnosis technique is an algorithm to detect and isolate fault components in a dynamic process, such as sensor biases, actuator malfunctions, leaks and equipment deterioration. Fault diagnosis is the first step to achieve fault tolerance, but the redundancy has to be included in the system. This redundancy can be either by hardware or software. In situations in which it is not possible to use hardware redundancy only the analytical redundancy approach can be used to design fault diagnosis systems. Methods based on analytical redundancy need no extra hardware, since they are based on mathematical models of the system.