Many authors have developed models on two units' cold standby system, but little or no attention is paid on series-parallel system involving four types of failures. In this study, measures of system effectiveness such as mean time to system failure (MTSF), steady state availability, busy period and profit function were discussed. The system is analyzed using Kolmogorov's forward equations method. The result has shown that MTSF, steady state availability and profit function increases with repair and decreases with failure rate.