Thermodynamic behavior of a composite system which is composed of two simple thermal subsystems with constant heat capacities is analyzed, and several thermodynamic phenomena are investigated. The changes of the states and the potential work of the composite system are shown as the interaction between the subsystems in the composite system. The potential work is defined as the possible maximum available work from the composite system, and it is a thermodynamic property of the composite system. The decrease of the potential work is the same as the available work output from the composite system in reversible processes. The dissipation of available work is directly connected to the generation of entropy. The concepts of exergy and internal energy can be explained as a special case of the potential work.