In this study, a steady state performance analysis program was developed for a turbofan engine, and its performance was analyzed at installed conditions. For the purpose of evaluation, the developed program was compared with the performance data provided by the engine manufacturer. It was confirmed that the developed program was reliable because the results by the developed program were well agreed with those by the engine manufacturer within 3.5%. The non-linear GPA(Gas Path Analysis) program for performance diagnostics were developed, and selection of optimal measurement variables was studied. Furthermore, in order to investigate effects of the number and the kind of measurement variables, the non-linear GPA was analyzed with various measurement sets. Finally, the measurement parameters selected in the previous step were applied to the fault detection analysis of the 2-spool separate flow type turbofan engine.