An algorithm is proposed for computing which sensor additions make a diagnosis requirement specification regarding fault detectability and isolability attainable for a given linear differential-algebraic model. Restrictions on possible sensor locations can be given, and if the diagnosis specification is not attainable with any available sensor addition, the algorithm provides the solutions that maximize specification fulfillment. Previous approaches with similar objectives have been based on the model structure only. Since the proposed algorithm utilizes the analytical expressions, it can handle models where structural approaches fail. (C) 2008 Elsevier Ltd. All rights reserved.