The paper develops and illustrates a model for designing courses. The model gives explicit attention to educational considerations, principally to the importance of active, goal‐directed student learning. It also explores economic considerations, principally how to make the best possible use of the time of the teacher in planning and running the course. The model concentrates on student learning activities and student learning hours, and on how staff time can best support these activities and hours. The resultant model is applied to the analysis and design of programmes, courses and modules.