An irreversible cycle model of an Otto heat-engine is established, in which the main irreversibilities result from the non-isentropic compression and expansion processes; finite-time processes and heat loss through the cylinder wall are taken into account. The power output and efficiency of the cycle are derived. The curves of the power output and efficiency varying with the compression ratio of two isochoric processes are presented. It is found from the curves that there are optimal values of the compression ratio at which the power output and efficiency attain their maxima. Moreover, the maximum power-output and efficiency and the corresponding relevant parameters are calculated, and consequently, the optimization criteria of some important parameters such as the power output, efficiency, compression ratio, and temperatures of the working substance are obtained. (C) 2005 Elsevier Ltd. All rights reserved.