ENGINEERING FUNCTIONAL-ANALYSIS .1.

In this paper, the essential building blocks of a new formalism called Engineering Functional Analysis (EFA) are presented. This formalism r esults in higher degrees of decentralization for engineering system op timization than is otherwise possible. By decentralization, it is mean t that the improvement or optimization of individual components by the mselves (i.e., components which are isolated economically from the res t of the overall system), serves to improve or optimize the system as a whole (within some degree of error, which defines the degree of dece ntralization). Higher degrees of decentralization are important in tha t they provide a more stable economic environment for individual compo nents, thus permitting more rapid synthesis and greater system improve ment than could otherwise be obtained.