ENGINEERING FUNCTIONAL-ANALYSIS .2.

In this paper, a new formalism called Engineering Functional Analysis (EFA) is presented. This formalism results in higher degrees of decent ralization for engineering system optimization than is otherwise possi ble. By decentralization, it is meant that the improvement or optimiza tion of individual components by themselves (i.e., components which ar e isolated economically from the rest of the overall system) serves to improve or optimize the system as a whole (within some degree of erro r, which defines the degree of decentralization). Higher degrees of de centralization are important in that they provide a more stable econom ic environment for individual components, thus permitting more rapid s ynthesis and greater system improvement than could otherwise be obtain ed.