The objective of this project is to carry out fundamental research to develop a sequential methodology for system design evaluation. This research combines the robust design concepts of Taguchi's design dependent parameter models with a system optimization process resulting in a novel and innovative approach to system sensitivity analysis. The expected product is the development of an efficient methodology to assist in the implementation of concurrent engineering during the early system design stage. Integration of the methodology with Computer Aided Engineering/Computer Aided Design tools will also be explored. This research is expected to impact the development and design of complex systems, both commercial and public sector, while also influencing some aspects of strategic planning.