A study of the role of Planning, Programming and Budgeting System (PPBS) in proposing program structures and applying them to organization operations. Two phases of PPBS are discussed: structuring and analyzing. Structuring the major programs of an organization through a set of categories allows for classification of activities or program elements; each activity is then measured in terms of input (cost or resource requirements) and output (accomplishment). Attempt is made to (1) reevaluate program goals, (2) clarify the relation between present activities and accomplishment of goals, and (3) consider possible program iterations or alternatives and their effect on future operations. Rand's systems analysis is utilized to identify and weigh variables important to making meaningful decisions. A contrast is made between the traditional budgeting of the Air Force and the PPBS implementation of New York City's Health Services Administration. 16 pp.