PPBS is a process by which priorities among the kinds of services a college may provide are weighed, objectives are stated in operational terms, alternative means to accomplish the given objectives are analyzed, and a choice among competing means is made according to criteria for efficient utilization of resources. This manual attempts to highlight four basic issues inherent in the development of a PPBS in higher education: (1) how the PPBS program structure of a college could be developed; (2) what output measures, parameters, or indicators are most appropriate, and how they could be organized; (3) what kind of analysis is appropriate for a college setting and how it could be conducted; and (4) what are likely strategies for development of the PPBS in operational contexts. (Author)