Performance of a fiberoptic system depends on the coupling efficiency and the alignment retention capability. A fiberoptic system experiences performance degradation due to uncertainties in the alignment of the optical fibers with the laser beam. The laser devices are temperature sensitive, generate large heat fluxes, are prone to mechanical stresses induced and require stringent alignment tolerance due to their spot sizes. The performance of an optoelectronic system is also affected by many other factors such as geometric tolerances, uncertainties in the properties of the materials, optical parameters such as numerical aperture, etc. To analyze such a complex system, we need to understand the inter-relationships between various elements that together make the complex system. In this paper, we apply systematic, formal procedures for identifying the relationships between the critical system level parameters through system decomposition strategies. We have included the sensitivity of the variables with respect to the functions to assist in the system decomposition. We apply graph partitioning strategies to decompose the system into different subsystems. We also demonstrate system decomposition technique using a simple to implement simulated annealing algorithm. The results of system decomposition using graph partitioning technique and simulated annealing are also compared.