The application of some MVS operations (each dimension of which corresponds to a capability indicator) in system capability analysis and design, including capability indicator requirement analysis, effectiveness analysis, sensibility analysis, fuzzy analysis, stability analysis, capability optimization design, etc., is discussed in the second paper of this series of papers. And some MVS-based models and algorithms for capability analysis and design are put forward. Finally, an example of capability analysis and optimization design is given for explaining the usages of related models and algorithms.