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STAMP is a computer-aided testability design and fault diagnosis system. Using first-order test point and component dependencies as inputs, the model generates all higher order dependencies and their implications. This permits testability assessment through automatic identification of component ambiguity groups, redundant and unnecessary test points, and feedback loops. The model also provides several overall measures of testability and fault isolation. These measures are described in the paper. STAMP also provides a means for developing fault isolation strategies. A choice of several search strategies is provided. One, based on an adaptive, information theoretic approach, appears to offer significant efficiency advantages in lowering both the expected value and the variance of the number of tests required to isolate faults. The detailed analysis of a sample system is presented, including testability redesign and development of a strategy for fault isolation