Reliability has become a greater concern in ship-board systems due to increasing technology, system complexity and multiple design demands. Enhancement the reliability of ship-board systems promotes to ensure safe and continuous operation onboard a ship. To enhance the reliability of ship-board system, it is essential to figure out each individual component reliability. Within this scope, reliability allocation analysis turns into an onerous task to enhance the reliability of ship-board systems through identification of possible component-based design, construction and operation optimizations. This study proposes a hybrid reliability allocation methodology based on hierarchical structure with the integration of analytic hierarchy process (AHP), data envelopment analysis (DEA) and feasibility of objectives (FOO) methods. The proposed methodology provides reliability allocation analysis for systems with any number of components. Also, the study figures out the usefulness of the adaptation of AHP-DEA into reliability allocation analysis. To demonstrate the applicability of proposed methodology, a case study on steering gear system is presented.