In the conceptual design phase, engineers may need to perceptually screen and prioritize feasible design concepts by their potential to fulfill both customer and financial requirements. This paper presents a system design methodology that integrates perception-based concept evaluation and target costing of complex and large-scale systems. The methodology decomposes a system into modules and evaluates each module concept with its target requirements and cost. This method proposes the decomposition of quality function deployment matrices simultaneously for both requirements and structure in order to allocate the worth and target cost of the modules in a system. Developed from module concepts that satisfy their target requirements and cost, this new system should better satisfy both customer and financial requirements.

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