In this paper, a methodology for the specification stage in conceptual design is presented. The specification stage provides requirements and transforms them into functions of the designed object. It occurs at the highest level of abstraction and it must provide enough information for the synthesis process where functions are transformed into design components that are further synthesized into the designed object. The proposed approach includes the following issues: specification of requirements, specification of functions, incorporation of logic into functional and requirement trees, representation of requirements-functions interaction, and optimization in the functional space. The methodology presented is illustrated with examples. Key words: design requirements, design specifications, conceptual design, design process, artificial intelligence, formal method

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