Engineering design is increasingly recognized as a decision-making process. This recognition brings with it the richness of many well-developed theories and methods from economics, operations research, decision sciences, and other disciplines. Done correctly, it forces the process of engineering design into a total systems context, and demands that design decisions account for a product’s total life cycle. It also provides a theory of design that is based on a rigorous set of axioms that underlie value theory. But the rigor of decision-based design also places stringent conditions on the process of engineering design that eliminate popular approaches such as Quality Function Deployment. This paper presents the underlying notions of decision-based design, points to some of the axioms that underlie the theory of decision-based design, and discusses the consequences of the theory on engineering education.

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