The focus of this research is to develop (a) a flexible design task decomposition strategy that generates a hierarchy of compatible sub-tasks and (b) a function modularizer that combines compatible functional attributes among the sub-tasks so that a single structural artifact can meet multiple functional needs. Qualitative simulation capabilities will be investigated to help correct any bad decisions that are made during the design process. These ideas will be implemented in a computational model, using systems approach, for conceptual design synthesis of hydraulic circuits.