Rapid changes in product demand, product design and introduction of new products and increasing global competition require manufacturing systems to be highly flexible, adaptable and responsive. These characteristics of a manufacturing system must be addressed at the design stage. This paper presents a method for design of manufacturing systems by combining the axiomatic design approach and systematic design approach. The methodology explains how design axioms are used during different design stages, and also provides a step-by-step approach for the design of manufacturing systems. A case study of a furniture manufacturing system design is provided to illustrate an application of the method in real world manufacturing system design.