Up to 95% of production costs occur at the design stage

FastCompany (2017)

One of the most important—and often overlooked—aspects of new product development is the design stage. It may seem counterintuitive, but up to 95% of the production costs for a new product occur during the design phase. This is because alterations made during the later stages of production are much more expensive than those made at the design stage. For example, making a change to the shape of a metal component during production can require entirely new tooling, which can be very costly. Similarly, changing the size or placement of a button on a device can require new molds and packaging, which can also add significant expense. Consequently, it is essential to get the design right before moving into production. By taking care to refine the design during the early stages, companies can save themselves a lot of time and money down the road.

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