The decision taken during the design stage affects almost 80% of the overall production cost.

Question

The decision taken during the design stage affects almost 80% of the overall production cost.

BlackTom AI · Accepted Answer

The statement under consideration relates to how early design decisions impact production costs. 
Option 1 (True): This view is commonly cited in manufacturing and product development contexts, where a large portion of cost is fixed early on. Design choices influence material selection, tolerances, tooling, process compatibility, and the ability to manufacture at scale. Making changes later typically incurs rework, scrap, and costly tooling, so it is reasonable to say that a substantial share of total production cost is determined during the design phase, often described as a large portion of the cost envelope. The phrasing "almost 80%" aligns with industry guidance that design and engineering decisions can drive the majority of lifecycle costs, though the exact percentage can vary by product and industry. 
Option 2 (False): If one argues this statement is false, they would claim that design decisions have only a minor effect on production cost, or that cost impact is distributed more evenly across planning, procurement, manufacturing, and after-sales. In practice, however, many cost drivers originate from design choices (e.g., part count, material, manufacturability), making it unlikely that design’s influence is negligible. The claim of a very small or limited impact contradicts widely taught principles of design-to-cost and design-for-manufacturability. 
Option 3 (Other possible nuance): Some contexts emphasize that while design is influential, other factors such as supply chain, volume, process maturity, and production equipment also shape costs significantly. In such cases, the statement might overstate or understate the exact share, but the core idea remains that early design decisions substantially affect total production cost. 
Option 4 (Edge case consideration): If the product is extremely simple, or if a mature process with standardized parts is used, the design stage may not drive costs as aggressively as in complex or custom products. This nuance doesn’t invalidate the principle that design activity commonly sets a large portion of cost, but it can modulate the magnitude of its impact depending on context.

badm_375_120258_253267 HW 8 Product and Service Development Strategy

The decision taken during the design stage affects almost 80% of the overall production cost.

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