Improvement in product design may result in cost reduction illustrated below:

1) Material cost : change in design of the product may result in saving in material cost. Economical substitution for existing material may also be considered. for example , in manufacturing kitchen utensils, brass may be substituted by cheaper alloys. In curtain rings , metal may be substituted by plastic.

2) Labour cost : improvement in design may result in reduce operating time.

3) Factory over head : reduce operating time not only helps in saving in labor cost but also in factory over  head,

4) Packing and transportation : compact design of a product result in reduced cost of pacing and transportation.

5) Cost of tools , jigs and fixtures can be reduced through deign improvement.