Application engineering certainly can be design. Figuring out how to make it to the customer's design is not design, but application engineering most certainly can be.
You can't then use the terms I offered up and say: 'Well that might be design!' Or have I lost the purpose of a thread?
What is obvious here is that the OP needs to be more forthcoming with information. Until he does, all indications to me is that his company is heavily involved with design.
