ee,
Perhaps this might help:
Design - taking an idea or concept and translating it into a product (design).
Development - taking an existing design and making improvements to it over a period of time. Enhancements to a maturing product, for instance.
When reading the QS9000 requirements and the fact that they sometimes use terms interchangeably, it makes it difficult to interpret at times. This is further compounded by folks from different countries where words might not be synonymous or no equivalent exists. I don't know if this is totally avoidable but occasionally unfortunate.
Regards,
Kevin