Wouldn't/couldn't this logic apply to any large project in a company? What about a complete new HVAC system, or a new ERP/MRP software, moving from one building to another?
We're often involved with many large projects that aren't 'napkin back' that demand a lot of detail, design, and management of resources, but that doesn't put them into 7.3.
Good Luck
Your bottom line is that the registrar's auditors won't audit that aspect of the business. I tend to agree with you. But then again, they didn't used to audit IT at all in the 'old days'. These days they do. "Tell me about your data backup plan..." isn't an unusual question. There used to be an ISO 9003 for Service companies (as far as I know no company was ever registered to it, but it did exist). That went away when the paradigm shifted from design applying only to widgets, but also to processes. Yes, service companies absolutely do design. Their product is a service which they design.
It would absolutely apply to any large project in a company. If your company does not *design* large projects, I'd be amazed. Do they do any writing of what their plan is or do workers just come in and take a look around and say "Well, OK - Let's get on with it and see what we have to do as we go along..." if they're putting in a new HVAC system? Even moving from one building to another is often a seriously thought out (designed) plan. Would you consider moving a whole plant without a plan (aka Design")?
Design is done and typically it is done in a way that 7.3 outlines, so it's a moot point. 7.3 is just the basic elements of a basic design system regardless of it being a requirement of ISO 9001.
Back when I did implementations, large and small, I did what is in my paradigm 'design'. I called it a project, but the hallmarks of design were everywhere. I drew up a project plan in MS Project. I defined inputs and outputs for each step. There were meetings to discuss the plan (design verification) where all the steps were considered. We followed the plan. Prior to the registration audit we audited the systems internally to ensure they were working as planned (design validation). We did every step in 7.3, not because it is required by ISO 9001, but because that is the essence of planning and design.
7.3.1 Design and Development Planning
7.3.2 Design and Development Inputs
7.3.3 Design and Development Outputs
7.3.4 Design and Development Review
7.3.5 Design and Development Verification
7.3.6 Design and Development Validation
7.3.7 Control of Design and Development Changes
Now - If one is going through a registration audit, for example, I doubt that the auditor is going to the in-house IT people and ask to see the design plan for the IT infrastructure. But - If it was a company I was running I'd be ready to show them just because that's the way it's done.