NeXT changed its business plan in mid-1986. The company decided to develop both computer hardware and software, instead of just a low-end workstation. A team led by Avie Tevanian, who was a Mach kernel engineer at Carnegie Mellon University, was to develop the NeXTSTEP operating system. The hardware division, led by Rich Pageone of NeXT's cofounders who had previously led Apple's Lisa teamdesigned and developed the hardware. NeXT's first factory was completed in Fremont, California, in 1987. It was capable of producing 150,000 machines per year. NeXT's first workstation is officially named the NeXT Computer, nicknamed "the cube" because of its distinctive magnesium cubic case, designed by Apple IIc case designer Frogdesign in accordance with an edict from Jobs.