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How to Calculate NRE Cost for PCB Manufacturing?

By:PCBBUY 01/10/2022 09:26

NRE stands for Non-Recurring Engineering Costs, which is a broad term referring to a one-time cost to develop, design, or manufacture a new product or component like a PCB. NRE (Non recurring engineering) costs do not play into the regular per-unit cost of the product. 

 

Do you know how to calculate NRE Cost for PCB? In this passage, we are providing all the details about NRE cost for PCB. If you are searching for more information about NRE cost for PCB, please check and read the content below in this passage.


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What are the main factors effects NRE cost for PCB?

 

NRE costs mostly depend on:

 

·  The complexity of the product

·  Level of innovation

·  Required Certifications

 

NRE for PCB’s refers to specific setup costs for manufacturing a newly introduced PCB. It is generally charged for two separate categories of cost:

 

How to prepare NRE for PCB?

 

In the PCB industry, NRE is generally charged for two separate categories of cost: tools and programming. These costs, as with all NRE costs, do not play into the regular per-unit cost of the product. 

 

Tooling

 

Each of the items listed below can be considered an NRE cost, because they are specially made for a specific product and for a specific customer. Solder stencils, for instance, are like finger prints. They will only be used for one kind of PCB and are therefore only manufactured to make that one PCB thereafter. Afterwards, no new stencils need to be made in order to continue manufacturing that assembly. The same goes for fixtures, presses, and the other tooling listed below.

 

·  Stencils

·  Artwork

·  Metal

·  Jig

·  Fixtures

·  Press-fits

 

How to reduce NRE cost?

 

Some NRE cost is unavoidable in any project; we must create stencils and test beds for your project, and we must take some time to program our fabrication and assembly machines according to your specific needs. All that being said, there are a number of parameters for your PCB that can affect the total NRE cost, and simple awareness of these parameters can help to reduce charges that may have previously seemed somewhat arbitrary.

 

The three parameters having the greatest effect on NRE costs are the Physical Dimensions and Number of Layers for your particular PCB design, as well as the Quantity of your order.

 

Minimizing NRE through Physical Dimensions & Number of Layers

Creating stencils or test beds for PCBs that are physically larger, or incorporate a greater number of layers, will of course require increases in both effort expended and material consumed. Quite simply, if your aim is to reduce NRE cost, you should design for a physically small PCB, and you should only incorporate multiple layers if absolutely necessary.

 

Minimizing NRE through Order Quantity

This next parameter may seem less intuitive at first glance, but the best way to reduce NRE is to increase the quantity of your orders, and to panelize multiple projects. The simplest way to illustrate this concept is with an example: let us assume that you have two orders to place for two separate projects, each consisting of 50 PCBs. If you were to place these orders separately, you would receive a separate NRE charge for each one; however, if you had requested panelization of your two orders, you would receive only one NRE charge.

 

Minimizing NRE through Repeated Orders

Finally, it should be mentioned that Bittele will keep the stencils and programming files that were used in the production of your turnkey PCB assembly projects, meaning that NRE cost will be reduced for future production runs. Some NRE cost will remain to account for assembly setup and electrical testing time, but we can offer a substantial discount if we already have the stencils and programming files on hand for your design. Even in the case where a component has changed since your last run, we will work with you to reduce your NRE cost as much as possible.

 

What are the differences of NRE and unit cost?

 

Let’s say you want to build your PC. To do this, you know that you will need to make a PCB from scratch, using materials bought in hardware stores or online. You go to each store, or Custom PCB circuit board may, therefore, be a tall order. This article will walk you through five basic ways to land the best PCB board online merchant with the materials you need but no real idea of how much everything costs.

 

You are faced with two choices: First, you can list how much everything costs, being very specific. It will take a lot of time but will give you an exact number of how much everything will cost.

 

The other option you have is to take a ballpark average of how much these materials cost and work from there to determine how much you can spend on these materials.


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