Non-Recurring Engineering (NRE) cost is a comprehensive range concept, which can be defined merely as the one-time cost to a new product or product improvement research, design, develop, and test. The definition of NRE cost may be different according to the countries, industries, or products.
In what situations, Minew need to charge NRE cost?
Firstly, let’s have a brief understanding of Minew hot-selling module:
MS88SF2-nRF52840 modules; MS50SFB-nRF52832 modules
MS50SFA-nRF52810 modules; MS48SF2-m1805 UART modules
NRE cost was issued when we start to develop a new module. The fee includes start-up costs, Electrical test cost, PCB layout cost, programming cost, or other costs associated with making a module.
Customers do not need to pay such NRE cost since Minew is responsible for these cost for Minew’S product.
However, if customers would like to design a totally new module or modify the hardware or firmware of the module, an original NRE cost issued when we are doing so.
For example, developing an existing nRF52840 module with a power amplifier or adding a sensor or crystal oscillator into the nRF52832 module. Hence, the PCB layout needs to redesign at that circumstance.
Regardless of how many quantities they are planning to produce, a client only pays once for NRE before the product has designed successfully. This is why it is not economical to produce in small batches.
The following actions are taken to set up the production of a new device:
The design and manufacturing actions are taken in order to set up a new module:
1. Concept design (Product specification; Time schedule; Estimated cost)
2. Hardware design (Schematic design; PCB layout; production of PCB)
3. Firmware design(UML Creation; Code programming;)-Even though we are developing a null module, Minew still need to develop firmware to test module functionality.
4. Package design. (A new type of Reel and tape)
5. Prototyping (Finding the source of components; SMT; marking the label in metal cover shielding; Integrated test ).
It is worth emphasizing that programming a new firmware will take longer time than designing new Hardware, setting up a new Nordic module, TI module, Cypress module or Lora module will take NRE cost compared with the existing module. Therefore, instead of ordering a few pieces a month, a better solution would be to order a higher number each quarter. Given that the opportunity cost of the labor shift into a new project, That is why Minew will have MOQ for new product or project.
Which specific cost consist of total NRE cost?
Several elements impact on the total NRE cost. Like Hardware & firmware design fee. Honestly, even though clients intend to develop Hardware solely, test firmware will still need to design to prove the functionality of the new module. Or Certifications fee if required. Or Tool Design fee etc.
Therefore, if Minew existing module can meet your requirement initially, just missing some not necessary component, we are strongly recommend using our current module. Please kindly have a quick view on our OZ Robotics store.
If developing a new module is essential for the new project, please contact email@example.com directly and let us bring your concept into reality.