Defense Electronics & Ruggedized Systems worked example

Low-Volume Setup Cost at 92% setup scope charged to lot: a worked example

What does the result look like when setup scope charged to lot reaches 92%? The full calculation is worked below with real intermediate numbers. Use it when low-volume setup cost in defense electronics and ruggedized systems is being put through a defense electronics and ruggedized systems weighted-cost review.

The inputs for this scenario

  • Low-volume program lot size: 100 assemblies (unchanged)
  • Setup cost per assembly: 45 $ / assembly (unchanged)
  • Setup scope charged to lot: 92 % (raised for this scenario; the documented default is 80)
  • Fixed NRE and qualification cost: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Lot setup cost assigned = low-volume program lot size × setup cost per assembly × setup scope charged to lot) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total low-volume setup cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for setup cost per assembly.
  • At this operating point the engine returns 4,140 $ for lot setup cost assigned.
  • At this operating point the engine returns 250 $ for fixed nre and qualification cost.

How this compares with the baseline

  • Against the tool's baseline example, where setup scope charged to lot sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • A figure at this level is achievable when setup scope charged to lot is genuinely sustained, not just peaked for a shift. It treats per-assembly setup cost as linear; in practice setup may have step changes when a larger lot needs additional fixtures, panels, or a second qualification article.

Results at a glance

  • Total low-volume setup cost: 4,390 $ (headline result)
  • Setup cost per assembly: 43.9 $ / piece
  • Lot setup cost assigned: 4,140 $
  • Fixed NRE and qualification cost: 250 $

Run it with your numbers

  • Every input above is editable in the live Low-Volume Setup Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.