Defense Electronics & Ruggedized Systems worked example

Low-Volume Setup Cost at 58% setup scope charged to lot: a worked example

Suppose setup scope charged to lot falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate setup cost for low-volume defense electronics lots, prototypes, LRIP builds, depot spares, or program-specific rugged assemblies.

The inputs for this scenario

  • Low-volume program lot size: 100 assemblies (held at the documented default)
  • Setup cost per assembly: 45 $ / assembly (held at the documented default)
  • Setup scope charged to lot: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed NRE and qualification cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Lot setup cost assigned = low-volume program lot size × setup cost per assembly × setup scope charged to lot.
  • Total low-volume setup cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Setup cost per assembly works out to 28.6 $ / piece at these inputs.
  • Lot setup cost assigned works out to 2,610 $ at these inputs.
  • Fixed NRE and qualification cost works out to 250 $ at these inputs.

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 25.71% below the baseline at 2,860 $.
  • It multiplies lot size by per-assembly setup cost and the scope charged to the lot, then adds fixed NRE and qualification cost to give total setup dollars. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total low-volume setup cost: 2,860 $ (headline result)
  • Setup cost per assembly: 28.6 $ / piece
  • Lot setup cost assigned: 2,610 $
  • Fixed NRE and qualification cost: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Low-Volume Setup Cost calculator, set setup scope charged to lot to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.