NPI, DFM/DFA & Engineering Change worked example

First Article Cost at 99% customer-billable inspection share: a worked example

This scenario runs the first article cost calculation on the strong side: 99% customer-billable inspection share, with every other input held at its documented default. a quality engineer needs to price a first article inspection and report for a new or revised part.

The inputs for this scenario

  • First article pieces inspected: 5 pieces (unchanged)
  • Dimensional inspection cost per piece: 180 $ / piece (unchanged)
  • Customer-billable inspection share: 99 % (raised for this scenario; the documented default is 90)
  • FAIR documentation and reporting cost: 1,200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total first article cost = first article pieces × inspection cost per piece × billable share + FAIR documentation cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 2,091 $ for total first article cost, the number this scenario is built around.
  • At this operating point the engine returns 418 $ / piece for first article cost per unit.
  • At this operating point the engine returns 891 $ for variable first article cost.
  • At this operating point the engine returns 1,200 $ for fixed first article cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where customer-billable inspection share sits at 90% and the headline result is 2,010 $, this scenario comes in 4.03% above the baseline at 2,091 $.
  • Use it when quoting a new part or engineering-change re-FAI, or when deciding how much inspection cost to pass to the customer. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total first article cost: 2,091 $ (headline result)
  • First article cost per unit: 418 $ / piece
  • Variable first article cost: 891 $
  • Fixed first article cost adder: 1,200 $

Run it with your numbers

  • Every input above is editable in the live First Article Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.