NPI, DFM/DFA & Engineering Change worked example

First Article Cost at 65% customer-billable inspection share: a worked example

This worked example runs the first article cost numbers for a tougher week than the baseline: 65% customer-billable inspection share instead of the typical 90%. Estimate first article inspection cost from piece count, per-piece inspection cost, billable share, and FAIR documentation cost.

The inputs for this scenario

  • First article pieces inspected: 5 pieces (held at the documented default)
  • Dimensional inspection cost per piece: 180 $ / piece (held at the documented default)
  • Customer-billable inspection share: 65 % (the input this scenario stresses; the baseline uses 90)
  • FAIR documentation and reporting cost: 1,200 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total first article cost = first article pieces × inspection cost per piece × billable share + FAIR documentation cost.
  • Total first article cost works out to 1,785 $ at these inputs, and this is the headline figure for the scenario.
  • First article cost per unit works out to 357 $ / piece at these inputs.
  • Variable first article cost works out to 585 $ at these inputs.
  • Fixed first article cost adder works out to 1,200 $ at these inputs.

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 11.19% below the baseline at 1,785 $.
  • Use it when quoting a new part or engineering-change re-FAI, or when deciding how much inspection cost to pass to the customer. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total first article cost: 1,785 $ (headline result)
  • First article cost per unit: 357 $ / piece
  • Variable first article cost: 585 $
  • Fixed first article cost adder: 1,200 $

Run it with your numbers

  • To rerun this with your own numbers, open the live First Article Cost calculator, set customer-billable inspection share to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.