Meaning
One-time financial investment required to design, build and calibrate specialized measurement tools for a specific manufacturing project. This non-recurring engineering metrology cost covers the development of custom sensors, alignment fixtures and software scripts used only for that product. It is a significant part of the initial budget for new hardware.
Capital Expenditure
Funds are allocated early in the design phase to ensure that the production line can measure the device to the required tolerances. A high non-recurring engineering metrology cost is often justified by the need for sub-micron accuracy in the assembly of optical components. These tools are assets that lose their specific value once the product reaches the end of its life.
Precision Requirement
Custom probes and gauges are built to match the unique physical dimensions of the new device. Because standard off-the-shelf tools cannot provide the necessary resolution, the non-recurring engineering metrology cost increases. The engineering time spent on these designs ensures that every unit is identical.
Lifecycle Impact
Amortizing these expenses over the total volume of units produced determines the final price of the product. If the non-recurring engineering metrology cost is too high relative to the sales volume, the project may not be commercially viable. Accurate estimation of these costs is a critical task for the operations manager.