Small-batch unit cost is driven mainly by one-time costs, not by a machine running more slowly. A useful model is: C_unit = material + cycle labor + subcontract unit cost + (programming, setup, first-off inspection, tooling, minimum batch charges and freight)/quantity + risk allowance.
Values in this article support engineering screening during design review, RFQ and prototyping. They do not replace formal calculations, material data sheets, qualified procedures or contractual standards.
WORKED EXAMPLE
Assume laser programming/setup costs CNY 450, brake setup and first-off CNY 600, and a powder minimum lot CNY 900: CNY 1,950 total. At 10 parts, fixed cost alone is CNY 195 each; at 100 parts it is CNY 19.5. This excludes material, run time and margin, yet explains the curve. Request price breaks such as 1/10/50/100 or quantities close to real demand.
COST ACTIONS
1. Combine parts sharing material, thickness and color to improve nesting and finish-load utilization. 2. Relax non-CTQ prototype tolerances and permit standard tooling and stock material. 3. Separate non-recurring engineering (NRE) from repeat unit price and confirm what disappears later. 4. Validate with laser cutting and bending; assess stamping, dedicated fixtures or automation only after demand stabilizes. 5. Do not overbuy for a lower unit price; inventory, revision changes and obsolescence are total cost.
PROJECT CHECKLIST
Annual demand and lot pattern; revision stability; NRE; material MOQ; finish minimum; inspection documents; packing; price-break validity.