NPI, Sourcing & Program Terms
Plain-English definitions of the terms you'll come across.
terms categories
DDP (Delivered Duty Paid)
Delivered Duty Paid
DDP (Delivered Duty Paid) is an Incoterms 2020 rule under which the seller delivers goods to the buyer's named destination, cleared for import and with duties and taxes paid, ready for unloading.
Read moreWhat Are EVT, DVT and PVT? Stages Explained
Engineering Validation TestDesign Validation TestProduction Validation Test
EVT, DVT and PVT are the three validation builds in hardware product development: EVT proves the design works, DVT proves it meets every requirement using production-intent parts, and PVT proves the factory can build it repeatably on final tooling.
Read moreWhat Is a Golden Sample? Definition & Use
master samplereference sample
A golden sample is an approved reference part, signed off by the customer, that represents exactly what an acceptable production part should look and measure like.
Read moreWhat Is a New Product Introduction (NPI)?
NPI
New product introduction (NPI) is the structured process of taking a new product from an approved design to repeatable volume production. It covers prototyping, design for manufacturability, tooling, validation builds, a pilot run and production ramp-up, with defined gates where the team confirms the design and the process are ready.
Read moreNRE (Non-Recurring Engineering)
non-recurring engineering
NRE is the one-time cost of design, engineering, tooling and setup work needed before a product can be produced, paid once per project rather than with each part.
Read moreWhat Is a Pilot Run?
pilot production
A pilot run is a small, limited production batch made on the production tooling and process before full-volume manufacturing begins.
Read moreWhat Is an RFQ (Request for Quotation)?
request for quotation
RFQ stands for request for quotation: a document a buyer sends to one or more suppliers asking for a price and lead time to make a clearly defined part or product.
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