Talk:Non-recurring engineering

More General
This is much more of a general engineering topic, so I'm re-writing it as such. --Dbackes 14:29, 9 August 2006 (UTC)

Other meanings of NRE
I have also seen NRE described as Non-Recurring Expenses (or Expenditure). This does not really change the meaning; but extends it to non-technical matters as well.

Also occasionally used in software development for Null Reference Exception.

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Also, non residential external (India, UK) Finally, non returning engineering. I think, R should be recurring (not returning), but we engineers definitely prefer (albeit as 1 of several options) to see the E as engineering, not just (any) expenses (Google defeats us here like 130.000 Eng. vs. 400.00 exp., but anyway!).DocMJV 01:56, 30 September 2007 (UTC)

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I work in a US engineering defense contracting company and NRE more often means Non-Recurring Expense, with the meaning listed above. I'm not sure which meaning is more prevalent but I would think having both in the entry, noting the difference between engineering and non engineering expenses or have a separate entry for the Expense version and a disambigous pointer would be better. —Preceding unsigned comment added by 149.32.192.33 (talk) 20:43, 14 May 2008 (UTC)

Whether its NRE or not is independent of who pays
I believe NRE is new engineering work required to realise a product or capability that is not part of an existing product line. A minor change (possibly a different mains lead on a toaster) would not logically classify, but a change in a multi-pin connector on an aircraft avionics box certainly would. If the work (and risk) involved is not covered in normal manufacturing/sales margins, then it is logical to call it NRE, and work out its cost.

This is entirely separate from the issue of who pays. The supplier carries whatever costs the customer doesn't pay, which will represent an investment by the company. If the additional work costs $100k and the customer pays $60k, then we have

NRE cost                 = $ 100k Customer funding         = $  60k  (after sales tax) Company investment (cost) = $ 40k

The company's financial manager's first goal should be to get the customer to pay for the NRE at standard rates and profit margins, so that no company investment is needed. If an investment is needed, then one should start asking the "Sensible investment" questions.

These are based primarily on the future value of the investment, vs the value of alternative investments.

If the company can later use the NRE in future sales, and the investment is responsible for generating an additional $200k, then it is achieving a return on investment (ROI) of $200k/$40k. This is a good deal, so after verifying the comany's cash situation is OK to fund the investment, the company would be likely to invest. Naturally, there is some risk in not being able to achieve the hoped-for future sales, so one needs to discount the future sales heavily in the ROI calculation.

To keep accounting clear, the Investment should be listed (capitalised?), and amortised as the $200k comes in. 18:42, 15 April 2007 (UTC)

Languages
The Japanese language link on the right leads to a completely different meaning of NRE (Nippon Restaurant Enterprises). --Westwind273 (talk) 23:13, 9 March 2011 (UTC)

Economic aspect?
From what I read in the article on NRE, it looks like the economic aspect of NRE can be important, as it clearly impacts the business operation. Should that article be additionally classified as an economic topic, or some other categor(y/ies)? --TheBlueWizard (talk) 03:10, 12 March 2017 (UTC)