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Medical device costing: adding the cost of the production environment

Costing a medical device. Assembly follows electronics, molded parts follow injection molding, plus one category of its own — maintaining the controlled environment, which accrues with time rather than with output.

Updated

This industry borrows from two others already covered: boards and assembly follow **electronics assembly**, housings and molded components follow **injection molding**. Read both — together they cover most of the sheet.

What remains is specific, and it has a property that leads people to enter it wrongly: **it accrues with time, not with units**.

Maintaining the production environment

The production area holds defined conditions, and doing so costs money continuously whether you build many units or few: filtration, single-use garments and supplies, scheduled cleaning, environmental monitoring.

Because it runs with time, **unit cost depends on volume** in a way most trades do not experience: the same monthly cost divided among fewer units means each one carries more.

Enter it as the period's maintenance cost divided by the units produced in that same period, and record which period. Taking a figure from a high-volume month and applying it to a low-volume one is the most common way this cost ends up understated.

Batch records and changeover

As in **food processing**, cost arises per batch rather than per unit: cleaning between batches, pre-run verification, batch documentation.

So smaller batches cost more per unit — a useful finding, because it puts a number on what splitting an order actually costs. The cleaning and changeover guide covers the arithmetic; only the vocabulary differs.

Three changes from the parent guides

CategoryWhat changes
MaterialAdd single-use environment supplies — they never appear in the product but they are consumed by producing it
LaborAdd cleaning, batch documentation, and gowning time entering and leaving the area
OverheadEnvironment maintenance accrues with time; divide by the same period's output

The remaining seven follow the electronics assembly and injection molding guides, depending on which part of the device you are costing.

Related guides

Medical device costing: adding the cost of the production environment | costdown.org