How to Budget for a MIM Program: Tooling + Qualification + Production

Quick Q: How much does a new MIM program cost?

A typical MIM program budget: tooling ($10k-25k), qualification/PPAP ($5k-15k), first article samples ($500-2k), and production at $0.50-2.00/part depending on complexity. Total initial investment: $15k-40k for tooling and qualification. Per-part cost then follows the volume economics.


Detailed MIM program budget template:
Budget Item Typical Range Example (Automotive, 316L, 4-cavity) Notes
Phase 1 — Tooling
Mold design and DFM $1,000-3,000 $2,000 Included in some tooling quotes
Mold fabrication (4-cavity) $10,000-18,000 $14,000 H13 steel, cold runner
Side actions (if needed) $3,000-8,000 each $0 None for this example
Mold texturing (if needed) $500-2,000 $0
Tooling contingency (10%) $1,400 For mold modifications during qualification
Phase 1 subtotal $10,000-30,000 $17,400
Phase 2 — Qualification
First article samples $500-2,000 $1,000 50-100 molded parts for validation
Dimensional FAIR report $500-2,000 $1,000 CMM program + report
Material certification $300-1,000 $500 Chemistry, density, mechanicals
PPAP Level 3 (automotive) $3,000-8,000 $5,000 Includes PFMEA, control plan, CpK, MSA
Phase 2 subtotal $4,000-13,000 $7,500
Phase 3 — Production (Year 1)
Per-part production cost $0.50-2.00 $0.85 For 50,000 parts/yr
Annual production total $42,500
Year 1 Total Program Cost $67,400 (tooling + qual + production)
Year 2+ Annual Cost $42,500 (production only)
Key budgeting rules:
  • Tooling is a capital expense — amortize over 2-3 years in your cost analysis
  • Qualification is often overlooked — budget $5k-15k for PPAP
  • Contingency: add 10-15% for the first year to cover unexpected mold modifications or process development
  • Volume projections: be conservative — lower actual volumes extend the tooling payback period

Contents

Contact: Cindy