ENGR3360W09_Lecture10

ENGR3360W09_Lecture10 - Click to edit Master subtitle style...

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Unformatted text preview: Click to edit Master subtitle style 10/18/10 ENGR3360UW09 ENGR 3360 Foundations of Engineering Economy Chapter 1 11 ENGR3360UW09 Anand Dersingh 10/18/10 ENGR3360UW09 The need for engineering economy Motivated by the work that engineers do in performing analysis, synthesizing, and coming to a conclusion as they work on projects of all sizes Its all about making decisions 22 ENGR3360UW09 10/18/10 ENGR3360UW09 Why Engineering Economy is Important to Engineers Engineers design and create Designing involves economic decisions Engineers must be able to incoporate economic analysis into their creative efforts Often engineers must select and execute from mulitple alternatives A proper economic analysis for selection and execution is a fundamental aspect of 33 ENGR3360UW09 10/18/10 ENGR3360UW09 Note The factors considered in making the decision are in fact a combination of econimic and noneconomic factors. Additional factors may be intangible, such as convenience, goodwill, friendship, etc. 44 ENGR3360UW09 10/18/10 ENGR3360UW09 Engineering Economy The art and science that involves Formulating, Estimating and Evaluation economic outcomes Always concerned with the selection and possible execution of alternatives given economic parameters associated with the project 55 ENGR3360UW09 10/18/10 ENGR3360UW09 Role of Engineering Economy in Decision Making Decision making involves the estimation of future events/outcomes Engineering economy aids in quantifying past outcomes and forecasting future outcomes Engineering Economy provides a framework for modeling problems involving: Time 66 ENGR3360UW09 10/18/10 ENGR3360UW09 Some questions that can be addressed by studying For Engineering Activities Should a new bonding technique be incorporated into the manufacture of automobile brake pads? Should a highway bypass be constructed around a city of 25,000 people, or should the current roadway through the city be expanded? For Public Sector Projects and Government Agencies Is it cost-effective for the provincial 77 ENGR3360UW09 10/18/10 ENGR3360UW09 The Decision Making Process 1. Understand the problem define objectives 2. Collect relevant information 3. Define the set of feasible alternatives 4. Identify the criteria for decision making 5. Evaluate the alternatives and apply sensitivity analysis 6. Select the best alternative 88 ENGR3360UW09 10/18/10 ENGR3360UW09 1. Understand the problem - define objectives Problems can be simple, complex or intermediate Are referred to as opportunities Build a new model Replace an old plant Open up in a new territory Must refine opportunities into metrics (objectives) 99 ENGR3360UW09 10/18/10 ENGR3360UW09 Project Objectives...
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This note was uploaded on 10/18/2010 for the course ENGR 3360 taught by Professor Ahmadbarari during the Fall '10 term at UOIT.

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ENGR3360W09_Lecture10 - Click to edit Master subtitle style...

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