Lec%206_Full(1) - IE 343 Engineering Economics Lecture 6:...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
IE 343 Engineering Economics Lecture 6: Chapter 3 - Cost and Revenue Estimation Instructor: Tian Ni Sep. 2, 2011 IE 343 Fall 2011 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
• Homework 2 will be posted after the class. • Homework 2 is due next Friday Sep.9 4:30PM in class. • Late submission will not be accepted. • Please make sure to use the HW2_template • Failure to submit your homework with the template will lead to a grade deduction. • No class next Monday Sep. 5 (labor day holiday) IE 343 Fall 2011 Announcement 2
Background image of page 2
• Quiz 1 will be given at the beginning of the class 4:30PM – 4:45PM next Wednesday Sep.7 • Quiz 1 will have 3 problems totally 10 points • You will have 15 minutes to finish quiz 1 • All quiz 1 problems will be selected from the following three sources. You will see the same problems but with numbers changed IE 343 Fall 2011 Tips for Quiz 1 3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
• Three sources: 1. Homework 1 Problem 1-7 (solutions for Homework 1 will be posted on Blackboard Vista after Friday’s class Sep.2) 2. Examples on Lecture Notes (please refer to the full version lecture notes for the example solutions) Lec 2_Full: Example 1.3, Example 1.4 Lec 3_Full: Example 2.1 to 2.7 3. Examples on Textbook Chapter 1: Example 1-1, 1-2, 1-3 Chapter 2: Example 2.1, 2.2, 2.3 IE 343 Fall 2011 Tips for Quiz 1 4
Background image of page 4
• Cost Driven Design Optimization – Example 2.10 • Present Economy Studies Two Rules : Rule 1 – When revenues and other economic benefits are present and vary among alternatives, choose the alternative that maximizes overall profitability based on the number of defect- free units of a product or service produced. Rule 2 – When revenues and other economic benefits are not present or are constant among all alternatives, consider only the costs and select the alternative that minimizes total cost per defect-free unit of product or service output. • Work Breakdown Structure (WBS) IE 343 Fall 2011 Last Time … 5
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Estimation Techniques IE 343 Fall 2011 6
Background image of page 6
• According to detail, accuracy and the intended use, cost and revenue estimates can be classified as follow: Order-of-magnitude (rough) estimates: Used for the high-level planning phase of a project; involve little detail and accuracy. Semidetailed (budget) estimates: Used mostly for the budgeting phase.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/28/2012 for the course IE 343 taught by Professor Vincent,g during the Winter '08 term at Purdue University-West Lafayette.

Page1 / 32

Lec%206_Full(1) - IE 343 Engineering Economics Lecture 6:...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online