Engineering Economics

Broadly speaking, engineers use knowledge to find new ways of doing things

• Economically

• Financially

• Hard way

• Easy way

What Principle of Engineering Economy is this:

Defining the problem. The decision is among the alternatives need to be identified and then defined for subsequent analysis.

• Define the Alternatives

• Develop the Problem

• Develop the Alternatives

• Define the Problem

What Principle of Engineering Economy is this:

The expected future outcomes among the different alternatives are relevant to their comparison and should be considered in the decision.

• Focus the Differences

• Focus on the Differences

• Focus on the Differents

• Focus in the Differences

What Principle of Engineering Economy is this:

The prospective outcomes of the alternatives, economic and other, should be consistently developed from a defined perspective.

• Use a Consistent Power point

• Use a Consistent Perspective

• Use a Continent Viewpoint

• Use a Consistent Viewpoint

What Principle of Engineering Economy is this:

Using a common unit of measurement to enumerate as many of the prospective outcomes as possible will simplify the analysis of the alternatives.

• Common Unit of Measure

• Use a Common Unit of Measure

• Use a Common Measure

• Use a Common Unit

What Principle of Engineering Economy is this:

Selection of a preferred alternative (decision making) requires the use of a criterion (or several criteria). The decision process should consider both the outcomes enumerated in the monetary unit and those expressed in some other unit of measurement or made explicit in a descriptive manner.

• Consider All Relevant Criteria

• Consideration Of All Relevant Criteria

• Consider All Criteria

• Considering All Relevant Criteria

What Principle of Engineering Economy is this:

Risk and uncertainty are inherent in estimating the future outcomes of the alternatives and should be recognize in their analysis and comparison.

• Risk and Uncertainty Explicit

• Make Uncertainty Explicit

• Make Risk and Uncertainty Explicit

• Make Risk Explicit

What Principle of Engineering Economy is this:

Improved decision making results from an adaptive process; to the extent practicable, the initial projected outcomes of the selected alternative should be subsequently compared with actual results achieved.

• Improve Your Decisions

• Visit Your Decisions

• Revisit Your Decisions

• Visit Your Crush

There are a variety of costs to be considered in an engineering economic analysis. These costs differ in their frequency of occurrence, relative magnitude, and degree of impact on the study

• Cost

• Variety of Cost

• Cost of Variety

• Cost Terminology

It is often associated with “go–no go” decisions that involve a limited change in output or activity level.

• Incremental Cost

• Go-No go Cost

• Increment Cost

• I'm confused...