Engineering Economy-Chapter 1
Study online at https://quizlet.com/_j57qih
1. What is engineer- introduces the decision making process that accompanies "go/no go" evaluations
ing economy? of investments in engineering projects
2. Purpose of en- develop and illustrate the principles and methodology required to answer basic
gineering econo- economic question of any design. Do the benefits exceed its cost
my?
3. Solutions to en- -demonstrate positive balance of long term benefits over long term costs
gineering prob- -promote well being and survival of an organization
lems (5) -embody creative and innovative technology and ideas
-permit identification and scrutiny of estimated outcomes
-translate profitability to the "bottom line" through valid and acceptable measure
of merit
4. Mission of engi- balance trade offs in the most economical manner
neering economy
5. 7 Principles of en- - Develop the alternatives
gineering econo- -Focus on the differences
my -Use a consistent viewpoint
-Use a common unit of measure
-Consider all relevant criteria
-Make Risk and Uncertainty Explicit
-Revisit your decisions
6. Principle 1: De- Carefully define the problem! Then the decision is among the alternatives. Alter-
velop the Alterna- natives need to be identified and then defined for analysis
tives
7. Principle 2: Fo- Only the differences in the expected future outcomes among alternatives are
cus on the differ- relevant to their comparison and should be considered in the decision
ences
1/4
Study online at https://quizlet.com/_j57qih
1. What is engineer- introduces the decision making process that accompanies "go/no go" evaluations
ing economy? of investments in engineering projects
2. Purpose of en- develop and illustrate the principles and methodology required to answer basic
gineering econo- economic question of any design. Do the benefits exceed its cost
my?
3. Solutions to en- -demonstrate positive balance of long term benefits over long term costs
gineering prob- -promote well being and survival of an organization
lems (5) -embody creative and innovative technology and ideas
-permit identification and scrutiny of estimated outcomes
-translate profitability to the "bottom line" through valid and acceptable measure
of merit
4. Mission of engi- balance trade offs in the most economical manner
neering economy
5. 7 Principles of en- - Develop the alternatives
gineering econo- -Focus on the differences
my -Use a consistent viewpoint
-Use a common unit of measure
-Consider all relevant criteria
-Make Risk and Uncertainty Explicit
-Revisit your decisions
6. Principle 1: De- Carefully define the problem! Then the decision is among the alternatives. Alter-
velop the Alterna- natives need to be identified and then defined for analysis
tives
7. Principle 2: Fo- Only the differences in the expected future outcomes among alternatives are
cus on the differ- relevant to their comparison and should be considered in the decision
ences
1/4
