Question

Explain the relationship between engineering economic analysis and engineering design. How does economic analysis assist decision making in the design process? Give an example.

use any engineering design parameter as an example

Answer 1

ENGINEERING ECONOMIC ANALYSIS PROCEDURE.

1. problem recognition,definition, and evaluation
2. Development of the feasible alternatives
3. development of the outcomes and cashflows for each alternatives
4. selection of a criterion
5. Analysis and comparison of the alternatives
6. selection of the preferred alternatives
7. perfomance monitoring and post evaluation of result.

ENGINEERING DESIGN PROCESS

1. problem/need definition
2. problem/need formulation and evaluation
3. synthesis of problem solution
4. Analysis,optimization and evaluation
5. specification of preferred alternatives
6. communication

above are the important steps of both.

The decision of where and how to invest the limited capital is motivated by a primary goal of Adding value as future , anticipated results of selected alternative are realized.

Engineers play a vital role in capital investment decisions based upon their ability and experience to design , analyze and synthesize. the factors upon which a decision is based are commonly a combination of economic and Non economic elements. engeniering economy deals with economic factors.

Engeniering economy involves formulating,estimating and evaluating the expected economic outcomes of altetnatives designed to accomplish defination purpose.