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What is the primary goal of engineering economy?
What is the primary goal of engineering economy?
Which phase involves identifying the problem to be solved in engineering economy?
Which phase involves identifying the problem to be solved in engineering economy?
What is essential when developing alternatives for an engineering problem?
What is essential when developing alternatives for an engineering problem?
In engineering economy, what aspect should be focused on when evaluating alternatives?
In engineering economy, what aspect should be focused on when evaluating alternatives?
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Which principle of engineering economy emphasizes the need for a comprehensive list of solutions?
Which principle of engineering economy emphasizes the need for a comprehensive list of solutions?
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Which method is used in engineering economy to analyze the economic merits of proposed solutions?
Which method is used in engineering economy to analyze the economic merits of proposed solutions?
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What is the outcome of applying the principles of engineering economy?
What is the outcome of applying the principles of engineering economy?
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Which of the following is NOT part of the initial steps in the design process of engineering economy?
Which of the following is NOT part of the initial steps in the design process of engineering economy?
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What is important to consider when comparing the outcomes of Alternative A and Alternative B?
What is important to consider when comparing the outcomes of Alternative A and Alternative B?
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Which principle emphasizes the need to use a common unit of measure when assessing outcomes?
Which principle emphasizes the need to use a common unit of measure when assessing outcomes?
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What should be done after selecting a project alternative based on estimated outcomes?
What should be done after selecting a project alternative based on estimated outcomes?
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What is the basis for selecting from the list of alternatives in the decision-making process?
What is the basis for selecting from the list of alternatives in the decision-making process?
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When estimating future outcomes, what should be clearly defined for effective decision-making?
When estimating future outcomes, what should be clearly defined for effective decision-making?
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What can be used as a common unit of measurement for cash flow analysis?
What can be used as a common unit of measurement for cash flow analysis?
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What is the first step in evaluating the decision and improving results?
What is the first step in evaluating the decision and improving results?
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Why is it important to recognize risks and uncertainties in the analysis of alternatives?
Why is it important to recognize risks and uncertainties in the analysis of alternatives?
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What is the total cost of Alternative 1 including delivery charges?
What is the total cost of Alternative 1 including delivery charges?
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Which principle focuses on analyzing and comparing alternatives?
Which principle focuses on analyzing and comparing alternatives?
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What is a relevant criterion mentioned for evaluating the pizza alternatives?
What is a relevant criterion mentioned for evaluating the pizza alternatives?
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According to the principles, which uncertainty must be explicitly stated in the selection process?
According to the principles, which uncertainty must be explicitly stated in the selection process?
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Which alternative is analyzed as more economical based on the provided information?
Which alternative is analyzed as more economical based on the provided information?
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What is the primary objective when deciding which pizza to order?
What is the primary objective when deciding which pizza to order?
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Which principle involves performance monitoring and post-evaluation of results?
Which principle involves performance monitoring and post-evaluation of results?
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What should be the first step in the decision-making process as per the principles outlined?
What should be the first step in the decision-making process as per the principles outlined?
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What is one key principle of Classic Brainstorming?
What is one key principle of Classic Brainstorming?
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Which technique involves a structured group meeting to develop a consensus?
Which technique involves a structured group meeting to develop a consensus?
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Why is it important to use a common unit of measure in decision-making?
Why is it important to use a common unit of measure in decision-making?
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What should the decision-maker consider when developing relevant criteria?
What should the decision-maker consider when developing relevant criteria?
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Which is NOT one of the four rules for successful brainstorming?
Which is NOT one of the four rules for successful brainstorming?
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What does it mean to make uncertainty explicit in the decision-making process?
What does it mean to make uncertainty explicit in the decision-making process?
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What is a fundamental principle behind the Nominal Group Technique?
What is a fundamental principle behind the Nominal Group Technique?
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What approach should be used for evaluating future outcomes of alternatives?
What approach should be used for evaluating future outcomes of alternatives?
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Study Notes
Introduction to Engineering Economy
- Engineering Economy is a systematic analysis and evaluation of factors influencing the economic success of engineering projects, leading to a recommendation for optimal capital utilization.
Engineering Economics And Design Process
- Engineering Economics utilizes a structured procedure and mathematical models for analyzing economic situations involving multiple alternatives.
- The design process involves a series of steps to analyze engineering economic problems:
- Problem recognition, formulation, and evaluation: Identifying the problem, defining the desired future outcome, and outlining goals and objectives for a solution.
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Development of feasible alternatives: Applying the first principle of Engineering Economy, this involves generating a comprehensive list of potential solutions.
- Techniques for generating alternatives include:
- Classic Brainstorming: A widely used technique where criticism is discouraged, freewheeling is encouraged, quantity is prioritized, and combination and improvement are actively sought.
- Nominal Group Technique (NGT): A structured group meeting format that focuses on: - Individual silent idea generation. - Individual round-robin feedback and idea recording. - Group clarification of ideas. - Individual voting and ranking to prioritize ideas. - Discussion of group consensus results.
- Techniques for generating alternatives include:
-
Development of outcomes and cash flows for each alternative: Identifying potential outcomes for each alternative and quantifying them (applying principles 2, 3, and 4).
- Emphasize differences in outcomes between alternatives, using consistent perspectives and common units of measure for comparison.
- Selection of criteria: Establishing criteria for evaluating alternatives based on consistent viewpoints and considering relevant criteria like cost, quality, quantity, performance, etc.
- Analysis and comparison of alternatives: Evaluating alternatives using the selected criteria.
- Selection of the preferred alternative: Choosing the preferred alternative while explicitly stating associated risks and uncertainties.
- Performance monitoring and post-evaluation of results: Assessing whether the chosen alternative achieved the objectives and identifying areas for improvement.
Sample Problem: Ordering Pizza
- Problem: Hunger among friends, desire to order pizza.
- Alternatives:
- Shakey's Hawaiian Square Pizza: 30-inch, 1 and ¼ inch thick crust, P359.00 + P100.00 delivery.
- Greenwich Hawaiian Round Pizza: 30-inch diameter, 1 and ¾ inch thick crust, P399.00 + P100.00 delivery.
- Analysis:
- Applying Principle 4 (common unit of measure), use unit: Peso per unit of volume.
- Cost Comparisons:
- Shakey's: P359.00 + P100.00 = P459.00
- Greenwich: P399.00 + P100.00 = P499.00
- Decision: Alternative 2 (Greenwich) is more economical.
- Uncertainties (Principle 6):
- Taste and quality
- Delivery time
- Evaluation (Principle 7):
- Assess if the chosen pizza tastes good and if the delivery was on time.
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Description
This quiz covers the fundamental concepts of Engineering Economy, focusing on the systematic analysis of factors that impact the economic success of engineering projects. It emphasizes the structured procedures and mathematical models used for problem-solving in the design process. Test your understanding of economic evaluations and the design methodology in engineering.
