Problem Formulation and Systems Perspective

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What stimulates the recognition of a problem in an organization?

Internal maintenance needs

External customer demands (correct)

Routine procedures

Financial audits

From which perspective should the formulation of a recognized problem be viewed?

Systems perspective (correct)

Departmental perspective

Historical perspective

Individual perspective

What is the purpose of evaluating a recognized problem in an organization?

To complicate the situation

To ignore the problem

To refine needs and requirements (correct)

To avoid finding solutions

What criterion defines whether an alternative is feasible for further analysis?

Meeting or exceeding established requirements Signup and view all the answers

What principle from Engineering Economy is applied in the development of prospective outcomes?

Principle 2: Cash flow analysis Signup and view all the answers

What do cash flows represent in the context of evaluating alternatives?

Economic effects in terms of money spent and received Signup and view all the answers

What is the first step in recognizing a decision problem?

Identifying the decision problem Signup and view all the answers

Which of the following is NOT a step in making an economic decision according to the text?

Focusing on the differences Signup and view all the answers

What should be considered when identifying feasible decision alternatives?

Gathering technical and financial data Signup and view all the answers

Which car was selected as the best alternative for leasing based on the text?

Honda Signup and view all the answers

In engineering economy, what should be focused on when comparing alternatives?

Focusing on the differences in expected future outcomes Signup and view all the answers

What should provide a comprehensive doctrine for developing the methodology according to Principles of Engineering Economy?

Developing the alternatives Signup and view all the answers

What is the purpose of comparing alternatives in engineering economic analysis?

To identify differences between alternatives based on their monetary quantification Signup and view all the answers

Why is the preferred alternative considered a result of the total effort?

Due to the soundness of technical-economic modeling and analysis techniques Signup and view all the answers

What is the purpose of performance monitoring and post-evaluation in engineering projects?

To improve goal achievement and reduce variability in results Signup and view all the answers

What happens during performance monitoring in an engineering project?

Achievement of related goals and objectives improves Signup and view all the answers

Why is post-evaluation feedback important for ongoing improvement in operations?

Because it provides insights for better analyses and operations Signup and view all the answers

Why is the final step of performance monitoring often highlighted as needing particular attention in engineering practice?

Because it's often not done consistently or well Signup and view all the answers