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22 Cards in this Set
- Front
- Back
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A social science of how limited resources are used to satisfy unlimited human wants. |
ECONOMICS |
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Is the application of scientific, economic, social, and practical knowledge, in order to design, build, and maintain structures, machines, devices, systems, and materials |
ENGINEERING |
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Can be used to explore how the decision changes as the estimate changes. |
SENSITIVITY ANALYSIS |
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• Is the worth that a person attaches to a good or service. • It is inherent in a regard a person has for it, not in the item itself. • It is not the cost of the item |
VALUE |
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• Is a power to satisfy human wants and is determined subjectively • it is the satisfaction that a person derives from an item |
UTILITY |
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• Through this we canincrease the total utility of the goods and services. • it is possible when it ismutually beneficial. |
EXCHANGE |
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• A civil engineer whose interest was railroad building in the USA. • At the end of the 19th Century, he addressed the role of economic analysis in engineering projects. |
ARTHUR WELLINGTON |
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In 1930, He published a text book which emphasized techniques introduced to Engineering Economics which depends on financial mathematics. • This provided the economic view point of engineering |
EUGENE GRANT |
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wrote the book entitled Engineering Economy in 1942 |
WOODS and DeGarmo |
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PRINCIPLES OF ENGINEERING ECONOMICS |
1. DEVELOP THE ALTERNATIVES 2. FOCUS ON THE DIFFERENCES 3. USE A CONSISTENT VIEWPOINT (Perspective) 4. USE A COMMON UNIT OF MEASURE 5. CONSIDER ALL RELEVANT CRITERIA 6. MAKE UNCERTAINTY EXPLICIT 7. REVISIT YOUR DECISIONS: COMPARE INITIAL PROJECTED OUTCOMES WITH ACTUAL RESULTS ACHIEVED |
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• Consist of finding an opening through a barrier of economic and physical limitations. |
• Creative Step |
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In this step, we define the alternatives originated orselected from comparison. |
Definition Step |
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FOUR ESSENTIAL STEPS IN FORMULATING ENGINEERING ECONOMIC DECISION |
1. CREATIVE STEP 2. DEFINITION STEP 3. CONVERSION STEP 4. DECISION STEP |
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Deals with changes in the value of money over some period of time (due to investment opportunities, uncertainty, etc.) |
TIME VALUE OF MONEY |
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The ratio between an amount one period in the future and an equivalent amount now |
Interest Factor |
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a subset of economics for application of engineering projects. |
ENGINEERING ECONOMICS |
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Something tha has potential to harm you |
Hazard |
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The likelihood of a hazard causing harm |
Risk |
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Interest Rate formula |
(Interest Factor) - 1 |
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Physical Efficiency formula |
(System Output)/(System Input) |
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Economic Efficiency Formula |
(System worth)/(System cost) |
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Interest Factor |
(Amount in the future)/(Amount now) |
