Summary for Engineering Economics Paper Example

Engineering is a field that is characterized by resource constraints, hence making it hard to separate it from the economics. The result of this is that it is worth noting that engineering proposals should be taken through evaluations that are based on the terms of worth and the cost before the project are undertaken. Engineering is a practice that falls in the category if application science. Engineers are affected by two main environments that include are interconnected which are the economic and the physical environments. To create satisfaction to the clients, the engineering practice should be characterized by the highest level of relationship in between engineering proposals, production, want, and construction.

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It is essential for engineers to be proficient in analyzing the economic aspects of engineering application. Proficiency in economic analysis is essential to the practice of engineering. Proficiency in the economic analysis is a crucial skill that should be understood by the engineers in the management positions.

The fact being that organizations and individuals experience limited resources, there is a desire for production of the greatest output from a particular input. It is through engineering activities that output is realized from inputs. This being the case, engineers should be concerned with efficiencies that will help in maximizing on the inputs. In the practice of engineering, it is worth noting that two types of efficiencies must be put into considerations. These are the economic and physical efficiencies.

This is a kind of evaluation that is performed at the least cost. This is done through the approach of the comparative cost that is significant in the facet of the engineering process. It is also an excellent tool that is used in creating satisfaction for the needs as well as maximizing economic efficiency. Some factors are put into consideration when evaluating the cost and the worth of the engineering proposals (Thuesen and Fabrycky). In the process, value for money is also put into considerations while not forgetting the idea of depreciation, labor costs, and the materials used in production.

The concept of the product life cycle is the other important thing to put into consideration. The focus of engineers has been based on the acquisition phase of the product life cycle that should be evaluated at the early design and activities analysis (Thuesen and Fabrycky). Performance of the product has been the priority, and it is being supported by the actions of developing the overall system with the economic factors.

The two types of utilities that are highly considered by individuals are the goods and service utilities. It is through economics that there is a need to analyze sales practices and advertising (Thuesen and Fabrycky). About this, it is worth noting that the economic aspect takes place when utilities are exchanged among individuals. The exchange of economy is possible as utilities of the consumers are taken through an evaluation as a personal consideration.

Conclusion

To do satisfy human wants, engineering economics are applied. In so doing, the, it's essential to identify the various costs that affect products or production of goods and services. The types of costs that should be put into considerations are the maintenance and operation costs. The two are sensitive as they first occur in getting an activity started. The other costs that are considered are the fixed costs, and they arise from making preparations for the future.

Works Cited

Thuesen, Gerald J, and Fabrycky W.J. Engineering Economicsn. Upper Saddle River, New Jersey, Tom Robbins, 2001.