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.

Answer 1

The relationship between engineering economic analysis and engineering design comprises of all the steps of engineering economic analysis reflecting all the activities of engineering design process.

1) engineering economic analysis involves recognition and evaluation of a problem and design process involves defining the problem.

2) engineering economic analysis involves development of all the considerable alternatives and engineering designing involves formulation of a problem.

3) Engineering economic analysis involves development of the outcomes similarly engineering design involves synthesis of possible alternatives.

4) Engineering economic analysis involves analysis and comparison of all the alternatives whereas engineering design adds optimisation to that.

5) Engineering economic analysis involves selection of the preferred alternative whereas engineering design involves specification of a preferred alternative.

Engineering economic analysis assists decision making in the engineering design process by providing all the tehniques considering costs, inflation, economic desicion rules, time value of money, taxes and accounting concepts. An engineering activity that involves engineering design process is the activity to transform something.

For example:

Use of engineering economic cost analysis and designing process to extract minerals from raw ore.