Engineering Economics
Compiled by
Dr. Khristian Edi Nugroho Soebandrija, BSIE, MM.
Binus Aso School of Engineering, BINUS University.
Engineering is the profession in which knowledge of the mathematical and natural sciences gained by study experience and practice is applied with judgment to develop ways to utilize economically the material and forces of nature for the benefit of mankind.
Engineering Economics: Meaning and Characteristics
Article Shared by Shivam M.
Meaning of Engineering Economics:
Engineering is the profession in which knowledge of the mathematical and natural sciences gained by study experience and practice is applied with judgment to develop ways to utilize economically the material and forces of nature for the benefit of mankind.
Engineers and Engineering Economics:
Engineering Economics is a subject of vital importance to Engineers. This subject helps one understand the need for the knowledge of Economics for being an effective manager and decision maker.
The Economics theories are used to take decisions related to uncertain and changing business environment. Economics theories deal with the principles of demand, pricing, cost, production, competition, trade cycles, and national income and so on.
As the design and manufacturing process become more complex, the engineer is making decisions that involve money more than ever before. The competent and successful engineer at present must have an improved understanding of the principles of economics. The engineering economics is concerned the systematic evaluation of the benefits and costs of projects involving engineering design and analysis.
Engineering economics quantifies the benefits and costs associating with engineering projects to determine if they save enough money to warrant their capital investments. Engineering economics requires the application of engineering design and analysis principles to provide goods and services that satisfy the consumer at an affordable cost. Engineering economics is also relevant to the design engineer who considers material selection.
Engineers are planners and builders. They are also problem solvers, managers and decision makers. In the beginning of the 20th century, engineers were mainly concerned with the design, construction, operation of machines structures and processes.
Compiled by
Dr. Khristian Edi Nugroho Soebandrija, BSIE, MM.
Binus Aso School of Engineering, BINUS University.