Essay upon Engineering Monetary Decisions

L1: Anatomist Economic Decisions

ECON 320 Engineering Economics Mahmut Ali GOKCE Industrial Systems Anatomist Computer Savoir one particular

Lecture Number 1 Section 1 Engineering Economic Decisions

пЃ® Rational Decision- making Process пЃ® The Engineer's Function in Business пЃ® Types of Strategic Executive Economic Decisions пЃ® Primary Principles in Engineering Economics

Bose Company

Section Opening Tale - Bose Corporation

пЃ® Dr . Hacer el amor Bose, a graduate of electrical executive, an UBER professor, and Chairman of Bose Firm. пЃ® He invented a directional home speaker system that reproduces the concert experience. пЃ® He formed Bose Corporation in 1964 to become the world's No . you speaker maker. пЃ® He became the 288th richest American in 2002 by simply Forbes publication.

Executive Economics Overview

• • • • • • Rational Decision-Making Process Monetary Decisions Guessing Future Function of Designers in Business Large-scale engineering tasks Types of strategic architectural economic decisions

Rational Decision-Making Procedure

1 .

installment payments on your


4. 5. 6.

Recognize a decision problem Specify the goals or goals Collect all the relevant data Identify a collection of feasible decision alternatives Pick the decision criterion to use Pick the best option

Which will Car to Lease? Saturn vs . Honda

1 .

2 .


four. 5. 6.

Recognize a choice problem Specify the desired goals or aims Collect every one of the relevant info Identify a collection of feasible decision alternatives Pick the decision requirements to use Pick the best alternative


пЃ® пЃ® пЃ® пЃ®

Desire a car

Wish mechanical reliability Gather technological as well as monetary data Select from Saturn and Honda Need minimum total cash cost Select Honda


Financial Info Required to Call and make an Economic Decision

Engineering Economic Decisions

Manufacturing Revenue


Expense Marketing

Predicting the near future

пЃ® Calculating a Necessary investment пЃ® Forecasting a product or service demand пЃ® Estimating a selling price пЃ® Estimating a manufacturing expense пЃ® Estimating a product your life

Position of Technicians in Business

Produce & Style • Anatomist Projects

Assess • Production Methods • Engineering Basic safety • Environmental Impacts • Market Examination

Evaluate • Expected Profitability • Time of Cash Moves • Degree of Financial Risk

Evaluate • Impact on Monetary Statements • Firm's Market Value • Inventory Price

Accounting Or Accounting

Analyzing past performance Evaluating and predicting upcoming events



Architectural Economy

Future Present

Two Elements in Architectural Economic Decisions

The elements of time and uncertainty would be the defining aspects of any engineering economic decisions

A Large-Scale Architectural Project

пЃ® Requires a huge sum of investment пЃ® Takes a while to see the monetary outcomes пЃ® Difficult to predict the income and expense streams

Types of Strategic Architectural Economic Decisions in Manufacturing Sector пЃ±Service Improvement пЃ±Equipment and Process Variety пЃ±Equipment Replacement unit пЃ±New Product and Product Expansion пЃ±Cost Reduction

U. S. Gross Household Products (GDP)

Manufacturing (14%)

Service sector (80%)

Health-related (14%) Agriculture (2%)

Industrial Career

Industry 93 1983-94 1994-2005 Employment National Projected distribution Average Change Manufacturing 12. 6% -0. 70% -7. 2% Companies Retail transact Financial 31. 5% of sixteen. 7% almost 8. 0% sixty. 0% 23. 1% dua puluh enam. 8% 39. 0% 13. 0% 6. 3%

Supply: Bureau of Economic Analysis/Bureau of Labor Statistics

Types of Strategic Executive Economic...

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