List several aspects of engineering economics relevant to design. What are the important contrib

List several aspects of engineering economics relevant to...

Key Concepts

Annualized Costs

Annualized costs refer to the method of spreading the total cost of an investment evenly over its useful life. This approach adjusts for the time value of money by converting upfront and recurring costs into a consistent annual figure. It is useful for comparing various projects or design alternatives by providing a common basis for evaluating long-term financial implications and facilitating annual budgeting and financial planning.

Life Cycle Costing

Life cycle costing is an approach that evaluates the total cost of ownership over the entire life span of an asset, from acquisition and installation to operation, maintenance, and disposal. It allows designers to account for all costs associated with a project, rather than just the initial outlay, supporting a more sustainable and cost-effective decision-making process through the assessment of both hidden and recurring expenses.

Engineering Economics

Engineering economics involves the systematic evaluation of the economic merits of proposed solutions to engineering problems. It emphasizes the integration of economic principles with engineering design to facilitate decision making. This discipline covers cost estimation, risk analysis, and techniques to compare alternative designs by considering factors such as time value of money, discount rates, and overall project economics.

Cost Contributors

In engineering design, cost contributors include direct material costs, labor expenses, manufacturing overhead, operating costs, and maintenance expenses. Other factors influencing costs encompass initial capital investment, energy consumption, and disposal or recycling costs. These factors are critical for evaluating the economic feasibility of design alternatives and ensuring that both short-term and long-term expenses are comprehensively assessed.

Transcript

00:01 Introduction to thermodynamics here we want to consider some of the aspects of the elements of engineering economics as well as some cost consideration in the design design and we want to also know what is analyzed costs of the component okay so if we look at the elements of elements of inline economics or the areas of the online economies to consider we respect to our design and design elements of engineering with respect to our design that we are concerned about one problem problem definition and understanding or problem understanding and definition problem definition must properly understand the problem then we must set objectives setting objectives setting okay it's important that we set objectives and it helps us to to probably to give us a path way to accomplish the projects defining also the qualities okay the requirements right they will talk of things like synthesis okay synthesis okay of the parts okay in our design of the consideration okay and looking at costs okay to promote the selection of the the best option all right then we look at analysis so i can even have said that synthesis and analysis, okay? so we must do analysis of the concepts, okay? you bring out your design concepts.

03:20 You must be properly analyzed.

03:24 Analysis of concepts.

03:25 You analyze the parts, okay? that you synthesize that you want to bring to that, you have to form, people, okay? of concepts and to see how the costs will be like, right? because you are producing, you want to design or produce to people, consumer that will be able to afford what you want to give to them, right? what you want to produce for that market, for that market.

04:06 Then, decision making, based on your cost analysis and and all that, okay, analyzing all the concepts, you come to make decision, decision, decision making, decision, not to make decision on the best concept to actually pursue, okay? then implementation, implementation, implementation, have to have to do.

04:53 Your design do, okay, implement your design, the project, okay, then testing.

05:18 You have to carry out your construction and all that, depending on the kind of project that you want to carry under you...

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