What is engineering economic analysis?
Economic analysis of engineering is the break -up of the various possibilities of an engineering project based on its total cost. These reports allow companies to decide which option works best in terms of profit before the project starts. Engineering economic analysis usually focuses on the project from two basic directions: physical costs such as materials and work and time to complete the project. Given that time is such a basic aspect in construction and production, it has a huge impact on the direction the company decides to go. Each of these variations makes a slight change in the cost of building the project. Although some may seem obvious, for example, the use of a part that costs less than half of another is not always as simple.
In ex -bacter, one piece costs half than an alternative piece. When we look at each other, it seems to be an obvious choice, especially if pieces are comparable quality. The problem occurs when looking at the larger structure of the engineering project. SayThat one piece is so cheap if it is sent in a certain group of countries where the cost of work becomes significantly higher. By using a cheaper piece, the company can lose money overall.
The task of engineering economic analysis wads through all these variables and the introduction of price marks for various options. Looking at the document, people responsible for the project can look at the expense as a whole, with all the options. This will help the company to decide how, when and where to complete the project.
Most reports engineering analysis will have two main areas: details of physical requirements and time. The physical requirements of the project relate to the costs of materials, work and production. Material and work costs are often quite basic when they look at themselves; They are more involved in production costs. These costs include the inclusion of the assembly line for taking into the NProject, purchase or adaptation of tools and equipment and defining the costs of energy and waste disposal.
The second major part of most engineering reports on economic analysis concerns time. Time is a complex object in most disciplines, but it is even more when performing long engineering tasks or batch processing. Small deviations in time, as one process that lasts a few seconds longer than another, can lead to many hours of further work during the project. In addition, this time results in additional wages, electricity costs and a delay in potential completion. All this will have to be considered against the benefits of the process.