Chapter 1 - Engineering Decision Making Flashcards
Engineering Economics was originally developed to deal with determining which alternative was most:
Economically viable
In recent times, engineers must also be aware of these 3 concerns:
- Financial
- Environmental
- Political
Define Engineering Economics:
The science that deals with techniques of quantitative analysis useful for selecting a preferable alternative from several technically viable ones.
What makes up the bulk of Engineering Economics?
The evaluation of COSTS and BENEFITS
Decisions are made, in the end, on the basis of _________.
But _________ should be the formation of ___________.
- Belief
- Facts
- Beliefs
Draw the Decision Pyramid:
The Decision:
1 / Preferences
2 / Politics People
3 / Facts
4 / Costs. Statistics. History. Market research. Expert opinion.
Economic Analysis deals with the _________
- information about
______ and ________ of a project
- Facts
- Costs
- Benefits
Facts should tend to control ______, ________, and ________.
- Politics
- People
- Preferences
What is a Model?
A model is a simplification of reality that captures information useful and appropriate for a specific purpose.
What do Engineering Economic models typically represent?
They typically represent a project through estimates of its costs/ benefits over time.
Draw the modelling process:
The real world
|
v
Analysis->The model ->info for decision making ->(points to real world) always refer back for validity
As guardians of knowledge, engineers have a vital responsibility to society to:
Behave ETHICALLY and RESPONSIBLY in all ways.
What is Sensitivity Analysis?
- It is a means of dealing with uncertainty
- Assesses effect of uncertainty on decisions by carrying out an analysis for a range of estimated (predicted) values
- Can identify ‘robust’ decisions
Engineering Projects use what 4 resources?
- Raw Materials
- Money
- Labour
- Time
