Engineering economic analysis:

Question 1

involves the analysis of problems for manufacturing a product or rendering a service based on present or immediate costs.

Answer 1

Present economy

Question 2

Involves selection among materials available that will result in the most economical product and give the best results.

Answer 2

Material Selection

Question 3

Two or more different methods may give the same satisfactory results; Involves selection of the most economical way to accomplish operations

Answer 3

Selection of Method

Question 4

The design to be selected must be best suited for the work to be done with particular care being given to the one which will do the work with the utmost economy

Answer 4

Selection of Design

Question 5

Costs relevant to selecting sites must be carefully considered (land cost, construction cost, cost of available labor, cost of transporting equipment and materials)

Answer 5

Site Selection

Question 6

Bear in mind that workers have varying efficiency and proficiency. Worker proficiency can be translated into monetary values

Answer 6

Proficiency of Workers

Question 7

Considers the costs of acquiring tools and equipment and the costs of maintaining them.

Answer 7

Economy of Tool and Equipment Maintenance

Question 8

Only a certain number of personnel will lead to the highest productivity; increasing this number will not cause a proportional increase in productivity.

Answer 8

Economy in the Utilization of Personnel

Question 9

using a combination of quantitative and qualitative techniques to analyze economic differences among engineering design alternatives in selecting the preferred design

Answer 9

Engineering economic analysis