Engineering is the discipline, profession and
technology of applying scientific practical
knowledge, in order to design and build
structures, machines, devices, systems,
materials and processes.
Engineering is the practical application of
science and math to solve problems, and it is
everywhere in the world around you.
Engineering technologies improve the ways that
we communicate, work, travel, stay healthy, and
Economics explains how people
interact within markets to get what
they want or accomplish certain goals.
Since economics is a driving force of
human interaction, studying it often
reveals why people and governments
behave in particular ways.
Ever wonder why food costs rise when
gas prices spike?
Ever wonder why you can’t get a good
interest rate on your savings account?
Most simply, economics is the
study of making choices.…
Engineering economics is the application of
techniques to the evaluation of design and
The role of engineering economics is to assess
the appropriateness of a given project, estimate
its value, and justify it from an engineering
Engineering economic analysis
is used ,when problems meet
these three criteria
The problem is important enough to
justify our giving it serious thought and
A careful analysis requires that we
organize the problem and all the
various consequences, and this is just
too much to be done all at once.
The problem has economic aspects
important in reaching a decision.
9 Elements of the Decision
Recognize the problem.
Define the goal or objective
Assemble relevant data
Identify feasible alternatives
Select the criterion for choosing the best
Choose a model
Predict the outcomes for each
Choose the best alternative.
Audit the results.