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    Engineering Economics (MS-291) : Lecture # 2

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    Mukil
    This lecture introduces engineering economics and its importance for engineers. It defines economics as studying how individuals and groups make choices about scarce resources. Engineering economics evaluates the expected economic outcomes of alternatives to accomplish objectives. The lecture outlines the 7 steps in an engineering economy study and discusses how the field is important because engineers must make rational economic decisions when designing and selecting alternatives. It also reviews codes of ethics for engineers and how engineering is a regulated profession.

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    Engineering Economics (MS-291) : Lecture # 2

    Uploaded by

    Mukil
    24 views14 pages
    This lecture introduces engineering economics and its importance for engineers. It defines economics as studying how individuals and groups make choices about scarce resources. Engineering economics evaluates the expected economic outcomes of alternatives to accomplish objectives. The lecture outlines the 7 steps in an engineering economy study and discusses how the field is important because engineers must make rational economic decisions when designing and selecting alternatives. It also reviews codes of ethics for engineers and how engineering is a regulated profession.

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    L2- ch1

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    This lecture introduces engineering economics and its importance for engineers. It defines economics as studying how individuals and groups make choices about scarce resources. Engineering economics evaluates the expected economic outcomes of alternatives to accomplish objectives. The lecture outlines the 7 steps in an engineering economy study and discusses how the field is important because engineers must make rational economic decisions when designing and selecting alternatives. It also reviews codes of ethics for engineers and how engineering is a regulated profession.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    24 views14 pages

    Engineering Economics (MS-291) : Lecture # 2

    Uploaded by

    Mukil
    This lecture introduces engineering economics and its importance for engineers. It defines economics as studying how individuals and groups make choices about scarce resources. Engineering economics evaluates the expected economic outcomes of alternatives to accomplish objectives. The lecture outlines the 7 steps in an engineering economy study and discusses how the field is important because engineers must make rational economic decisions when designing and selecting alternatives. It also reviews codes of ethics for engineers and how engineering is a regulated profession.

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    You are on page 1of 14

    Lecture # 2

    Engineering Economics (MS-291)


    Ch1: Foundations of Engineering Economy

    Dr. Maazullah Khan


    PhD, MSc, MBA
    Associate Professor of Practice
    Department of Management Sciences GIKI
    Why Economics?

    • Economics is everywhere…..

    • Rational Choices

    • Decisions which ‘add value’


    What is Economics?
    • Economics is a social science that studies “how” individuals, firms,
    governments and nations make choices while allocating limited resources
    to satisfy their unlimited wants/wishes.
    OR
    • Economics is a science which studies human behavior as a relationship
    between ends and scarce means which have alternative uses.
    Example: Suzuki
    • Problem: Transportation

    • Customer’s Perspective

    • Manufacturer’s Perspective
    Why is Economics Important?
    • Households, managers, workers, organizations and nations need to take
    economic decisions by keeping in mind;
    – Limited resources
    – Unlimited wants/ends
    – Alternative use of these resources
    • Economics is a science that helps to make best use of limited resources by
    making best choices that satisfy unlimited ends.
    Why is Economics Important for Engineers?
    • Engineers design and create.
    • Designing involves economic decisions.
    => Engineers must be able to incorporate economic analyses into their
    creative efforts.
    • Often engineers must select and implement from multiple alternatives.
    • A proper economic analysis for selection and execution is a fundamental
    task of engineering.
    Why is Economics Important for Engineers?
    • The Accreditation Board for Engineering and Technology (ABET) defines engineering
    as
    “A profession in which knowledge of the mathematical and natural sciences
    gained by study, experience and practice is applied with judgment to develop ways
    to utilize economically the material and forces of the nature for the benefit of
    mankind”
    • A successful engineering decision is one which is sound from;
    => technical perspective
    => economic perspective
    • An economic solution is one that makes “efficient” use of resources.
    What is Engineering Economics?
    Engineering economics involves formulating, estimating and evaluating
    expected economic outcomes of alternatives designed to accomplish a
    defined objective.
    7 Steps in an Engineering Economy Study
    7 Steps in an Engineering Economy Study
    Code of Ethics for Engineers
    • All disciplines have a formal code of ethics.
    • National Society of Professional Engineers (NSPE) maintains a code
    specifically for engineers(Appendix C).
    • Many engineering professional societies have their own code.
    Code of Ethics
    • Some professions are regulated.
    • For example, in USA and Canada, engineering is a regulated profession.
    => You can’t practice without a license.
    => You have to be a member of a licensing body in ‘good standing’.
    • Association of Professional Engineers and Geoscientists of Alberta (APEGA)
    • Professional engineers and geoscientists shall recognize that professional
    ethics is founded upon integrity, competence, dignity and devotion to service.
    This concept shall guide their conduct at all times. [Preamble]
    Thank You

    Any Questions?
    Email: maazullah@giki.edu.pk

    Teaching Assistant: Ms. Sabahat Orakzai


    sabahat@giki.edu.pk
    References
    • Engineering Economy 7th Edition by Leland Blank, Anthony Tarquin [ISBN-
    10: 0073376302]

    • Videos from Dragon’s Den are copy righted. We are using it only for educational
    purposes.

    14

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