Meaning And Importance of Economics for Engineers How

Meaning And Importance of Economics for Engineers

How it will go? Points To Discuss 1. How Economics is related to an Engineer and Engineering ? 2. What is the value of Economic to an engineer? 3. Where Economics helps to an Engineer? 4. Economic Decision. 5. What is taught by Economics to an Engineer ?

HOW ECONOMICS IS RELATED TO AN ENGINEER AND ENGINEERING ? ● Economics has been defined as the social science of earning a living. With the same appropriateness engineering may be defined to be physical science applied to helping groups of men to make a better living.

WHAT IS THE VALUE OF ECONOMICS TO AN ENGINEER? ● It will tend to broaden his views by showing engineering in its proper relation to other activities. ● It will help to develop the very valuable habit of thinking in terms of groups rather than of individuals, especially in matters of service. ● It will help the Engineer to see the real ultimate purposes of engineering. ● It will, for the best of engineering students, help to bring in the future years of engineering experience that wider vision which is the inspiration, the spiritual motive power of the great engineer.

Where Economics helps to an Engineer? ● Value analysis ● Critical path economy ● Interest and money - time relationships ● Depreciation and valuation ● Capital budgeting ● Risk, uncertainty, and sensitivity analysis ● Fixed, incremental, and sunk costs ● Replacement studies ● Minimum cost formulas

1. Planning 2. Investment 3. Manufacturing 4. Marketing 5. Profit ECONOMIC DECISIONS

WHAT IS TAUGHT BY ECONOMICS TO AN ENGINEER? ● ● ● Equipment and Process Selection Equipment Replacement New Product and Product Expansion Cost Reduction Service or Quality Improvement

“ if only economics was better understood, the world would be a better place” Thankyou.