Engineering economics

The broad field of economics may be divided into macro and micro economics. Macroeconomics involves problems associated with nations sueh as trade, trade deficits, monetary policy, national productivity, growth of the economy, inflation, budget defieits, national debt, unemployment, tariffs, etc. Microeconomics involves problems of firms and of individuals. Engineering economics is a special branch of microeconomics largely involved with the analysis of engineering alternatives and their performance. 

The two most important macroeconomic theories are those espoused by Adam Smith (1723-1790) and J. M. Keynes (1883-1946)  

His views had a strong influence on actions taken by President Roosevelt in formulating The New Deal of the 1930s. 

Debate continues today, fueled by those two points of view, on the basic question of whether the nation is better served by a big or small federal government  

Frequently, a design variable that effects unit cost can be changed continuously over a range of values. In such cases, an optimum value of the design variable may exist for which the unit cost is a minimum. It is usually advantageous to operate as close to this minimum as convenient. 

---

These find wide appHcation in general business analysis but are less widely used in engineering economic analysis. 

D. G. Newman, Engineering Economic Analysis, 2nd ed.. Engineering Press, San Jose, Calif., 1983. 

J. A. White, M. H. Agree and K. Case, Prindples of Engineering Economic Analysis, 3rd ed., John Wiley Sons, Inc., New York, 1989. 

Hendrickson, C., and An, T. (19S9). Project Management for Construction. Englewood Cliffs, NJ Prentice-Hall Inc. Park. C.. S. (1997). Contemporary Engineering Economics. 

An overall economic evaluation must be made to ensure that the contemplated project for petroleum development will recover sufficient capital to pay for the total cost of development, installation and assembly effort of the company. Further, the capital return must yield a financial return consistent with the overall company risk involved. Thus, it is very important that the petroleum engineer designing a recovery system understand the company s evaluation criteria that will be used by management in judging whether a new project is to go forward. Chapter 7 (Petroleum Economics) has detailed discussions of general engineering economics and product (or project) evaluation criteria. 

Process Engineering Economics, James R. Couper Fte-Engineering the Chemical Processing Plant Process Intensification, edited by Andrzej Stankiewicz and Jacob A. Moulijn... 

GARRETT, D. E. (1989) Chemical Engineering Economics (Van Norstrand Reinhold). 

Combined principles of thermodynamics are widely utilized in assessing the performances of heat storage systems. Thermoeconomics further combines the thermodynamic principles with engineering economics to estimate the cost of exergy, and optimize the cost under various constraints. Although, Valero et al. (1989) tried to unify the thermoeconomic theories, the concepts and procedures may vary, and create ambiguity in practical applications (Szargut, 1990 Tsataronis, 1993 Erlach et al., 1999 Sciubba, 2003). 

Schweyer, H. E. Process Engineering Economics. McGraw-Hill, New York, (1955), p. 214. 

CHEMCOST. Process Equipment Cost Estimation. Icarus Corp., Rockville, MD (1999). Garrett, D. E. Chemical Engineering Economics. Kluwer, New York (1989). 

Density is a basic characteristic of thermoplastics, important for engineering, economic and structural reasons ... 

SOURCE J. R. Couper, Process Engineering Economics, Dekker, New York, 2003. By permission of Taylor Francis Books, Inc., Boca Raton, Fla. 

Boehm BW. Software Engineering Economics. Englewood Cliffs, NJ Prentice-Hall, 1982. 

On the other hand, the manufacturer may determine that the advantages of process scale-up are compromised by the increased cost of production on a larger scale and/or the potential loss of interest or investment income. Griskey (1) addresses the economics of scale-up in some detail in his chapter on engineering economics and process design, but his examples are taken from the chemical industry. For a more extensive discussion of process economics, see Ref. 2. 

Park, C. S. (2002). Contemporary engineering economics (3rd ed.). Upper Saddle River, NJ Prentice HaU. 

Research Center at the Stanford Research Institute, and Professor of Engineering-Economic Systems, Stanford University, Palo Alto, California. 

D.M. Young, R. Scharp, H. Cabezas, The waste reduction (WAR) algorithm environmental impacts, energy consumption, and engineering economics, Waste Manage. 20 (2000) 605-615. 

All of these experiments are in preliminary stages of development. The results obtained until now are very good, but detailed information on fuel consumption, life of the engine, economics, average emission rates, etc will be available only after completion of the experiments mainly at the end of 1980. 

The hybrid sulphur process requires electrolysers which are not described in chemical engineering economics literature. A specific approach has been developed by collecting data from literature and constructors of alkaline electrolysers (Mansilla, 2008). Electrolyser characteristics are also considered (catalyst coating, membranes). 

What is meant by optimization Optimization is the field of study associated with finding the best solution to mathematically defined problems. Fields that are impacted by optimization include physics, biology, engineering, economics, and mathematics ... 

---