Week 1 Flashcards
Dimensions of engineering economic analysis:
-financial dimension
-technical dimension
-Macroeconomic dimension
-ethical dimension
-environmental dimension
-Social dimension
Financial dimension
-Direct costs
-indirect costs i.e. overhead costs
-Opportunity cost
- Capital Costs
-operating costs
-End of life costs
Technical dimension
Solutions that are not technically viable should not be considered an engineering economic analysis solutions are likely to differ in terms of their technical performance. Ideally, these can be captured in financial terms.
Macro, economic dimension
Availability of scare skills or resources that may be required, expected shifts and demands for specific products, the impact of new competitors that are expected to enter the market or that are artificially prevented from entering the market as a result of geopolitical factors
Difficult dimension
Many of the fundamentals of engineering ethics are intertwined with the roles of money and economic base decisions in the making of professionally ethical judgments. These could be things such as trade-off between safety and costs, as well as globalization efforts, such as cheap labor, and reduce government oversight.
Environmental dimension
Environmental considerations and ethical questions are often intertwined such as protecting fragile habit, and providing infrastructure. Environmental considerations could also be carbon emissions resilience to whether events, sustainability of materials, energy, efficiency, and the durability or longevity of solutions.
Social dimension
Impact of alternatives on the quality of life of employees/the local community such as impact on air quality or impact on traffic flows availability of work communities access to healthcare or access to opportunities for economic advancement
