How can economic engineers evaluate Design Alternatives to gauge product cost and price?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
How can economic engineers evaluate Design Alternatives to gauge product cost and price?
The monetary evaluation of the substitute for meeting a given goal is known as Economic Analysis. For instance, for meeting the need for more space in the office a decision-maker will construct new space, renovate the office, or will rent another building. The evaluation is done on the basis of a comparison of discounted costs and benefits over a fixed span of time. Substitutes can be summed up as far as the proportion of absolute advantages to adding up to money-saving advantage (cost proportion) or equally, all-out net advantages (net present worth).
To estimate the economic consequences of a decision are:
- The target and the problem should be properly defined
- While considering any imperatives list the attainable choices for achieving the goal.
- Check that economic analysis is used or not. and if it is used than at which level it is justified.
- Select a technique or strategy for economic analysis.
- If the data which is used with the economic method is unsure then select the strategy that can represent uncertainty as well as risks.
- Collect the information and make suspicions called for by the economic analysis method(s) and risk analysis procedure.
7.Calculate the measure of economic performance
8.While making the decision compare the economic consequences of alternatives considering any non-evaluated impacts and the risk feature of the leader.
Step by step
Solved in 2 steps
