CE 22 Lecture 2-2 Cost-Driven Design Optimization and Present Economy Studies
CE 22 Lecture 2-2 Cost-Driven Design Optimization and Present Economy Studies
Engineering Economy
Marjorie C. Turiano
Assistant Professor
Institute of Civil Engineering
College of Engineering
University of the Philippines Diliman
Outline
• Cost-driven Design Optimization
• Present Economy Studies
Examples:
• Total cost in material selection
CE 22 – Engineering Economy
was consulted, it was found that although 57.1 defect-free parts per hour
were being produced by using steel, the output would be 102.9 defect-free
parts per hour if brass were used. Which material should be used for this
part? The machine attendant is paid $15.00 per hour, and the overhead
costs for the turret lathe are estimated to be $10.00 per hour.
was consulted, it was found that although 57.1 defect-free parts per hour
were being produced by using steel, the output would be 102.9 defect-free
parts per hour if brass were used. Which material should be used for this
part? The machine attendant is paid $15.00 per hour, and the overhead
costs for the turret lathe are estimated to be $10.00 per hour.
Product X is 576 pieces. The cost $0.35 per piece. It has been estimated
amounting records show the following that there will be daily savings in
average daily production costs for overhead costs traceable to Product X
Product X: of $3.00. Should the plant continue
producing the Product X, or outsource it
from an outside company?
A.Y. 2019-2020, First Semester 16
Present Economy Study
Example 2.8 (Energy Efficiency Studies)
Two pumps capable of delivering 100 hp to an agricultural application are