Engineering is defined as the profession in which the knowledge gained in science and mathematics is applied to make products in large scale that increase the prosperity of man. This must be achieved with a judicious choice of materials, at the lowest cost in a manner that is friendly to the environment, and that keeps all the stakeholders safe.
Economy consists of the sum total of all income from goods produced and services offered in a state or nation. It deals with the interactions between people and wealth.
Engineering Economy is the study of the feasibility and evaluation of the cost of possible solutions to engineering problems. When benefits outweigh costs, the alternate becomes an acceptable one.
The engineering profession makes important contributions to the economy, both from the direct addition to economic output from the work they do, and the contribution of the sectors in which they work.
In reality, any engineering project must be, not only physically realizable but also economically affordable. Understanding and applying economic principles to engineering have never been more important.
As Engineers, we need to realize that engineering is more than a problem-solving activity focusing on the development of products, systems, and processes to satisfy a need or demand. Beyond function and performance, solutions must also be economically viable. We need to also realize that the solutions we provide does not make sense and will not be acceptable if it is not profitable.
Our design solutions do not exist in a vacuum but within the context of a business opportunity.
Since almost every problem has multiple solutions, so the issue is: how does one rationally select a design with the most favourable economic result?
The answer to the above question is provided by engineering economy.
Slogan: Excellence is our Hallmark
Role of Engineering and Economy Team
- The team will help educate the general public on the importance of engineering to the growth of the national economy.
- The team will act as consult and advice the government on engineering projects and their impact on the economy of the country.
- The team will provide the rest of the members with a sound understanding of the principles, basic concepts, and methodology of engineering economy.
- The team will help members develop proficiency with these methods and with the processes for facilitating rational decisions that we are likely to encounter in our professional practice and help evaluate alternative investment opportunities.
- The team will help standardize salaries of members and have a cost standard for our services and products.
There is one rule for the industrialist and that is, make the best quality goods possible at the lowest cost possible, paying the highest wages possible.
Henry Ford
When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.