Scribd
Upload
201 views

Engineering Economy Final Requirement

This document contains 5 engineering economy case studies presented as final requirements. The case studies analyze equipment installation timelines, material profitability, grinding media costs, small business loan impacts, and construction project scheduling options. They provide details on costs, revenues, production rates, interest rates, and liquidated damages to calculate project timelines, cost savings, and potential profits or losses. The goal is to evaluate the most economical options across different scenarios like minimizing delays, maximizing output or profit, and meeting primary project objectives.

Uploaded by

Ching Ching
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
201 views

Engineering Economy Final Requirement

This document contains 5 engineering economy case studies presented as final requirements. The case studies analyze equipment installation timelines, material profitability, grinding media costs, small business loan impacts, and construction project scheduling options. They provide details on costs, revenues, production rates, interest rates, and liquidated damages to calculate project timelines, cost savings, and potential profits or losses. The goal is to evaluate the most economical options across different scenarios like minimizing delays, maximizing output or profit, and meeting primary project objectives.

Uploaded by

Ching Ching
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

ES 10- Engineering Economy

Final Requirement
Present Economic Studies

1.) An equipment installation join in the completion stage can be completed in 40 days of 8 hour day work, with
40 men working. With contract expiring in 30 days, the mechanical engineer contractor decided to add 10 men
on the job, overtime not being permitted.
a. If the liquated damages is Php2,000 per day of delay, and the men are paid Php100 per day, will
the engineer be able to complete the job on time?
b. How much would he save money with the addition of workers?

ES 10- Engineering Economy Page 1 of 5


Present Economic Studies
Final Requirement
2.) The quarrying cost of marble and granite blocks plus delivery cost to the processing plant each is Php2,400 per cubic
meter. Processing cost of marble into tiles is Php250 per square meter and that of granite into tiles also is Php650 per
square meter.

The marble has a net yield of 40 square meters of block and sells at Php500 per square meter, and granite gives a net
yield of 50 square meters of tiles per cubic meter of block and sells Php1,100 per square meter.
a. Determine the more profitable material considering all other cost to the same
b. How much is the difference in profit?

ES 10- Engineering Economy Page 2 of 5


Present Economic Studies
Final Requirement
3.) A paint manufacturing company uses a sand mill for fine grinding of paint with and output of 100 liters per hour using
glass beadsand grinding media. Media load in the mill is 25 kg costing Php200 per kg, and is fully replenished in 2 months
time at 8 hours per day operation, 25 days per month. A ceramics grinding media is offered to this paint company,
costing Php400 per kg and needs 30 kg load in the sand mill, but guarantees output of 120 liters per hour and full
replenishment of media in 3 months.
a. If the profit on paint production is Php15 per liter, which is profitable to use, glass beads or ceramics as
grinding media?
b. How much is the difference in profit?

ES 10- Engineering Economy Page 3 of 5


Present Economic Studies
Final Requirement
4.) A small scale industry was to be set up at the Carmona Resettlement project. It was decided that a carpentry shop for the
manufacture of school desks would be a good choice of considering availability of labor and demand for school desks for
the year. Due to the limited funds, the sponsoring organization directed that the project objective is primarily for the
generation of jobs for the unemployed rather than profit making. Given the following information

Cost of Labor per school desk Cost of Materials per school desk
Carpenter Php350.00 Wood Php100.00
Sander Php250.00 Varnish Php85.00
Helper
Vanisher Php200.00 Nails Php60.00
Helper Sand Paper Php50.00

Variable Cost- Php150.00/desk


Fixed Charges- Php200.00/month

a. If the school desk sells for Php1,200.00. How many pieces must be produced per month to meet the primary
project objective without incurring losses?
b. If Php300,000.00 additional working capital is borrowed at 6% interest rate compounded annually payable at the
end of 3 year, how much total interest is accumulated?
rd

c. With the additional loan solely used for direct labor cost and materials, how many desks can be manufactured in
preparation for the opening of classes?

ES 10- Engineering Economy Page 4 of 5


Present Economic Studies
Final Requirement
5.) A building contractor is faced with the problem of possibly paying liquidates damages Php3,000 per day for
delay in the completion of his work in accordance with the contract. The facts or date are the following:

1)Number of days left on the contract time- 30 days


2) At present, the working force is
40 skilled workers with a daily wage of Php450
20 unskilled workers with a daily wage of Php200
3) The daily wage is based on an 8-hour days work
4) If he maintains the present number of men, he will finish the work in 50 days
5) Overtime rate is 25% more than the regular rate

Analyze the following cases:

Case 1. If he allows the present working-force to work overtime of two hours a day, in how many days he
will finish the work? How much are his savings or losses?

Case 2. If the contractor put additional men (maintaining the ratio of two skilled workers to on unskilled
worker) in order to finish the work on time, how many will he add? Consider no overtime work. How much are his
saving or losses?

Case 3. Should the contractor allow overtime work of two hours a day, how many men will he add in order to
finish the work on time? How much are his savings or losses?

ES 10- Engineering Economy Page 5 of 5


Present Economic Studies
Final Requirement

You might also like