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lecture 2

The document discusses the bi-environmental nature of engineering, emphasizing the interplay between physical and economic environments in engineering practices. It highlights the importance of economic feasibility alongside physical efficiency in engineering solutions, and outlines the objectives of engineering economy to ensure long-term benefits outweigh costs. Additionally, it details the phases involved in engineering analysis, including the identification of limiting and strategic factors to achieve desired objectives.

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Simhadri Sevitha
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5 views

lecture 2

The document discusses the bi-environmental nature of engineering, emphasizing the interplay between physical and economic environments in engineering practices. It highlights the importance of economic feasibility alongside physical efficiency in engineering solutions, and outlines the objectives of engineering economy to ensure long-term benefits outweigh costs. Additionally, it details the phases involved in engineering analysis, including the identification of limiting and strategic factors to achieve desired objectives.

Uploaded by

Simhadri Sevitha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Course Title-Engineering

Economics
Course code-SM300
Lecture 2
Bi-Environmental Nature of Engineering
• Engineers have to face two important
interconnected environments– Physical and
Economic.
• Their knowledge of physical laws Produce
products and services Worth of these
products/services depends on their utility
measured in economic terms
Components of Engineering

Physical Environment
Engineering Products produced and
services depending on
Environment is
physical laws.
compose of
Economic Environment
Assessing the worth of these
products in economic terms.
Bi-Environmental Nature of Engineering
(Contd.)
• Laws of the physical environment are more narrower and
more certain hence experiments can be used to control
certain factors and arrive at similar results.
• economic environment is uncertain since it depends on
the behavior/actions of people acting singly and/or
collectively The usual function of engineering is to
manipulate elements of physical environment to create
value in the economic environment.
• However sometimes engineers have a tendency to
disregard economic feasibility and do not like actions
based on estimates and judgment.
Physical environment factors:
Temperature and thermal condition, Humidity
and moisture, vibration and shocks, natural
disaster, Chemical exposure, Wind and
Aerodynamics,etc.
Economic environmental factors:
Cost constraints, Return on Investment, Market
demand, Competition, Economic of scale,
Inflation, Supply chain and logistic, Risk
assessment, etc.
Reading
• A particular idea, which raised $20 million in funding (during 1999-2001)
to create a product that was never released on the market. iSmell by
Digiscents.
It had a sort of “database of smells,” which would collect a certain number of
smells, and then producing a device to connect to the PC, which would
react to impulses from digital files loaded on web pages or emails,
releasing the most suitable fragrance to what you were viewing on the PC.
(Source:
https://web.archive.org/web/20190321124735/http://www.startupover.c
om/en/20-million-burning-smell-like-just-ask-digiscents)
• The missing link was market survey. At that
time it did not meet any need from the public
and could not create one.
• In March 2013, however, a group of Japanese
researchers unveiled a prototype for a
“smelling screen“: a screen that emits scents.
• In 2017, The NeOse smell recorder could help
your fridge detect spoiled food .
• (Source: https://www.theverge.com/2017/1/3/14160968/aryballe-neose-artificial-nose-scent-detector-
ces-2017)
Physical Efficiency V/S Economic Efficiency

• Physical efficiency will be expressed in


physical units.
• = output / input
• For altering the physical environment, we
have physical efficiency in physical units eg.
Watts,jouls,velocity.
• And the value is always less than 1,hence
efficiency will always be less than 100
• Economic efficiency – It is the ratio worth to
cost.
= Worth/cost i.e. what is the worth and how
much it cost you.
• For any venture to be successful and self
sustain economic efficiency should be more
than 100% and if it is less than 100% then that
venture cannot sustain.
Engineering Economics or Engineering
Economy
The objective of engineering economy is to prepare
engineers to cope effectively with the bi-
environmental nature of engineering application.
Engineering Economy- involves the systematic
evaluation of the economic merits of proposed
solutions to engineering problems To be economically
acceptable (i.e. affordable), solutions to engineering
problems must demonstrate a positive balance of
long-term benefits over long-term costs, and they
must also:-
• Promote the well-being and survival of an
organization.
• Embody creative and innovative technology
and ideas.
• Permit identification and scrutiny of their
estimated outcomes.
Different Phases in Engineering Analysis
• What is the objective?
• Identification of the factors
a) Limiting factors- factors coming in the way in
attaining the objective.
b) Strategic factors- factors on which you can
work and you can overcome the limitations 
to get the desired objective.
Identify the ways and means to work on strategic
factors Proposals
• Proposals using engineering principles are
known as engineering proposals.
• Compare and evaluate different engineering
proposal.
• Best proposal is the one where the objective
of minimum cost is achieved  decision
making and analysis tools.

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