Economic decision making from an engineering perspective.

Economic decision making from an engineering perspective. This course is designed to provide undergraduate engineering students with sufficient knowledge to perform engineering economy studies. Topics covered include time value of money, decision making criteria, break-even studies, depreciation and taxes, inflation, and life cycle cost analysis.

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Economic decision making from an engineering perspective

Engineers play an important role in companies, as evidenced in Voyager Ethanol`s development of a commercial-scale bio-refinery plant. Commonly, engineers are called upon to participate in a variety of strategic business decisions ranging from product design to marketing. The term “engineering economic decision” refers to all investment decisions relating to engineering projects. The most interesting facet of an economic decision, from an engineer`s point of view, is the evaluation of costs and benefits associated with making a capital investment. The five main types of engineering economic decisions are: service or quality improvement; new products or product expansion; equipment and process selection; cost reduction; and equipment replacement. The factors of time and uncertainty are the defining aspects of any investment project.

quicker. For short and simple tasks this is an extremely effective way of organising groups, due to the increased short term productivity. However there are significant issues with grouping individuals in this manner, particularly when tasks become more complex, and ultimately the model should mainly be used for monitoring the progress of groups (Pettinger, 2007). Figure 3: Belbin’s Team Roles (PrePearl Training Development, 2019) A more functional approach of grouping individuals is to utilise Belbin’s Team Theory (Belbin, 2017). Belbin identifies 9 key roles that must be fulfilled within a group to ensure success, the roles are summarised in Figure 3. The roles cover a wide spectrum of skills that need to be present within a group to ensure success, and becomes essential when tasks are lengthy and complex. Organisations can find the Belbin roles each individual fits through a questionnaire, and thus balanced groups can be formed covering all the roles. However, like with Fiedler’s contingency model, the theory when translated to practice can often become very impractical for organisations to implement regularly. This is largely because the organisation is constrained by the personalities of their employees, their may be an abundance of one personality type and an absence of another, the only solution is to hire externally to fill the missing roles within teams. This can result in an extensive payroll for an organisation and huge financial implications as they cannot legally dismiss employee’s if they have too many of one personality type. The importance of Belbin roles in a team became apparent for Group 1 on the first day of the outdoor management course, the group had 5 people who filled the completer finisher and implementor roles, however had no-one filling the resource investigator or monitor evaluator role, the group ran out of time and did not complete the task successfully. Obviously running out of time was not the sole cause of the groups failure, however if someone had been monitoring time and performance then the group may have realised their option was unfeasible and could have found an alternative solution. One solution for lack of Belbin roles is to assign specific roles to individuals, this was implemented heavily on the outdoor management course for roles perceived to be essential for success such as time keeping. This method works for simple tasks, however for complex tasks the individual with the assigned responsibility can often become engrossed in the task and forget their role, or the opposite becoming too engrossed with the responsibility they have been assigned. Ultimately, like with leadership ensuring teams are functioning properly is highly dependent on the situation, and becomes the leaders responsibility to analyse the situation and correctly organise groups to ensure success.

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