Engineering economy is essential to the foundation of our decision making since it involves technical analysis that has an objective goal in assisting a specific choice. With emphasis to the economic aspect, there are many variables that affect our decisions and it must be thought of whenever a problem arises or if the need is clearly defined based from a particular situation. In engineering economy, it involves the MTBF or the Mean Time Between Failure.
How do MTBF affects the performance of a certain equipment based on its reliability and availability.
Since it involves crucial situation, it is important to the decision-making process especially in engineering economic analysis, it can be observed in terms of the monetary unit by applying the principle of MTBF whereas it is concerned to the failure that may occur when certain action is done. There will be a corresponding formula to be used to be able to justify economic consequences and it is advisable to use only a single monetary unit for clarity and to avoid confusion and wrong interpretation of the data.
Importance of MTBF
Understanding the MTBF in economic matters will prevent some losses on profit since we expect some failure to the used product leaving it unavailable.
