Engineering Economic Analysis

Good Morning read cash fam! Still kicking at this moment so I decided to share one of my finished output in one of our subjects, Engineering Economy.

Hope you can find this useful and informative. This will be my first entry in Learner's Community and I am inviting you to be part of our growing community.

Think about this:

A piece of equipment that is being considered as a replacement for an existing item has greater reliability; that is, the Mean Time Between Failure (MTBF) during the operation of the new equipment has been increased 40% in comparison with the present item.

Describe, how it might be feasible in an engineering economic analysis to consider this situation in terms of the monetary unit.

Engineering Economic Analysis

When it comes to equipment, we always look for its quality yet at an affordable price, thus, it has differing ideas because the equipment with quality these days is much costly than the ordinary one. If you’ll go to analyze the scenario, a piece of new equipment has 40% greater MTBF or Mean Time Between Failure where the number of failures during unexpected time is much lesser than the currently used equipment. More importantly, the usage of time in the production or output of the aforementioned equipment continues where time is the most important aspect in the production industry.

It is much better to pick high-quality products than to be stuck on products with less quality as it might cost you much higher money in the long run (Mean Time To Repair). Though its scheduled maintenance shall be done to assure the quality and quantity of the production or output to be made.

In monetary aspects, equipment is still considered as an asset even though it depreciates as years passed. You can easily sell the used product but at a cheaper price and its price is not yet enough for payment to the repairs and maintenance you’ve done for the security of quality production of the equipment.

Therefore, in my viewpoint, it is feasible to prevent the abovementioned scenarios if and only if we will be choosing and operating a piece of equipment with greater quality, high in MTBF and low in MTTR that can save money and to a task more efficiently and effectively than other commodities in the long run.

Thank you so much @Ashma for helping us with this topic.

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