Principles of Economics and Management for Manufacturing Engineering

1st Edition - January 14, 2022
Imprint: Butterworth-Heinemann
Author: D.R. Kiran
Language: English
Paperback ISBN:
9 7 8 - 0 - 3 2 3 - 9 9 8 6 2 - 8
eBook ISBN:
9 7 8 - 0 - 3 2 3 - 9 9 8 6 3 - 5

Principles of Economics and Management for Manufacturing Engineering combines key engineering economics principles and applications in one easy to use reference. Engineers… Read more

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Principles of Economics and Management for Manufacturing Engineering combines key engineering economics principles and applications in one easy to use reference. Engineers, including design, mechanical, and manufacturing engineers are frequently involved in economics-related decisions, whether directly when selecting materials or indirectly when managers make order quantity decisions based on their work. Having a knowledge of the management and economic activities that touch on engineering work is a core part of most foundational engineering qualifications and becomes even more important in industry.

Covering a wide range of management and economic topics from the point-of-view of an engineer in industry, this reference provides everything needed to understand the commercial context of engineering work.

Cover image
Title page
Table of Contents
Copyright
About the author
Foreword
Preface
Acknowledgments
Abbreviations used in Engineering Economics
Section I: Theories and laws of economics
Chapter One: Introduction to engineering economics
Abstract
1.1: Engineering economics
1.2: Macroeconomics and microeconomics
1.3: Engineering economics vs. theoretical economics
1.4: History of engineering economies
1.5: Elements of engineering economies
1.6: Cost benefit analysis
1.7: Standard operation procedure for cost benefit analysis
1.8: History of cost benefit analysis
1.9: Limitations of cost benefit analysis
1.10: Basic approaches for application of cost benefit analysis for resolving environmental problems
1.11: Conclusion
Criteria questions
Further reading
Chapter Two: The basic concepts of economics
Abstract
2.1: What is economics?
2.2: History of economics
2.3: Economic theory
2.4: Economic principles vary with society
2.5: Basic units of study in economics
2.6: Broad division of economics
2.7: Income
2.8: Relationship between income groups and the type of expenditure
2.9: Personal income, disposable income
2.10: National income and Say’s Law
2.11: The marginal propensity to consume
2.12: Marginal propensity to save
2.13: Wealth vs standard of living
2.14: Human needs and economic wants
2.15: Maslow’s theory of hierarchy of basic needs
2.16: Conclusion
Criteria questions
Further reading
Chapter Three: Categories of economic system
Abstract
3.1: Introduction
3.2: Capitalist economy
3.3: Socialist economy
3.4: Mixed economy
3.5: Problems of an underdeveloped economy
3.6: Market
3.7: Main market forms
3.8: Market situation under perfect competition
3.9: Market situation under monopoly
3.10: Market situation under oligopoly
3.11: Market situation under government protection
3.12: Representative firm
3.13: The role of planning commissions in the socialist economy
3.14: Conclusion
Criteria questions
Further reading
Chapter Four: Laws of demand and supply
Abstract
4.1: Introduction
4.2: Utility
4.3: Total utility
4.4: Types of economic utilities
4.5: Law of diminishing utility
4.6: Marginal utility
4.7: Some Definitions of marginal utility
4.8: Equimarginal utility
4.9: Factors influencing demand
4.10: Law of demand
4.11: Demand schedule
4.12: Demand curve
4.13: Market demand curve
4.14: Law of substitution
4.15: Elasticity of demand
4.16: Law of supply
4.17: Elasticity of supply
4.18: Aggregate demand and aggregate supply
4.19: Review of the definitions for demand and supply
4.20: Conclusion
Criteria questions
Further reading
Chapter Five: Value and equilibrium price
Abstract
5.1: Economic laws
5.2: Commodities
5.3: Value
5.4: Price
5.5: Concepts of pricing
5.6: Equilibrium price
5.7: Temporary equilibrium price
5.8: Equilibrium price under different market conditions
5.9: Effect of time on theory of pricing
5.10: Conclusion
Criteria questions
Further reading
Chapter Six: Wealth and time value of money
Abstract
6.1: Wealth
6.2: Money
6.3: Banking operations
6.4: Monetary policy
6.5: Capital asset pricing model (CAPM)
6.6: Short-term financing and long-term financing
6.7: Optimal capital structure
6.8: Gross domestic product (GDP)
6.9: Cash reserve ratio
6.10: Money market
6.11: International trade and globalization
6.12: The time value of money
6.13: Simple interest and compound interest
6.14: Gradient series factor or gradient interest addition
6.15: Discrete compounding and continuous compounding
6.16: Internal rate of return (IRR)
6.17: Nominal vs. real values
6.18: Modified internal rate of return
6.19: Expected rate of return
6.20: Laws of diseconomies of scale
6.21: Investment demand vs. rate of interest
6.22: Marginal efficiency of capital
6.23: Relationship between r, Q, C, and I
6.24: Investment multiplier
6.25: Exchange
6.26: Taxation systems
6.27: Trade related organizations
6.28: Conclusion
Criteria questions
Further reading
Chapter Seven: Cost accounting for engineers
Abstract
7.1: Why finance and cost accounting for engineers?
7.2: Double-entry bookkeeping and trial balance
7.3: Annual accounts
7.4: Balance sheet
7.5: Depreciation, amortization, and depletion
7.6: Depreciation methods
7.7: Capital budgeting
7.8: Inflation-adjusted return of investment
7.9: Cost accounting
7.10: Categories of cost accounting
7.11: Cost accounting vs. financial accounting
7.12: Origin of cost accounting
7.13: Implicit vs. explicit costs
7.14: Cash flow diagrams
7.15: Conclusion
Criteria questions
Further reading
Chapter Eight: Corporate social responsibilities
Abstract
8.1: Social responsibility
8.2: Categories of social responsibility
8.3: Perspectives of social responsibility
8.4: Points favoring social involvement of an organization
8.5: Difficulties faced in the social involvement of organizations (or points in favor of the efficiency perspective)
8.6: Social audit
8.7: Audit terminology
8.8: Ethical audit procedure
8.9: Ethical audit reviews
8.10: Seven key features of ethical audit
8.11: Community information, empowerment and transparency (CIET)
8.12: Conclusion
Criteria questions
Further reading
Section II: Principles of engineering economics
Chapter Nine: Principles of management
Abstract
9.1: Role of engineers in management
9.2: Definitions on management
9.3: Skill types and roles of managers
9.4: Evolution of management thinking
9.5: Early pioneers in management thinking pre-nineteenth century
9.6: Second phase in the development of management thinking leading to scientific management
9.7: Concepts of scientific management
9.8: Specific aims of scientific management
9.9: Advantages of scientific management
9.10: Summary of the features of management as a system
9.11: Resistance to scientific management
9.12: Conclusion
Criteria questions
Further reading
Chapter Ten: Factors for production
Abstract
10.1: The concept of production
10.2: Factors of production
10.3: Characteristics of land
10.4: Characteristics of labor
10.5: Functions of capital
10.6: Characteristics of machinery
10.7: Automation
10.8: Functions of entrepreneurship
10.9: Conclusion
Criteria questions
Further reading
Chapter Eleven: Cost of production
Abstract
11.1: Introduction
11.2: Definitions of terms related to production cost
11.3: Explicit and implicit costs of production
11.4: Tangible and intangible costs of production
11.5: Classification of the tangible costs
11.6: The philosophy of fixing of selling price
11.7: Economic laws governing pricing policy
11.8: Total cost/marginal costs under long run/ short run conditions
11.9: Total average and marginal revenue
11.10: Selecting batch size to reduce overall production cost
11.11: Group technology
11.12: Conclusion
Criteria questions
Further reading
Chapter Twelve: Economies of scale
Abstract
12.1: Economies of scale
12.2: Types of economies of scale
12.3: Classes of industries
12.4: Factors for the size of an undertaking
12.5: Large-scale industries
12.6: Small-scale industries
12.7: Cottage industry
12.8: Micro, small, and medium enterprises (MSME)
12.9: Benefits of MSME registration in India
12.10: Conclusion
Criteria questions
Further reading
Chapter Thirteen: Demand forecasting
Abstract
13.1: Introduction
13.2: Need for demand forecasting
13.3: Definitions of forecasting
13.4: Basic steps of forecasting
13.5: Short-term, medium-term, and long-term forecasts
13.6: Market segmentation
13.7: Techniques of forecasting
13.8: Qualitative forecasting methods
13.9: Quantitative forecasting methods
13.10: Trend analysis or time series in forecasting
13.11: Seasonal and cyclic fluctuations
13.12: Least squares method
13.13: Moving average method
13.14: Life cycle effect on forecasting
13.15: Forecasting errors
13.16: Cost of forecasting
13.17: Tracking signals in forecasting
13.18: International symposia on forecasting
13.19: Conclusion
Criteria questions
Further reading
Chapter Fourteen: Decision theory
Abstract
14.1: Significance of decision theory for engineering economics
14.2: Problem analysis and decision making
14.3: Situations under which decisions are taken
14.4: Classifications of decisions
14.5: Different approaches to decision-making
14.6: Bias in decision-making
14.7: Proper management decision (PMD) and proper engineering decision (PED)
14.8: Information needed by the decision-maker
14.9: Interdepartmental communication flow
14.10: Lateral information flow
14.11: Conclusion
Criteria questions
Further reading
Section III: Applications of engineering economics
Chapter Fifteen: Total productive maintenance
Abstract
15.1: Introduction
15.2: TPM is an application of engineering economics
15.3: History of TPM
15.4: The meaning of TPM
15.5: Definitions of TPM
15.6: The five zeros of TPM
15.7: What can TPM achieve?
15.8: The three levels of autonomous maintenance in TPM
15.9: Procedure for the implementation of TPM
15.10: The structure of TPM
15.11: TPM, terotechnology, and logistics—A comparison
15.12: 5S vs. TPM
15.13: Maintenance work sampling
15.14: Conclusion
Criteria questions
Further reading
Chapter Sixteen: Break-even and make-or-buy analyses
Abstract
16.1: Introduction
16.2: Definitions of break-even analysis
16.3: Break-even chart
16.4: Break-even analysis terminology
16.5: Factors for break-even point
16.6: Formula for break-even point
16.7: Break-even point vs. payback period
16.8: Case studies of break even analysis as applicable in several situations
16.9: Economic order quantity
16.10: Make-or-buy decision
16.11: The criteria that influence our decision to produce in-house
16.12: The criteria that influence our decision to buy or outsource
16.13: Impact of control needed for the make-or-buy decision
16.14: Thumb rule for outsourcing
16.15: Some definitions of make-or-buy decision
16.16: Example for make or buy decision
16.17: Conclusion
Criteria questions
Further reading
Chapter Seventeen: Creativity and Kaizen
Abstract
17.1: Significance of creativity in engineering economics
17.2: The principles of creativity
17.3: Six thinking hats
17.4: What is Kaizen?
17.5: Why continuous improvement?
17.6: Significance of Kaizen in continuous improvement
17.7: How does Kaizen improve productivity?
17.8: Juran’s methodology
17.9: Illustrations of Kaizen application
17.10: Umbrella of Kaizen
17.11: Other continuous improvement techniques
17.12: Conclusion
Criteria questions
A: Appendix
Further reading
Chapter Eighteen: Material layout planning
Abstract
18.1: Material layout planning
18.2: Case study in material layout planning
18.3: Conclusion
Criteria questions
Further reading
Chapter Nineteen: Value engineering and engineering economics
Abstract
19.1: Significance of value engineering to engineering economics
19.2: What is value engineering?
19.3: Definitions of value engineering
19.4: History of value engineering
19.5: What is value?
19.6: Value engineering
19.7: Objectives of value engineering
19.8: Functional value of a product
19.9: Methodology of value analysis
19.10: DARSIRI methodology for value analysis
19.11: Function analysis system technique (FAST)
19.12: Conclusion
Criteria questions
Further reading
Chapter Twenty: Plant location and layout
Abstract
20.1: Introduction
20.2: Plant location and plant layout
20.3: City vs. suburban vs. urban location
20.4: Other factors controlling plant location
20.5: Cost factors and noncost factors
20.6: Least cost center analysis
20.7: The center-of-gravity method of plant location
20.8: Noncost factors
20.9: Illustrations of typical noncost factors
20.10: Particle swarm optimization
20.11: Plant layout
20.12: General rules and objectives of successful plant layout
20.13: Types of plant layout
20.14: Group Technology
20.15: Conclusion
Criteria questions
Further reading
Chapter Twenty-one: Scientific inventory control
Abstract
21.1: Introduction—Relevance of inventory control to engineering economics
21.2: What is inventory?
21.3: Types of inventories
21.4: Conditions leading to increased inventory
21.5: Costs involved with inventories
21.6: Selective control in inventory management
21.7: Scientific material planning
21.8: Classification and codification
21.9: ABC analysis
21.10: Inventory control parameters
21.11: Economic order quantity
21.12: Two-bin inventory control system
21.13: Recent trends in inventory control
21.14: Suppler partnership
21.15: Collaborative planning, forecasting, and replenishment (CPFR)
21.16: Conclusion
21.17: Case studies
Criteria questions
Further reading
Chapter Twenty-two: Machinery replacement analysis
Abstract
22.1: Introduction
22.2: Why equipment replacement?
22.3: Basic strategies of repair/replacement
22.4: Phases of replacement analysis
22.5: Methods of evaluation
22.6: Traditional methods
22.7: Discounted cash flow methods
22.8: MAPI method
22.9: Markov analysis
22.10: Conclusion
Criteria questions
Further reading
Appendix I: Syllabi of Indian universities
A: NPTEL, IIT Roorkee
B: Maharshi Dayanand University, Rohtak
C: Anna University
D: Gujarat Technological University
E: College of Engineering, Pune (CEP)
F: The Thapar Institute of Engineering and Technology (TIET), Patiala
G: Aryabhatta Knowledge University, Patna, Bihar
H: Galgotias College of Engineering and Technology (GCET), Greater Noida
I: Biju Patnaik University of Technology (BPUT), Bhubaneswar
Appendix II: Syllabi of foreign universities
A: Texas A&M University of Commerce, USA
B: State University of New York College of Technology Canton, New York
C: University of Pennsylvania School of Engineering and Applied Science
D: Illinois Institute of Technology
E: The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong
F: Purdue School of Engineering and Technology
G: Stanford School of Engineering
H: Bilikent University, Dept of Industrial Engineering, Turkey
References
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Journals/seminar proceedings
Web sites
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