6 Engineering Economy

Lesson 1.3: The Process of Solving Engineering

Problems and Decision Making

Lesson Summary
The problem-solving process starts when an individual is not satisfied with
something and decides to do something about it. The process ends with a plan
for correcting the dissatisfaction.

Learning Outcome
At the end of the lesson, the student should be able to discuss how to solve
engineering problems and explain the process of decision making.

Motivation Question
How to solve an engineering problem?
How to arrive at a decision?

Discussion
1.3. The Process of Solving Engineering Problems and Decision Making

White, et al. (1989) stated that the problem-solving process begins when a
decision-maker is dissatisfied with something and decides to do something
about it. The process ends with a plan for correcting the dissatisfaction.

Sample problems:
1. high material scrap rates in production
2. unsafe working condition
3. poor utilization of machinery
4. maintain business survival

Process in Solving Engineering Problems

White, et al. (1989) outlined the following steps in solving problems:

1. Formulate the problem. This involves the establishment of the
problem and its extent.
2. Analyze the problem. Consists of a relatively detailed phrasing of
the characteristics of the problem including the restrictions and
criteria to be used in evaluating the alternatives.
3. Search for alternative solutions. This involves the use of the
engineer's creativity in developing feasible solutions to the design
problems. To stimulate one's creativity, it is suggested that one
should:
a. exert the necessary effort
b. do not get bogged down in details too soon
c. make liberal use of the questioning attitude
d. entertain many alternatives
Page 6 of 92
Vision: A globally competitive university for science, technology, and environmental conservation.
Mission: Development of a highly competitive human resource, cutting-edge scientific knowledge TP-IMD-02
V0 07-15-2020
and innovative technologies for sustainable communities and environment.
No.
 For instructional purposes only • 1st Semester SY 2020-2021 7

e. avoid conservatism
f. avoid premature rejection and acceptance
g. refer to analogous problems for ideas
h. consult others
i. attempt to divorce one's thoughts from the existing
solution
j. try the group approach
k. be conscious of the limitations of the mind in the process
of idea generation.
4. Select the preferred solution. This consists of the measurement of
the alternatives using the appropriate criteria. The alternatives are
compared with their constraints and infeasible alternatives are
eliminated. The benefits produced by the feasible alternatives are
then compared. The criterion considered in choosing which among
the alternatives is the economic performance of each alternative.
5. Specify the preferred solution. This consists of a detailed description
of the solution to be implemented. Predictions of the performance
characteristics of the solution to the problem are included in the
specification.

Factors Affecting the Process of Decision-Making

White, et al. (1989) presented the following factors that affect the decision-
making process:
1. monetary consideration (tangible factors)
2. non-monetary consideration (intangible factors)
a. ethical and social values
b. consumer's likes and dislikes
c. environmental impact
d. government regulations

The decision-making process is not a unique process. The fundamental ideas

about the study of decision making are:
a. decision – a conceptualization of a choice situation, whether in the
form of a mental image or an explicit model.
b. decision-making - involves the simplification of reality.

These two basic concepts imply that decision making is not a simple, unique
process and replicated the same way by different individuals; rather, the
decision-making process varies in form and content with different people and
even with the same individual under different situations.

General Steps in Decision-Making (White, et. al., 1989)

1. Recognize and formulate the problem

- understand the problem
- define the boundary or extent of the problem, gather
information
- describe the current status of operations and problem area
- delineate the desired goal, objectives or other results to be
achieved
- identify the special conditions or constraints
2. Search for feasible alternatives

Page 7 of 92
Vision: A globally competitive university for science, technology, and environmental conservation.
Mission: Development of a highly competitive human resource, cutting-edge scientific knowledge TP-IMD-02
V0 07-15-2020
and innovative technologies for sustainable communities and environment.
No.
 8 Engineering Economy

The search for feasible alternatives (including the development of

feasible alternatives) involves creativity and innovation in developing
potential solutions to the problems. The purpose is to list the
potential alternatives and to screen them to select a smaller group of
feasible alternatives based on the desired outcomes, special
conditions and constraints, and internal and external requirements
that need to be met.
3. Analyze the feasible alternatives
- Select the criterion (criteria) for judging the alternatives
- Gather additional information and develop relevant data.
- Define any remaining requirements and structure (or model)
the inter-relationships involved.
- The result of the analysis is a measurement of the remaining
feasible alternatives in terms of the selected criterion (or
criteria)
4. Select the preferred alternative
The selected alternative needs to be adequately described and an
implementation plan should be developed. The description of the
selected alternative plus the implementation plan and instructions,
should include the desired outcomes in terms that can be
subsequently monitored through performance measurement.

Assessment
1. Discuss briefly the process of solving engineering problems.
2. Explain briefly the process of decision making.

References
WHITE, J.A., M.H. AGEE and K.E. CASE. 1989. Principles of Engineering
Economic Analysis. Third Edition. John Wiley & Sons, New Jersey, USA.

Page 8 of 92
Vision: A globally competitive university for science, technology, and environmental conservation.
Mission: Development of a highly competitive human resource, cutting-edge scientific knowledge TP-IMD-02
V0 07-15-2020
and innovative technologies for sustainable communities and environment.
No.