Engineering Economics

Assignment

Hamza Tahir
BCHE-FA17-035  date 10-04-2020
 The role of Engineering Economics in the Chemical
Engineering Curriculum
Engineering economics plays an important role in all design courses of engineering because it
covers the main topics of cost estimation, the value of time and money, land and location.
knowledge about process equipment and profitability analysis. It involves the project based
design courses as well as design of chemical plant. Engineering economics provides many
problem-solving approach that is for all engineering disciplines. It guides engineers in making
decision about the process equipment, raw materials and other economic factors. This subject
includes very important sections which is directly used by the students after graduation as well. It
is very helpful for chemical engineers in large variety of jobs. Moreover, it covers the area of
depreciation and taxes, government policies, cost estimation regarding process equipment and
vendor quotations and factors affecting all above mentioned areas.
That’s why engineering economics is considered as a compulsory subject in engineering design
courses. In this paper the introduction and importance of engineering economics in chemical
engineering curriculum and engineering problem-solving skills are discussed.
Engineering economics analysis provides the selection parameters of the process equipment.
Students are often confused in installing and selecting the process equipment whether they use
distillation column or flash drum in the separation process. Engineering economics provides the
cost estimation of process equipment which directly helpful in the selection and designing of
equipment.
Some indirect benefits can be taken from engineering economics. Such as by having the
knowledge about the process the arrangement of equipment within the limitation can be done. As
there are large differences in the cost hence alternate equipment can be used. But the problem in
the effort and accuracy may occurs. This applies to most engineering problem-solving but it is
most apparent in the design and in the associated economic evaluation of the design alternatives.
Engineering economics is he integral part of the design. Design is the realistic decision making
for a chemical engineer who has to consider all problem regarding the process. Thus, expanded
role of design in inductor and intermediate-level courses creates a need for additional attention to
engineering economics in the earlier portion of curriculum. Some aspects of engineering
economics need to be enhanced their physibilty and some innovation and novelty is introduced in
this field which impacts fruitful on fresher.
For example, here we deal with the process equipment of heat transfer then it will help the
engineers in the capital and operating costs of the equipment. Same like in fluid mechanics the
cost of piping, process control may cover the cost of instrumentation, reactor design should have
discussed the cost of reactor equipment. This makes the students understandable for which
process which type of equipment is preferable. Some engineering economics just provides the
basic knowledge about the process and its equipment which is not sufficient for the profitable
analysis. So engineering economics should have included the overview of process equipment and
the simplified, approximate estimation of their costs.
1|Page
2|Page
3|Page
4|Page
5|Page
6|Page