I. Introduction
A. Overview of the case study
B. Importance of engineering economics in decision-making
C. Objective of the case study
II. Background Information
A. Company Profile
B. Product/Service Description
C. Market Analysis
D. Financial Performance
III. Problem Identification
A. Description of the problem
B. Causes of the problem
C. Impact of the problem on the company
IV. Analysis
A. Identification of alternatives
B. Evaluation of alternatives
C. Selection of the best alternative
V. Solution
A. Description of the solution
B. Implementation plan
C. Evaluation of the solution
VI. Conclusion
A. Summary of the case study
B. Lessons learned
C. Recommendations
I. Introduction
A. Overview of the case study
Engineering economics is an important field of study that helps engineers make informed decisions when it comes to design, production, and management of systems and projects. In this case study, we will examine the application of engineering economics in a real-world scenario. The case study focuses on a manufacturing company that has been experiencing a decline in sales and revenue due to various factors.
B. Importance of engineering economics in decision-making
Engineering economics is an essential tool for engineers when making decisions that involve financial considerations. It provides a framework for evaluating the economic feasibility and viability of a project or system. By analyzing the costs and benefits of different alternatives, engineers can make informed decisions that will lead to better outcomes.
C. Objective of the case study
The objective of this case study is to demonstrate the practical application of engineering economics in solving real-world problems. By examining the problem faced by the manufacturing company and the solutions proposed, we will illustrate how engineering economics can be used to make informed decisions that lead to better outcomes.
II. Background Information
A. Company Profile
The manufacturing company in question is a mid-sized firm that specializes in the production of electronic components. The company has been in operation for over 20 years and has a workforce of approximately 500 employees. The company operates in a highly competitive market and has been facing increasing pressure from competitors in recent years.
B. Product/Service Description
The company produces a range of electronic components, including resistors, capacitors, and integrated circuits. These components are used in a variety of electronic devices, including computers, smartphones, and home appliances.
C. Market Analysis
The market for electronic components is highly competitive, with many players vying for market share. The company faces competition from both domestic and international firms, many of which have lower production costs and can offer lower prices to customers. The company has been struggling to maintain its market share in this competitive environment.
D. Financial Performance
The company has been experiencing a decline in sales and revenue in recent years. The decline in sales has been attributed to several factors, including increased competition, changing customer preferences, and the emergence of new technologies. The company has been implementing cost-cutting measures to try and improve its financial performance, but these measures have not been enough to reverse the decline in sales.
III. Problem Identification
A. Description of the problem
The main problem faced by the manufacturing company is a decline in sales and revenue. The decline in sales has been caused by several factors, including increased competition, changing customer preferences, and the emergence of new technologies. The company has been implementing cost-cutting measures to try and improve its financial performance, but these measures have not been enough to reverse the decline in sales.
B. Causes of the problem
The decline in sales can be attributed to several factors, including increased competition, changing customer preferences, and the emergence of new technologies. The company has also been slow to adopt new technologies, which has put it at a disadvantage compared to its more technologically advanced competitors.
C. Impact of the problem on the company
The decline in sales has had a significant impact on the company’s financial performance. The company has been forced to implement cost-cutting measures to try and improve its profitability, but these measures have not been enough to reverse the decline in sales. The company’s workforce has also been affected, with layoffs and reduced hours being implemented to reduce costs.
IV. Analysis
A. Identification of alternatives
Several alternatives were considered to address the problem faced by the manufacturing company. These included:
Diversification: The company could diversify its product range to include new products that are in demand. This would allow the company to tap into new markets and reduce its reliance on its existing product range.
Cost-cutting measures: The company could continue to implement cost-cutting measures to reduce its operating costs. This would help to improve profitability, but may not be enough to reverse the decline in sales.
Technological innovation: The company could invest in new technologies that would allow it to produce its products more efficiently and at a lower cost. This would help to reduce the company’s production costs and improve its competitiveness.
B. Evaluation of alternatives
Each of the alternatives was evaluated based on several criteria, including feasibility, cost, and
