Ebook on INDUSTRIAL MANAGEMENT & ENGINEERING ECONOMICS
For a continuously growing company that has to be ready and aware of market
trends to implement its products and adapt them to the needs of increasingly
demanding customers, it is no longer enough to have and pursue excellent technical
and technological departments, quality products, to have at its disposal an effective
and efficient sales network with qualified aggressive personnel and to invest in
research. Today, fulfilling contract goals while keeping the customer satisfied and
staying within the company’s budgetary requirements requires more and more efficient
As it has been ascertained that design success depends on the ability of knowing
how to correctly and effectively monitor all management activities, a successful,
efficient collaboration has been set up with the University of Udine and Prof.
Tonchia in order to support research based on the best practice applicable to
Describing management’s experience in this book shows the validity of the
University/Corporation combination because it allows universities to get closer to
industry, and the type of management used at Danieli & C. can be conveyed outside
its specific field.
As an international corporation we have to give priority to customer satisfaction
while maintaining the high quality of our products and services in the design stage
and downstream activities. Research and improvement of processes, monitoring
and roll-out therefore become fundamental. It is important to be flexible (taskoriented)
to be able to be innovative in an increasingly turbulent and extremely
competitive environment. It is for this reason that we integrate specific technical
knowledge applied through job rotation among other things, with continuous
process management reporting at all organisational levels, by having project
managers take part in specific projects and master’s degrees.
This book contains the material I wish I’d known when I started working.
Engineers play a big role in how much money a company makes. By bringing
economic thinking into all parts of their work, they maximize their impact on profits.
In broad terms, they deal with two types of economic decisions:
• Is the project economically justifiable?
• Of the options available, which is best from an economic standpoint?
The book provides the tools and methodology to answer these questions. It will
help engineers (and students about to enter the workforce) integrate technical and
economic decision making, creating more profit and growth for their companies. It
covers two broad topics: engineering economics and economic design methodology.
Its methods are simple, fast, and inexpensive to use and apply.
The first section of the book covers the basics of Engineering Economics —
time value of money, capital and production cost estimation, economic evaluation
methods, and risk analysis. The focus is on the early stages of engineering — process
development, feasibility engineering, and conceptual design. This is the time when
the economic structure of a project is set and when the engineer’s impact on profits
Secondly, the book presents a methodology for economically designing a plant
or process. During my Procter & Gamble career I observed that there are almost
always several technically acceptable answers to any design question. One can
use economic factors to select the best of them, and this part of the book is based
upon that premise. It shows how to combine technical and economic decision
making to create economically optimal designs. Whereas the book focuses on the
early project stages, one can use the thought processes and most of the methods
in all project phases