Transdisciplinary Engineering Design Process

11Engineering Economics

It would be well if engineering were less generally thought of, and even defined, as the art of constructing. In a certain important sense it is rather the art of not constructing; or, to define it rudely but not inaptly, it is the art of doing that well with one dollar which any bungler can do with two after a fashion.

A. M. Wellington

11.1 Project/Product Cost and the Engineer

During the second half of the twentieth century significant changes occurred around in the United States and the rest of the world in regard to product cost and the meaning of competition. Through the end of World War II and into the 1950s US industry operated with a philosophy whereby new, modified, and unique products were developed within a particular product line with pricing based on development, manufacturing, and marketing costs, plus a reasonable profit. Competitive product costs were considered, of course, but this comparison had more to do with product cost–utility ratios than just lower cost. Industry took pride in the product of its efforts and little of the copycat mentality that seems so prevalent today was present. Patents for unique product ideas usually meant monetary returns for the inventor and long-term profit for the company with the manufacturing rights. Today, many companies with innovative ideas for products or processes deliberately do not make patent applications because they do not want to disclose their idea publicly. They know that as soon as ...