Replace Alternative Choice to the Engineering Proposal and eSign it in minutes

Aug 6th, 2022
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How to Replace Alternative Choice to the Engineering Proposal

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welcome to act notes tutorials my name is professor bird and i am going to give you a quick tutorial on the engineering change proposal or what i call an ecp what is an engineering change proposal an engineering change proposal is a management tool used to propose a configuration change to a configuration item and its government baseline performance requirements and configuration documentation during an acquisition program how is an engineering change proposal initiated the initiation of an ecp begins at the governments request unless its an unsolicited ecp from a contractor since most ecps occur in a sole source environment the initiation of an ecp should be a well-planned and coordinated effort between the government and the contractor a clear mutual understanding of the ecp objective technical scope and the governments performance cost and schedule constraints helps preparation a clear understanding also results in a complete and comprehensive proposal to facilitate timely and ef

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For example, assume a company has a budget of $50,000 for expansion projects. If available Projects A and B each cost $40,000 and Project C costs only $10,000, then Projects A and B are mutually exclusive.
Principle 1: A dollar earned today is worth more than a dollar earned in the future. Principle 2: The only thing that matters is the difference between alternatives. Principle 3: Marginal revenue must exceed marginal cost. Principle 4: Additional risk is not taken without the expected additional return.
A mutually exclusive alternative selection takes place, for example, when a person must select the one best diesel driven car from several competing models. Independent: When more than one economically viable alternative can be selected, the alternatives are classified as independent.
The five main types of engineering economic decisions are (1) service improvement, (2) equipment and process selection, (3) equipment replacement, (4) new product and product expansion, and (5) cost reduction. The factors of time and uncertainty are the defining aspects of any investment project.
The alternatives in engineering considerations usually involve such items as purchase cost (first cost), anticipated useful life, yearly costs of maintaining assets (annual maintenance and operating costs), anticipated resale value (salvage value), and the interest rate.
When the present worth method is used to compare mutually exclusive alternatives that have different lives, the equal-service requirement must be met. The PW of the alternatives must be compared over the same number of years and must end at the same time to satisfy the equal-service requirement.
Mutually exclusive projects can be of two general types: those having only costs (because they are part of a larger project which has already been economically justified) and those having both costs and revenues. The former are identified as cost alternatives and the latter are known as revenue alternatives.
Independent More than one viable project may be selected. Alternatives to be evaluated are also two types: Revenue Each alternative generates cost (or disbursement) and revenue (or receipt) cash flow estimates, and possibly savings. Service Each alternative has only cost cash flow estimates.

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