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ABOUT THE BOOK

The rise of the information age and the digital economy has dramatically changed engineering and other technology-driven fields. With tremendous advances in computing and communication systems, major organizational upheavals, all fueled by complexity, globalization, short cycle times, and lean supply chains, the functions of engineers have significantly changed. Engineers and similar professionals must be technically savvy and have product management and costing skills all while working in a distributed and often unstable environment. This new-edition textbook is updated to cover the integration of cost, risk, value, scheduling, and informationtechnologies going beyond basic engineering economics.

Engineering Economics of Life Cycle Cost Analysis, Second Edition, offers a systems and life cycle or total ownership cost perspective. It presents advanced costing techniques such as simulation-based costing, decision and risk analysis, complex systemscosting, software, big data, and cloud computing estimation. Examples and problems demonstrating these techniques with real-world applications are also included.

All engineers and similar professionals will find this book useful, but it is mainly written for systems engineers, engineering managers, program/product managers, and industrial engineers. The text can serve as a professional reference or for use with graduate courses on advanced engineering economic analysis and cost management, and financial analysis for engineers.

TABLE OF CONTENTS

1. Overview of Systems Life Cycle Costing. 

2. The Science of Engineering Economics: Understanding the Time Value of Money. 

3. Advanced Economic Analysis of Alternatives. 

4. The Basic Theory of Interest. 

5. Simulation-Based Costing. 

6. Life Cycle Framework and Techniques. 

7. Costing of Complex Systems. 

8. Software-Intensive Systems. 

9. Cost Estimating Techniques. 

10. The Role of Risk, Value, and Cost in Making Decisions. 

11. Costing the Cloud, Data, and Machine Learning. 

12. Costing and Managing Off-the-Shelf Systems. 

13. Project Management’s Role in Life Cycle Costing. 

14. Use of Cost Metrics and Ratios.

Appendix A.

Appendix B.