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Design

Economics

Design Economics
‡ Chasing
± Lowest in cost within same requirement ± Not Cheapest

Cost
‡ Fixed cost e.g. overhead ‡ Variable cost e.g. constructed objects

Fixed Cost
‡ Strategic Approach ‡ For example: system building

Variable Cost
‡ Quantities
± Reduce in materials

‡ Production
± Ease of working by
‡ Labour ‡ Plant

Production by Labour & Plant


‡ Not constant proportion to quantities
± Learning curve ± Initial & removal cost ± Repetition ± Working conditions

Quantities
‡ Looking at non-constant proportionate factors e.g. lift, toilet, kitchen ‡ Reduce factors/floor area ‡ Maximize usage of factor ‡ Lower materials supply cost e.g. local materials

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