Economics for Engineering and Fundamentals of Industrial Plants Prof. Andrea Sianesi academical year 2011/2012

1. Economics for Engineering and Fundamentals of Industrial Plants Prof. Andrea Sianesiacademical year 2011/2012 Introduction to Economics for Engineering Introduction to Fundmaentals of Industrial Plants

2. Economics • Economics • is the social science that studies the production, distribution, and consumption of goods and services. • is the science analysing the processes and the activities that are performed by individuals and corporations in order to take decisions concerning the utilization of scarce resources with the aim to satisfy their needs • aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business and finance • Economical activities • are all kind of activities aiming at satisfying the needs: production, commerce, distribution, etc. EE&FIP – Introduction

3. Different perspectives of the economics studies • Macro-economics • Branch of economics which studies a nation's economy as a whole • Analyzes the global trends of the extended economical system • Studies the impact of government decisions (e.g. taxation level, interest rates, incentive policies) on the national balance sheet and on the GNP (Gross National Product) • Micro-economics • Branch of economics dealing with allocation of limited resources, economic phenomena at the individual consumer level (demand-offer law, price sensitivity, etc.) • Industrial Economics • Branch of (micro-)economics dealing with the analysis of the characteristics of the different industries • Analyzes which are the weapons that different companies of the same industry can adopt to better compete • Business Economics EE&FIP – Introduction

4. Business economics • Business economics • Focuses the company and its governance rules • Analyzes the way of exchange of information, resources, goods and moneys between the company and the external context • Studies the decisional processes of a company, its organizational chart and the work organization • Business Economics studies companies using different perspectives: • Internal: cost formation, utilization of resources, production organization, etc. • External: relationships with different companies, marketing, sourcing, distribution of goods, etc. • Informative: documentation describing the profit & loss of the company, its assets, the balance between debits and credits, etc. EE&FIP – Introduction

5. Introduction to Business Studies

6. Marketing studies EE&FIP – Introduction

7. Marketing studies • Market analysis • Size • Segments • Marketing strategies • Portfolio analysis • Niches vs. Mass Markets • Marketing strategy • Market research • B2B • B2C • Marketing mix • Product, Promotion, Place, Price (+ People, Process, Physical Evidence in Marketing 2.0 or Service Marketing studies) • Elasticity of the demand EE&FIP – Introduction

8. Objectives and strategy studies EE&FIP – Introduction

9. Human resources studies EE&FIP – Introduction

10. Operations (Production systems) studies EE&FIP – Introduction

11. Production Process Definition • A production process is the TRANSFORMATION of materials into products (economic goods), which takes place in an industrial plant... • …the TRANSFORMATION occurs thanks to energy exchanges that imply changes in the physical and chemical features of materials. EE&FIP – Introduction

12. Production System Definition • The PRODUCTION SYSTEM can be considered as the production process together with all management subsystems that lead to the achievement of the transformations Production Management Information System Capitals Organisation Management Control Materials Production process Finished Products Labour Tools EE&FIP – Introduction

13. Accounting and Finance studies EE&FIP – Introduction

14. External influences studies EE&FIP – Introduction