Financial appraisal of a project or a capital expenditure proposal, internally and externally is a well established procedure. Similar to financial appraisal of project, there has to be engineering economic appraisal of the project by industrial engineering department. Engineering economic appraisal focuses on assuring the organization that the best economic engineering alternatives are utilized in the project. Industrial engineers with focus on system efficiency engineering are best suited for this appraisal. Engineering economic analysis is economic analysis of engineering alternatives with the objective of selecting best economic engineering alternative. Industrial engineers are the bridge between engineering disciplines and the business disciplines. So they can evaluate whether all available engineering alternatives were brought into decision making or not and whether appropriate economic analysis was carried out or not.
The google search indicated that the term "engineering ecnomic appraisal" was used earlier by Graham A. Davis Colorado School of Mines Golden in the statement "a more appropriate title would be An Engineering-Economic Appraisal of a Natural Gas Transmission and Distribution System: An Indonesian Case Study.
in the book review of The Economic Appraisal of Natural Gas Projects By WILLEM J. H. VAN GROENENDANL. (Oxford: Oxford University Press, 1998), 230 pages. ISBN 0-19-730019-7 in The Energy Journal, July, 1999 ( http://www.entrepreneur.com/tradejournals/article/55367379.html )
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