Economic impact of changes caused by engineering and project management

The aim of this article is identification of final economic impacts of changes caused by the application of industrial engineering and project management within production companies. The definition of economic impacts is a very important aspect for a company while making strategic decisions regarding potential company development. The influence of industrial engineering, or more precisely use of individual methods together with project management, is to be examined in the environment of Czech production companies. For the purpose of research, the data and information from projects carried out in practice combined with qualitative research will be used. Subsequently, the evaluated data will then specify the targeted economic impact. The permanent pressure on production companies is visible in changes in demand for their products. Therefore, it is vital to react promptly to these changes by adjusting company sources, technologies and planning. Related to this, there is also pressure concerning lowering the costs of a final product as well as facing a higher demand for better quality and standardization of outputs. It is necessary to control these requirements and be well prepared for them. However, there cannot be any prompt reaction without innovative approaches. The role of industrial engineering is stabilization of such process, or rather individual steps, by means of change that can be made by various approaches. It is a constant process of innovation by means of kaizen method (Japanese management concept for incremental change) as well as innovation on a larger scale, which needs to be controlled by project management. The content of the article will deal with the impact of these changes on business economics, or more precisely how the changes will be reflected in the microeconomic environment of companies. Consequently, how the impact of these changes can be reflected in strategic decision making within a company. The expected outcome of this article is reflection on the changes carried out and improving the economic impact through returns to scale, or technical progress, based on the degree of change carried out, which will be made by means of industrial engineering, or alternatively by means of project management. The extent of change depends on the approach used, whether the improvement is of a smaller scale, or the use of industrial engineering or process innovation method.