>Does the engineer find a large enough weight that deforms the bike, then take a fraction of that as the amount it can support?
Basically, yes.
The materials used by the engineer has known mechanical properties. Those properties are used in design calculations to determine the stress in the structure. Sometimes, this is as easy as F/A, but most of the time it requires several calculations to find all the stress states.
After determining that, a factor of safety may be applied. This just describes how much “extra” load bearing capability the design has. For example, if the rated load for an exercise bike is 250 lb but it has a factor of safety of 2, it can actually hold up to 500 lb before it starts to deform.
This process can start with either determining what the required load capability needs to be, or determining that after the design has been completed. Although usually there are multiple iterations of the design, so you bounce back and forth between these two approaches.
Old way (school way or double checking way) would be treating each part of the bike as a perfectly rigid, one-dimensional member. Creating a free body diagram (method of slices) at every joint, and solving for every load. You can then compare that to the deformation and stresses of every member/joint. The member/joint with the lowest factor of safety is your limiting load, if the FOS is lower than desired, you back calculate your load based on the desired FoS.
New way is just let <insert CAD program here> do finite element analysis for you.
Engineers know at what point a material will fail. They know this by looking up the values in a table. The people who made the table know this because somewhere a long time ago, the material was meticulously tested in a lab environment and the results were recorded for the world to know.
Once you know the material properties, it’s a matter of taking the size and shape of your material, and plugging it all into a formula (or modeling it in software) and verifying that the load does not reach the limit.
What is this “limit” you ask? Typically it’s the point at which the material will bend without returning to its original shape, modified by a safety factor. In your example, let’s say the safety factor is 2. That means the product would break at 500 lb under perfect conditions, but is limited to 250 lb to account for things like user error, defects in the material, etc.
These days the easiest way is FEA (finite element analysis). You take a CAD model of the structure, add constraints and loads and run a simulation to see how it responds. Typically you add a factor of safety of 3-5 maybe. So if I run an analysis and determine a structure will deform at 900 lbs load I would rate it for 300 pounds, that’s a factor of safety of 3. You can also do vibration analysis, corrosion, etc.
For simple structures there are tables that give a lot of information for different materials, like their weight or tensile strength for a given material, thickness, shape etc. they also use design software that simulates the given shape/structure being under load which serves as the baseline around which you begin designing it. Then come the actual real life tests with weights and some times special jigs that apply different forces to it. Lastly comes refinement which is to see if you can reduce the amount of material or complexity of the structure without compromising its overall load capabilities.
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