ENGINEERING ECONOMY

Course Description

The purpose of this course is to provide an introductory basis for economic analysis in decision making process in engineering design, manufacturing equipment and industrial projects. This course aims to supplement engineering students with the knowledge and capability to perform financial analysis especially in the area of capital investment. It emphasizes the systematic evaluation of the costs and benefits associated with proposed technical projects. The student will be exposed to the concepts of the “time value of money” and the methods of discounted cash flow. Students are prepared to make decisions regarding money as capital within a technological or engineering environment. Assignments and homework help and guide the students to apply the knowledge acquired during the course.

ENGINEERING ECONOMY

Evaluation Tools (Active Term)

Course outcomes

1. 01 Recognize the fundamental concepts of engineering economy
2. 02 Apply engineering economy factors to account for the time value of money
3. 03 Analyze Service, revenue, mutually exclusive and independent alternatives
4. 04 Perform economic analysis of alternatives using present worth, annual worth, future worth and rate of return methods.
5. 05 Evaluate projects using rate-of -return and benefit/cost ratio methods
6. 06 Decide the level of activity necessary or the value of a parameter to breakeven.
7. 07 Combine the effects of inflation into an economic analysis whenever necessary

Course Syllabus

Reference Books & Course Materials

1. 01 Leland Blank and Anthony Tarquin "Basic of Engineering Economy" ,Mc Graw Hill, 1st edition, 2008.
2. 02 Leland Blank and Anthony Tarquin “Engineering Economy”, Mc Graw Hill, sixth edition, 2005.
3. 03 William G. Sullivan, Elin M. Wicks and James T. Luxhoj “Engineering Economy”, Thirteenth edition, Pearson Prentice-Hall, 2006.

Learning Outcomes

1. L01 Identify (2) and Explain (4) fundamental concepts of engineering economy SOLO 3
2. L02 Identify (2) and Generalize (5) engineering economy factors to account for the time value of money SOLO 3.5
3. L03 Explain (4) service, revenue, mutually exclusive and independent alternatives SOLO 4
4. L04 Explain (4) and generalize (5) economic analysis of alternatives using present worth, annual worth, future worth and rate of return methods. SOLO 4.5

Program Outcomes

1. Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied knowledge in these areas in complex engineering problems.
2. Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose.
3. Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way as to meet the desired result; ability to apply modern design methods for this purpose.
4. Ability to devise, select, and use modern techniques and tools needed for analysing and solving complex problems encountered in engineering practice; ability to employ information technologies effectively.
5. Ability to design and conduct experiments, gather data, analyse and interpret results for investigating complex engineering problems or discipline specific research questions.
6. Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually.
7. Ability to communicate effectively in Turkish, both orally and in writing; knowledge of a minimum of one foreign language; ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions.
8. Recognition of the need for lifelong learning ; ability to access information, to follow developments in science and technology, and to continue to educate him/herself.
9. Consciousness to behave according to ethical principles and professional and ethical responsibility; knowledge on standards used in engineering practice.
10. Knowledge about business life practices such as project management, risk management, and change management; awareness in entrepreneurship, innovation; knowledge about sustainable development.
11. Knowledge about the global and social effects of engineering practices on health, environment, and safety, and contemporary issues of the century reflected into the field of engineering; awareness of the legal consequences of engineering solutions.

Po-Lo Matrix