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. P01 Should have sufficient knowledge in mathematics, science, and subjects specific to the relevant engineering discipline.
2. P02 Should have the ability to use theoretical and applied knowledge in mathematics, science, and related engineering disciplines in complex engineering problems.
3. P03 Should have the ability to detect, define, formulate, and solve complex engineering problems.
4. P04 Should have the ability to select and apply appropriate analysis and modeling methods to solve complex engineering problems.
5. P05 Should have the ability to design a complex system, process, device, or product to meet specific requirements under realistic constraints and conditions.
6. P06 Should have the ability to apply modern design methods.
7. P07 Should have the ability to develop, select, and use modern techniques and tools necessary for the analysis and solution of complex problems encountered in engineering applications.
8. P08 Should have the ability to use information technologies effectively.
9. P09 Should have the ability to design experiments, for the study of complex problems or discipline-specific research topics.
10. P10 Should have the ability to conduct experiments, collect data, analyze and interpret results for the study of complex problems or discipline-specific research topics.
11. P11 Should have the ability to work in intradisciplinary teams.
12. P12 Should have the ability to work in interdisciplinary teams.
13. P13 Should have the skills to work individually.
14. P14 Should have the ability to communicate effectively verbally and in writing.
15. P15 Should have the knowledge of at least one foreign language.
16. P16 Should be able to write effective reports, understand written reports, and prepare design and production reports.
17. P17 Should have the ability to make effective presentations.
18. P18 Should have the ability to give and have clear and understandable instructions.
19. P19 Should gain consciousness (awareness) about the necessity of lifelong learning.
20. P20 Should have the ability to access information.
21. P21 Should have the ability to follow developments in science and technology and constantly renew himself/herself.
22. P22 Should gain the awareness of professional and ethical responsibility and should act in accordance with ethical principles.
23. P23 Should gain knowledge about the standards used in engineering applications.
24. P24 Should gain knowledge about project management, risk management, and change management practices in business life.
25. P25 Should gain awareness about entrepreneurship, and innovation.
26. P26 Should gain knowledge about development in sustainability.
27. P27 Should gain knowledge about the effects of engineering practices on health, environment, and security at universal and social dimensions and the problems of the age reflected in the field of engineering.
28. P28 Awareness should be gained about the legal consequences of engineering solutions.

Po-Lo Matrix