ENGINEERING ECONOMY AND MANAGEMENT (BMFG 4623)

 

Learning Outcomes

At the end of this course, students should be able to:

[1]   Explain the principles and terminology of engineering economy, time value of money, element of cost and project risk.

[2]   Apply the concepts, principles and techniques in engineering economy using engineering economy factors (F/P, P/F, P/A, A/P, F/A, A/F, P/G, A/G factors) and interest rate.

[3]   Analyse complex problems and scenario to compute equivalent amount for cash flows and project risk.

[4]   Evaluate alternatives and project risk using suitable methods such as Present Worth, Future Worth, Annual Worth Analysis, Break-even and Payback Analysis, and Replacement and Retention Analysis.

 

Synopsis

This course covers engineering economics and managing risk in an organization.  Engineering economics discusses about the time value of money and interest relationships, which are useful to define certain project criteria that are utilised by engineers and project managers to select the best economic choice among several alternatives. Projects examined will include both product and service-producing investments. The effects of escalation, inflation, and taxes on the economic analysis of alternatives are also discussed. Management of risk incorporates the concepts of probability and statistics in the evaluation of alternatives. This allows management to determine the probability of success or failure of the project.

 

References

[1]   Blank, L and Tarquin, A., 2012, Engineering Economy,7th Edition, McGraw Hill.

[2]   Sullivan, W.G., Wicks, E.M., and Koelling, C.P., 2012, Engineering Economy,15th Edition, Pearson.

[3]   Park C.S., 2011, Contemporary Engineering Economics, 5th Edition, Pearson.

[4]   Whitman D. and Terry R., 2012, Fundamentals of Engineering Economics and Decision Analysis, Morgan & Claypool Publishers.