TCMG 597AB/MGMT 597 - GLOBAL BUSINESS POLICY & STRATEGY (Capstone)

TCMG / MEEG 546 – Engineering Economics –16 Weeks – Spring, 2017 Thomas J. Hamlin, BSME, MBA

Instructor Thomas J. Hamlin, BSME, MBA; Adjunct Faculty

Mobile: 860-682-8372 email:

Office Hours: Call 9 AM – 5 PM Wednesday and Thursdays or by appointment.

Student Honor Code: As a UB student, I take personal responsibility for emulating the highest values and ethical norms: my work is my own and reflective of my best efforts and abilities.

In accordance with the student honor code, any form of cheating or plagiarism is not expected or tolerated.

COURSE SYLLABUS

Course Description and Approach

This course is designed to provide the opportunity for students to learn the theory and apply the principles of engineering economics. Engineering economics is the practice of evaluating the monetary impact of engineering decisions made in the execution of engineering projects and in the design of products and processes. The tools of engineering economic analysis enable the practitioner to compare alternatives and choose optimized solutions to engineering problems. The course will cover topics including decision making processes, the time value of money (IRR, ROI, NPV), analysis of uncertainty and risk, choosing among alternatives, sensitivity analysis, opportunity costs, depreciation and amortization, cost estimating and cost benefit analysis. Successful completion of this course will provide a foundation for a practicing engineer to make practical engineering decisions which include an analysis of the financial impact of the decisions.

The teaching approach will consist of lectures, class discussion and interactive activities, assigned reading, homework consisting of questions and problems, a team project covering a case study, and quizzes covering the course subject matter. Guest lecturers may be utilized to provide insight into real world use of engineering economy principles in industry. Students will be encouraged to read current business sources to identify and share real world examples of companies utilizing engineering economy principles to make informed engineering decisions. Preparation for a final exam will be utilized to guide the student in organizing and reinforcing the subject matter covered during the term.

Course Learning Objectives

The course learning objectives are to:

·  Develop a fundamental understanding of engineering economics and the application of financial analysis to improve decision making in the execution of engineering projects. Develop the skills required to properly conduct analyses and implement solutions that result in better financial outcomes while still considering other nonfinancial factors.

·  Clearly understand the steps of defining the problem, choosing objectives, identifying alternatives, evaluating consequences, selecting a solution, implementing the solution, and auditing the results. Demonstrate proficiency in this methodology.

·  Gain practical working knowledge of important engineering economic concepts and skills including:

o  Time Value of Money and Interest

o  Cash Flow Diagrams

o  Equivalence and Engineering Economy Factors

o  Spreadsheet Modeling

o  Project Analysis Including Present Worth and Annual Worth

o  Internal Rate of Return and Net Present Value

o  Comparing Alternatives and Constrained Project Selection

o  Depreciation, Taxation, and Inflation

o  Cost Benefit Analysis

o  Sensitivity Analysis

o  Probability and Risk

·  Develop proficiency and confidence to utilize the concepts and skills in future nonacademic work assignments.

Required Course Textbooks and Supplementary Materials:

1.  Required Text: Ted G. Eschenbach, Engineering Economy – Applying Theory to Practice, Third Edition, Oxford University Press, ISBN 978-0-19-976697-0

2.  Supporting Text: William R. Peterson and Ted G. Eschenbach, Cases in Engineering Economy, Second Edition, Oxford University Press, ISBN978-0-19-539783-3

3.  It is recommended that you obtain a financial calculator for use in the course (e.g. Texas Instruments BAII Plus Financial Calculator) or utilize a financial calculator app.

4.  Some example websites and/or sources for information on engineering economics include:

·  https://en.wikipedia.org/wiki/Engineering_economics

·  https://www.youtube.com/watch?v=VaZLXTULXqE Video on Present Worth

·  https://www.youtube.com/watch?v=kega_QOCvxQ Video on Cash Flow

·  http://ncees.org/engineering/ Engineering Licensing Information

·  https://www.asme.org/products/courses/financial-resource-management-for-engineers

·  http://mylearning.asce.org/diweb/catalog?dp=0&c=79&t=2109&q=engineering+economy&f1=1

Note: You are encouraged to ask the Reference Librarian at Wahlstrom Library for any other research information you may need regarding your coursework.

The UB book distribution system is for you to order the books on line at http://www.bkstr.com or at the UB Bookstore on the main campus.

Course Requirements

1.  Class Attendance: Students are expected to attend all classes and be punctual. If you are unable to attend for any reason, please contact me via phone or e-mail in advance.

2.  Class Participation: Students are expected to participate in class discussions. Class lectures and discussion will introduce and supplement the information provided in the text.

3.  Cheating and Plagiarism: Any form of cheating or plagiarism are not acceptable and will be dealt with in accordance with University policy. On a first offense, a warning will be given, the assignment will be given a zero and will also need to be redone. On a second offense, an “F” will be given for the course.

4.  Preparation, Deadlines and Late Policy: Late assignments will be penalized 20% for each class day past the deadline. No excuses will be accepted. All assignments are due by the start of class as defined in the syllabus. Assignments should be submitted electronically via Canvas.

5.  Homework: The syllabus defines all required homework and project requirements for the course. Homework is essential to understanding the course subject matter and is a key component of your grade. It is expected that students will put in a diligent effort on all assignments. As a UB policy, for a three credit course like TCMG/MEEG 546, it is expected that each student that attends one hour of classroom instruction will require a minimum of two hours of out of class student work each week for approximately fifteen classes in one semester.

6.  Current News: Each student will be required to research a current news topic related to engineering economics and provide a 5 – 10 minute oral presentation to the class at one point in the semester. Effort on this assignment will be factored into your class participation grade.

7.  Team Project: Teams of 2 or 3 people will be assigned a specific case study to evaluate. The team will be required to present their case analysis and recommendations to the class. It is expected that the presentation clearly outline the problem and objectives, identify alternatives, explain the analyses conducted, provide a recommended course of action and outline any follow-up to measure results. The presentation should be approximately 20 minutes in length and be done in MS Powerpoint. Each team member is expected to contribute to the work and give a portion of the presentation. The presentation must be submitted in electronic form a day before the due date. Presentations will be graded and the team members will all receive the same team grade based on their joint work. The instructor will also ask the students about team dynamics and team learnings from the project and one summary slide on this topic is recommended.

8.  Quizzes: Throughout the semester, short quizzes will be utilized to check student progress and insure that students are reading and understanding the course materials. The lowest quiz score will be discarded and the remaining quiz average will be used for course grading purposes.

9.  Final Exam: A final exam will be given that will cover the full semester of coursework. Students will prepare a “crib sheet” for use during the exam. One side of one 8 ½” x 11” piece of paper will be utilized to prepare notes for use during the exam.

10.  Course Grading:

TCMG/MEEG 546 – Engineering Economics - Schedule – Spring 2017 – 15 Classes

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