8/20/06
IENG 377 Engineering Economy
(3 CREDITS) Fall 2006
Prerequisites:Engineering Background or Consent
Text Required: Engineering Economy, 13th Edition – Sullivan, Wicks, Luxhoj
Pearson Education Inc. ( Prentice-Hall)
Instructor:Dr. Robert C. Creese
Office359-D MER BuildingOffice Hours by appointment M11:00-1:00 & F1:00-3:00
(Office Hours may change if my class schedule changes)
304-293-4607-ext 3711
Objective: Understand the concepts of cash flow, cash flow equivalence, cash flows before taxes, depreciation and depletion, cash flows after taxes, profits, evaluation of alternatives, and to work in a team on a project.
Homework problems are due at the start of class on the first class period of the following week. Students must be prepared to answer questions about the problems during the periods in which the materials are due. Homework will be discussed at the beginning of class when the homework is due. Specific homework assignments will be given one week prior to coverage of the material. In problems where you select an answer such as a, b, c, or d; show the work you did to arrive at your answer
WeekTopic TextbookChaptersHomework .
1Introduction to Engineering EconomyCh 1, 2.1-2.22: 2,55,56,57,58
2Breakeven Analysis, Cost Estimating &Ch 2,33: 2,4,5,10,15,24,30,38,42
Improvement(Learning) Curves
Project Team Assignment (2-4 members from different disciplines)
3Economic Expressions & EquivalenceCh 44: 1,8,10,18,25,30,35,44,52,58
4Economic Expressions & EquivalenceCh 44: 68,77,90,94,114,117,119,120,123
5Test 1(Ch 1-4)
Evaluation of ProjectsCh 5
6Cash Flows Before Taxes
Comparing AlternativesCh 6
7Comparing AlternativesCh 6
8DepreciationCh 7
9Cash Flows After TaxesCh 7
Test 2(Ch 5-7)
10 Accounting, Financial Flows Dollar TypesNotes, Ch 8
11 Replacement AnalysisCh 9
12Replacement Analysis, Benefit CostCh 9, Ch 11
13Benefit Cost AnalysisCh 11
Test 3(Ch 8-11)
14 Project PresentationProject Due @ 10:00 am, Nov 27.
15Project Presentation & Course Evaluation
16Final ExaminationThursday, December 14, 2006 11:00-13:00
GradingCourse GradingPercentage Weight
A >= 90Exams 3 @ 20 Points60%,
90 >B >= 80Team Design Problem10%
80 >C >=70Final Examination30%
70 >D >=60
F < 60
Students with course averages 96 or greater(3 exams and project) may be exempt from the final exam.
The Project can be submitted early and is dueby 10 am on Monday Nov 27, 2006. A 5 point deduction will occur if turned in between 10 am and noon on Monday Nov 27 2006 and a 10 pointdeduction will occur if turned in between noon and 5 pm on Monday Nov 27 and a 20 point deduction if turned in on Tuesday, Nov 28. No reports will be accepted after 5 pm on Tuesday Nov 28, 2006.
Engineering Economics Project
Rapid prototyping and rapid manufacturing are relatively new techniques that are being introduced into the small and medium sized companies for parts production and design evaluation. Your team is assigned to investigate these topics in detail and make recommendations for the following companies:
1) A company which produces engine blocks for NASCAR drivers. This would be a low volume product(<20 per year) of a relative complex part. Engine blocks would be aluminum or cast iron.
2) A engineering design/consulting company that wants to show possible products to potential customers. These should be functional to reveal design errors before production.
3) A company produces replacement parts such as pump impellors, antique car parts, and etc.
Reports Due – Late Reports Not Accepted except for Final Report
Sept 8. A one page report to indicate what rapid prototyping and rapid manufacturing are; the similarities and differences and an overview of the different processes.(3 points)
Sept 29 What are the capabilities (sizes, tolerances, and etc) and costs for the equipment from several manufacturers. (7 points)
Oct 20 The process you are utilizing to evaluate the alternatives. Note that one must include expected operating costs, maintenance and service costs and how you intend to estimate these. (5 points)
Nov 10 Preliminary Final Report with Evaluation of Alternatives and Recommendations(10 points)
Nov 27 Final Report Due (75 points)
Final Report – Cover Page – Course, Project Title, Team Members/Name, Date submitted, etc
- Report Summary – Alternative selected for each situation and primary reason(s) selected
- Report Details – Analyze each situation, the alternatives considered, economic evaluation of alternatives, assumptions made, tables and/or figures of information gathered and methodology usedto make decision.
Eating is not permitted in the classroom during class and those students will be requested to leave the room. Hats are not to be worn during class except for health or special religious practices. Cell phones must be turned off during class unless special permission has been obtained before class.
Students who miss an exam without prior arrangements will be given a grade of zero for the missed exam. Students who have conflicts with exam dates must make arrangements at least one week prior to the exam. Make-up exams can be taken prior to the exam or during the last week of classes if other times are not mutually convenient.
Class attendance is strongly encouraged and seating will be assigned to aid in the taking of attendance. A student is considered absentif not present when roll is taken by or if leaving early. Students who have more than 10 recorded absences or more will have their course average lowered by 5 points. Students who have more than 6 absences(including excused absences) must take the final exam even if their average is >96. Excused absences are at the discretion of the instructor, but will not include events such as interviews, project trips or etc. There are at most 32 classes for recorded attendance as the first, second and fifteenth weeks and holidays are not recordedand exams are not included in attendance count.
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Exam questions will be similar to the homework problems. Exams are closed book exams, but formula sheets will be provided.
Students are expected to know the meaning of the symbols of the formulas represent. Formula sheets will be distributed during the exam so all students have similar sheets, but a formula sheet will be distributed via e-mail to those on the class list before the end of the third week of class.
Non-discrimination Statement: I expect to maintain a positive learning environment based upon open communication, mutual respect, and non-discrimination(race, sex, age, disability, veteran status, religion, sexual orientation, color, or national origin) in this course. If you anticipate any type of accommodation in order to participate in this class, please make the appropriate arrangements with Disability Services(293-6700) and advise me of those arrangements. Suggestions for improving the positive learning environment in this class will be appreciated.
Days of Special Concerns Statement: Students must notify theinstructor by the end of the second week of classes or prior to the first Day of Special Concern, whichever is earlier, regarding Day of Special Concern observances that will affect their attendance. The approved Special Days of Concern are listed in the Schedule of Courses.
Academic Dishonesty Statement
WVU expects that every member of its academic community shares the historic and traditional commitment to honesty, integrity, and the search for truth. Students participating in academic dishonesty activities may receive penalties such as an unforgivable F for the course or a grade of zero. Academic dishonesty is defined to include but is not limited to any of the following:
- Plagiarism is defined in terms of proscribed acts. Students are expected to understand that such practices constitute academic regardless of motive. Those who deny deceitful intent, claim not to have known that the act constituted plagiarism, or maintain what they did was inadvertent are nevertheless subject to penalties when plagiarism has been confirmed. Plagiarism includes, but is not limited to: submitting, without appropriate acknowledgment, a report, notebook speech, outline, theme, thesis, dissertation, or other written, visual, or oral material that has been copied in whole or in part from the work of others, whether such source is published or not, including( but not limited to) another individual’s academic composition, compilation, or other product, or commercially prepared paper.
- Cheating and dishonest practices in connection with examinations, papers, and projects, including, but not limited to:
a. Obtaining help from another student during examinations.
b. Knowingly giving help to another student during examinations, taking an examination or doing academic work for another student, or providing one’s own work for another student to copy and submit as his or her own.
c. The unauthorized use of notes, books or other sources of information during examinations. The unauthorized use of calculators or computers programmed with formulas, equations, or notes which have not been approved by the instructor for your use on the exam. Computers and programmable calculators are not permitted for the exams.
d. Obtaining without authorization an examination or any part thereof.
- Forgery, misrepresentation or fraud:
a. Forging or altering, or causing to be altered, the record of any grade in a grade book or other educational record.
b. Use of University documents or instruments of identification with intent to defraud.
c. Presenting false data or intentionally misrepresenting one’s records for admission, registration, or withdrawal from the University or University course.
d. Knowingly presenting false data or intentionally misrepresenting one’s records for personal gain.
e. Knowingly furnishing the results of research projects or experiments for the inclusions in another’s work without proper citation. This includes copying of previous/current student projects and reports(or portions thereof) and submitting them for evaluation.
f. Knowingly furnishing false statements in any University academic proceeding.
Department Designated Outcomes and Key Abilities For IMSE 377
Revised to meet new IMSE DOKA(Designated Outcomes & Key Abilities)
Outcome 1 - Students will have acquired the ability to used modern and classical Industrial Engineering methodologies such as operations research, manufacturing systems, computer programming and simulation, production systems, human factors and ergonomics, engineering statistics and quality control, and engineering economics.
The designated key ability for this course for this outcome include an understanding of the following items:
Ability
- Cash Flow Equivalence
- Depreciation and Depletion
- After Tax Economic Analysis
- Evaluation of Multiple Alternatives
Outcome 4 – The students must have acquired the ability to work individually, on teams and on multi-disciplinary teams to identify, formulate, and solve problems using industrial engineering knowledge, skills and tools.
The designated ability for this course for this outcome is:
Ability
1. Work effectively in a multidisciplinary team.
Students will be requested to self-assess their ability on each of the degree of fulfillment of key abilities for this course. The form will be:
Degree of Fulfillment of Key Ability
Outcome 1 Ability 1None Little Some High Full
Cash Flow Equivalence ______
Outcome 1 Ability 2
Depreciation and Depletion ______
Outcome 1 Ability 3
After Tax Economic Analysis ______
Outcome 1 Ability 4
Evaluation of Multiple Alternatives______
Outcome 4 Ability 1
Effective Multidisciplinary ______
Team Project Participation
You will be requested to completethe assessment forms twice during the semester.
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IENG 377 Fall 2006