IET 35000 ENGINEERING ECONOMICS SPRING SEMESTER 2014 SECTION INFORMATION: class#: 10814 time: arranged - Web COURSE DESCRIPTION: Examines the concepts and techniques of analysis useful in evaluating the worth of systems, products, and services in relation to their cost. The objective is to help the students grasp the significance of the economic aspects of engineering and to become proficient in the evaluation of engineering proposals in terms of worth and cost. Project analysis will require computer proficiency. TEXTBOOKS: Bowman, Michael S. Applied Economic Analysis for Technologists, Engineers, and Managers, 2nd Edition (ISBN-13: 9780130945112) Bowman, Michael S. Student Solutions Manual & Study Guide, 2nd Edition (ISBN-13: 9780130449900) PREREQUISITES: IET 10400 Industrial Organization or consent of the instructor. COMPUTER RESOURCES: OnCourse, Microsoft Excel, Adobe Flash INSTRUCTOR: Professor Ken Rennels, P.E. Office: ET 201A Phone: (317) 274-0829 Fax: (317) 278-0789 E-mail: krennels@iupui.edu GRADING: Homework assignments ...............20% Examinations ................................50% Case Studies..................................15% Project ..........................................15% GRADING SCALE: 93.0 to 100% 90.0 to 92.9% 87.0 to 89.9% 83.0 to 86.9% A AB+ B 80.0 to 82.9% 78.0 to 79.9% 73.0 to 77.9% 70.0 to 72.9% BC+ C C- 67.0 to 69.9% 63.0 to 66.9% 60.0 to 62.9% 0 to 59.9% D+ D DF ADA COMPLIANCE: Adaptive Educational Services (AES) provides accommodations for students with special challenges or disabilities that may affect their classroom performance. If you are eligible you may register with AES by calling 317-274-3241 and making an appointment; or visiting them in Taylor Hall, UC Suite 100. Visit http://aes.iupui.edu/ for more information. 1 COURSE PROCEDURES: This course is being taught on a self-learning basis. This course syllabus details the material that will be covered by the course and the course schedule. Materials including lecture notes, supplemental materials and reference materials will be placed on OnCourse CL which is accessible at: https://oncourse.iu.edu/portal. For more information regarding using this tool, the OnCourse CL Quick Start Guide for Students can be accessed at: http://www.indiana.edu/~ittrain/oncourse/workshops_materials/ONSTU.pdf. It is the responsibility of each student to manage their time effectively to meet the schedule requirements and submit coursework on time. The following URL is a link to a Distance Education Student Primer which will be helpful in understanding this course’s delivery method: http://ittraining.iu.edu/free/DESPR.pdf. Additionally, a set of behaviors for distance education classes is included in this syllabus for your reference. Testing for this course will be on-line. Please review the academic integrity information below. The course also incorporates a project which will entail individual effort. Your instructor will be readily available via IUPUI email. CLASS PROTOCOL and ACADEMIC INTEGRITY: The school expects all students to follow the established standards of academic integrity in its courses. Cheating or plagiarism (electronic or otherwise) will not be tolerated, and will result in an F for the course, expulsion from the class, and possible university discipline. No derogatory comments about or towards any member of the class will be tolerated in any class or on-line discussion group. Information regarding the Student Code of Conduct can be found at: http://www.iupui.edu/~cletcrse/academic_dishonesty.htm LATE WORK POLICY: Late work will be downgraded one letter grade immediately following the due date and time. No work will be accepted 24 hours after these times and dates. Exceptions are given to only those who have pre-arranged with the instructor and have provided acceptable documentation. Early communication is imperative and encouraged. OWNERSHIP of WORK PRODUCED in IET 35000: In taking this course you are permitting the instructor to use your work produced in IET 35000 as an example of work done in this class for the purposes of ABET accreditation, teaching resources, research, publication and promotional material. This may involve the reproduction of your work as well. Should you not be in agreement with this, please notify the instructor immediately. GRADING PHILOSOPHY: “A” grades will be given for outstanding, exemplary and exceptional work depicting over and above what is required of the respective project or assignment. Student demonstrates the ability to evaluate, critique, and/or design work of exceptional quality. 2 “B” grades will be given for good work, depicting an above average understanding. Student demonstrates the ability to revise and synthesize work or tasks. “C” grades will be given for average work or work that solely meets the project criteria without an obvious effort to exceed expectations. Student demonstrates the ability to apply and reproduce work or tasks. Work that is lacking or deficient will receive a “D” or “F” grade. Students will be given an automatic “W” (withdrawal) if they drop the class on time according to the Schedule of Classes. No automatic "W" grade will be given after the date specified in the class schedule unless the student is in passing status. An incomplete (I) grade will only be given in exceptional circumstances where the student is in passing status but not able to complete the course requirements due to an excuse which must be formally documented and be acceptable by the University administration BEHAVIORAL OBJECTIVES FOR WEB-BASED CLASSES: 1. Visit the classroom web-site (Oncourse) at a specific frequency. This may vary from person to person. Perhaps once per week for a long stretch will work for you. Some students visit the site almost everyday for short periods. Putting time in the class is essential for success. You cannot pass the class by waiting until the end of the semester to get started or to complete the majority or assignments. Recognize that, for some people, it is natural to procrastinate regarding coursework when there is no set meeting time. You must fight this urge, if it is your personality, in order to be successful. Students who do not set up a planned schedule to visit the online classroom are far less likely to pass or earn a grade which reflects their actual ability. 2. It is important to recognize that your instructor would like to electronically communicate with you and cannot do so unless you log into the class. Students who stay away from Oncourse for long periods (in excess of one week) are usually at a disadvantage from this lack of communication. Students may miss announcements and reminders and may find deadlines abruptly upon them - or missed. It is generally unwise to allow a gap of longer than one week or so between visits to the online environment. Students who do not log in for periods of longer than two weeks, without notice or explanation to the instructor, will be contacted by phone or mail and may be asked to withdraw from the course. 2. Follow the syllabus by looking at the learning units and working in the text as needed. The material will not flow from the keyboard, through your fingertips and into your body. You must read and process the information provided. You will need to visit all links and process the information provided in redirected areas. 3. Complete the homework and be aware of deadlines for these assignments. 3 4. Participate in the class following the guidelines and policies set by the instructor. Understand what is defined by the university as inappropriate academic. 5. PREPARE for exams as you would for a traditional on-campus class.. ADMINISTRATIVE WITHDRAWAL: A basic requirement of this course is that you will participate in class and conscientiously complete the assignments. Keep in touch with me if you are unable to attend complete an assignment on time. If you do not submit more than half of the required work during the first four weeks of the semester without contacting me, you will be administratively withdrawn from this section. Administrative withdrawal may have academic, financial, and financial aid implications. Administrative withdrawal will take place after the full refund period, and if you are administratively withdrawn from the course you will not be eligible for a tuition refund. If you have questions about the administrative withdrawal policy at any point during the semester, please contact me. COURSE GOALS: Provide a basic introduction to economic concepts. Build proficiency in the ROI methods for evaluation of engineering proposals. LEARNING OBJECTIVES: After completion of this course, the students should be able to: 1. Apply financial statements and accounting basics related to basic and advanced economic analysis (a,b,f). 2. Determine and apply appropriate techniques for depreciation and inventory economic analysis (a,b,f). 3. Apply Time Value of Money techniques to analyze, select, monitor and evaluate projects and investments (a,b,f). 4. Demonstrate consideration for the dual goals of mathematical economic analysis problem solving and external factors of organizational, human, and other nonmathematical influences on economic decision making (a,b,e,f,k). 5. Apply traditional and contemporary economic analysis technique to continuous financial improvement. (k) TCM WRITING Center: Need or want help with your writing or speaking assignments? The TCM Writing Center, located in ET 232, offers free tutoring to E&T students on their writing and speaking needs. I encourage you to use the Writing Center’s services. You can sign-up for tutoring sessions by going to https://www.et.iupui.edu/TCMScheduling/. If the tutor is not working with another student, walk-ins are welcome. Call 317-2781311 if you have questions or would like more information. 4 IUPUI STUDENT ADVOCATE: Do you have a problem you don’t know how to solve? Is there information you cannot find? Do you have a question that needs an answer or a problem that is affecting your class attendance? The Student Advocate Office is here to help! I will answer your questions, direct you to the appropriate departments and people, familiarize you with university policies and procedures, and give you guidance as you look at ways to solve problems and make choices. The Student Advocate Office is can be contacted by phone at 317-278-7594 or email at stuadvoc@iupui.edu. For more information, see the Student Advocate website at: http://www.life.iupui.edu/advocate/ IUPUI COUNSELING: During the semester, if you find that life stressors are interfering with your academic or personal success, consider contacting Counseling and Psychological Services (CAPS). All IUPUI students are eligible for counseling services at minimal fees. CAPS also performs evaluations for learning disorders and ADHD; fees are charged for testing. CAPS is located in Walker Plaza, 719 Indiana Avenue Suite 220 and can be contacted by phone (317-274-2548) or via email: capsindy@iupui.edu. For more information, see the CAPS web-site at: http://studentaffairs.iupui.edu/healthwellness/counseling-psychology/index.shtml. 5 COURSE OUTLINE Date Reading Topic Week 1 January 13 Chapter 1 Course Introduction Introduction to Financial Decisions. Problem Set #1 Week 2 January 20 Chapter 2 Introduction to Financial Statements and the Accounting Equation. Problem Set #2 Week 3 January 27 Chapter 3 The Accounting Equation— Depreciation, Inventory, and Ratios. Problem Set #3 Week 4 February 3 Case Study #1 Week 5 February 10 Test #1 – Chapters 1, 2 and 3 Assignment Week 6 February 17 Chapter 4 Return on Investment and SinglePayment Calculations. Problem Set #4 Week 7 February 24 Chapter 5 Annual Amount and Gradient Functions. Problem Set #5 Week 8 March 3 Chapter 6 Time Value of Money Applications. Problem Set #6 Week 9 March 10 Chapter 7 Analyzing, Selecting, Monitoring, and Evaluating Projects and Investments. Problem Set #7 March 17 through 21 Spring Break Week 10 March 24 Case Study #2 Week 11 March 31 Test #2 – Chapters 4, 5, 6 and 7 Week 12 April 7 Chapter 8 Breakeven Analysis. Problem Set #8 Week 13 April 14 Chapter 9 Minimum Cost Analysis. Problem Set #9 Week 14 April 21 Case Study #3 Week 15 April 28 Project Due Week 16 May 5 Test #3 – Chapters 8 and 9 6