GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP
JAN 2020
GDB 3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP
CASE STUDY – PROJECT BRIEF GUIDELINES
Case Study Objectives
Upon completion of this case study report, you should be able to:
1. apply engineering economic decision making process,
2. prepare a detailed financial analysis report, and
3. provide a professional recommendation on the finding of the study.
Problem Statement
As a professional engineer, you are expected consider different design or
project and make priority decision based on technical and financial position of
the company. Economic analysis involves cost estimation and financial analysis
that engineers use to evaluate their decisions and designs. It is essential for the
stake holders to know the economic feasibility of project or investment before
starting new projects. Moreover, if you have more than one alternative, it is
recommended to perform feasibility analysis.
The economic analysis of the case study (to be provided separately) and the
preparation of project brief (report) is part of a summative assessment of the
course outcome for this course. It is expected that each student must undertake
the assignment individually and without the assistance of unauthorized
party. To complete the project, students are allowed to refer to the assigned
textbook or related materials available in public domain (internet).
Project Procedure
The economic analysis process is an iterative procedure for evaluating and
ranking alternatives that meet a specified design objective.
For the case study provided, each student is expected to study and prepare a
project brief that must include (but not limited to) the following steps of
economic analysis:
1. Summary of project design requirement and constraints.
2. Tabulate all costs and revenues expected. State assumptions and
project constraints in cash flow diagram and other suitable means.
3. Estimate net present values, equivalent annual costs, and wherever
possible rate of return on investments.
4. Report on comparative analysis of potential options available, breakeven
conditions and recovery period.
5. List and discuss project completion alternatives, investment alternatives
and cost impact.
6. Identify critical factors that can influence decision through sensitivity
analysis.
7. Provide recommendation of the most attractive options and indicate
potential areas of concern.
GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP
JAN 2020
The objective of this case study is to analyze the worth of investing in a new
project based on the company’s current financial situation based on principles
of money-time relationship. The various alternatives available are to be
compared and finally the ones giving the best attractive returns and future
growth are to be recommended.
Project Brief Requirements
Project brief report must be prepared based of the specifications and data
provided in the case study pack. Wherever necessary, students may refer to
the textbook or search in the internet for required data to be used. All
assumptions and decision must be clearly indicated.
The project brief must include (but not limited to) the following aspect of
economic analysis. The brief must completed and submitted, on line in a pdf
format, within the time period specified.
Project Brief Deliverables
Project assessment will include the following deliverables:
1. Executive Summary
This section must include:
– company objectives and project requirements
– summary of financial analysis
– project recommendations
2. Project Background
This section must include:
– project requirements
– design specifications and constraints
– project objectives
3. Cost Estimation and Cash Flow Projection
This section must include (if applicable, tables/charts):
– Cost and estimates (investment cost, operations and maintenance
cost, Overhaul cost, salvage value, expected revenue)
– Cash flow diagram or table
– NPV and/or EAC
– Payback period
– IRR
4. Breakeven and Replacement Analysis
This section must include (if applicable, tables/charts):
– project life and recovery period
– optimal operating conditions
5. Sensitivity Analysis
This section must include (if applicable, tables/charts):
– parameter variability
– decision reversal
– sensitivity plots
GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP
JAN 2020
6. Final Recommendation
This section must include:
– summary of alternatives and cost estimations
– recommendations and rationale
– factors for successful completion and risk of failure
Project Brief Format
Project brief must be typewritten and organized in a professional manner with
following detailed requirements:
1. General requirement:
Maximum of 10 pages (not including title page and originality page).
Typeset with 11points fonts (single spaced) and 10points fonts for
tables.
2. Title page (page 0 – Use the Template in Appendix):
GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIPS
JANUARY 2020 SEMESTER
CASE STUDY PROJECT BRIEF
NAME:
MATRIC:
PROGRAM:
“I hereby certify that I have completed this project report with my own
effort without unauthorized assistance” - signature
GRADING
The Case Study is a form of Extended Assignment (EA) in lieu of the Final
Examination requirement of the course. Marks obtained from this assignment
will contribute FORTY PERCENT (40%) of the overall course marks. As the
requirement for passing the course is to pass the final examination, the same
requirement applies for this extended assignment.
The evaluation of the report will be based on the achievement level rubric,
attached as a separate document. The rubric evaluates 12 criteria with
maximum of 4 marks each, except for “Overall Analysis & Recommendation”
with 6 marks maximum. Total marks for this rubric is FIFTY (50) points. Passing
mark for EA will be TWENTY (20) points.
REMINDER
The Case Study is an individual assignment and must be completed by the
candidate without the assistance of any outside help without authorization.
Any attempt, or indication of any, that result in a report that has been either
copied, shared, discussed with, or prepared by any outside party, will result
in automatic disqualification of this assignment.
Disqualification of this assignment will automatically result in failing the course.
If there is any evidence that the disqualification is due to academic misconduct,
the case will be forwarded to the Academic Disciplinary Committee for further
deliberations. Please be reminded that cases of cheating, or attempt to cheat,
in examination, will result in suspension or expulsion from the
program/university.
GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIP
JAN 2020
APPENDIX
GDB3023 ENGINEERING ECONOMICS AND ENTREPRENEURSHIPS
JANUARY 2020 SEMESTER
CASE STUDY PROJECT BRIEF
NAME:
MATRIC:
PROGRAM:
CERTIFICATION OF ORIGINALITY
I hereby certify that:
ted in this Extended Assignment.
I have completed this project report with my own effort without
unauthorized assistance.
I also acknowledge that if I am found guilty of academic misconduct
(plagiarising, cheating, copying the work of others, or allowing others to copy
my work) in completing this Extended Assignment, I will be given an F grade
for the Extended Assignment for this course, and may be suspended for a
period of time or dismissed or any other penalty deemed necessary by the
University.
_____________________________ (your signature here)