University of Ontario Institute of Technology Faculty of Engineering and Applied Science ENGR 3360U: ENGINEERING ECONOMICS 2K10-I-01 COURSE OUTLINE Course Objectives The purpose of this course is to introduce engineers to the world of Economics. The course will explain the overall economic context in which the engineer must practice, either in a company or as an entrepreneur. The course then covers the principles and applications of Engineering Economics, illustrating these using a wide range of practical Canadian engineering-oriented examples, exercises and electronic-based learning options. To quote Dr. C. S. Park, “decisions made during the engineering design phase of product development determine the majority of the costs associated with the manufacturing of that product…..the competent and successful engineer of the twenty-first century must have an improved understanding of the principles of science, engineering and economics, coupled with relevant design experience. Increasingly in the new world economy, successful businesses will rely on engineers with such experience” (italics mine). The main objective of this course is to expose you to tools that will enable you to do precisely this. Course Outcomes The graduate will be able to “speak” the language of CEOs, CFOs, accountants, etc. and understand the economic implications of engineering decisions. She/he will understand the fundamentals of our economy, the purpose of the Bank of Canada, the effects of inflation, oil costs, dollar costs etc. She/he will also be able to write and understand basic business tools such as Business Plans, financial accounting sheets, stock and bond prices, etc. All of these techniques can be combined by the engineer to make precise, valid, engineering decisions. The tools learned here are also applicable to the daily life of the practising engineer. Prerequisites Complete completion of second year. Course Organization Three lecture hours per week for one semester. Required Course Texts and Other Materials Title: Engineering Economic Analysis, Second Canadian Edition Authors: Newnan, Whittaker, Eschenbach, Lavelle Publisher: Oxford University Press Edition: 2st ISBN: 978-0-19-543017-2. Reference Books and Information Sources Frank, Bernanke (yes THAT Bernanke) et al Principles of Microeconomics 2nd edition, McG-H Frank, Bernanke et al Principles of Macroeconomics 2nd edition, McG-H Chan, C.S. Contemporary Engineering Economics 4th edition, Pearson, Prentice-Hall Title: Engineering Economics Blank and Tarquin, First Canadian Edition, McGraw-Hill 2008 Newnan, Whittaker, Eschenbach, Lavelle Engineering Economics, OUP Fraser, Jewkes, Bernhardt, Tajma Engineering Economics in Canada, 3rd edition Pearson, PrenticeHall Loads more in the library. Course Evaluation: You MUST pass the final examination to pass the course. . If you cannot write the midterm and/or the final because of sickness, etc., then the following procedure must be followed: Medical certificates MUST be sent DIRECTLY from the Doctor’s Office or Hospital within 5 days by mail or preferably by fax (3370) to the Academic Advisor of FEAS. A fee for the deferral must be paid by the student if the Medical certificate is valid and arrives on time. Failure to comply with the above will result in an F for the mid-term and/or the final exam. The deferred exam will be oral. Business Plan InClass Quizleins Problem Sets Midterm Test Mar 02 In Class Final Examination Total 10% 10% 20% 20% 40% 100% Detailed Course Content - Part 0 General Economic Background 0.1 Aspects of theoretical and applied economics relevant to engineers, including an introduction to fundamental principles of micro- and macroeconomics. 0.2 Microeconomics topics include scarcity, opportunity cost, diminishing returns, elasticity, industrial organization, economies of scale and concentration. 0.3 Macroeconomics topics include unemployment, inflation, economic growth, the multiplier, equilibrium, fiscal policy and monetary policy. 0.4 The principle of money and banking are introduced along with the role of the Bank of Canada. - Part 1 Engineering Economics 1 Foundations of engineering economics 2 Time value of money 3 Combining factors 4 Interest rates 5 Present worth analysis 6 Annual worth analysis 7 Rate of return analysis, single 8 Rate of return analysis, multiple 9 Benefit-cost analysis and public sector economics 10 Making choices 11 Replacement decisions 12 Selecting from independent projects 13 Breakeven analysis 14 Effects of inflation 15 Depreciation methods 16 After-tax economic analysis 17 Sensitivity analysis 18 Risk analysis Computer Experience Use of Excel and Excel macros. Course Content Breakdown: Mathematics: 00% Basic Science: 00% Engineering Science: 00% Engineering Design: 00% Complementary Studies: 100% Total: 100% Other Information There will be handouts of exercises showing Canadian examples. Professor Dr. Michael Bennett, P.Eng, PMP Teaching Assistant Ms. Behnaz Rezaie SOME IMPORTANT GENERAL INFORMATION OF RELEVANCE TO THE COURSE Academic Integrity and Conduct UOIT is committed to the fundamental values of preserving academic integrity as defined in UOIT policies and contained in the UOIT Calendar. Students should familiarize themselves with UOIT’s policies and statements in this area. Acts of academic dishonesty, including plagiarism, cheating, aiding others in cheating, and examination impersonation, will be dealt with severely as they threaten the integrity of the academic system and are not acceptable. UOIT and faculty members reserve the right to use electronic means to detect and help prevent plagiarism. Students agree that by taking this course all assignments are subject to submission for textual similarity review to Turnitin.com. Assignments submitted to Turnitin.com will be included as source documents in Turnitin.com's restricted access database solely for the purpose of detecting plagiarism in such documents for five academic years. The faculty member may require students to submit their assignments electronically to Turnitin.com or the faculty member may submit questionable text on behalf of a student. The terms that apply to UOIT's use of the Turnitin.com service are described on the Turnitin.com website. (To read the entire policy, please go to: http://www.uoit.ca/EN/main2/11246/13525/14057/14152/turnitin_policy.html.) Accessibility To insure that disability-related concerns are properly addressed during this course, students with documented disabilities and who may require assistance to participate in this class are encouraged to speak with their instructor as soon as possible. Students who suspect they may have a disability that may effect their participation in this course are advised to go to the Centre for Students with Disabilities (room B297) as soon as possible. Approved by Dr. J. Michael Bennett, PEng, PMP, Associate Dean, FEAS, Undergraduate and Accreditation Date: Sep 01, 2K9