Production Engineering Department KMUTT
PRE 380 Engineering Economics
Study Plan
Industrial Management
3(3-0-6)
01/06/05
KMUTT
Instructor
Head of Department:
Dr.Tuanjai Somboonwiwat
1. Scope
PRE 380 Engineering Economics 2/2548
2. Description
Basic concepts in economic analysis. Cost concepts. Time value of money.
Measuring the worth of investment comparison of alternatives. Depreciation
and income tax considerations. Replacement analysis. Decision making under risk
and uncertainty. Break-even Analysis
3. Objectives
3.1 Understand the concept of the time value of money and interests.
3.2 Be able to analyze cash flow series for engineering decisions based on comparisons of the
worth of alternative courses of action with respect to their costs in a business environment
of certainty.
3.3 Be able to apply modeling and sensitivity analysis techniques to simulate and evaluate
various economic scenarios.
4. Instructor
Dr.Tuanjai Somboonwiwat
Office: PE 5304 e-mail : tuanjai.som@kmutt.ac.th
Office hours: Wednesday 10:30-12:00 น (or by appointment)
5. Final grade: The final grade will be based on the total number of points earned during the entire
session according to the performance in the following categories
Midterm exam
45 %
Final exam
40 %
Quizzes & Homework
15 %
6. Textbook and website
Textbook: Park, Chan S., Fundamentals of Engineering Economics
1st Edition, Upper Saddle River, NJ., Prentice Hall, 2004
Book website: http://www.prenhall.com/park/
Or http://www.eng.auburn.edu/%7Epark/fee/
Production Engineering Department KMUTT
7. Course outline
Date
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1 June
Topic
Introduction/ Engineering
Economic Decisions
8 June
Cost Concepts and Behaviors
15 June
Time is Money
22 June
Time is Money(Cont.)
29 June
Understanding Money and Its
Management
6 July
Present Worth Analysis
13 July
Annual Equivalent Worth Analysis
20 July
Rate of Return Analysis
July 25Midterm Exam
August 3
Aug 10
Economic Analysis in the public
Sector
Aug 17
Depreciation
Aug 24
Corporate Income Taxes
Aug 31
Replacement Analysis
Sep 7
Sensitivity Analysis
Sep 14
Break-even Analysis
Sep 21
Project Risk and Uncertainty
Sep26-Oct 8
Final Exam
Instructor