SAP - EKTEK
Tugas-3: Menyusun suatu rencana bisnis/usaha beberapa
tahun kedepan, dan dapat mengantisipasi segala
kemungkinan agar rencana usaha tersebut layak
secara ekonomis.
8. Metode Depresiasi dan
perhitungan pajak
9. After Tax Cash Flow
10. Analisis Penggantian
7. Analisis Sensitivitas
Tugas-2: Menganalisis rencana investasi dengan
metode NPV; BCR; PBP;IRR.
6. Evaluasi Investasi
5. Bunga Nominal. Efektif. MARR
Tugas-1: Menyusun beberapa skema pinjaman
dengan tingkat suku bunga tertentu
4.Bunga majemuk dalam ekivalensi
2. Konsep Biaya
3. Konsep Nilai Uang terhadap Waktu
1. Pengenalan Ekonomi Teknik
INTRODUCTION
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The Role of Engineers in Business
Create & Design
• Engineering Projects
Analyze
Evaluate
Evaluate
• Production Methods
• Engineering Safety
• Environmental Impacts
• Market Assessment
• Expected
Profitability
• Timing of
Cash Flows
• Degree of
Financial Risk
• Impact on Financial
Statements
• Firm’s Market Value
• Stock Price
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Why Engineering Economy is
Important to Engineers
 Engineers design and create
 Designing involves economic decisions
 Engineers must be able to incorporate economic
analysis into their creative efforts
 Often engineers must select and implement from
multiple alternatives
 Understanding and applying time value of money,
economic equivalence, and cost estimation are vital for
engineers
 A proper economic analysis for selection and execution
is a fundamental task of engineering
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ENGINEERING ECONOMY
 Involves : Formulating, estimating, and
evaluating the economic outcomes of
alternatives designed to accomplish a
defined purpose.
 It is a tool to assist people in making
decisions.
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Role of engineering economy in
decision making
 Assist people in making decisions
 Time frame is the future
 Best estimates of what is expected to occur
o Cash flows
o Time of occurrence
o Interest rates
o Observed value in the future will differ form the estimate
made now
 Sensitivity analysis
o Performed during the engineering economic study to
determine how the decision might change based on varying
estimates
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 ENGINEERING ECONOMY involves the systematic
evaluation of the economic merits of proposed
solutions to engineering problems.
 To be economically acceptable (affordable),
solutions to engineering problems must demotrate
a positive balance of long-term benefits over longterm costs, and they must also promote the well
being and survival of an organisation.
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 Engineering economy is the dollars-and-cents
side of the decisions that engineers make or
recommend a firm to be profitable in highly
competitive marketplace
 Trade offs among different types of costs and
the performance provided by the proposed
design or problem solution.
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Engineering Economic Decisions
Needed e.g. in the following (connected) areas:
Manufacturing
Profit! Then continue
at the next stage…
Design
Financial
planning
Investment
and loan
Marketing
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Accounting vs. Engineering Economy
Evaluating past performance
Evaluating and predicting future events
Accounting
Engineering Economy
Past
Future
Present
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What Makes Engineering Economic
Decisions Difficult? Predicting the Future
 Estimating the required




investments
Estimating product
manufacturing costs
Forecasting the demand
for a brand new product
Estimating a “good” selling
price
Estimating product life and
the profitability of
continuing production
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Key Factors in Selecting Good
Engineering Economic Decisions
Objectives, available resources, time and uncertainty
are the key defining aspects of all engineering economic
decisions
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Types of Strategic Engineering Economic
Decisions in the Manufacturing Sector
 Service Improvement *
 Equipment and Process Selection *
 Equipment Replacement *
 New Product and Product Expansion *
 Cost Reduction *
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Example :
Healthcare Service Improvement
1 Traditional Plan: Patients visit
the service providers
 2 New Strategy: Service
providers visit the patients
Which one of the two plans
is more economical? The
answer typically depends on
the type of patients and the
services offered. Examples?

service providers
1
2
patients
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Service Improvement
 How many more jeans would Levi need to sell to justify the
cost of additional robotic tailors?
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Example 2:
Equipment and Process Selection
 How do you choose between using
alternative materials for an auto body
panel?
 The choice of material will dictate the
manufacturing process and the associated
manufacturing costs
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Which Material to Choose?
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Example 3:
Equipment Replacement Problem
 Key question:
When is the right time to
replace an old machine or
equipment?
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Equipment Replacement Problem
 Now is the time to
replace the old machine?
 If not, when is the right
time to replace the old
equipment?
Example 4:
New Product and Product Expansion
 Shall we build or acquire a
new facility to meet the
increased (increasing
forecasted) demand?
 Is it worth spending money
to market a new product?
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Example 5: Cost Reduction
 Should a company buy new
equipment to perform an
operation that is now done
manually?
 Should we spend money now, in
order to save more money later?
 The answer obviously depends
on a number of factors.
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Further Areas of Strategic Engineering
Economic Decisions in the Service Sector








Commercial Transportation
Logistics and Distribution
Healthcare Industry
Electronic Markets and Auctions
Financial Engineering and Banking
Retail
Hospitality and Entertainment
Customer Service and Maintenance
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PRINCIPLES OF ENGINEERING
ECONOMY *
1. Develop the Alternatives;
2. Focus on the Differences;
3. Use a Consistent Viewpoint;
4. Use a Common Unit of Measure;
5. Consider All Relevant Criteria;
6. Make Uncertainty Explicit;
7. Revisit Your Decisions
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Principle 1
DEVELOP THE ALTERNATIVES
The final choice (decision) is
among alternatives. The
alternatives need to be
identified and then defined for
subsequent analysis.
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Principle 2
FOCUS ON THE DIFFERENCES
Only the differences in expected future
outcomes among the alternatives are
relevant to their comparison and should
be considered in the decision.
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Principle 2
Only the cost (resource) difference
among alternatives counts
Option
Monthly
Fuel Cost
Monthly
Maintenance
Cash paid at
signing
(cash outlay )
Monthly
payment
Salvage
Value at end
of year 3
Buy
$960
$550
$6,500
$350
$9,000
Lease
$960
$550
$2,400
$550
0
The data shown in the green fields are irrelevant items for
decision making, since their financial impact is identical in both
cases
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Principle 3
USE A CONSISTENT VIEWPOINT
The prospective outcomes of the
alternatives, economic and other, should
be consistently developed from a defined
viewpoint (perspective).
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Principle 4
USE A COMMON UNIT OF MEASURE
Using a common unit of measurement to
enumerate as many of the prospective
outcomes as possible will make easier the
analysis and comparison of alternatives.
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Principle 5
CONSIDER ALL RELEVANT CRITERIA
Selection of a preferred alternative (decision
making) requires the use of a criterion (or
several criteria). The decision process
should consider the outcomes enumerated
in the monetary unit.
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Principle 6
MAKE UNCERTAINTY EXPLICIT
Uncertainty is inherent in projecting (or
estimating) the future outcomes of the
alternatives and should be recognized in
their analysis and comparison.
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Principle 7
REVISIT YOUR DECISIONS
Improved decision making results from an
adaptive process; to the extent
practicable, the initial projected outcomes
of the selected alternative should be
subsequently compared with actual results
achieved.
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The Others Principles of
Engineering Economics
1. An instant dollar is worth more than a distant
dollar… $
2. Marginal revenue must exceed marginal cost,
in order to carry out a profitable increase of
operations
3. Additional risk is not taken without an
expected additional return of suitable
magnitude $
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1
An instant dollar is worth more than a
distant dollar…
Today
6 months later
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2
Marginal (unit) revenue has to exceed marginal
cost, in order to increase production
Marginal
cost
Manufacturing cost
1 unit
Marginal
revenue
Sales revenue
1 unit
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3
Additional risk is not taken without a
suitable expected additional return
Investment Class
Potential
Risk
Expected
Return
Savings account
(cash)
Lowest
1.5%
Bond (debt)
Moderate
4.8%
Stock (equity)
Highest
11.5%
A simple illustrative example. Note that all investments imply
some risk: portfolio management is a key issue in finance
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ENGINEERING ECONOMIC ANALYSIS
PROCEDURE
1. Problem recognition, formulation, and evaluation.
2. Development of the feasible alternatives.
3. Development of the cash flows for each alternative.
4. Selection of a criterion ( or criteria).
5. Analysis and comparison of the alternatives.
6. Selection of the preferred alternative.
7. Performance monitoring and post-evaluation results.
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Steps in an Engineering
Economy Study
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Rational Decision-Making Process





Recognize the decision
problem
Collect all needed (relevant)
information
Identify the set of feasible
decision alternatives
Define the key objectives
and constraints
Select the best possible and
implementable decision
alternative
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A Simple Illustrative Example: Car to
Lease – Toyota or Honda?





Recognize the decision
problem
Collect all needed
(relevant) information
Identify the set of feasible
decision alternatives
Define the key objectives
and constraints
Select the best possible
and implementable
decision alternative

Need to lease a car

Gather technical and
financial data
Select cars to consider
Wanted: small cash outlay,
safety, good performance,
aesthetics,…
Choice between Toyota and
Honda (or others)
Select a car (i.e., Honda,
Toyota or another brand)




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Conclusion
An engineering economy study is
accomplished using a structured procedure
and mathematical modeling techniques.
The economic results are then used in a
decision situation that involves two or
more alternatives and normally includes
other engineering knowledge and input.
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 The term engineering economic decision refers to
any investment or other decision related to an
engineering project
 The five main types of engineering economic
decisions are (1) service improvement, (2)
equipment and process selection, (3) equipment
replacement, (4) new product and product
expansion, and (5) cost reduction
 The factors of time, resource limitations and
uncertainty are key defining aspects of any
investment project
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Mumu natapriatna
Cellphone: 08122023600
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Instructor
Time
Location
Telp. No.
: Mumu Natapriatna
: Wed,Thu, 08:30 to 12:30 pm
:
: 022 7311908
Mobile phone No.: 0812 2023600
Email: mumunata@gmail.com
Office hours:
Office location: C3
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IEG2H2-Engineering Economy
Even Semester, 2015
Syllabus
Course Description:
The purpose for this course is to introduce the economic justification and decision making of engineering projects, programs,
and organizational asset management. This course provide an introduction to discounted cash-flow analysis and its application
to practical problems using spreadsheets, an understanding of how to structure practical decision problems and how to model
them analytically as well as the role of, and the necessity for, engineering management of private and public organizations.
Required Text：
•William G. Sullivan, Elin M. Wicks, & James T. Luxhoj, “Engineering Economy,” 12th Ed., Pearson, 2003, ISBN 0-13-039555-2
•Newnan, Donald G., “Engineering Economic Analysis”, Engineering Press,Inc., 1992, California, USA
Other References：
•Grant, Ireson, Levenworth, ” Dasar-Dasar Ekonomi Teknik”, PT Rineka Cipta, 2001, Jakarta
•Thuesen, G.J. & Fabrycky, W.J., ” Engineering Economy”, 9th Edition, Prentice Hall, Inc., 2001, New Jersey, USA
•DeGarmo, Sullivan, Bontadelli, Wicks, ”Engineering Economy”, Tenth Edition, Prentice Hall, Inc., 1997, New Jersey, USA
•Steiner, H.M., ”Engineering Economy Principles”, Mc. Graw Hills International, 1996, Singapore
•Grant, Ireson, Leavenworth, “Principles of Engineering Economy”, John Wiley&Sons, 1990, Singapore
Tools:
An ability to set up and manipulate simple spreadsheets in Excel is expected. The use of the HP-12C or T I financial calculator
may be recommended.
Grade:
•Homework/Quiz 20% ,
•Midterm examination 25%,
•Final examination 35%,
•Project 20%,
•Participation %,
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The policy for the student final grade will be based on:
•> = 85
:A
•70 – 84,99 : B
• 55 – 69,99 : C
• 40 – 54,99 : D
•< 40
:E
Assessment:
•Homework
Homework will be assigned about every week in the form of a problem set. For each problem set, 50% of the points will be awarded for
completeness (i.e., a serious attempt at all problems), 50% will be allocated to accuracy in the selected problems. Homework is due at the
beginning of the class in Room .... on its due date. Will be collected in class, graded, and returned. Late homework receives 1/2 credit. The
basis for grading is effort – full credit for most incorrect answers.
•Exams
There will be a midterm exam in the 8th week in class. The final exam will be given after the 16th week. Mid-term and Final exam will be
open book and notes in class exam. You are expected to take the midterm and final exam on the dates given. There are no makeup exams!
If you have a justified scheduling conflict, you will have to make an arrangement with me one weeks before the exam. Any requests made
after that day (other than documented emergencies) may or may not be granted.
•Class Participation
Your presence and participation in class are essential for gaining mastery of the material. At first sight it might seem to you that the
concepts in this course are easy and might be quickly “crammed” before an exam. Experience shows that this first impression is more often
than not incorrect, and in this course we therefore require your attendance and participation. From time to time there may be a mini-quiz
in class. The results will enter into your class participation grade. Cellar phone is not allowed during the class. Please turn off your cellar
phone before you enter the classroom. We will do 360 degree evaluation in each class.
•Project
At least three students will be grouped as a project team. Two to three teams will be organized in the first class. Each team needs to find
out a subject for your team project related to the course issues taught in the class and to develop a project by the team members together.
A five-page written project report with double space & font size 12 point is required to submit before your final project presentation. Each
team needs to present your projects in the 13th week of the semester. For the project, 60% of the points will be awarded for completeness
of project based on the project report, 20% will be allocated to the team work, and 20% will be counted on the team presentation. Your
team needs to submit Microsoft Power Point file as the team work, and 20% will be counted on the team presentation. Your team needs to
submit Microsoft Power Point file as well as the final report before one week of the project presentation. No late report will be accepted
and there is no makeup report! The 360 degree evaluation from each team will be used as a reference to assign a grade for each team. The
final grades of project will be 95, 90, 85, 80, & 75.
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Schedule：
Week
Date
Content
Reading
Assignment
1
Introduction to Engineering Economy
WGS, Ch.1
2
WGS, Ch.2,3
3
4
5
6
7
8
9
10
11
12
•Cost concept
•Money-time relationship (Time Value Of
Money)
Economic Equivalence
Present Worth Method/analysis
Annual Worth analysis; Quiz
RoR Analysis
BCR Analysis; Quiz
Midterm Examination
PP and other analysis
Sensitivity Analysis
Depreciation and Income Taxes; Quiz
After Tax Cash flow
13
Replacement Analysis; Quiz
WGS,Ch.9; Newnan,
Ch.12
14
15
16
Project Presentation (1)
Project Presentation (2); Review
Final Examination
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WGS, Ch. 3
WGS, Ch. 4, 5
WGS, Ch. 4, 5
WGS, Ch.4,5
WGS,Ch.11
WGS, Ch.4,5
Newnan. Ch.9
WGS, Ch.6
Newnan,Ch.10,11
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Case #1: Buy, Rent or Repair?
• You wreck your car! And you absolutely need one to get
around.
• A wholesaler offers $2,000 for the wrecked car, and $4,500
if it is repaired. The car’s standing mileage is 58,000 miles.
• Your insurance company offers $1,000 to cover the cost of
the accident.
• To repair the car costs $2,000.
• A newer second–hand car costs $10,000 with a standing
mileage of 28,000 miles.
• A part–time technician can repair the car for $1,100, but it
takes a month. In the meantime, you need to rent a car,
which costs $400 per month.
• Question: What should you do?
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No panic!
• Apply the engineering economic analysis
procedure.
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Case #2
Six college students are making plans for spring break. They are
considering traveling 1200 miles to Florida by bus, train, plane, rental
cars, or rental van. Due to bus and train schedules, they limited their
options to plane, two rental cars, or a rental van.
The final data used in their analysis of transportation options are as
follows: round-trip airfare per person ($300); daily rental rate for each
car, all charges except fuel ($50); rental car gas mileage (20
miles/gallon); drop charge for each car ($150); daily rental rate for a
van, all charges except fuel ($80); rental van gas mileage (12
miles/gallon); drop charge for the van ($225); cost to travel to or from
the airport at the spring break destination ($50 per cab, two cabs
required); and average price of gasoline ($4.25/gallon). If they keep
the rental vehicle, the charges will be for 7 days; if they drop the
rental vehicle, the charges will be for 2 days.
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Case #3
• A firm is considering three investment
proposals (A,B, & C). A requires $1M
investment, B requires $2.5M, and C requires
$3M. The firm has $4.5M to invest. C is
contingent on A; B and C are mutually
exclusive. The “do nothing” alternative is not
feasible. Form the set of mutually exclusive
investment alternatives that exists.
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