Industrial Engineering (English) | |||||
Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 |
Course Code: | IE318 | ||||||||
Course Name: | Engineering Economy | ||||||||
Course Semester: | Spring | ||||||||
Course Credits: |
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Language of instruction: | EN | ||||||||
Course Requisites: | |||||||||
Does the Course Require Work Experience?: | No | ||||||||
Type of course: | Compulsory | ||||||||
Course Level: |
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Mode of Delivery: | Face to face | ||||||||
Course Coordinator : | Dr.Öğr.Üyesi MEHMET TEVFİK ÇOBANOĞLU | ||||||||
Course Lecturer(s): |
Dr.Öğr.Üyesi MEHMET TEVFİK ÇOBANOĞLU |
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Course Assistants: |
Course Objectives: | I. To gain the ability of applying economic analyses in the related engineering discipline, İİ. To understand the major capabilities and limitations of discounted cash flow analysis for evaluating proposed capital investments. İİİ. To be able to recognize, formulate, and analyze cash flow models in practical situations. Understand the assumptions underlying these models, and the effects on the modeling process when these assumptions do not hold. IV. To be able to communicate the results of the modeling process to management and other non-specialist users of engineering analyses. |
Course Content: | Terminology and cash flow diagrams. Interest factors and their use. Nominal and effective interest rates. Continuous compounding. Present worth and capitalized cost analysis. Uniform annual cash flow analysis. Rate of return analysis. Internal and external rates of return. Benefit / cost ratio analysis. Payback period analysis. Replacement analysis. Inflation-interest relations. Depreciation. Depletion. After-tax economic analysis. Breakeven analysis. Capital budgeting under budget constraints. Sensitivity analysis and decision trees. Investment analyses under risk. |
The students who have succeeded in this course;
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Week | Subject | Related Preparation |
1) | Replacement analysis, defender and challenger, economic life | |
1) | Basic concepts, graphs, role of engineering economics in decision making, discounting and equivalence | |
2) | Discounting factors and their usage; usage of multiple factors; nominal and effective interest rates; continuous discounting | |
3) | Present worth analysis; capitalized cost analysis; equal life alternatives; different life alternatives | |
4) | Equivalent uniform annual cash flow analysis; equal life alternatives; different life alternatives; rate of return calculations; number of sign changes in cash flows and external investments | |
5) | Incremental rate of return analysis, benefit/cost ratio analysis; future worth analysis | |
6) | Replacement analysis, defender and challenger, economic life | |
8) | Depreciation and depletion, income taxes, after tax cash flow, inflation and interest | |
9) | Breakeven analysis; capital budgeting for independent investment alternatives | |
10) | Sensitivity analysis, expected value decisions, decision trees | |
10) | Sensitivity analysis, expected value decisions, decision trees | |
11) | Decision making under risk, uncertainty and risk, simulation, certainty equivalent, risk adjusted cash flow approach | |
12) | Decision making under risk, uncertainty and risk, simulation, certainty equivalent, risk adjusted cash flow approach Multiple criteria level | |
13) | Multiple criteria evaluation of investments | |
14) | Multiple criteria evaluation of investments |
Course Notes / Textbooks: | Park, C.S., Sharp-Bette, G.P. Advanced Engineering Economics, John Wiley and Sons, Inc., 1990. |
References: | Leland T. Blank, Anthony Tarquin, Engineering Economy, 6th Edition, McGraw-Hill, 2009. Park, C.S., Sharp-Bette, G.P. Advanced Engineering Economics, John Wiley and Sons, Inc., 1990. |
Learning Outcomes | 1 |
2 |
3 |
4 |
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Program Outcomes | ||||||||||
1) Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems. | ||||||||||
2) Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose. | ||||||||||
3) Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.) | ||||||||||
4) Ability to devise, select, and use modern techniques and tools needed for engineering practice; ability to employ information technologies effectively. | ||||||||||
5) Ability to design and conduct experiments, gather data, analyse and interpret results for investigating engineering problems. | ||||||||||
6) Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually. | ||||||||||
7) Ability to communicate effectively i Turkish, both orally and in writing; knowledge of a minimum of one foreign language. | ||||||||||
8) Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself. | ||||||||||
9) Awareness of professional and ethical responsibility. | ||||||||||
10) Information about business life practices such as project management, risk management, and change management; awareness of entrepreneurship, innovation, and sustainable development. | ||||||||||
11) Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions. |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
Program Outcomes | Level of Contribution | |
1) | Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems. | 4 |
2) | Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose. | 3 |
3) | Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.) | 2 |
4) | Ability to devise, select, and use modern techniques and tools needed for engineering practice; ability to employ information technologies effectively. | 3 |
5) | Ability to design and conduct experiments, gather data, analyse and interpret results for investigating engineering problems. | 2 |
6) | Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually. | 3 |
7) | Ability to communicate effectively i Turkish, both orally and in writing; knowledge of a minimum of one foreign language. | 2 |
8) | Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself. | 2 |
9) | Awareness of professional and ethical responsibility. | 5 |
10) | Information about business life practices such as project management, risk management, and change management; awareness of entrepreneurship, innovation, and sustainable development. | 2 |
11) | Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions. | 4 |
Expression | |
Brainstorming/ Six tihnking hats | |
Individual study and homework | |
Lesson | |
Reading | |
Homework | |
Problem Solving | |
Role Playing | |
Q&A / Discussion | |
Application (Modelling, Design, Model, Simulation, Experiment etc.) | |
Case Study |
Oral Examination | |
Individual Project | |
Presentation | |
Case study presentation |
Semester Requirements | Number of Activities | Level of Contribution |
Quizzes | 5 | % 15 |
Project | 1 | % 15 |
Midterms | 1 | % 30 |
Final | 1 | % 40 |
total | % 100 | |
PERCENTAGE OF SEMESTER WORK | % 60 | |
PERCENTAGE OF FINAL WORK | % 40 | |
total | % 100 |
Activities | Number of Activities | Duration (Hours) | Workload |
Presentations / Seminar | 1 | 3 | 3 |
Homework Assignments | 1 | 3 | 3 |
Quizzes | 5 | 5 | 25 |
Midterms | 1 | 1 | 1 |
Final | 1 | 1 | 1 |
Total Workload | 33 |