COURSE INTRODUCTION AND APPLICATION INFORMATION


Course Name
Engineering Economics
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
ISE 220
Fall
3
0
3
5
Prerequisites
None
Course Language
English
Course Type
Required
Course Level
First Cycle
Course Coordinator
Course Lecturer(s)
Assistant(s) -
Course Objectives To introduce the fundamental concepts of economic analysis for engineering and managerial decision making, to explain how these will affect the functioning of an engineering company and contribute to decision making in engineering operations.
Learning Outcomes The students who succeeded in this course;
  • Will be able to describe time value of money and economic equivalence
  • Will be able to analyze engineering and managerial decision making problems
  • Will be able to to make informed financial decisions as a project evaluation team member or project manager
  • Will be able to cosnider the effect of inflation on economic analysis
  • Will be able to build critical decision making tools for making appropriate personal, private or public economic and financial decisions
Course Content Economic analysis for engineering and managerial decision making. Techniques for evaluating the worth of prospective projects, investment opportunities and design choices. Interest and time value of money, methods for evaluation of alternatives: present worth, annual equivalent worth, rate of return, and payback method. Inflation, after tax economic analysis. Sensitivity and risk analysis.

 



Course Category

Core Courses
X
Major Area Courses
Supportive Courses
Media and Managment Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Related Preparation
1 Engineering Economic Decisions Fundamentals of Engineering Economics, Chapter 1
2 Time Value of Money Fundamentals of Engineering Economics, Chapter 2
3 Time Value of Money Fundamentals of Engineering Economics, Chapter 2
4 Time Value of Money Fundamentals of Engineering Economics, Chapter 2
5 Understanding Money Management Fundamentals of Engineering Economics, Chapter 3
6 Equivalance Calculations Under Inflation Fundamentals of Engineering Economics, Chapter 4
7 Midterm Exam
8 Present Worth Analysis Fundamentals of Engineering Economics, Chapter 5
9 Annual Equivalence Analysis Fundamentals of Engineering Economics, Chapter 6
10 Rate of Return Analysis Fundamentals of Engineering Economics, Chapter 7
11 Benefit-Cost Analysis Fundamentals of Engineering Economics, Chapter 8
12 Accounting for Depreciation and Income Taxes Fundamentals of Engineering Economics, Chapter 9
13 Project Cash Flow Analysis Fundamentals of Engineering Economics, Chapter 10
14 Review
15 Review
16 Review of the Semester  
Course Textbooks Fundamentals of Engineering Economics, 3rd ed., Chan S. Park, PrenticeHall..
References Contemporary Engineering Economics, Chan S. Park, 3rd ed., PrenticeHall.Engineering Economy, Leland Blank, Anthony Tarquin, McGrawHill.Principles of Engineering Economic Analysis, John A. White, Marvin H. Agee, Kenneth E. Case, Wiley. Lecture PowerPoint slides, Excel sheets supplied in lectures for example problems.

 

EVALUATION SYSTEM

Semester Requirements Number Percentage
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
2
25
Homework / Assignments
Presentation / Jury
Project
Seminar / Workshop
Midterms / Oral Exams
1
35
Final / Oral Exam
1
40
Total

Contribution of Semester Work to Final Grade
60
Contribution of Final Work to Final Grade
40
Total

ECTS / WORKLOAD TABLE

Activities Number Duration (Hours) Workload
Course Hours
Including exam week: 16 x total hours
16
3
48
Laboratory / Application Hours
Including exam week: 16 x total hours
16
Study Hours Out of Class
15
3
Field Work
Quizzes / Studio Critiques
2
10
Homework / Assignments
Presentation / Jury
Project
Seminar / Workshop
Midterms / Oral Exams
1
18
Final / Oral Exam
1
24
    Total
155

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Qualifications / Outcomes
* Level of Contribution
1
2
3
4
5
1 Have the ability to optimize the managerial decisionmaking processes with the assessment of quality in production and service systems using Industrial Engineering tools and techniques such as simulation, optimization, probability and statistics, and analyze, interpret and assess data obtained. X
2 Be able to design integrated business systems with a systems approach based on the business requirements by generating and developing multiple alternatives X
3 Can identify, analyze and develop solutions based on scientific evidence to Industrial Engineering problems encountered in practice X
4 Have the ability to identify the problems in Industrial Engineering issues such as resource allocation, production planning and scheduling, quality control and assurance, financial analysis, and risk analysis, etc. and find the optimal solution by developing multiple solutions for these problems using quantitative analysis and critical thinking techniques with systems approach X
5 Be able to take responsibility for him/herself and for colleagues and employees to solve unpredicted complex problems encountered in practice individually or as a group member X
6 Have the ability to evaluate the knowledge and skills obtained in Industrial Engineering, be able to identify the topics which require improvement, and direct learning efforts to improve these points X
7 Can present and share knowledge, thoughts, and suggestions for solutions to problems related to the Industrial Engineering with colleagues using written and oral communication tools to both specialist and nonspecialist audiences supported by quantitative and qualitative data X
8 Ability to follow the developments in the field of Industrial Engineering and ability to communicate with colleagues using a foreign language. ("European Language Portfolio Global Scale", Level B1) X
9 Ability to use software programs related to Industrial Engineering and to have the knowledge and skills to learn and use software programs, information and communication technologies faced in practice. (“European Computer Driving License", Advanced Level) X
10 Understanding of social consciousness and to value social rights and justice. To value quality management and quality processes related to environment and job safety X
11 Ability to consider social, scientific, and ethical values in data collection, interpretation, and implementation stages of the Industrial Engineering problems and projects X

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest

 

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