Engineering Economy(IND321)
| Course Code | Course Name | Semester | Theory | Practice | Lab | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| IND321 | Engineering Economy | 6 | 2 | 0 | 2 | 3 | 4 |
| Prerequisites | |
| Admission Requirements |
| Language of Instruction | Turkish |
| Course Type | Compulsory |
| Course Level | Bachelor Degree |
| Course Instructor(s) | Tuncay GÜRBÜZ tuncaygurbuz09@gmail.com (Email) Elif DOĞU edogu@gsu.edu.tr (Email) |
| Assistant | |
| Objective |
The world’s resources are decreasing day by day and the efficient use of these resources is one of the major fields of industrial engineering. In this context, Engineering Economics techniques are among the most effective techniques available. The knowledge that the student obtains through this course, which is obligatory in the program, will be advantageous for evaluation of the projects and investments in internships and in professional life. Hence the objectives of this course are to: • Give an insight about the time value of money • Ensure that the student is able to compare cash flows occurring at different times. • Give knowledge about the methods of evaluating a project or an investment alternative in everyday work. |
| Content |
Week 1: Introduction to Engineering Economy Week 2: The Equivalence of Cash Flows and the Concept of Compound Interest. Week 3: Measures of Worth I Week 4: Measures of Worth II – Incremental Analysis Week 5: Measures of Worth III - Additional Methods for Determining the Economic Value. Week 6: Quiz - Depreciation Week 7: Depreciation Week 8: Midterm Week 9: Taxes – After-Tax Economy Studies Week 10: Taxes – After-Tax Economy Studies Week 11: Retirement and Replacement Week 12: Retirement and Replacement - Quiz Week 13: Inflation Week 14: Inflation |
| Course Learning Outcomes |
A student who completes this course successfully, will be able to: 1. Define the time value of money from different perspectives. 2. Evaluate cash flows occurring at different times. 3. Compare equivalent values of cash flows. 4. Evaluate project and investment alternatives. 5. Decide on investment planning. 6. Calculate the depreciation expenses of the company’s equipments. 7. Explain how depreciation expenses affect the tax management. 8. Determine the economic lives of company’s equipments. 9. Apply the replacement analyses to company’s equipments. 10. Comprehend the concept of inflation. |
| Teaching and Learning Methods | Lecture; problem sessions; discussion; self study. |
| References |
• Fleischer, G.A., “Introduction to Engineering Economy”, PWS Publishing, Boston, 1994 • Tolga, E., Kahraman, C., “Mühendislik Ekonomisi”, İTÜ Yayınları, İstanbul, 1994 • Course Notes |
Theory Topics
| Week | Weekly Contents |
|---|---|
| 1 | Introduction to Engineering Economy |
| 2 | The Equivalence of Cash Flows and the Concept of Compound Interest |
| 3 | Measures of Worth I |
| 4 | Measures of Worth II – Incremental Analysis |
| 5 | Measures of Worth III - Additional Methods for Determining the Economic Value |
| 6 | Quiz - Depreciation |
| 7 | Depreciation |
| 8 | Midterm |
| 9 | Taxes – After-Tax Economy Studies |
| 10 | Taxes – After-Tax Economy Studies |
| 11 | Retirement and Replacement |
| 12 | Retirement and Replacement - Quiz |
| 13 | Inflation |
| 14 | Inflation |
Practice Topics
| Week | Weekly Contents |
|---|---|
| 1 | Introduction to Engineering Economy |
| 2 | The Equivalence of Cash Flows and the Concept of Compound Interest |
| 3 | Measures of Worth I |
| 4 | Measures of Worth II – Incremental Analysis |
| 5 | Measures of Worth III - Additional Methods for Determining the Economic Value |
| 6 | Quiz - Depreciation |
| 7 | Depreciation |
| 8 | Midterm |
| 9 | Taxes – After-Tax Economy Studies |
| 10 | Taxes – After-Tax Economy Studies |
| 11 | Retirement and Replacement |
| 12 | Retirement and Replacement - Quiz |
| 13 | Inflation |
| 14 | Inflation |
Contribution to Overall Grade
| Number | Contribution | |
|---|---|---|
| Contribution of in-term studies to overall grade | 3 | 40 |
| Contribution of final exam to overall grade | 1 | 60 |
| Toplam | 4 | 100 |
In-Term Studies
| Number | Contribution | |
|---|---|---|
| Assignments | 0 | 0 |
| Presentation | 0 | 0 |
| Midterm Examinations (including preparation) | 1 | 30 |
| Project | 0 | 0 |
| Laboratory | 0 | 0 |
| Other Applications | 0 | 0 |
| Quiz | 2 | 10 |
| Term Paper/ Project | 0 | 0 |
| Portfolio Study | 0 | 0 |
| Reports | 0 | 0 |
| Learning Diary | 0 | 0 |
| Thesis/ Project | 0 | 0 |
| Seminar | 0 | 0 |
| Other | 0 | 0 |
| Toplam | 3 | 40 |
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 1 | Knowledge and understanding of a wide range of basic sciences (math, physics, ...) and the main concepts of engineering | X | ||||
| 2 | Ability to combine the knowledge and skills to solve engineering problems and provide reliable solutions | X | ||||
| 3 | Ability to select and apply methods of analysis and modeling to ask, reformulate and solve the complex problems of industrial engineering | X | ||||
| 4 | Ability to conceptualize complex systems, processes or products under practical constraints to improve their performance, ability to use innovative methods of design | |||||
| 5 | Ability to design, select and apply methods and tools needed to solve problems related to the practice of industrial engineering, ability to use computer technology | X | ||||
| 6 | Ability to design experiments, collect and interpret data and analyze results | |||||
| 7 | Ability to work independently, ability to participate in working groups and have a multidisciplinary team spirit | X | ||||
| 8 | Ability to communicate effectively, ability to speak at least two foreign languages | |||||
| 9 | Awareness of the need for continuous improvement of lifelong learning, ability to keep abreast of scientific and technological developments to use the tools of information management | |||||
| 10 | Awareness of professional and ethical responsibility | |||||
| 11 | Knowledge of the concepts of professional life as "project management", "risk management" and "management of change" | |||||
| 12 | Knowledge on entrepreneurship, innovation and sustainability | |||||
| 13 | Understanding of the effects of Industrial Engineering applications on global and social health, environment and safety. | |||||
| 14 | Knowledge of the problems of contemporary society | |||||
| 15 | Knowledge of the legal implications of the practice of industrial engineering | |||||
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 14 | 4 | 56 |
| Working Hours out of Class | 1 | 15 | 15 |
| Midterm Examinations (including preparation) | 1 | 12 | 12 |
| Final Examinations (including preparation) | 1 | 17 | 17 |
| Total Workload | 100 | ||
| Total Workload / 25 | 4,00 | ||
| Credits ECTS | 4 | ||