Engineering Economy

Course Description

Fundamentals and application of engineering economic principles to civil engineering problems. Evaluation of  alternatives. Value engineering and optimization with emphasis in civil engineering applications. 

Course Goals

  • Give students good exposure to, and working familiarity with the fundamentals of engineering economics and the management decision making processes that are used in engineering problem solving.
  • Give the students the opportunity to work with the state-of-the art software in problem solving in engineering economics and management decision making.
  • Give the students the experience of collaborating in project teams while working on course project(s) and enhancing their written and oral communication skills.

Learning Objectives

  • Understanding the concept of interest and equivalence.
  • Learning the methods of engineering economic analysis (present worth, rate of return, annual cash flow, and benefit-cost ratio.)
  • Understanding the concept of depreciation.
  • Understand the concept of value engineering.
  • Learning the basics of mathematical modeling by being able to develop and solve engineering optimization models using linear programming.
  • Learning to work with peers in project teams to deal with semi-real world scale projects.
  • Being able to communicate effectively both in written and oral form.

 Selected Topics

  • Engineering Decision Making Process
  • Equivalence and Compound Interest
  • Present Worth Analysis
  • Annual Cash Flow Analysis
  • Rate of Return Analysis
  • Benefit – Cost Ratio Analysis
  • Depreciation
  • Value Engineering
  • Linear Programming

Grades:

  • Mid term Exam                     25%
  • Final Exam                            45%
  • Research Projects                  15%
  • Quizzes & Homework          15%

 Textbook:

D.G. Newman. “Engineering Economic Analysis”. Engineering Press Inc. San Jose, California. 9th. Ed. 2003.

 The course will generally cover the text. However, some material from the references may also be covered.

 Moodl Link