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Engineering Economics

The Engineering Economics course (ISAEC373) covers key topics such as the definition and scope of engineering economics, interest formulas, depreciation methods, inventory control, and project management. It aims to equip students with the ability to analyze economic principles relevant to engineering decisions and evaluate projects using various economic appraisal techniques. The course includes lectures, problem-solving sessions, and assessments through internal tests and a semester-end examination.

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3 views3 pages

Engineering Economics

The Engineering Economics course (ISAEC373) covers key topics such as the definition and scope of engineering economics, interest formulas, depreciation methods, inventory control, and project management. It aims to equip students with the ability to analyze economic principles relevant to engineering decisions and evaluate projects using various economic appraisal techniques. The course includes lectures, problem-solving sessions, and assessments through internal tests and a semester-end examination.

Uploaded by

myboypunya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Engineering Economics

Course Code: ISAEC373 Credits: 1:0:0


Pre – requisites: NIL Contact Hours:14L
Course Coordinator:
Course Contents
Unit 1
Economics: Definition and Scope of Engineering Economics, Flow in an Economy, Law
of Supply and Demand, Concept of Engineering Economics, Types of Efficiency,
Elements of Costs, Other Costs/Revenues, Break-Even Analysis, Profit/Volume Ratio
(P/V Ratio), Elementary Economic Analysis, Design Selection for A Product, Building
Material Selection, Process Planning/Process Modification

Pedagogy: Lecture, chalk-and-board explanation, numerical problem solving, real-life


examples
Links:
Unit 2
Interest Formulas and Their Applications: Time Value of Money, Interest Formulas,
Single-Payment Compound Amount, Present Worth Amount, Equal-Payment Series
Compound Amount, Equal-Payment Series Sinking Fund, Present Worth Method of
Comparison, Revenue-Dominated Cash Flow Diagram, Cost-Dominated Cash Flow
Diagram, Future Worth Method.
Pedagogy: Lecture, worked examples, case-based discussion, tutorial problems
Links:
Unit 3
Depreciation: Methods of Depreciation, Straight Line Method of Depreciation, Declining
Balance Method of Depreciation, Sum-Of-The-Years-Digits Method of Depreciation.
Evaluation of Public Alternatives, Inflation Adjusted Decisions, Procedure to Adjust
Inflation, Inflation Adjusted Economic Life of Machine
Pedagogy: Lecture, numerical demonstrations, tutorial sheets, problem-solving sessions
Links:
Unit 4
Inventory Control: Purchase Model, Manufacturing Model, Make or Buy Decision,
Approaches for Make or Buy Decision, Simple Cost Analysis, Economic Analysis,
Break-Even Analysis

Pedagogy: Lecture, numerical problem solving, exam-oriented practice


Links:
Unit 5
Project Management: Phases of Project Management, Guidelines for Network
Construction, Critical Path Method (CPM), Gantt Chart/Time Chart, Pert (Project
Evaluation and Review Technique), Value Analysis/Value Engineering 2 When to Apply
Value Analysis, Value Engineering Procedure
Pedagogy: Lecture, numerical problems, case studies, revision discussions
Links:
Text Books:

1. Engineering Economics, R. Panneerselvam,,PHI Learning Private Limited, 2nd


Edition, 2012.

2. Engineering Economy, William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling,


Pearson Education, 17th Edition, 2022.

Reference Books:
1. Prasanna Chandra, Fundamentals of Financial Management, McGraw-Hill 2.

Self-Learning Case Study

Course Outcomes:
After completing the course, the student will be able to:
CO1: Understand basic economic principles relevant to engineering decisions
CO2: Analyze cost structures and break-even conditions
CO3: Apply time value of money concepts
CO4: Evaluate engineering projects using economic appraisal techniques
CO5: Assess replacement, depreciation and inflation effects

Course Assessment and Evaluation:

Continuous Internal Evaluation (CIE): 50 Marks


Assessment tool Marks Course outcomes
attained
Internal Test 30 CO1, CO2, CO3
Internal Test-II 30 CO3, CO4, CO5
Average of the two internal tests shall be taken for 30 marks.
Other Components
20 CO1, CO2, CO3,
MCQ CO4,CO5
Semester-End 100 CO1, CO2, CO3, CO4,
Examination (Scale down to 50 Marks)
CO5

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