วิชา PRE 380 Engineering Economics 3(3-0-6)

Production Engineering Department KMUTT

PRE 380 Engineering Economics Study Plan Industrial Management 3(3-0-6) 01/06/05 KMUTT Instructor Head of Department: Dr.Tuanjai Somboonwiwat 1. Scope PRE 380 Engineering Economics 2/2548 2. Description Basic concepts in economic analysis. Cost concepts. Time value of money. Measuring the worth of investment comparison of alternatives. Depreciation and income tax considerations. Replacement analysis. Decision making under risk and uncertainty. Break-even Analysis 3. Objectives 3.1 Understand the concept of the time value of money and interests. 3.2 Be able to analyze cash flow series for engineering decisions based on comparisons of the worth of alternative courses of action with respect to their costs in a business environment of certainty. 3.3 Be able to apply modeling and sensitivity analysis techniques to simulate and evaluate various economic scenarios. 4. Instructor Dr.Tuanjai Somboonwiwat Office: PE 5304 e-mail : [email protected] Office hours: Wednesday 10:30-12:00 น (or by appointment) 5. Final grade: The final grade will be based on the total number of points earned during the entire session according to the performance in the following categories Midterm exam 45 % Final exam 40 % Quizzes & Homework 15 % 6. Textbook and website Textbook: Park, Chan S., Fundamentals of Engineering Economics 1st Edition, Upper Saddle River, NJ., Prentice Hall, 2004 Book website: http://www.prenhall.com/park/ Or http://www.eng.auburn.edu/%7Epark/fee/ Production Engineering Department KMUTT

7. Course outline Week Date Topic Instructor 1 1 June Introduction/ Engineering Economic Decisions 2 8 June Cost Concepts and Behaviors 3 15 June Time is Money 22 June Time is Money(Cont.) 4 29 June Understanding Money and Its Management 5 6 July Present Worth Analysis 6 13 July Annual Equivalent Worth Analysis 7 20 July Rate of Return Analysis 8 July 25- Midterm Exam August 3 9 Aug 10 Economic Analysis in the public Sector 10 Aug 17 Depreciation 11 Aug 24 Corporate Income Taxes 12 Aug 31 Replacement Analysis 13 Sep 7 Sensitivity Analysis 14 Sep 14 Break-even Analysis 15 Sep 21 Project Risk and Uncertainty Sep26-Oct 8 Final Exam