Engineering Economy (IE305) Course Detail

Course Name Course Code Season Lecture Hours Application Hours Lab Hours Credit ECTS
Engineering Economy IE305 5. Semester 2 0 0 2 5
Pre-requisite Course(s)
N/A
Course Language English
Course Type Compulsory Departmental Courses
Course Level Bachelor’s Degree (First Cycle)
Mode of Delivery Face To Face
Learning and Teaching Strategies Lecture, Question and Answer.
Course Coordinator
Course Lecturer(s)
  • Instructor Dr. Hakan Ömer Tunca
Course Assistants
Course Objectives This course aims to introduce the economic dimension of evaluating and selecting alternative investment projects. By the end of the course, the student will be able to investigate engineering economy problems, and formulate and solve such problems using appropriate conceptual and mathematical skills and modeling structures.
Course Learning Outcomes The students who succeeded in this course;
  • Students will be able to identify the principles and methods necessary to evaluate and select engineering alternatives.
  • Students will be able to discuss the concepts of time value of money and interest rates.
  • Students will be able to recognize, formulate, and analyze cash flow models in practical situations.
  • Students will be able to analyze cash flow series using present value, future worth, annual worth, and rate of return methods.
  • Students will be able to develop cash flow series considering the effects of depreciation, taxes and inflation
  • Students will be able to analyze decision problems related to equipment replacement.
  • Students will be able to interpret economy studies and investment decisions in the public sector.
Course Content Economic analysis for engineering and managerial decision-making; cash flows, effect of time and interest rate on money and physical assets; methods of evaluating alternatives: present worth, future worth, annual worth, rate-of-return and benefit/cost ratios; depreciation and taxes; effects of inflation.

Weekly Subjects and Releated Preparation Studies

Week Subjects Preparation
1 Introduction and Estimating Costs [1] Chapter 11
2 Foundations of Engineering Economy [1] Chapter 1
3 Foundations of Engineering Economy [1] Chapter 1
4 How time and interest affect money [1] Chapter 2
5 How time and interest affect money [1] Chapter 2
6 Nominal and effective interest rates [1] Chapter 3
7 Present worth analysis [1] Chapter 4
8 Midterm [1] Chapter 11, 1, 2, 3, 4
9 Annual worth analysis [1] Chapter 5
10 Rate of return analysis [1] Chapter 6
11 Benefit/Cost analysis and public sector projects [1] Chapter 7
12 Effects of inflation [1] Chapter 10
13 Depreciation methods [1] Chapter 12
14 After-tax economic analysis [1] Chapter 13
15 Final Exam [1] Chapter 11, 1, 2, 3, 4, 5, 6, 7, 10, 12, 13

Sources

Course Book 1. Basics of Engineering Economy, Leland Blank, Anthony Tarquin, McGraw-Hill Education
Other Sources 2. Contemporary Engineering Economics, CS Park, 3rd Edition, Addison Wesley, 1997.
3. Engineering Economy, GJ Thuesen & WJ Fabrycky, 9th Edition, Prentice Hall, 2001

Evaluation System

Requirements Number Percentage of Grade
Attendance/Participation - -
Laboratory - -
Application - -
Field Work - -
Special Course Internship - -
Quizzes/Studio Critics - -
Homework Assignments - -
Presentation - -
Project - -
Report - -
Seminar - -
Midterms Exams/Midterms Jury 1 40
Final Exam/Final Jury 1 60
Toplam 2 100
Percentage of Semester Work 40
Percentage of Final Work 60
Total 100

Course Category

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

The Relation Between Course Learning Competencies and Program Qualifications

# Program Qualifications / Competencies Level of Contribution
1 2 3 4 5
1 Applies knowledge in mathematics, science, and computing to solve engineering problems related to manufacturing technologies. X
2 Analyzes and identifies problems specific to manufacturing technologies.
3 Develops an approach to solve encountered engineering problems, and designs and conducts models and experiments. X
4 Designs a comprehensive manufacturing system (including method, product, or device development) based on the creative application of fundamental engineering principles, within constraints of economic viability, environmental sustainability, and manufacturability. X
5 Selects and uses modern techniques and engineering tools for manufacturing engineering applications.
6 Effectively uses information technologies to collect and analyze data, think critically, interpret, and make sound decisions.
7 Works effectively as a member of multidisciplinary and intra-disciplinary teams or individually; demonstrates the confidence and necessary organizational skills.
8 Communicates effectively in both spoken and written Turkish and English.
9 Engages in lifelong learning, accesses information, keeps up with the latest developments in science and technology, and continuously renews oneself.
10 Demonstrates awareness and a sense of responsibility regarding professional, legal, ethical, and social issues in the field of Manufacturing Engineering.
11 Effectively utilizes resources (personnel, equipment, and costs) to enhance national competitiveness and improve manufacturing industry productivity; conducts solution-oriented project and risk management; and demonstrates awareness of entrepreneurship, innovation, and sustainable development. X
12 Considers the health, environmental, social, and legal consequences of engineering practices at both global and local scales when making decisions.

ECTS/Workload Table

Activities Number Duration (Hours) Total Workload
Course Hours (Including Exam Week: 16 x Total Hours) 15 2 30
Laboratory
Application
Special Course Internship
Field Work
Study Hours Out of Class 15 5 75
Presentation/Seminar Prepration
Project
Report
Homework Assignments
Quizzes/Studio Critics
Prepration of Midterm Exams/Midterm Jury 1 8 8
Prepration of Final Exams/Final Jury 1 12 12
Total Workload 125