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COLLEGE OF ENGINEERING

COEB 442:ENGINEERING ECONOMICS (CORE)


2 credit hours
Semester 2, 2015/2016

Instructor
Tan Kwe Lu
Office : IEPRE
Extension number : 3366
E mail add: tan@uniten.edu.my
Programs

BEPE (Hons); BEEE (Hons); BME(Hons)


Textbook
Contemporary Engineering Economics, Chan S. Park, Prentice Hall, 5th Edition, 2011
Main reference :

Engineering Economy, William G. Sullivan, Elin M.


Wicks, James T. Luxhoj, Prentice Hall, 12 th Edition, 2006

Pre-requisites
MEFB 213 : Manufacturing Process, or
EEEB 273 : Electronic Analysis and Design

Course Description
This course is meant to equip the engineering students the fundamental concepts of engineering economy
and process of integrating engineering disciplines with economic analysis. This is extremely important in
order to make informed financial decisions in selecting among viable alternative projects. Emphasis on
financial and cost information, money management, cash flows and project risk.

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Course Objective
Upon successful completion of the course, students should be able to

develop basic skills and

competencies of making informed financial decisions using appropriate economic analysis techniques
being an intrapreneur or an entrepreneur.
Consultation hours
Thursday: 2pm 5pm

Course Outcomes (CO)


No.

Upon completion of this course, the student should be:

CO1

Explain the basics of engineering economics decision.

CO2

Carry out basic analysis of financial statements including the techniques of asset
depreciation.

CO3

Apply basic cost terminologies and types of cost used in economic analysis.

CO4

Describe time value of money and equivalence concepts and able to carry out relevant
calculations.

CO5

Interpret the economic feasibility of alternative investments and select/replace alternatives


using various measures of investment.

PO statements
Demonstrate knowledge on project
management principles and
PO12
entrepreneurship skills
WA11
*

a)

Demonstrate knowledge on project


management principles (C2,C3)
b)
Demonstrate knowledge on entrepreneurship
skills (C2,C3)

C2-Cognitive:Comprehension
C3-Cognitive:Application
C4-Cognitive:Analysis

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Course Outcomes Program Outcome Matrix

Course
Outcomes

PO1
a

PO2
c

PO3
a

PO4
c

PO5

PO6

PO
7

PO
8

PO
10

PO9
a

CO1
CO2
CO3
CO4
CO5

Assessment-Course Outcomes Matrix


Assessments
Quizzes (5%)
Assignments (20%)
Tests (25%)
Final Exam (50%)*

PO12
CO1

PO12
CO2

PO12
CO3

PO12
CO4

PO12
CO5

*A student must obtain at least 20% in the final examination to pass the course.

Grading scale
A student must obtain a minimum of 40% to pass this course. The final grade is based on the percentage
scale below:
Grade
A+
A
AB+
B
BC+
C
CD+
D
E

PO
11

Marks
90
80
75
70
65
60
55
50
45
43
40
0 - 39

Grade Point
4.00
4.00
3.67
3.33
3.00
2.67
2.33
2.00
1.67
1.33
1.00
0.00

Attendance

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Attendance is compulsory for all scheduled classes unless otherwise informed by the instructor. If you
have to be absent for any reason, it is your responsibility to make sure that you get all the materials
distributed in the previous class from your classmates and update yourself with the content of the
previous lecture.

Class Schedule
WEEK
1-4
19/10/15 23/10/15
26/10/15 30/10/15
2/11/15 6/11/15
9/11/15 13/11/15

TOPICS

CHAPTERS
1,2,8

1. BASICS OF FINANCIAL DECISONS AND COST INFORMATION


Engineering Economic Decisions
Accounting and Financial Decision Making
Cost Concepts Relevant to Decision Making

10/11/2015
Deepavali (Tuesday)

5-9
16/11/15 20/11/15
23/11/15 27/11/15
30/11/15 4/12/15
7/12/15 11/12/15
14/12/15 18/12/15
11/12/15
Sultan Selangor's
Birthday(Friday)

3,4,5,6,7

1. BASICS OF FINANCIAL DECISONS AND COST INFORMATION (CONT.)


Interest Rate and Economic Equivalence
Understanding Money and Its Management
2. EVALUATING BUSINESS AND ENGINEERING ASSETS
Present Worth Analysis
Annual Equivalent Worth Analysis
Rate of Return Analysis

Test 1
4/12/15-Fri:5pm

10
21/12/15 25/12/15

SEMESTER BREAK

24/12/2015
Prophet Muhammad's
Birthday (Thursday)
25/12/2015
Christmas (Friday)
11-13
28/12/15 1/1/16
4/1/16 8/1/16
11/1/16 15/1/16

5,6,7

2. EVALUATING BUSINESS AND ENGINEERING ASSETS (CONT.:)


Present Worth Analysis
Annual Equivalent Worth Analysis
Rate of Return Analysis

1/1/2016
New Year (Friday)
Test 2
15/1/2016:Fri:5pm

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14
18/1/16 22/1/16

3. ANALYSIS OF PROJECT CASH FLOWS


Depreciation

15
25/1/16 29/1/16

14

4.SPECIAL TOPICS IN ENGINEERING ECONOMICS


Replacement Decisions

24/1/2016
Thaipusam (Sunday)
16-18
1/2/16 17/2/16

Final Exam Week

8/2/2016-9/2/2016
Chinese New Year (Monday
and Tuesday)

What is Program Educational Objectives (PEO)?


PEO are objectives that UNITEN graduates should achieve after five (5) years of graduation.

What are Programme Outcomes (PO)?


PO are the expected traits that UNITEN students should have upon graduation.
Summary of BEEE/BEPE/BCCE Programme Educational Objectives (PEO)
Program Educational Objectives
PEO
No. UNITEN produces EE, EP and CC engineering graduates who:
PEO1 Practicing engineers in electrical/computer and communication engineering with the ability to venture into energy
related business.
PEO2 Hold leadership responsibilities and/or establish their own enterprises.
PEO3 Have professional qualifications/certifications in electrical/computer and communication engineering related areas.
PEO4 Engages in activities to enhance knowledge in their professional works.
BEEE/BEPE/BCCE Programme Outcomes (PO)

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PO
No.

PO1

PO2

Program Outcomes
Students graduating from the Bachelor of Electrical & Electronics Engineering (BEEE) / Bachelor of
Electrical Power Engineering (BEPE) / Bachelor of Computer & Communication Engineering
(BCCE) programmes will have the ability to:
PO Statements
Sub-attributes
a) Comprehend the fundamental knowledge of mathematics,
science and electrical/computer & communication
Apply fundamental knowledge of
engineering (C1,C2)
mathematics, science and
b) Apply fundamental knowledge of mathematics, science and
electrical/computer & communication
electrical/computer & communication engineering
engineering principles in solving complex
principles in solving engineering problems (C3, C4)
problems
c) Solve complex engineering problems by
WA1 (WK1-WK4)
relating/incorporating fundamental knowledge of
mathematics, science and electrical/computer &
communication engineering principles (C5,C6)
a) Identify, formulate and solve electrical/computer &
Identify, formulate, analyse and solve
communication engineering problems (C3, C4)
complex electrical/computer &
b) Evaluate and synthesize the solution to complex
communication engineering problems
electrical/computer & communication engineering
WA2 (WK1-WK4)
problems (C5,C6)

PO3

Design solutions for complex


electrical/computer & communication
engineering problems that meet specific
needs with appropriate consideration for
public health and safety, culture, society,
and environment
WA3 (WK5)

a) Illustrate solutions for electrical/computer &


communication engineering problems with appropriate
consideration for public health and safety (C3, C4)
b) Illustrate solutions for electrical/computer &
communication engineering problems with appropriate
consideration for culture, society, and environment (C3,
C4)
c) Propose solutions for complex electrical/computer &
communication engineering problems that meet specific
needs with appropriate consideration for public health
and safety, culture, society, and environment (C5,C6)

PO4

Conduct investigations, interpret data and


provide conclusions in investigating
complex problems related to
electrical/computer & communication
engineering
WA4 (WK8)

a) Use research methods for collecting data (C1, C2)


b) Analyse and interpret data using engineering principles
and appropriate techniques (C3,C4)
c) Design & evaluate solutions to complex engineering
problems by employing research methods and data
interpretation skills (C5,C6)

PO5

Create appropriate techniques, select


resources, and apply modern engineering
tools to execute complex engineering
activities
WA5 (WK6)

a) Usage of modern tools to execute electrical/computer &


communication engineering activities (P1,P2)
b) Manipulation of modern tool to execute complex
engineering activities (P3,P4)

PO6

Apply reasoning in assessing societal,


health, safety, legal and cultural issues and
the consequent responsibilities relevant to
professional engineering practice
WA6 (WK7)

PO7

Demonstrate knowledge of the impact of


professional engineering solutions in
environmental contexts and the need for
sustainable development
WA7 (WK7)

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a)

Apply reasoning in assessing societal, legal and


cultural issues and the consequent responsibilities relevant
to professional engineering practice (C3, C4)
b)
Apply reasoning in assessing health and safety issues
and the consequent responsibilities relevant to professional
engineering practice (C3, C4)

No sub-attribute (C2,C3)

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Program Outcomes
Students graduating from the Bachelor of Electrical & Electronics Engineering (BEEE) / Bachelor of
Electrical Power Engineering (BEPE) / Bachelor of Computer & Communication Engineering
(BCCE) programmes will have the ability to:
PO Statements
Sub-attributes
Demonstrate commitment to professional
PO8 and ethical principles
No sub-attribute (A3)
WA8 (WK7)
a)
Communicate effectively by means of oral
presentation (P3)
Communicate effectively on complex
b)
Communicate effectively by means of report writing
engineering activities
PO9
(P3)
WA10
c)
Communicate effectively by means of oral
presentation and/or report writing on complex
engineering activities (P3)
Function effectively as an individual and in
PO10 a group with the capacity to be a leader
No sub-attribute (A4)
WA9
Acknowledge the need for, and be able to
PO11 engage in life-long learning
No sub-attribute (C2)
WA12
c)
Demonstrate knowledge on project management
Demonstrate knowledge on project
management principles and
principles (C2,C3)
PO12
entrepreneurship skills
d)
Demonstrate knowledge on entrepreneurship skills
WA11
(C2,C3)
PO
No.

for Washington Accord Graduate


The Engineer and Society: Level of knowledge and responsibility
Graduate Attribute Profiles WA6: Apply reasoning informed by contextual knowledge to assess societal, health,
safety, legal and cultural issues and the consequent responsibilities relevant to professional engineering practice and
solutions to complex engineering problems. (WK7)
Project Management and Finance: Level of management required for differing types of activity
Graduate Attribute Profiles WA11: Demonstrate knowledge and understanding of engineering management
principles and economic decision-making and apply these to ones own work, as a member and leader in a team, to
manage projects and in multidisciplinary environments
Knowledge Profile WK7
Comprehension of the role of engineering in society and identified issues in engineering practice in the discipline:
ethics and the professional responsibility of an engineer to public safety; the impacts of engineering activity:
economic, social, cultural, environmental and sustainability

Brief introduction on the Washington Accord


Six international agreements governing mutual recognition of engineering qualifications and professional
competence
Agreements covering tertiary qualifications in engineering:
1.The Washington Accord signed in 1989 was the first - it recognizes substantial equivalence in the accreditation of
qualifications in professional engineering, normally of four years duration. (Malaysia - Represented by Board of
Engineers Malaysia, 2009)
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