MS-416 Engineering Economics

& Management
This course deals with the concepts of economics and management with and engineering
perspective.
Discipline: B.Sc. Electrical Engineering
Semester: 7th
Language of instruction: English + Urdu
Grading System:
RECOMMENDED TEXTBOOKS:
OBE based GPA Grading System
TITLE AUTHOR(S)
Quiz: 7.5
Assignments: 7.5 Reliability Handbook W G Ireson
Project:05 Engineering Economy William G.
Mid-term: 30 Sullivan,
Final-term: 50 Engineering Economy J. Tarquin
 MS-416 Engineering Economics
& Management
Sr. Taxonomy
CLO Domain PLO
No. Level
Estimate the depreciation of an asset using
1.  standard depreciation techniques to assess its Cognitive 2 10
impact on present or future value.
Predict the cost effectiveness of individual
project using methods learnt and the effects of
2. inflation on economic analysis of engineering Cognitive 3 6
projects.
Analyze the appropriate engineering economics
analysis method(s) for problem solving i.e.
3.  present worth, annual cost, rate of return, Cognitive 4 10
payback, break-even, benefit cost ratio.
 Discipline Issues

Attendance: Not necessary but desirable. Remember that 75% attendance is

essential to appear in the mid/final exam.
 Discipline Issues

Coming Late:
Try to come on time
5-7 minutes max relaxation.
If you come within this limit good enough and come quietly without seeking
permission.
Once I start the lecture do not even peep into the classroom.
 Discipline Issues
Mobile Phone
Use of mobile phone is not expected during the
class. However, emergency calls may be responded
to.
Kindly turn your mobile phone to silent mode
before the lecture begins.
Students found playing with/or using mobiles
unnecessarily are liable to disciplinary action.
 Discipline Issues

Leaving/ Bunking Classes

Bunking is not acceptable.
If you have some problem(bored/tied) you don’t wanna study, grab me in my
office before starting the lecture.
But arrange for the compensating lecture also.
 Discipline Issues
Assignment
Make a neat & legible assignment.
Original work is recommended, may work out in group of 3-4, try to
understand what you are writing.
Give proper references of books, websites that helped you, at the end.
Submit the assignment before the due date.
Submission after due date: Plain Zero.
 Introduction to Engineering
Economics
Engineering “is the profession in which a knowledge of the mathematical and natural
sciences gained by study, experience, and practice is applied with judgment to develop
ways to utilize, economically, the materials and forces of nature for the benefit of
mankind.” (The Accreditation Board for Engineering and Technology)

The economic aspects of engineering are emphasized, as well as the physical aspects.
Clearly, it is essential that the economic part of engineering practice be accomplished
well. Thus, engineers use knowledge to find new ways of doing things economically
 Introduction to Engineering
Economics
Engineering economy involves the systematic evaluation of the economic merits of
proposed solutions to engineering problems. To be economically acceptable (i.e.,
affordable), solutions to engineering problems must demonstrate a positive balance of
long-term benefits over long-term costs, and they must also
promote the well-being and survival of an organization,

embody creative and innovative technology and ideas,

permit identification and scrutiny of their estimated outcomes, and

translate profitability to the “bottom line” through a valid and acceptable measure of
merit.
 Introduction to Engineering
Economics
The mission of engineering economy is to balance these trade-offs in the most economical
manner.
A few more of the myriad situations in which engineering economy plays a crucial role in
the analysis of project alternative come to mind:
1. Choosing the best design for a high-efficiency gas furnace
2. Selecting the most suitable robot for a welding operation on an automotive assembly
line
3. Making a recommendation about whether jet airplanes for an overnight delivery
service should be purchased or leased
4. Determining the optimal staffing plan for a computer help desk