Teaching Plan

FACULTY OF MANUFACTURING ENGINEERING

UNIVERSITI TEKNIKAL MALAYSIA MELAKA

ENGINEERING ECONOMY AND MANAGEMENT

BMFG 4623 SEMESTER 2 SESSION 2017/2018

1.0 CQI actions to be undertaken this semester

The following improvements are to be performed and considered:

o Allocate time for discussion among student and at the same time evaluate level of competency of each
topic.

2.0 Learning Outcomes

Upon completion of this subject, students should be able to:

Program Taxonomy
Assessment
Learning Outcomes (LO) Outcomes Blooms & Soft
Methods
(PO) Skills
1 Explain the principles and
terminology of engineering economy, C2 UG
12
concepts of time value of money, and PA
risk planning.
2 Apply the concepts, principle and
UG
techniques in engineering economy C3
12 TG
using engineering economy factor
PA
and interest rate.
3 Analyze complex problems and
C4 UG
scenario using engineering economy
2 CTPS 4 TG
factors (F/P, P/F, P/A, A/P, F/A, A/F,
PA
P/G, A/G factors)
4 Evaluate and select between
alternatives using suitable methods
C6
such as Present Worth, Future TG
4 CTPS 4
Worth, Annual Worth Analysis; Rate PA
of Return and Breakeven & Payback
Analysis.
5 Evaluate the project risk in C6
TG
engineering project. 10 CTPS 4
PA

*TG-assignment, UG – test, PA – final examination

Faculty of Manufacturing Engineering

Universiti Teknikal Malaysia Melaka 1/5
3.0 Synopsis
The course covers engineering economy and managing project & risk. Engineering economy
discusses about the time value of money and interest relationship; engineering economy factors;
nominal and effective interest rates; worth analysis; breakeven and payback analysis; which are
useful to define certain project criteria that are utilized by engineers and project managers to
select the best economic choice among several alternative. Management of risk incorporates the
concepts of probability and statistics in the evaluation of alternatives. This allows management to
determine the probability of success of failure of the project.

4.0 References

[1] * Blank, L and Tarquin, A., 2012, Engineering Economy, 7thEdition, McGraw Hill.*
[2] Whitman D. and Terry R., 2012, Fundamentals of Engineering Economics and Decision
Analysis, Morgan& Claypool Publishers.
[3] Sullivan W.G, Wicks E.M, Koelling C.P., 2012, Engineering Economy, 15th Edition, Prentice
hall international
[4] Park C.S., 2011, Contemporary Engineering Economics, 5th Edition, Pearson.
* Indicate official textbook

5.0 Course Implementations (SLT)

GUIDED LEARNING TIME INDEPENDENT LEARNING TIME

LEARNING Official Guided Self Assess
No.
ACTIVITIES Contact Freq. TOTAL Learning Freq TOTAL Study FREQ TOTAL ment Freq TOTAL
Hour Hours Hours Time
1 Lecture 3 14 42 - - - 2 14 28 - - -
2 Tutorial - - - 1 14 14 0.5 8 4 - - -
3 Assignment - - - - - - 4 2 8 0.5 1 0.5
4 Test - - - - - - 8 1 8 1 1 2
5 Project - - - - - - 5 1 5 0.5 1 0.5
8 3 1 3
6 Final Exam 8 1
Total 42 14 61 5
GRAND TOTAL 122
TOTAL CREDIT 3.05

6.0 Course Assessments

NO. EVALUATION CRITERIA %

1 Mid Term Test 20

2 Assignment 20

3 Final Exam 60
TOTAL 100

Faculty of Manufacturing Engineering

Universiti Teknikal Malaysia Melaka 2/5
7.0 Detail Syllabus and Teaching Plan

WEEK CONTENTS REMARKS

1.0 Foundations of Engineering Economy

-Engineering Economics: Description and Role in
Decision Making
1 -Interest Rate and Rate of Return
5-10/2 -Terminology and Symbols
-Cash Flow: Estimation and Diagramming
-Economic Equivalent

2.0 Engineering Economy Factors

-Single Amount Factors (F/P and P/F)
2 -Uniform Series Present Worth Factor and Capital
12-14/2 Recovery Factor (P/A and A/P)
-Sinking Fund Factor and Uniform Series Compound
Amount Factor (A/F and F/A)

2.0 Engineering Economy Factors (Continue)

3 -Arithmetic and Geometric Gradient Series Factor
19-23/2 (P/G and A/G)
-Factors Values for untabulated i or n values

3.0 Combining Factors

-Calculations for Uniform Series that are shifted.
4 -Calculations Involving Uniform Series and Randomly
26/2-2/3 Placed Single Amounts
-Calculations for Shifted Gradients

4.0 Present Worth Analysis

5 -Formulating Alternatives
5-9/3 -Present Worth Analysis of Equal Life Alternatives

4.0 Present Worth Analysis (Continue)

6 -Present Worth Analysis of Different Life Alternatives
12-16/3 -Future Worth Analysis
-Capitalized Cost Analysis

5.0 Annual Worth Analysis

-Advantages and Uses of Annual Worth Analysis
7 -Calculation of Capital Recovery and AW Analysis
19-23/3 -Evaluating alternatives by Annual Worth Analysis
-Life Cycle Cost Analysis – Project Life Cycle

24/3-1/4 MID TERM BREAK

6.0 Nominal and Effective Interest Rate

8 -Nominal and Effective Interest Rate Statement Mid Term Test
2-6/4 -Effective Annual Interest Rate (5/4)
-Effective Interest Rates for Any Time Period
-Equivalence Relations: Single Amounts and Series

Faculty of Manufacturing Engineering

Universiti Teknikal Malaysia Melaka 3/5
 with PP≥CP
-Equivalence Relations: Single Amounts and Series
with PP<CP

7.0 Rate of Return (ROR) Analysis

9 -Interpretation of a Rate of Return Value
9-13/4 -ROR Calculation Using a PW or AW Relation

8.0 Breakeven and Payback Analysis

10 -Breakeven Analysis for a Single Project
16-20/4 -Breakeven Analysis Between Two Alternatives
-Payback Analysis
9.0 Project Management
-Developing the Project Network
-Constructing a Project Network
11
-Activity-on-Node (AON) Fundamentals
23-27/4
-Network Computation Process
-PERT method

12 9.0 Project Management

30/4 - 4/5 - Application of Microsoft Project
10.0 Project Risk Management
-The Importance of Project Risk Management
13 - Project Risk Management Processes
7 - 11/5 - Risk Management Planning
- Risk Breakdown Structure
- Risk Identification
10.0 Project Risk Management (Continue)
- Qualitative Risk Analysis
14 - Quantitative Risk Analysis
14 – 18/5 - Risk Response Planning
- Risk Monitoring and Control
- Results of Good Project Risk Management
15
STUDY WEEK
19 – 27/5
16
FINAL EXAM
28/5 – 10/6

Faculty of Manufacturing Engineering

Universiti Teknikal Malaysia Melaka 4/5
 APPROVAL

Item Remarks by Head of Department

Continuous Quality Improvement (CQI)

Learning Outcomes (LO)

Assessment& Evaluation

Student Learning Time (SLT)

Prepared by ; Approved by ;

…………………………. ………………………………..
Name : Dean/Deputy Dean(Academic)/Head of Dept.
Post : Stamp :
Stamp :

Date : Date :
TEACHING PLAN IMPLEMENTATIONSTATUS
(MID-SEMESTER BREAK)

Comments :

Item Remarks by Lecturer

Status of current subject delivery

Suggestion for further improvement

Check by ;

………………………………..
Dean/Deputy Dean(Academic)/Head of Dept.
Stamp : Date : _______________

TEACHING PLAN IMPLEMENTATIONSTATUS

(16th WEEK OF SEMESTER)

Overall comments on delivery of this subject:

Check by ;

………………………………..
Dean/Deputy Dean(Academic)/Head of Dept.
Stamp : Date : _______________

Faculty of Manufacturing Engineering

Universiti Teknikal Malaysia Melaka 5/5