Department of Industrial Engineering

Economy & Engineering Management (65301)

Total Credits 3
Prerequisite for Masters in Engineering Management
Prerequisites P1 : Calculus II (21102)
Instructor

Dr. Ramiz Assaf

Course Contents
This course is divided into two parts, Part I introduces the fundamental tools and concepts of economical evaluation of
business and engineering projects such as cash flow, discounted cash flow, present value, future value, net present value,
interest rate, decision making analysis and depreciation. This Part comprises 80% of the course.
Part II introduces the fundamental management concepts applications and, starting with basic issues such as What is a
business? and What is management?, continuing through management of quality, materials and new product
development, human resources management and communication. In addition this part illustrates the basic elements of
feasibility studies.
In additon to the above, for masters students, the course will cover the following concepts focusing on economic
applications: Introduction to probability and introduction to operations research and linear programming modelling and
formulation of economic problems.
Intended Learning Outcomes (ILO's)
1 The student will be able to demonstrate knowledge in decision making problems,
equivalence and compound interest rate and the ability to analyse and interpret
economical problems.
2 The student will learn the basics of Applied probabilities and their use ( with more
focus on economic applications)
3 The student will learn about the basics of Operations research/ linear programming and
its applications in the engineering ecnomics field

Student Outcomes
Contribution
(SO's)
A
70 %

20 %

10 %

Textbook and/ or Refrences

-

Blank, L. & Tarquin, A., (20011), Engineering Economy 6th Edition, New York: McGraw-Hill.
References:
Montgomery and Runger, (2010) 5th edition, Applied Statistics and Probability for Engineers
Taha (2006), Operations Research: An Introduction (8th Edition)
Assessment Criteria
Midterm Exam
Assignemnts/ quizzes
Final Exam

Percent (%)
30 %
20%
50 %

Course Plan
Week Topic
Foundations of Engineering Economy
1-2
How Time and Interest Affect Money
Examples on Combined Factors
3 Nominal and Effective Interest Rates + (Quiz in the 1st three chapters)
Present Worth Analysis +(Quiz in the Nominal and Effective Interest Rates)
4
Annual Worth Analysis
Rate of Return Analysis: Single Alternative +(Quiz in the Present/Annual Worth Analysis)
5
Rate of Return Analysis: Multiple Alternatives
6 Midterm Exam 28/9/2013
7 Benefit Cost Analysis
8 Project Financing and Noneconomic Attributes+ (Quiz in the Benefit/Cost Analysis)
9-12 Introduction to probability theory
13-16 Introduction to Operations Research/ Linear prgoramming+(Quiz in the probability theory in Week 13)
Final Exam (date will be decided later)