Economic Analysis of Systems Engineering Projects

Prof. Steven Corns. 46 ore, 6 CFU, da svolgersi presso Università Estera

Obiettivo

The objective of the course is to cover capital investment analysis from an engineering economics and systems engineering perspective. Topics will include: an explanation of cost concepts, cost estimating, life-cycle costing, interest, equivalence, present worth, equivalent worth, rate of return methods, economic comparisons of alternatives, depreciation and taxes, inflation and price changes, benefit-cost analysis, replacement analysis, capital planning and budgeting, and an introduction to risk and uncertainty analysis.

Competenze attese

This course will assume knowledge of the basic systems engineering concepts and mathematics. The course will
cover the tools necessary to perform cost estimating and support decisions based on these and other evaluations.

Programma/Contenuti

Lecture Topics:

1) Course Introduction – System Life-cycle Concepts

2) Economic and Cost Concepts

3) Interest Formulas and Equivalence

4) Alternatives and Decision Making

5) Decision Evaluation Theory

6) Life-cycle Cost Estimating

7) Estimating Cost and Economic Elements

8) Evaluating Errors in Estimating

9) Life-cycle Economic Evaluations

10) Life-cycle Optimization of Alternatives

11) Life-cycle Cost in Program Evaluation

12) Communication – System Procurement

13) Repairable Equipment System Design

Metodo didattico

This course will use weekly readings, lecture, two presentations, three homework assignments and three exams to aid student learning. The class meeting is intended to amplify and extend the reading material, demonstrate concepts using sample problems, and discuss specific issues as a group. Students are responsible for the assigned material whether or not covered explicitly in class. Likewise, students are responsible for all material covered in class, whether or not in the assigned readings, including any guest lecture or student project materials. Students are expected to take initiative to contact the instructor for assistance outside of class.

Strumenti didattici

Each student will have their own educational tools, giving a ratio of one to one. It is assumed that students will have their laptops.

Eventuali metodologie didattiche innovative

Students are encouraged to collaborate with distance students in different parts of the country using online resources and tools.

Libri di testo e materiale didattico prodotto nell'ambito del progetto

Required

Drs. Benjamin S. Blanchard and Wolter J. Fabrycky, Life- Cycle Cost and Economic Analysis, Fourth Edition. 1991 ISBN: 0-13-538323-4

Recommended

Wellington, Arthur M., The Economic Theory of the Location of Railways, John Wiley and Sons, 1903 (update of 1887 original).

Grant, E. L., Principles of Engineering Economy, Ronald Press Co., 1930.

Blank and Tarquin, Engineering Economy, McGraw Hill, 2005.

Eschenbach, Ted G., Engineering Economy - Applying Theory to Practice, Irwin, 1995

Thuesen, G.J., and W. J. Fabrycky, Engineering Economy, Prentice Hall, 2001

Steiner, Henry Malcolm, Engineering Economic Principles, McGraw-Hill, 1996

Anthony J. Tarquin, Engineering Economy, McGraw-Hill, 1989

Park, Chan S., Contemporary Engineering Economics, Addison-Wesley, 2002

Hull, John C., Fundamental of Futures and Options Markets, Prentice Hall, 2005

Galitz, Lawrence C., Financial Engineering - Tools and Techniques to Manage Financial Risk, Irwin, 1995

Sharpe, William F., Gordon J. Alexander, Jeffery V. Bailey, Investment, Prentice Hall, 1999.

Brigham, Eugene F., Louis C. Gapenski, Financial Management, Theory and Practice, The Dryden Press, 1999

Sullivan, William, Elin Wicks, James Luxhoj, Engineering Economy, 13th Edition, Prentice Hall, 2005

Controllo dell’apprendimento e forme di accertamento del profitto

Two presentations will be required during the semester,one individual presentation regarding engineering economy and one involving a learning community assigned in the class involving an advanced topic approved by the instructor. The three exams and three homework assignments for the course will be based on lecture
material and from the class reading.

Grading Policy: Range of Grades

EE Presentation 10% 0-69 % <18/30

Homework 15% 70-79% 18-24

LC Presentation 10% 80-89% 25/27

Three Exams 55% 90-100% 27/30

Attività extracurriculari

Laboratory visits to learn about PhD dissertations in Systems Engineering and Presentation/discussion with senior practicing systems engineers.