SYLLABUS

1. Faculty: Faculty of Technical Sciences 2. Study Programme: Industrial Engineering 3. Course: Engineering Economy 4. Weekly Theory Hours: 3 Exercises Hours: 3 ECTS Credits: 6 Room Number: 305 5. Lecturer: Prof. Dr. Verka Meshko 6. Phone Number of the lecturer: +389 2 3214831 ext.107 7. E-mail address of the lecturer: meshko@ibu.edu.mk 8. Assistant: MSc Aleksandar Anastasovski 9. Phone Number of the assistant: +389 2 3214831 ext.136 10. E-mail address of the assistant: A.Anastasovski@t-home.mk Room Number: 408

11. Course Objectives: This course deals with the application of economic analysis models for decisions between alternatives. The content of the course is designed to provide students with the fundamental concepts of engineering economy.

12. Learning Outcomes: (What the student should know and be able to do after completion of the course.) At the end of this course, a student should be able to: 1. Have acquaintance with the subject of economic analysis, i.e. be able to formulate the problem, analyze it, search for alternative solution, select the preferred solution. 2. Have a mastery of the notion of time value of money including the concepts of present worth, future worth, annuities, gradient series, and geometric series. 3. Be able to tackle reality issues and practical applications such as changing interest rates, inflation, loan payment operations and bond problems. 4. Be familiar with methods of measuring investment worth. 5. Be able to compare alternatives using the methods of measuring investment worth. 6. Have an acquaintance with the economic analysis used in the public sector and government agencies. 7. Be able to include depreciation in economic analysis.

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13. Skill Outcomes: (What kind of skills the students should gain after completion of the course.) Written Communication skills Oral Communication skills Computer skills Working in laboratory Working in team Preparing Projects Knowledge foreign language Scientific and professional literature analysis Problem solving skills Management skills Other (Pls. Write) Decision making Ability to analyse

Necessary ( + ) Not Necessary ( )

+ + + + +

+ +

14. Course Textbooks: 1. Leland Blank; Anthony Tarquin; Scott Iverson, Engineering Economy, 6dn edition. McGrawHill, 2005.
2. Donald G. Newnan, Ted G. Eschenbach, Jerome P. Lavelle Engineering Economic Analysis: CDROM included containing Interactive Tutorials, ExcelRG Spreadsheets & Interest Tables, Oxford University Press, 2004. 3. Kenneth K. Humphreys, Basic Cost Engineering, CRC; 3 edition, 1995.

15. Course Articles:

16. Web Page of The Lecture Notes:

17. Teaching Methods a. Teaching ex cathedra (teacher as the figure of authority, standing in front of the class and lecturing) b. Interactive teaching (ask questions in class, assign and check homework, or hold class or group discussions) c. Mentor teaching (consultant-teacher who has a supervisory responsibility and supervising the students) d. Laboratory work e. Seminar Work (Preparing a seminar paper) f. Field Work (enables students to examine the theories and the practical experiences of a particular discipline interact) g. Semester Project h. Case Study (An in-depth exploration of a particular context) i. Students Team work

Ideal Percentage (%) 60 20

10

10

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18. Attendance: a. Attendance at lectures and exercises is compulsory. Final exams attendance criteria are 72% of theoretical and practical hours for 14 weeks. If there is less than 72 % attendance the student is not allowed to take the exam. b. Religious and national holidays will be considered as if had been attended. Official permits and health reports will be considered as if had been attended, but health reports and the other official permits can not exceed 15% of total course hours. These students should have at least 57% attendance for final exams. c. If there is overlapping in the lecture schedule, 36% attendance is necessary to enter the final exam. For these students health reports and the other official permits can not exceed 6% of total course hours. These students should have at least 30% attendance for final exams. d. Those students that do not have final exam attendance can not enter the makeup exams. They should repeat the course.

19. Exams (Mid-Term Exam, Final Exam, Make-up-1 Exam, Make-up-2 Exam, Make-up-3 Exam, Upgrading Exam) a. The examination is performed by Mid-Term and Final Exam at the middle and at the end of each semester respectively. b. The passing score is 50 credit points. c. Fourth year students will have Make-Up-3 Exam at the end of the 7th and 8th semester, if they have only one un-passed exam from all semesters. d. All students have the right to enter Upgrading Exam after final exams. For this purpose, it is necessary to make a written request. If they have a lower point in the upgrading exam, this point will be accepted as the passing score.

20. Grading: Grading will be done according to the following system

MGS system 100 point system ECTS system 4 point system Letter system 10 95-100 A 4,3 A+ 4,0 A 90-94 85-89 B 3,7 A3,3 B+ 9 80-84 75-79 C 3,0 B 2,7 B8 70-74 65-69 D 2,3 C+ 7 60-64 55-59 E 2,0 C 6 50-54 5 <50 F 0,0 F

21. Passing Score: a. The maximum number of credit points is collected during the semester, as follows. Mid-term Exam : 40 Credit Points, Final Exam : 40 Credit Points. Homework and activities : 20 Credit Points. Total : 100

b. The passing score is 50 Credit Points.

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22. Exam types:

Midterm exam essay type exam test type exam Final exam essay type exam test type exam Makeup exams (I-II) Number of essay type exam Number of test type exam

( X)

( X )

(X )

23. Weekly Study Plan

Weeks Course Registration Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Topics Foundations of Engineering Economic Factors: How Time and Interest Affect Money
Combining Factors Nominal and Effective Interest Present Worth Analysis Annual Worth Analysis Rate of Return Analysis (ROR): Single Alternative

Mid-Term Exam Week

Rate of Return Analysis (ROR): Multiple Alternatives

Benefit Cost Analysis and Public Sector Economics Making Choices: the Method, MARR, and Multiple Attributes Replacement and Retention Decisions Breakeven Analysis Cost Estimation and Indirect Cost Allocation
Depreciation Methods

Final Exam Week

*Note: The course schedule is subject to change depending on student performance;

24. Student workload: Please calculate the Total Student Work Load and then distribute that figure to the different engagements. For calculating the Total Student Work Load please multiply the course ECTS credits with standard figure 30. ECTS Credit: 6 x 30 = Activities Lecture hours for 14 weeks: Laboratory and class exercises for 14 weeks: Student Mentoring for 14 weeks: Consultation for 14 weeks: 180 Total Student work load Hours 42 42 3 3

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Exam preparations and exam hours (Midterm, Final, and Makeup). Each one should be at least 10 hours. Individual reading work for 14 weeks (Reading assignments/expectations for reading and comprehension is 5 pages per hour. Example: If a book 300 pages, total Individual reading work for 14 weeks 300:5 = 60 hours. Homework and work practice for 14 weeks:

20 60

10