Engineering Economy (IE305) Course Detail

Course Name	Course Code	Season	Lecture Hours	Application Hours	Lab Hours	Credit	ECTS
Engineering Economy	IE305	Area Elective	2	0	0	2	5

Pre-requisite Course(s)
N/A

Course Language	English
Course Type	Elective Courses
Course Level	Bachelor’s Degree (First Cycle)
Mode of Delivery	Face To Face
Learning and Teaching Strategies	Lecture, Question and Answer.
Course Coordinator
Course Lecturer(s)	Instructor Dr. Hakan Ömer Tunca
Course Assistants
Course Objectives	This course aims to introduce the economic dimension of evaluating and selecting alternative investment projects. By the end of the course, the student will be able to investigate engineering economy problems, and formulate and solve such problems using appropriate conceptual and mathematical skills and modeling structures.
Course Learning Outcomes	The students who succeeded in this course; Students will be able to identify the principles and methods necessary to evaluate and select engineering alternatives. Students will be able to discuss the concepts of time value of money and interest rates. Students will be able to recognize, formulate, and analyze cash flow models in practical situations. Students will be able to analyze cash flow series using present value, future worth, annual worth, and rate of return methods. Students will be able to develop cash flow series considering the effects of depreciation, taxes and inflation Students will be able to analyze decision problems related to equipment replacement. Students will be able to interpret economy studies and investment decisions in the public sector.
Course Content	Economic analysis for engineering and managerial decision-making; cash flows, effect of time and interest rate on money and physical assets; methods of evaluating alternatives: present worth, future worth, annual worth, rate-of-return and benefit/cost ratios; depreciation and taxes; effects of inflation.

Weekly Subjects and Releated Preparation Studies

Week	Subjects	Preparation
1	Foundations of Engineering Economy	[1] pages 1-25
2	How time and interest affect money: single payment formulas	[1] pages 27-33
3	How time and interest affect money: single payment formulas (cont)	[1] pages 27-33
4	How time and interest affect money: uniform series formulas	[1] pages 34-36
5	How time and interest affect money: gradient formulas and shifted cash flows	[1] pages 37-57
6	Nominal and effective interest rates	[1] page 59-78
7	Present worth analysis	[1] page 80-106
8	Annual worth analysis	[1] pages 107-123
9	Rate of return analysis	[1] pages 124-159
10	Benefit/Cost analysis and public sector projects	[1] pages 160-181
11	Effects of inflation	[1] pages 237-258
12	Midterm
13	Unit method, cost indexes, cost-capacity equations, factor method, unit cost estimation	[1] pages 259-286
14	Depreciation methods	[1] pages 287-311
15	After-tax economic analysis	[1] pages 312-347
16	Final Examination Period

Sources

Course Book	1. Basics of Engineering Economy, Leland Blank, Anthony Tarquin, McGraw-Hill Education
Other Sources	2. Contemporary Engineering Economics, CS Park, 3rd Edition, Addison Wesley, 1997.
	3. Engineering Economy, GJ Thuesen & WJ Fabrycky, 9th Edition, Prentice Hall, 2001

Evaluation System

Requirements	Number	Percentage of Grade
Attendance/Participation	-	-
Laboratory	-	-
Application	-	-
Field Work	-	-
Special Course Internship	-	-
Quizzes/Studio Critics	-	-
Homework Assignments	-	-
Presentation	-	-
Project	-	-
Report	-	-
Seminar	-	-
Midterms Exams/Midterms Jury	2	60
Final Exam/Final Jury	1	40
Toplam	3	100

Percentage of Semester Work	60
Percentage of Final Work	40
Total	100

Course Category

Core Courses	X
Major Area Courses
Supportive Courses
Media and Managment Skills Courses
Transferable Skill Courses

The Relation Between Course Learning Competencies and Program Qualifications

#	Program Qualifications / Competencies	Level of Contribution
#	Program Qualifications / Competencies	1	2	3	4	5
1	Accumulated knowledge on mathematics, science and mechatronics engineering; an ability to apply the theoretical and applied knowledge of mathematics, science and mechatronics engineering to model and analyze mechatronics engineering problems.
2	An ability to differentiate, identify, formulate, and solve complex engineering problems; an ability to select and implement proper analysis, modeling and implementation techniques for the identified engineering problems.
3	An ability to design a complex system, product, component or process to meet the requirements under realistic constraints and conditions; an ability to apply contemporary design methodologies; an ability to implement effective engineering creativity techniques in mechatronics engineering. (Realistic constraints and conditions may include economics, environment, sustainability, producibility, ethics, human health, social and political problems.)
4	An ability to develop, select and use modern techniques, skills and tools for application of mechatronics engineering and robot technologies; an ability to use information and communications technologies effectively.
5	An ability to design experiments, perform experiments, collect and analyze data and assess the results for investigated problems on mechatronics engineering and robot technologies.
6	An ability to work effectively on single disciplinary and multi-disciplinary teams; an ability for individual work; ability to communicate and collaborate/cooperate effectively with other disciplines and scientific/engineering domains or working areas, ability to work with other disciplines.
7	An ability to express creative and original concepts and ideas effectively in Turkish and English language, oral and written, and technical drawings.
8	An ability to reach information on different subjects required by the wide spectrum of applications of mechatronics engineering, criticize, assess and improve the knowledge-base; consciousness on the necessity of improvement and sustainability as a result of life-long learning; monitoring the developments on science and technology; awareness on entrepreneurship, innovative and sustainable development and ability for continuous renovation.
9	Consciousness on professional and ethical responsibility, competency on improving professional consciousness and contributing to the improvement of profession itself.
10	A knowledge on the applications at business life such as project management, risk management and change management and competency on planning, managing and leadership activities on the development of capabilities of workers who are under his/her responsibility working around a project.
11	Knowledge about the global, societal and individual effects of mechatronics engineering applications on the human health, environment and security and cultural values and problems of the era; consciousness on these issues; awareness of legal results of engineering solutions.
12	Competency on defining, analyzing and surveying databases and other sources, proposing solutions based on research work and scientific results and communicate and publish numerical and conceptual solutions.
13	Consciousness on the environment and social responsibility, competencies on observation, improvement and modify and implementation of projects for the society and social relations and be an individual within the society in such a way that planing, improving or changing the norms with a criticism.

ECTS/Workload Table

Activities	Number	Duration (Hours)	Total Workload
Course Hours (Including Exam Week: 16 x Total Hours)	16	2	32
Laboratory
Application
Special Course Internship
Field Work
Study Hours Out of Class	16	5	80
Presentation/Seminar Prepration
Project
Report
Homework Assignments
Quizzes/Studio Critics
Prepration of Midterm Exams/Midterm Jury	2	3	6
Prepration of Final Exams/Final Jury	1	7	7
Total Workload			125