SYLLABUS
IET-317 INDUSTRIAL ECONOMIC ANALYSIS
Summer 2007
Instructor: Chuck Edmonson
Phone: 937-229-2853
email:
Fax: 937-229-4975
Required Text: Engineering Economy, Sixth Edition, by Leland Blank and Anthony Tarquin
Course Description: Comparison of manufacturing or service industry projects and investments based on their economic value. Quantification of costs and benefits; analysis using present worth, rate of return, benefit to cost, replacement analysis, and break even methods. Prerequisites: MTH 137, SET 153L
Course Delivery: This course will be taught in an on-line format. Students will not be required to be physically in class at the University of Dayton, but will be required to participate in on-line lectures and class discussions. Students will be required to attend one live on-line class per week; other class time will be with student study groups.
As with most on-line courses, students will be required to work independently for part of the course. The course format includes: recorded lectures; on-line lectures and class discussions; independent readings and homework; and on-line quizzes and exams.
Class materials, such as the syllabus, course outline, homework assignments, quizzes, and exam will be posted on WebCT. To access this information, go to: and use your LDAP userid and password.
Computer Requirements: High-speed connection is required.
Required Equipment: Headset or microphone with speakers or earphones is required. Voice-over IP will be used in this course; this equipment is needed to hear and speak to the instructor and other class members.
Office Hours: The instructor will be available during online lectures and office hours, approximately one hour per week, and available other times via email, telephone and personal visits.
Email Addresses: Email is considered an official method of communication at the University of Dayton. Emails sent to students will be obtained from the UD Address Book. It is the student’s responsibility to ensure that their preferred email address is specified in the UD Address Book. If your preferred email address is not a Lotus Notes email address, you can have your mail forwarded to your preferred address by going to
Group Discussions: Students will be assigned to on-line study groups. Students are required to participate in weekly group discussions with their study groups. Grades for this section will be based on how often the student participates and the quality of their contribution to the discussion.
Homework: Homework is a necessary part of the learning process. Homework will be assigned for each chapter, but not all will be graded. Some of these homework problems or similar problems will appear on quizzes and exams.
Several homework problems and projects will be assigned that students will be required to submit to the instructor for grading. All assignments will be on WebCT.
Assignments submitted late will be given a maximum score of 80%. Additional points will be deducted depending on the lateness. Any assignment submitted more than 24 hours late will not receive any credit.
Quizzes: Quizzes will be administered online via WebCT. Students will be given a specified period of time to complete the quizzes. All quizzes must be taken to pass the course. No makeup quizzes will be given for any reason, but the lowest quiz or homework grade will be dropped.
Exams: Two exams will be administered, a mid-term and a final. Both exams will be administered online via WebCT. No makeup exams will be given. The dates for the exams will be announced ahead of time and students are expected to be available for the exams.
CLASS PARTICIPATION: All students are expected to attend ALL classes according to the university policy outlined in the student handbook and to actively participate. Class participation includes providing helpful comments that enhance class discussion, asking constructive questions, and answering questions by the instructor or other student’s questions. Extra credit may be awarded at the instructor’s discretion for exceptional student participation.
Grading Policy: Final grades will be based on the following:
Group Discussions10%Homework/projects15%
Quizzes25%
Mid-term Exam25%
Final Exam25% / Grading Scale (%)
93A
90A-
87B+
83B
80B-
77C+
73C
70C-
60D
<60 F
Academic Dishonesty: As an institution of higher learning, the University of Dayton expects all students to exhibit high standards of personal integrity. All students are expected to be familiar with the requirements stated in the student handbook. Any student guilty of violating any standard of academic integrity will receive a FAILING GRADE for the course.
IET317
COURSE OUTLINE
Course Number and Title:IET317 Industrial Economic Analysis
Credits and Contact Hours:3 semester hours, 45 contact hours
Course Description:Comparison of manufacturing or service industry
projects and investments based on their economic value. Quantification of costs and benefits; analysis using present worth, annual worth, and rate of return methods. Study of simple and compound interest.
Prerequisites:MTH 137, SET153L
Co-Requisites:None
Textbooks: Blank and Tarquin,Engineering Economy, 6th Edition, McGraw-Hill, 2005
References:Newnan, Engineering Economic Analysis, 6th Edition, Engineering Press, 1996
Course Coordinator: Charlie P. Edmonson
Course Outcomes:
Upon successful completion of this course, students should:
- Understand engineering economy factors and how they are used in a financial analysis.
- Know how to use engineering economy factors to aid in making personal and business financial decisions.
- Understand and be able to explain the difference between nominal and effective interest rates.
- Be able to demonstrate how to layout alternative project cash flows and use at least three approaches to determine which one provides the best financial payoff or the lowest cost option.
- Be able to demonstrate how economic analysis should be used to make an equipment replacement decision – including the use of economic service life.
- Understand and explain the data collection challenges in setting up an economic analysis, including financial factor that should be considered and the importance of conducting a sensitivity analysis.
- Be able to explain and correct common mistakes made with benefits/cost ratio and breakeven analysis.
- Be able to explain the Minimum Attractive Rate of Return (MARR), the source of money used to finance business projects, and the impact of inflation on economic analysis decisions.
- Use Microsoft Excel to complete financial analysis computations.
- Be able to demonstrate analytical, team building, and communication skills by completing and presenting a group project financial analysis.
Topics Covered:
Foundations of engineering economy (3 hrs.)
Factors: How time and interest affect money (3.5 hrs.)
Combining factors (3.5 hrs.)
Nominal and effective interest rates (3 hrs.)
Present worth analysis (3 hrs.)
Annual worth analysis (3 hrs.)
Rate of return analysis: Single alternative (3 hrs.)
Rate of return analysis: Multiple alternatives (3 hrs.)
Benefit/Cost Analysis (1.5 hrs.)
Making Choices (1.5)
Replacement and retention decisions (3 hrs.)
Breakeven analysis (3 hrs.)
Effects of inflation (3 hrs.)
Sensitivity analysis (3 hrs.)
Exams/Quizzes (5 hrs.)
Laboratory Projects and Related Activities: None
Relationship of the Course To Program Outcomes: See attached table.
Analytic and Measurement Equipment: Use of computer with Microsoft Excel software.
Student Competence with Design Practices, Tools, and Techniques: Students learn to performEngineering Economic Analyses of competing alternatives.
Capstone or Other Integrating Experiences: Students work on teams to accomplish a term project.
Prepared By: Charlie P. EdmonsonDate: 3-31-2006