Department of Industrial and Manufacturing Engineering - Leading Process and Product Improvement

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IME 3200 - Engineering Cost Analysis


Catalog Description:

A course in engineering economics and the economic comparison of alternative technical systems. Includes interest, equivalence, depreciation, taxes, and risk. NOT FOR ENGINEERING CREDIT.

Prerequisites & Corequisites: Prerequisite: Recommended, MATH 1220 or MATH 2000 or MATH 1700.

Credits: 3 hours

Lecture Hours - Laboratory Hours: (3 - 0)


Prerequisites by Topic:

  1. A good knowledge of formulating and solving algebraic equations.
  2. Differential and integral calculus. (MATH 1230).

Long Term Behaviors:

In the future, students completing this course can:

  1. Use spreadsheet analysis for solving financial problems of all types.
  2. Be used as financial evaluators to judge the soundness in the selection of projects (from a large list) when working with constrained resources.
  3. Be asked to advise on suitability of a specific depreciation method best suited for a given situation in order to minimize taxes.
  4. Regularly make financial investment decisions consistently resulting in above average returns on their personal portfolio with reduced tax liabilities.

Course Objectives, Performance Criteria, and Outcomes:

Course Objectives

ABET-TAC Outcomes2

 

Performance Criteria Measured1

Evaluate multiple alternatives using time value of money techniques f*  

F3: Applies tools and modeling techniques suited to the problem

Use spreadsheets for financial analysis a*  

A2: Demonstrates the use of one or more tools (CAD, Word, Excel, PowerPoint, CAE) in presentation, analysis, research of a design

Solve real-world problems in engineering cost analysis f*  

F4: Did you improve your ability to solve real problems in this field?

Determine depreciation of a tangible asset using a variety of methods b    
Calculate income taxes for a corporation or an individual i    

Performance Criteria1: IME performance criteria may be found at http://www.wmich.edu/ime/performance-criteria.html

ABET-TAC Outcomes2: Outcomes may be found at http://www.abet.org/

*results tracked in ABET course notebooks


Textbooks:

Newnan, Donald G., Jerome P. Lavelle, and Ted G. Eschenbach, Engineering Economic Analysis, (New York: Oxford University Press, 2009, Tenth Edition).

References

Collier, Courtland A. and Glagola, Charles R., Enginering Economic and Cost Analysis, (Menlo Park: Addison Wesley Longman, Inc., 1998, Third Edition).
[TA177.4 .C65 1998]

Sullivan, William G., Wicks, Elin M., and James T. Luxhoj, Engineering Economy, (Upper Saddle River: Prentice-Hall, 2003, Twelfth Edition). [TA177.4 .E539 2003]

Blank, Leland T. and Tarquin, Anthony J., Engineering Economy, (McGraw Hill, 1998, Fourth Edition). [TA177.4 .B58 1998]


Course Coordinator:

Kailash Bafna
Western Michigan University
E-212 Parkview Campus
Kalamazoo, Michigan 49008-5336
Phone: 276-3355
Email: kailash.bafna@wmich.edu


Revision Date: Summer 2011

 

Department of Industrial and Manufacturing Engineering
Western Michigan University
Kalamazoo MI 49008-5336 USA
(269) 276-3350 | (269) 276-3353 Fax



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