Department of Manufacturing Systems Engineering and Management
MSE 304 – Engineering Economy, Ticket#16716
Fall 2018, Thursday 19:00 to 21:45, JD Building, Room 3504
This class is design as half online and half on-campus session
The first class session will be on Thursday, 8/30/18
INSTRUCTOR:
Hamid Gholami, (B.S./M.S. – Mechanical Engineering; M.S. Engineering Management) Expertise: Engineering Consulting, Decision-Making and Risk Analysis and Operations Planning. ISO 9001 and AS 9100 lead auditor, Black Belt of Six Sigma Methodology. Lean Manufacturing Champion and Continues Improvement Leader.
-Department of Manufacturing Systems Engineering and Management (MSEM) -Department Office: (818) 677-2167
-Employment: Vice President of Operations. Accurate Electronics, Chatsworth, CA
-Faculty email: [email protected]
Office Hours: Every other Thursday 18:00-19:00 Office: JD Building room 3308
TEXTBOOK:
Engineering Economy, 8th Edition, 2011 Leland T. Blank and Anthony J. Tarquin, McGraw-Hill, ISBN 007-352343-7 : 978-007352343-9
COURSE PACKET: http://www.csun.edu/~hamidg
CATALOG DESCRIPTION:
Prerequisite: MATH 150B and completion of the lower division writing requirement. The systematic evaluation of the economic benefits and costs of projects involving
engineering design and analysis. Economic decision-making in an environment of limited resources and uncertainty. Present economy, the economy of multi-year projects, selection among competing and independent alternatives, sensitivity of outcomes to input parameters, before- and after-tax analyses, replacement economy, inflation, and
breakeven analysis in production environments. (Design units: 0.5)
TENTATIVE SCHEDULE:
This is a tentative schedule. Some modifications may be made to the schedule in order to better meet the needs of the class.
Week Topic Area Chapters Assignments, Exams
1 Introduction to interest rates Ch.1 Read all sections
2 Factors Ch.2 Read all sections
3 Combining Factors Ch.3 Read all sections
4 Nominal and Effective Int. Rates Ch.4 (project Status Report Due) 5 Present worth Analysis Ch.5 Read all sections
6 Annual worth Analysis Ch.6 Read all sections
7 Benefit/Cost Ratio Analysis Ch.9
8 MidtermExam On-Campus Chapters 1 to 6 and 9
9 Replacement Analysis Ch.11 Read all sections
10 Effect of Inflation Ch.14 Read all sections
11 Depreciation Ch.16 Read all sections
12 After-tax Analysis Ch.17 Read all sections
13 After-tax Analysis Ch.17 Read all sections
14 Sensitivity Analysis Ch.18 Read all sections
15 Final Exam, Term Project due, 12/13/2018
---- ---COURSE LEARNING OBJECTIVES:
This course is designed to contribute primarily to the students’:
Knowledge of, and ability to apply, time-money relationships, cash flow, and effect of inflation
Understanding of the creation of competitive advantage through effective management of contemporary manufacturing enterprises
Ability to apply knowledge of mathematics, science and engineering
Ability to identify, formulate, and solve manufacturing systems engineering problems
Knowledge of, and ability to apply, after-tax analysis
Ability to learn independently and as a member of a collaborative team
Ability to use the contemporary techniques, skills and tools necessary for effective manufacturing systems engineering practice
Ability to communicate effectively in both the written and spoken modes.
Knowledge of, and ability to apply, evaluation methods such as present worth method, annual worth method, future worth method and benefit/cost ratio (B/C) method
STANDARD OPERATING PROCEDURES:
1. The syllabus offers important and relevant information regarding the course objectives, student conduct, performance, expectations, assignments, and the grading scale. Please read it thoroughly. 2. Class members are encouraged to maintain personal and professional standards consistent with
The Fundamental Principles of the Code of Ethics of the Accreditation Board for Engineering and Technology; i.e.,
Engineers uphold and advance the integrity, honor and dignity of the engineering profession by:
a. Using their knowledge and skill for the enhancement of human welfare;
b. Being honest and impartial, and serving with fidelity the public, their employers and clients;
c. Striving to increase the competence and prestige of the engineering profession; and
d. Supporting the professional technical societies of their disciplines.
3. Class members will be considerate and respectful to their colleagues, and to the instructor.
4. Course presentations are typically not replications of textbook material. The posted Power Point lecture notes are provided as a companion to the textbook, which is mandatory to read as assigned. Please make sure you also read the notes under the slides (available for chapters 4 on).
5. Class members are responsible for material in textbook reading assignments, and HW assignments (end-of-chapter exercises, Excel HW, Final Project).
6. My web site will be used to post class material.
7. Every effort should be made to take the six to ten quizzes at the specified dates. They are based on textbook chapters, PowerPoint lecture material, and homework assignments.
8. Midterm and the final exams are open-book format.
9. Cheating on the quizzes or the exams will result in no credit for the quizzes or exam in question, and you will be referred to the college administration. This is university policy and there will be no exceptions. All students should be aware that even one incident of academic dishonesty may also merit expulsion from the University.
10. Tardy submissions are unacceptable to the instructor and unfair to other class members. Professionalism dictates timely submission of the project report.
11. Plus/minus grading will be used for the overall course grade.
12. Withdrawing from (dropping) this course should be accomplished during the first two weeks of instruction. Please note that failure to officially drop this class results in a grade of U, which is the equivalent of an F for your transcript and grade point average. For additional information regarding withdrawals, see FAQs at www.csun.edu/msem, or contact your academic advisor.
Teamwork is required for term project. Thus, students will be required to be part of a group (team size: 3-4). Under these circumstances, students may be asked to complete a team member performance evaluation for the other group members. All team members are expected to contribute similar amounts of work to achieve team goals. The evaluation provides the opportunity for student feedback on this “division of labor” within the group.
PROJECT AND REPORT
Select one of the two following topics:
1. Investing in mutual funds: Select one mutual fund from each of three different firms. Acquire information about the funds, their policies, their costs, etc. Track and graph the value(s) of the funds from 9/4/18 through 11/30/18. Determine your before-tax rate of return on each of the funds (including your costs of investment). Assess the relative performance of each of the funds
2. Investing in a private residence: Select a private residence currently on the market. Acquire information, estimate costs, and generate a cash flow associated with investing in the residence. Based on your results, determine the after-tax income that you will need in order to afford the residence. (Note that being qualified for a mortgage does not necessarily mean that one can actually "afford" the residence.)
Note: There are a number of sites on www from which information and guidance can be acquired regarding both of these topics:
A one-page Project Status Report is due by each group at the beginning of the fourth week of semester.
The report should identify the project topic that you have selected and briefly describe the work accomplished to date. The report must be typed.
The final Project Report is due on 12/13/18, and should include:
Abstract (one paragraph)
Description of Purpose (maximum one paragraph)
Statement of Process (maximum one page)
Presentation and Discussion of Results (maximum four pages)
Appendixes (to include copy of status report plus supporting documentation, including references as appropriate)
The report must be typed, double-spaced, using an easily-read font with standard margins, on 8-1/2" x 11" paper.
It is expected that proper English grammar, spelling and sentence structure will be used. The report should be stapled in the upper-left-hand comer and no covers or bindings
should be used.
Spreadsheets should be used for data analysis, and graphical representations must be computer-generated.
It is a fundamental principle of academic integrity that the authorship of the intellectual content of work that is submitted as part of a class assignment must be fairly represented. Contributions of language and thought must be appropriately credited; submissions that do not do so are not acceptable.
30%- Midterm Exam: Open book & notes
30%- Final Exam: Open book & notes
25%- Term Project
15% Quizzes (closed book)
Letter Grade Scale: A:93-100; A-:90-93; B+:87-90; B:83-87; B-:80-83; C+:77-80; C:73-77; C-:70-73; D+:67-70; D:63-67; D-:60-63; F: below 60
Student learning outcomes for MSE program are:
Outcome A: an ability to apply knowledge ofmathematics, science and engineering.
Outcome E: an ability to identify, formulate, and solve manufacturing systems engineering problems.
Outcome G: an ability to communicate effectively in both the written and spoken modes.
Outcome K: an ability to use the contemporary techniques, skills, and tools necessary for effective manufacturing systems engineering practice.
Outcome N: an understanding of the creation of competitive advantage through effective management of contemporary manufacturing enterprises.
Student learning outcomes for EM program are:
Outcome A: the ability to apply knowledge of mathematics, science and engineering to engineering management;Outcome E. the ability to identify, formulate, and solve engineering problems;
Outcome G. the ability to communicate effectively in both the written and spoken modes;
Outcome K. the ability to select and use contemporary methods, techniques, skills and tools for effective engineering management practice;
Outcome N. the ability to integrate engineering management systems in technological environments
