Course Description

Engineering Economics is a subject which enables the student to understand the basics of economics and cost analysis related to engineering so as to take economically sound.

Course Objective

To introduce the concepts of scarcity and efficiency; to explain principles of micro economics relevant to managing an organization; to describe principles of macro economics. 

The objective of main this course is

1.      Describe the concept of engineering economics

2.      Explain the value engineering assessment methods

3.      Understand the worth of an asset by various cash flow diagrams

4.      Understand the replacement and maintenance analysis

5.      Explain the economic alternative investments

Course Outcomes

 

Students are expected to become familiar with both principles of micro and macro economics. They would also become familiar with application of these principles to appreciate the functioning of both product and input markets as well as the economy.

 At the end of this course the student are able to

CO1. Demonstrate the concept of engineering economics and classify the elements of cost

CO2. Compare choices by implementing the value engineering assessment methods

CO3. Analyze the worth of an asset by various cash flow diagrams

CO4. Infer replacement and maintenance analysis to take economically sound decisions

CO5. Evaluate economic alternative investments based on depreciation and inflation.