California State University, Northridge



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College of Engineering and Computer Science (CECS)

Department of

Manufacturing Systems Engineering and Management (MSEM)

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[pic] Welcome to Prof. Costea’s webpages

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SYLLABUS

MSE304Th - Spring 2008

ENGINEERING ECONOMIC ANALYSIS

Thursday, 7:00pm-9:45 pm, Class Number 11955, Facility: D1563

Instructor Ileana Costea, Ph.D., Professor

Manufacturing Systems Engineering and Management (MSEM) Department

Faculty office: Room JD 3309

Tel: (818) 677-3797

(Use during Prof. Costea’s office hours only; for messages use email)

E-mail address: icostea@csun.edu

(Preferred communication by email; always start the Subject line with

“MSE304Th”, then specify your topic; otherwise your email might be

deleted before it is read.)

Office Hours (all PM): M 4:45-5:45; Tu 6:00-7:00; W 1:00-2:00; & Th 6:00-7:00

(See also Costea’s Semester page at

Important webpages to consult

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Costea’s MSE304Th 7:00pm - 9:45pm – Spring 2008 Course Website

This is the website of the MSE304 Th – Spring 2008 – Costea course. All material for

this course will be placed throughout the semester: including the present syllabus, and

guides with reading and problem assignments. Material is added as the semester progresses.

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Site where some of the transparencies used for lectures for the course can be found.

Use transparencies for the MSE304 course (courtesy of Professor Ahmad Sarfaraz). You will need a User ID and a Password. Your instructor for MSE304 will provide you with them in class. However, not all sessions will use these transparencies. Some sessions will use other transparencies, either provided by the editor of your textbook or prepared by your instructor. You will be told in class as the semester progresses where to get on-line the transparencies from.

It is a good idea to print the slides, ahead of time, as Handouts (not as Slides, 2 or 3 per page), and have them available in class so that you can make your own notes on them. Printing them as Slides will consume too much paper.

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Professor Costea’s Fall 2007 Semester Webpage

This page contains:

Office Hours (Check them here any time you wish to come to see your professor; if any change in a certain week of the semester might happen it will be announced here.)

Spring 2008 Class Schedule

Links to courses taught this semester & to other courses taught by Prof. Costea at CSUN.

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Official web page of Professor Costea as faculty in the MSEM Department

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MSEM Department webpage - filled with useful information

TEXTBOOK

Engineering Economy, Sixth Edition, Leland T. Blank and Anthony J. Tarquin, McGraw-Hill, ISBN 0-07-320382-3

2006-2008 CATALOG DESCRIPTION

{1490A6B7-40F0-47C8-86D8-825CA54A2EEB}&oig={5596C73D-E5C5-4D09-AA11-E82B4217CDF4}&vt=5

(Manufacturing Systems Engineering & Management program appears on pp. 281-289 of the Catalog.)

MSE 304. ENGINEERING ECONOMIC ANALYSIS (3)

Prerequisites: MATH 150B and completion of the Lower-Division writing requirement. 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 multiyear projects, selection among competing 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)

COURSE LEARNING OBJECTIVES

This course is designed to contribute primarily to student abilities to:

• Formulate and solve the time value of money for any given cash flow.

• Use present worth, annual worth, B/C ratio, and internal rate of return methods to solve economic problems.

• Evaluate multiple alternatives to determine the best alternative using several different methods.

• Evaluate after-tax analysis for single and multiple alternatives

• Identify relevant and pertinent data to perform replacement decisions.

• Recognize inflation and its effect on engineering economy decisions.

• Apply communication skills.

EVALUATION

30 % - 6 out of 7 Quizzes; 5% each (lowest grade dropped)

25 % - Midterm Exam

25 % - Final Exam (comprehensive)

10 % - Final Project Report

10 % - Attendance and Active Class Participation

Note all tests (Quizzes, Midterm, and Final Exam) are open-book & open-notes, use of calculator, no neighbors. Only 6 out of the total of 7 Quizzes will count for the class grade. The lowest grade quiz will not be counted. Homework will not be graded, but will be collected and marked as turned-in. Homework will be turned in as one set per group (4-5 students). When due (at the dates specified in the Topic Outline Plan for the class given below), HW must be placed on the instructor’s desk at the very beginning of the class session. Excel homework must be turn in printed on paper (one per group) at the beginning f the session when due, and via the actual Excel file sent (one per group) via email, sent maximum 2 hours before the class session. The Excel file name must contain the exercise number, the page and the group name. All group member names must appear on all group homeworks (exercise set as well as Excel spreadsheet).

Active class participation consists of:

Active participation at the solving of the HW assignments

Active participation in the final project will count under

Presence in class and not being late (three “Late” = an Absence; 3 Absences will reduce the 10% of attendance by 3 point 3-6 absences by 5 points, more than 6 absences will reduce the 10% to 2%. Presence will be taken at the beginning of the session, and often at the end of the session too.

Presence in class must be active: participating to group or individual class assignments, solving

problems on the board, answering questions in class.

Quizzes will be given at the beginning of the session, at the dates specified in the Topic Outline Plan for the class. Quizzes will only have exercises, with the same text as HW assignments but different data. Exams will have both exercises and verbal questions to check understanding of concepts. Exercises in exams will have different text than the HW exercises, but will cover similar concepts.

NO MAKE-UP OF EXAMS AND/OR QUIZZES WILL BE GIVEN.

Plus/minus grading will be used.

An indicative Letter Grade Scale is: A: 93-100; A-:90-92; B+:87-89; B:83-86; B-:80-82; C+:77-79; C:73-76; C-:70-72; D+:67-69; D:63-66; D-:60-62; F: below 60

However, since every class is different, the scale will be shifted in the students’ advantage, so that the highest number of points accumulated by the best student in the class will be considered at the A level, and considered to represent 100%.

TOPIC OUTLINE PLAN

Thursday, 7:00pm-9:45 pm, Class Number 11955, Facility: D1563

(Tentative)

The plan might be slightly adjusted based on the way the class advances.

Note: For Spring 2008 CSUN Calendar see

(03.29.2007).doc

Note we do not cover Chapters 10, 12, 13, & 15.

Week/Date Topic Chapter(s) HW Due dates

Covered & Quiz dates

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1. W 01/23 Introduction to course

1st session:

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2. M 01/28 Eng Economy Fundamentals

& Interest Rates Ch. 1

Forming groups of 4-5 students, and establishing group name.

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Th 01/31 Factors Ch. 2 Due: Prob. 1.14, 1.21, 1.26, 1.40

Understand Excel Sheets p. 27 a) & b)

Due: Excel Ex. 1.18 pp. 37-38

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3. Th 02/07 Combining Factors Ch. 3 Due: Prob. 2.4, 2.13, 2.34, 2.38, 2.46

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4. Th 02/14 Nominal & Effective Int. Rates Ch. 4 Due: Prob. 3.16 p. 117; 3.23 p. 118;

3.27 p. 118; & 3.34 p. 119

Quiz #1: Chapter 1 & 2

Start thinking about Project

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5. Th 02/21 Present Worth Analysis Ch. 5 Read sec. 5.1-5.6, 5.8-5.9

Due: Prob. 4.4 p. 154; 4.10 p. 154;

4.26 p. 155; 4.43p. 158; & 4.54 p. 158

Due: Excel Ex. 3.2 p. 97,

Ex. 3.4 p. 102, & Ex. 4.9 p. 146

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6. Th 02/28 Annual Worth Analysis Ch. 6 Due: Prob. 5.11 pp. 203-204,

5.19 p. 205, 5.25 p. 206,

5.33 p. 207, 5.41 p. 208, 5.52 p. 210

Due: Excel: Ex. 5.12 p. 199-200, &

Ex. 5.13 p. 20

Quiz #2: Chapters 3 & 4

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7. Th 03/06 Rate of Return Analysis Ch. 7 Read sections 7.1-7.4, 7.6

Rate of Return Analysis Ch. 8 Due: Prob. 6.9, 6.11, 6.21, 6.28

Due: Excel Ex. 6.3 p. 225, &

Ex. 6.4 pp. 227-228

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8. Th 03/13 Rate of Return Analysis Ch. 8 Due: Prob. 7.2, 7.4, 7.7, 7.25, 7.28

Benefit/Cost Ch. 9 Due: Excel Ex. 7.21 p. 247

Ratio Analysis & Ex. 7.4 p. 252

Quiz #3: Chapters 5 & 6

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Th 03/20 NO CLASS

March 17-22- Monday to Saturday -- Spring Recess; all offices closed; no instruction

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10. Th 03/27 Benefit/Cost Ch. 9 (Ctnd.) Due: Prob. 8.17, 8.18, 8.30, 8.34

(In fact Week 9 of Ratio Analysis

teaching because Replacement Analysis Ch. 11 Due: Excel Ex. 8.7 p. 297

of 1 week Spring Break.) & Excel Ex. 5.13 p. 201

Midterm Review: Chapters 1, 2, 3, 4, 5, 6, 7 Quiz #4: Chapter 7

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11. Th 04/03 Replacement Analysis Ch. 11 Due: 1st Project Status Report (one page)

(In fact Week 10 of teaching because of 1 Week Spring Break.) Due: Prob. 9.6, 9.12, 9.23, 9.33

Due: Excel Ex. 9.3 pp. 323-324 &

Excel Ex. 9.5 p. 331

INSTRUCTOR WILL RETURN TO STUDENTS ALL YOUR QUIZZES (GRADED)

AND SOLUTIONS SHEETS FOR THEM ON THIS CLASS SESSION (Th 03/27)

ON ALL CHAPTERS 1-7 TO BE COVERED IN THE MIDTERM NEXT WEEK.

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12. Th 04/10 Effect of Inflation Ch. 14 Due: Prob. 11.10, 11.13 a) only, 11.22

(In fact Week 11 of teaching because of 1 Week Spring Break.) Due: Excel Ex. 11.4 p. 401

MIDTERM EXAM ( based on concepts in Chapters: 1, 2, 3, 4, 5, 6, 7)

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13. Th 04/17 Depreciation Ch. 16 Due: Prob. 14.14, 14.15, 14.24, & 14.42

(In fact Week 12 of teaching because of 1 Week Spring Break.) Due: Excel Ex. 14.2 p. 478

Due: 2nd Project Status Report (one page)

Quiz#5: Chapters 8 & 9

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Th 04/24 After-tax Analysis Ch. 17 Due: Prob. 16.10 a), 16.19, 16.30, &16.32

(In fact Week 13 of teaching Due: Excel Ex. 16.2 p. 540 & Ex. 16.3 p. 544

because of 1 Week Spring Break.)

Quiz # 6: Chapters 11 & Ch 14

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15. Th 05/01 After-tax Analysis Ch. 17 (Ctnd.) Due: Prob. 17.15, 17.22, 17.23, 17.41, & 17.44

(In fact Week 14 of Due: Excel Ex. 16.2 p. 540 & Ex. 16.3 p. 544

teaching because Sensitivity Analysis/ Ch.18 Due: Excel Ex. 17.3 p. 577 & Ex. 17.7 p. 588

of 1 Week

Spring Break.)

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16. Th 05/08 Review for Final Mutual Funds Report Due

(In fact Week 15 of teaching because of 1 Week Spring Break.)

Last class session Quiz # 7: Chapters 16

(There will be no quiz on Chapters 17 & 18, but concepts will be covered in the final)

Note: May 10, Sa.- Last day of formal Instruction

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17. Th 12/15 FINAL EXAM

(In fact Week 16 Thursday, May 15

of teaching because of Time: 8:00pm – 10:00pm

1 Week Spring Break.) (Note exam time is different than regular class time during the semester!!)

Notes: May 12-17 Final Examinations.

CSUN Spring 2008 Semester Final Examinations – See on-line on CSUN website.

On-line Spring 2008 Semester Calendar:

PRACTICE PROBLEM SETS

There are weekly practice problem sets (not graded, but marked) that will be tested in 7 Quizzes as shown in the Schedule give in the Table above. Teamwork is required for the problem sets (unless otherwise requested by the instructor).

Use 8.5” x 11” paper, no spiral notebook fringe; one side of paper only; staple pages together in upper-left-hand corner; name and course number on each page. Present problems in sequential order; put the number of the problem and page it appears in the textbook, and indicate beginning and the end of each problem and work should be original.

One problem set will be turned in per group, but each member of the group must have his/her own copy, since you will need it for the open-notes tests.

A random selection of problems might be graded or marked down.

The problem sets will not be graded. The understanding of the material covered by the problem sets will be tested by Quizzes in which the problems will be similar to the HW problems, with similar text but changed data and questions, and on exams in which problems will be differently formulated than in HW but based on similar concepts.

Each due problem set must be turned in at the beginning of the session when it is due. Tardy submission of practice problem sets is unacceptable to the Instructor, and potentially unfair to classmates.

Problem sets should not be left in the Department Office.

Problem sets that are tardy, or do not conform to the necessary format and other requirements, will not be considered.

PROJECT AND REPORT

Group Term Project: Research and report on “Investing in Mutual Funds”: You will have to select one mutual fund from each of three different firms. You will acquire information about the funds, their policies, their costs, etc. You will track and graph the value(s) of the funds for a specified time period (from February 15 to April 15, 2008). You will determine your before-tax rate of return on each of the funds (including your costs of investment) and assess the relative performance of each of the funds.

Note: There are a number of sites on www from which information and guidance can be acquired regarding this topic. Do a search on Google on Mutual Funds. You can also find information in newspapers (e.g. The Wall Street Journal) and/or in books.

Two one-page Project Status Reports are due at the beginning of the class on the sessions as marked in the

Topic Outline Plan for your course. The first report should define your project goal, set the objectives, and describe the work accomplished to date. The second report must give a clear understanding of the method used and the work accomplished to date. All reports must be typed.

The final Project Report is due on the last day of teaching for the class, the week before the final exam, i.e., Th May 8, 2008, 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 and sources of information)

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.

TEAM WORK

Teamwork is required for the problem sets (unless otherwise specified by the instructor) and for the term project. Thus, students will be required to be part of a group (team size: 4-5 students). Under these circumstances, students may be asked, to complete for the term project a team member performance evaluation for the other group members. The evaluation provides the opportunity for student feedback on the “division of labor” within the group. All team members are expected to contribute similar amounts of work to achieve team goals on homework and on the final project.

STANDARD OPERATING PROCEDURES

Class members are expected to maintain personal and professional standards consistent with The Fundamental Principles of the Code of Ethics of the Accreditation Board for Engineering and Technology, which are as follows:

Engineers uphold and advance the integrity, honor and dignity of the engineering profession by:

using their knowledge and skill for the enhancement of human welfare;

being honest and impartial, and serving with fidelity the public, their employers and clients;

striving to increase the competence and prestige of the engineering profession; and

supporting the professional technical societies of their disciplines.

Class members will be considerate and respectful of their colleagues

Class members are expected to attend class sessions and to be prompt

Class members are responsible for material in reading assignments, class presentations, discussions, and practice problem assignments

Portions of some chapters of the text will not be addressed; reading and study guide instructions will be provided at class sessions

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 on your transcript and for your grade point average.

Cheating and Plagiarism will not be tolerated. If you are caught cheating or plagiarizing in any form, you will receive a failing grade for the course and be reported to the university for appropriate disciplinary action. For additional information, definitions and examples of, and penalties for academic dishonesty check the CSUN University Catalog and/or Schedule of Classes.

All cell phones and electronic devices must be turned off during class sessions.

It is a University requirement that all undergraduate students must pass the Writing Proficiency Examination (WPE) as part of earning their degree. Undergraduate students who have earned at least 56 semester units are eligible to take the WPE. Delaying the completion of the WPE requirement can delay your graduation. See for complete information.

The major of each student in this class will be verified using the University course roster. Students whose majors are not correct must submit a change of major within the first three weeks of the semester. The form required for undergraduate students is the Major or Minor Change or Declaration, and it can be obtained at

Undergraduate students must apply to graduate more than one year in advance of graduation.

Complete information about graduation, including deadlines for application, can be obtained at .

For information on Special Tests and Examination Schedules visit

For undergraduate student advisement information visit csun.edu/ugs/

The Caveat Emptor Clause: It is the responsibility of each student to know and follow all the written guidance given by the instructor in this syllabus, and follow closely the class during the semester to be aware of any instructions and/or changes indicated by the instructor in class.

MSE 304 -Engineering Economy -Project Report Evaluation

Name________________________ Name________________________

Name________________________ Name________________________ Name________________________

Topic________________________

| |Poor |Fair |Average |Good |Excellent |

|Format Considerations: | | | | | |

|Typed Double Spaced |1 |2 |3 |4 |5 |

|Length Restrictions |1 |2 |3 |4 |5 |

|Standard Font, Margins |1 |2 |3 |4 |5 |

|Organization ( i.e. Abstract, Purpose, Process, |2 |4 |6 |8 |10 |

|Results, Appendices) | | | | | |

| |Poor |Fair |Average |Good |Excellent |

|Writing Quality: | | | | | |

|Spelling, Punctuation |1 |2 |3 |4 |5 |

|Sentence Structure |1 |2 |3 |4 |5 |

|Organization |1 |2 |3 |4 |5 |

|Style |1 |2 |3 |4 |5 |

| |Poor |Fair |Average |Good |Excellent |

|Content: | | | | | |

|Research Evidenced |4 |8 |12 |16 |20 |

|Principles Applied |4 |8 |12 |16 |20 |

|Analysis and Evaluation |5 |10 |15 |20 |25 |

|Appendixes (i.e. original proposal, |4 |8 |12 |16 |20 |

|documentation, references) | | | | | |

|Difficulty level attempted |2 |4 |6 |8 |10 |

|Overall Assessment |4 |8 |12 |16 |20 |

|Timeliness |4 |8 |12 |16 |20 |

Total = _____/180 = _____/10

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Note: This course follows the syllabus and the structure of Professor Campbell’s MSE304. Teaching material from Professor Campbell and Professor Sarfaraz is used with their permission. Additional handouts prepared by the Instructor (Professor Costea) will be given to the students as the semester progresses.

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Created on January 20, 2008

Updated on April 16, 2008

[pic] Send your comments/suggestions/questions to: icostea@csun.edu

Enrolled students need to put the course number (MSE304Th) first in the Subject line of any email sent to Professor Costea.

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