436-204 Engineering Economics and Statistical Applications

Credit Points

Coordinator

Prerequisites

619-001 Statistics for Engineers or equivalent

Semester

Contact

Subject Description

Upon completion, the student should understand how engineers contribute to business and management, including costing and financial management and should have acquired a knowledge of how to measure economic performance of the people factor, be aware of competitive methods, be able to assess the value of a proposed equipment purchase and cost a design, and comprehend the principal ingredients required to manufacture and manage efficiently.

Topics covered include; supply and demand theory and theory of the firm, methods of competing and increasing gross margin, break-even calculations, sources of income, capital and operating expenditure details. Preparation of budgets and performance measurements, profit and loss, balance sheet, funds movement and cash budget calculation. Organisation charts and corporate structure. Operation of service departments, decision making and personal communications. Costing of designs and services and criteria for equipment purchase. Management information systems, simulation and control charts. Introduction to prediction and forecasting, linear and multiple regression and the application of statistics to management of a firm. Analysis of variance both one way and two way. Analysis of experiments and the testing of confidence intervals for significant effects.

Assessment

One examination not exceeding three-hours; tutorials and project work not exceeding 20 pages equivalent