Session No

Topics to be covered

No. of Hours

REMARKS

1 2 3 4 5 6 7 8 9

10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

20.

21. 22.

UNIT I: INTRODUCTION TO ECONOMICS Introduction to Economics- Flow in an economy. 1 Law of supply and demand 1 Concept of Engineering Economics 1 Engineering efficiency, Economic efficiency, 1 Scope of engineering economics Element of costs, Marginal cost, Marginal 1 Revenue, Sunk cost, Opportunity cost, Break-even analysis- P/V ratio, 1 Elementary economic Analysis. Material selection 1 for product Design, selection for a product, Process planning 1 Tutorial - 1 1 Total Hours : 9 UNIT II: VALUE ENGINEERING Make or buy decision. - Value engineering 1 Value engineering - Function, aims, Value 1 engineering procedure. Interest formulae and their applications. Time value 1 of money Single payment compound amount factor, Single 1 payment present worth factor, Equal payment series sinking fund factor 1 Equal payment series payment Present worth factor 1 Equal payment series capital recovery factor 1 Uniform gradient series annual equivalent factor 1 Effective interest rate, Examples in all the methods. 1 Tutorial - 2 1 Total Hours : 10 UNIT: III CASH FLOW Methods of comparison of alternatives. 2 Present worth method (Revenue dominated cash flow diagram). Future worth method (Revenue dominated cash 2 flow diagram, cost dominated cash flow diagram), Annual equivalent method (Revenue dominated 2 cash flow diagram, cost dominated cash flow

diagram). 23. 24. 25. Rate of return method Examples in all the methods. Tutorial - 3 1 1 1

Total Hours : 9 UNIT: IV REPLACEMENT AND MAINTENANCE ANALYSIS 26. Replacement and Maintenance analysis. Types of 1 maintenance. 27. Types of replacement problem. 1 28. Determination of economic life of an asset, 1 29. Replacement of an asset with a new asset. 1 30. Types of maintenance capital recovery with return and 2 Concept of challenger and defender. 31. Simple probabilistic model for items which fail 2 Completely. 32. Tutorial - 4 1 Total Hours : 9 UNIT: V DEPRECIATION 33. Depreciation- Introduction, Causes of Depreciation 1 34. Straight line method of depreciation, declining 1 balance method of depreciation 35. Sum of the years digits method of depreciation, 2 sinking fund method of depreciation/ Annuity method of Depreciation, 36. Service output method of depreciation 1 37. Evaluation of public alternatives- introduction, 1 Examples 38. Inflation adjusted decisions - procedure to adjust 1 inflation. Examples on comparison of alternatives and 1 39. determination of economic life of asset. 40. Tutorial - 5 1 Total Hours : 9 Total No. of Hours :

46