Engr361/ME361 Engineering Economics ©2009 Dr. B. C. Paul

Why Am I Here? Top Reasons  I have a natural love for the subject  I heard a really good instructor was teaching the course  I like skipping my meal to feast on intellectual stimulation  I love the punishment and pressure (I also slam my hand in the car door for fun)  My department requires this course and I want to get out of here and make some money  The class is about money and how to get more of it – Whats not to like?

Why Your Department Requires it  Your degree teaches you how to design things  Building them costs money  People Build Things Because They Make Money  The difference between a paper decoration and a project may come down to whether you can show it will make money  Your Department probably wants you to pass the FE exam

What is the FE?  Fundamentals of Engineering Exam –It is a step to becoming a Professional Engineer –About 10% of the test in Engineering Economics  As a Professional Engineer you can be registered and licensed by the State as an Engineer –This allows you to officially design and certify designs –It is increasingly required in all engineering fields – has been in Civil for a long time.

Becoming a Professional Engineer  You must graduate from an accredited Engineering School (SIU’s programs are accredited) –Within one year of graduation you can sign up to take the FE –If you pass and graduate you are recognized as an Engineer In Training  After several years working in Engineering you can take the Professional Engineer Exam –If you pass you become a licensed Professional Engineer

Another Reason for Engineering Econ  Taking Care of #1  Personal Investments involve making money  Credit cards, loans and mortgages all require paying extra money  Choosing ways of meeting needs have both extra costs and cost savings  Understanding how money and interest works helps you to keep more of the green for yourself

How will I be Graded?  Grading will be based on points earned  Points come from Homework (24 problems) and Two Tests  Each Test will be 25% of the grade (50% total for tests)  Homeworks will be equally weighted and the average score will be 50% of the grade

What Will You Do With the Points?  Grading will be on a strictly % basis –90% + = A –80% + = B –70% + = C –60% + = D –<60% - You'll get to enjoy my course again next semester

What Kind of Tests Do You Give?  Tests are open book open notes –If you can hook to internet you can use that –If you want to bring a computer or financial calculator you can use that –You cannot use another person in any form  Usually about 2-3 problems –Often similar to homework (another reason to do your homework) –May have multiple problems with you picking what to do  Don’t give you a do them all and take grade on best  Old Test Archives on the Web lets you look at previous tests –I also have often posted practice tests.

More on Tests  In general tests are time intensive –If don’t already have an idea what the answer is –If your trying to do research during the test –Your probably a sunk monkey

Homework  Homework is intended as an application exercise for class –Get your hands on the problem or procedure  It is acceptable to work with others on homework, but because most homework is on-line it’s a little tricky.  Rationale for shifting to computer is that it can give instant feedback on whether you are doing things right.

Homework Timing  Most homework can be done in 20 minutes or less –If it is taking you more you have probably become lost (might be good to consult a friend or the instructor)  Warning on Wait till 30 minutes before class approach –Often are best able to do homework right after learning about how – not waiting several days –If something goes wrong you won’t make it  If you really screw-up bad the computer will kick you out and order you to submit your homework on a written form after consulting with the instructor.

Homework When Life Su_ks  Late Homework Policy –Homework is due on the due date  If you have to do paper submission you turn it in at the end of class.  If you do it on computer it is due at the close of the due date –(Warning – if you decide that means you work at 11:45 pm after the class and you get kicked out of the system you have already missed the paper homework deadline – guess that means your dead)  What if my dog spot dies and I have to go to the pet cemetery in Chicago for his burial? –If you are doing computer submission you can do things anywhere you have access –If you get booted off and ordered to do a paper submission – use my to turn it in. is only for out of town emergencies.

But What If Life S_cks Even Worse Than That?  Your hospitalized with swine flue, mono, and a brain tumer and because you are also radio-active from a meal fed to you by an international terrorist you are isolated in a lead room and cannot get the internet –If its really that bad you can get a doctor’s excuse  I cannot accept homework after any paper copies have been returned to students.  A statement that you were at a doctors office is not sufficient.

Textbook  Don’t require a textbook –Makes class attendance more critical  Some People Learn Best from Reading or Alternate Perspectives –Engineering Economic Analysis –Donald G. Newnan, Jerome P. Lavelle, Ted G. Eschenbach –(8 th Addition) –Or Essentials of Engineering Economic Analysis –Donald G. Newnan, Jerome P. Lavelle, Ted G. Eschenbach –(2nd Addition) –Two books are same for chapters covered  Portions of these books are available on-line

Comments on Learning Resources  Resources Available –Class Lectures (attending class) –Doing Problems –Class Website

Class Attendance  In general this is #1 correlation with A students  Professors are most likely to test what they teach –If its on their mind when their lecturing its likely to be on their mind when they test  My class is designed to emphasize lecture heavily –Material found only in the text book isn’t going to be on the test –My approach to subject differs from the book  Uses a lot of examples to illustrate  Uses a lot of intuitive logic as opposed to proofs and derivations

Doing Problems  Given a series of assigned problems  Most assignments are a single problem  Purpose is to give you hands on experience practicing something covered in lecture  An issue of Balance –Tried to keep modest reasonable workload for 2 credit class  Problem –Some people learn by repeatedly doing –Not enough homework problems to beat it into your skull  Can do supplemental problems from book

Class Website  Web site has copies of all lecture notes posted –Some print out and take notes beside –Warning – some feel easy access to notes removes need to attend class  Not enough text on power point slides to teach everything

Enter This brings up the College Web Site By the time I show you how to get there you’ll be ready to Book Mark

Under the Education Tab Select Programs

Under Programs Pick The Coolest Department That would be Mining and Mineral Resources Engineering

From the Departmental Page Select Faculty and Staff

From the Faculty and Staff Page Click the Coolest Faculty Member Which is Me Of Course! (Dr. Bradley C Paul)

Next Go to the Course Materials Select Courses This ones Good looking

Because of Copyrighted Materials the Site is Password Protected to Ensure Academic Fair Use This is tough Your User Name is CurrentStudent Your Password is Senior Design 460

I Know All that Digging Was Fun But You May Want to Consider Bookmarking this as a Favorite (ok at least for now) Has lists of class Times, room numbers Contact information Also has a Reading Room.

Reading Room Has an Area for Engineering Economics

Has Books, and IRS Publications Ok it also has your Textbook

Well – At Least the Part We Cover Files will download As PDF (Means you need Adobe Acrobat on Your computer – It’s a free program)

Has Problems from Textbook Available (if you need drilling practice) Also has the Interest Formulas and Tables (relax if you don’t Know what they are Right now) Has specific readings For each lecture (if you want to do Supplemental reading)

The Class Website  The textbook –The textbook or parts covered are available online as PDF files  Can read book anywhere you have access  Do I need to buy the text –Tried to design so that you don’t have to spend your money –If you don’t buy you won’t have the resource  Future reference  May not always have web access during test – tests are open book but have to have the book

Back to the Introductory Page Scrolling Down We See Supplemental Class Resources

Now We Are In the Area to Find Those Course Notes Hey!! Here’s Our Course Trick – you Can short-cut To here by

Woo – I Think We Have Something One Feature is Called Where We Are

Features of Where We Are It tells you what lecture we are on. You can track when assignments are Posted and due (in case your not sure Whether you went to sleep during class) Key Announcements cover things like upcoming tests Tips can give Answers to Problems I find Coming up.

The Assignment Page Has the Date assignment Is issued Has the date it is Due Has status of Assignment. (ie graded, returned)

Other Important Stuff The link to do your Homework on-line The link to get to the Paper homework is You get booted off The computer.

You Need to Log In to Submit Your Homework Click Here to Login.

The System Uses Your Regular SIU Dawgtag and Password

After Checking Your University ID and the Class List You See Which Assignments Are Available to Do. Only the currently open assignments will be available. Click on The Assignment To Start

It Starts Off With Reminders on the “Rules of the Game”

Limits and Facts  You will see only one question at a time and they will be presented to you in order. –You cannot forward or skip ahead until you have responded to the current question.  You can tab back – But –The previous questions will not show your answers (so you probably want to jot them down as you work) –It will not accept any re-answering of previous questions.

After You Understand the Rules Check Off That You Have Read Them And Hit Accept

Many Problems Begin By Giving You Background Info. After you have read it and understand click on next.

Up Comes A Question. Your current score is displayed (this is an optimistic computer so it Assumes you will get points until you blow them). Pay attention to the format for your answer – the computer has no sense Of humor for misformated input. After you have answered click submit to move to the next question.

What If I Put in a Wrong Answer? (General note – most answers have a tolerance zone around the target Answer).

If You Answer Wrong the Computer Will Make a Rude Remark About Your Intelligence (or give you a hint) and then ask again.

What Happens If You Keep Getting It Wrong? Here the computer is seen docking your points And almost telling you the answer before having you submit again.

What Do I Do If I Get Ask a Question and I Really Have No Idea? Pop the escape hatch and run to your friends or instructor for help.

The Computer Saves Your Place and Lets You Come Back and Pick Up Where You Left Off (Unless you wait until after the assignment is due and access has been Cut off).

At the End It Lets Me Know I’m Done. I click submit To finish.

It Reports My Score (One of the Reasons for Keeping track Of your score Is that I am A percentage Grader and You can figure Out where You stand at Any time in The course).

Has all the usual Syllabus Stuff Here Note that you were not Given a paper Syllabus because its All on-line.

Can Track Assignments from Here Also

One of the Features Under Tests The Old Test Archives

Links to Previous Tests Some With and Some Without a Key

The Class Website  Old Test Archives –Can get copies of old tests, often with the answer keys  Helpful for seeing what kind of questions the professor asks  May take the test and then use key to evaluate your answer –In general I discourage the look at question – look at answer and say “Oh I know that method”

The Topical Outline Topical Outline Also Leads to Course Notes

Shows the Class All Divided into Major Units

Shows Each Topical Area in the Units

Material for Each Topic Lecture notes Either in Power Point or HTML (for those without Power point or a Reader) Some lectures Have a Realplayer Audio lecture Links to Reading Assignments or Assignments if applicable

So Whats Under That Resources Tab?

The Resources Page The Formulas for Discount Factors Key Chapters from the Textbook Extra Homework Problems (for those who need to beat it in) Materials Pertaining to Tax Law

More Resources Stuff Quick Review of the Course the way I organize it Useful Spreadsheets

Whats Useful About Them? Class Assistant Does All the Basic Types of Calculations Needed for this class Nice Alternative to Buying a special Calculator or a lot Of time doing math

Other Spreadsheets Spreadsheet to help estimate home ownership Costs and different ways of financing it One comparing money from different types of loans And credit cards. These go along with taking care of #1