1. Week
Mon
Tue
Wed
Thu
Fri
Lecturer
Topic/Chapter 1
8-Sep
9-Sep
10-Sep
11-Sep
12-Sep
Ir. Dr. Anuar Mat Safar
Introduction to Subject am
Chapter 1 : The World of Project Management
DK 5 2
15-Sep
16-Sep
17-Sep
18-Sep
19-Sep
Chapter 2 : The Manager, the Organization, and the Team
Malaysia Day
Chapter 3 : Planning the Project 3
22-Sep
23-Sep
24-Sep
25-Sep
26-Sep
Chapter 4 : Budgeting the Project
Assignment 1 4
29-Sep
30-Sep
1-Oct
2-Oct
3-Oct
Dr. Najmuddin
Chapter 5 : Scheduling the Project
QUIZ 1 5
6-Oct
7-Oct
8-Oct
9-Oct
10-Oct
Chapter 6 : Allocating Resources to the Project
Hari Raya Aidiladha
Chapter 7 : Monitoring and Controlling the Project 6
13-Oct
14-Oct
15-Oct
16-Oct
17-Oct
Chapter 8 : Evaluating and Terminating the Project

2. 7
20-Oct
21-Oct
22-Oct
23-Oct
24-Oct
Midterm Break 8
27-Oct
28-Oct
29-Oct
30-Oct
31-Oct
Prof. Zu am
 Chapter 1 – Introduction to Eng. Econs
DK 5 9
3-Nov
4-Nov
5-Nov
6-Nov
7-Nov
Prof Zu 
 Chapter 2- Concepts & Design 10
10-Nov
11-Nov
12-Nov
13-Nov
14-Nov
 Chapter 3 -Relationships & Equivalence 11
17-Nov
18-Nov
19-Nov
20-Nov
21-Nov 12
24-Nov
25-Nov
26-Nov
27-Nov
28-Nov
Ir Zulkeflee
QUIZ 1
Chapter 4 -Applications 13
1-Dec
2-Dec
3-Dec
4-Dec
5-Dec
Assignment Deadline
Chapter 5-Comparing Alternatives
QUIZ 2 14
8-Dec
9-Dec
10-Dec
11-Dec
12-Dec
Chapter 6-Depreciation & Income Tax
Chapter 7 -Price & Exchange rates 15
15-Dec
16-Dec
17-Dec
18-Dec
19-Dec
Prof. Zu/Ir Zul
Review 

3. INTRODUCTION TO ENGINEERING ECONOMY
CHAPTER 1 $$ $$
INTRODUCTION TO ENGINEERING ECONOMY $$ $$

4. WHAT IS ECONOMICS ?
Economics is the study of how limited resources is used to satisfy unlimited human wants

5. WHAT IS ECONOMICS ?
It is the study of how individuals and societies choose to use scarce resources that nature and previous generations have provided

7. LAND
Land includes all gifts of nature - such as water, air, minerals, sunshine, plants, trees, and land that are applied to production processes
We have reached the point in engineering where it is no longer possible, in most cases, simply to design and build things for the sake simply of designing and building them. Natural resources (from which we must build things) are becoming more scarce and more expensive. We are much more aware of negative side-effects of engineering innovations (such as air pollution from automobiles) than ever before.
For these reasons, engineers are tasked more and more to place their project ideas within the larger framework of the environment within a specific planet, country, or region.

8. LABOR
Labor includes the efforts, skills, and knowledge of people, which are applied to production processes

9. CAPITAL Real Capital (Physical Capital ) Financial Capital
Tools, buildings, machinery -- things which have been produced which are used in production processes
Financial Capital
Assets and money which are used in production processes
Human Capital
Education and training applied to labor in production processes

10. Why study Engineering Economics?
Engineering economics is a subset of economics for application to engineering projects
Engineers seek solutions to problems, and the economic viability of each potential solution is normally considered along with technical engineering aspects
Engineering economics was previously known as engineering economy

11. Many professional bodies define engineering as “…
Many professional bodies define engineering as “….a profession in which knowledge of the mathematical and natural sciences gained by study, experience, and practice is applied with judgment to develop ways to utilize, economically, the materials and forces of nature for the benefit of humankind"
Engineers must ask themselves if a particular project will offer some net benefit to the people who will be affected by the project, after considering its inherent benefits, plus any negative side-effects (externalities), plus the cost of consuming natural resources, both in the price that must be paid for them and the realization that once they are used for that project, they will no longer be available for any other project(s).
(ABET)

12. Origins of Engineering Economy
In the past, economics belong to economists only, while the engineer limit themselves to technical, ‘hardcore’ engineering matters.
However, over the years, a new perspective emerged. The engineer should now be concerned about economic considerations that relate to her/her sphere of work. There is now the availability of sound techniques to address this concern.
This differentiates modern engineering practice from that of the past.

13. Origins of Engineering Economy
During the later part of the 19th century, Arthur M. Wellington (Civil Engineer)
addressed the role of economic analysis in engineering projects, particularly in railroad building projects
Later, other projects followed, which emphasized techniques relating to financial and actuarial mathematics

14. Some examples where engineering economy plays a crucial role:
Choosing the best design for a high-efficiency gas furnace
Selecting the most suitable robot for a welding operation in an automotive assembly line
Making a recommendation about whether jet airplanes for an overnight delivery service should be purchased or leased
Choosing between reusable and disposable bottles for a brand of beverages

15. PRINCIPLES OF ENGINEERING ECONOMY
1. Develop alternatives
2. Focus on differences
3. Usage of a common unit of measure
4. Consider all relevant criteria
5. Make uncertainty explicit
6. Usage of a consistent viewpoint
7. Make the best decision, taking into account all relevant considerations
8. Revisit the decisions made

16. DEVELOP ALTERNATIVES
The final choice (decision) is among several alternatives. All alternatives must be identified and then defined explicitly for in-depth analysis
For each problem, there are usually many possible alternatives. One option that must be considered in each analysis, and is often the choice, is the do nothing alternative. The opportunity cost of making one choice over another must also be considered. There are also noneconomic factors to be considered, like color, style, public image, etc.; such factors are termed attributes
(there is also the ‘do nothing’ alternative to consider, as
well as non-economic factors to consider (like public image, color, styles, etc))

17. FOCUS ON DIFFERENCES
Look at differences in expected future outcomes among the alternatives. The alternative that makes the biggest beneficial economic difference should be considered in the final decision

18. USE A COMMON UNIT OF MEASURE
Using a common unit of measurement to enumerate as many of the prospective outcomes as possible will make the analysis and comparison of alternatives easier

20. CONSIDER ALL RELEVANT CRITERIA
Selection of a preferred alternative (decision making) requires the use of a criterion (or several criteria). The decision process should consider the outcomes enumerated in monetary unit and some other units of measurement or made explicit in a descriptive manner

21. MAKE UNCERTAINTY EXPLICIT
Uncertainty is inherent in projecting (or estimating) the future outcomes of the alternatives. Hence, it should
be recognized in all
analysis and comparisons
In virtually all situations, there is some doubt as to the ultimate values of various quantities. Both risk and uncertainty in decision-making activities are caused by a lack of precise knowledge regarding future conditions, technological developments, synergies among funded projects, etc. Decisions under risk are decisions in which the analyst models the decision problem in terms of assumed possible future outcomes, or scenarios, whose probabilities of occurrence can be estimated. Of course, this type of analysis requires an understanding of the field of probability. Decisions under uncertainty, by contrast, are decision problems characterized by several unknown futures for which probabilities of occurrence cannot be estimated.
“decision under risk” vs.
“decision under uncertainty”

22. USE A CONSISTENT VIEWPOINT
The outcomes of the alternatives, economic and otherwise, should be consistently developed from a defined consistent viewpoint (perspective)

23. Make the decision after taking into
account all possible considerations

24. REVISIT THE DECISION(S) MADE
Improved decision making results from an adaptive process
To the extent practicable,
the initial projected outcomes of the selected alternative should be continuously compared with actual results achieved

25. In short…..
An engineering economy study is accomplished using a structured procedure and mathematical modeling techniques. The economic results are then used in a decision situation that involves two or more alternatives and normally includes other engineering knowledge and input

26. ENGINEERING ECONOMIC ANALYSIS PROCEDURE
1) Problem recognition, formulation, & evaluation
2) Development of the feasible alternatives
3) Development of the cash flows for each alternative
4) Selection of a criterion (or criteria)
5) Analysis and comparison of the alternatives
6) Selection of the preferred alternative
7) Performance monitoring and post-evaluation results

27. ACCOUNTING AND ENGINEERING ECONOMY STUDIES
Modern cost accounting and engineering economy study may satisfy any or all of the following objectives:
1) To determine the cost of products or services
2) To provide a rational basis for pricing goods or services
3) To provide a means for controlling expenditures
4) To provide information upon which operating decisions may be based and the results evaluated
Accounting, as a field of study, is already an old discipline. It has existed long before the concept of finance was developed. In fact, records of accounting can be tracked as far back as 7,000 years ago. It simply involves preparing records of accounting, and analyzing or understanding financial statements. Conversely, economics is a study, or a science, that deals with the issue of scarcity. The basic premise of this discipline, is that people and everybody concerned must employ certain means to counter the very limited resources available.