Engineering

For undergraduate, introductory courses in Engineering Economics.

 

This text presents engineering economy in the context of a decision-making framework such that the student understands the necessary tools and their application. It begins with an introduction to the basics of engineering economy (interest, time-value-of-money, and equivalence), then explores the entire decision-making process, from defining the problem through post-implementation analysis, just as one would when building a case for management in order to make a capital investment decision.

Examples throughout from real-life applications – Presents problems encountered by all engineering disciplines, including real-world capital investment decisions accumulated from various sources (i.e. The Wall Street Journal, Dow Jones Newswires, The Financial Times, etc.) and a large number of industries (including automotive, chemicals, defense and aerospace, energy, and many more).

 

• Four-part structure – Breaks topics into four distinct sections, starting with the Principles of Engineering Economy and then exploring the decision-making process with Decision-Making Preliminaries, Making the Decision: Single Project, and Making the Decision: Multiple Projects.

 

• Four distinct types of chapter-end problems – Problems at the end of each chapter are divided into four parts:

– Concept questions ask students to examine the meaning of topics presented in the chapter.

– Drill questions give students practice with the presented concepts via standard questions.

– Application questions are motivated by actual decisions that have been made by industrial and government entities. The analyses allow a student to fully understand the decision-making process, and its complexity, as they are asked to apply concepts directly to these realistic problems.

– FE Exam Preparation questions are multiple choice questions of the same format found on the Fundamentals of Engineering Exam, the first step towards achieving a Professional Engineering license.

 

• Introduction and integration of the use of computers and spreadsheets in economic analysis – Strives to go beyond “typical” financial mathematics analysis and illustrates the use of spreadsheets when performing more complicated analyses. These include the use of Goal Seek, Solver, and Visual Basic programs in Excel and the extensive use of simulation analysis.

 

 

• The Financial Times–for a small additional charge, Prentice Hall offers your students a 15-week subscription to The Financial Times. Upon adoption of a special package containing the book and the subscription booklet, professors will receive a complimentary one year subscription.

Preface

 

I    Principles of Engineering Economy

1 Engineering Economy and the Decision-Making Process

2 Cash Flows and the Time Value of Money

3 Interest Formulas

4 Economic Equivalence

II   Decision-Making Preliminaries

5 Problem or Opportunity Definition

6 Generation and Design of Feasible Solution Alternatives

7 Developing Cash Flows and Gathering Information

8 Developing After-Tax Cash Flows

III  Making the Decision for a Single Project

9 Deterministic Evaluation

10 Considering Risk

11 Considering Non-Economic Factors and Multi-attributes

IV  Making the Decision for Multiple Projects

12 Deterministic Evaluation

13 Considering Options in Time

14 Multi-Criteria Evaluation

V   Post Implementation Analysis

15 Post Implementation and Evaluation

16 Abandonment and Replacement Analysis

VI  Appendix

Engineering Economy  [CORE TEXTS]   (Industrial Engineering)
Engineering Economics  [CORE TEXTS]   (Economics)
Engineering Economy  [CORE TEXTS]   (Civil & Environmental Engineering)

Joseph C. Hartman Biography is the Soteria and George N. Kledaras ‘87 Endowed Chair, Associate Professor, and Department Chair with the Department of Industrial and Systems Engineering, Lehigh University, Bethlehem, PA.  He received the B.S. degree in general engineering from the University of Illinois at Urbana—Champaign in 1992 and the M.S. and Ph.D. degrees in industrial and systems engineering from the Georgia Institute of Technology, Atlanta, in 1994 and 1996, respectively.

     His research focuses on discrete optimization with applications in engineering economics, finance, and transportation systems. His work has been supported by numerous companies and has also been funded by the National Science Foundation, including the CAREER award in 1999. He has published in a number of the leading journals in his field, including The Engineering Economist, IIE Transactions, Transportation Science, the European Journal of Operational Research, and Naval Research Logistics. 

   Hartman    Hartman currently advises six graduate students.  He has graduated six Ph.D. students (employed at GM Research, Agere Systems, Lock Haven University, Health Products Research, Sentient Jet, and the University of San Diego), 16 M.S. students (employed at American Express, Bank One, State Farm Insurance, Norfolk Southern Corporation, Schneider Logistics, Proctor and Gamble, Air Products and Chemicals, and others), and four undergraduate theses (employed at Binney and Smith, marketRX, and IBM Consulting).  Of the 22 graduates, ten have been women and one a minority.  He has also served as the graduate advisor for his department since 2001. In addition to his teaching and research, in 2004 heHartman was named Editor of the refereed quarterly The Engineering Economist, a publication devoted to problems of capital investment. He had served as an Area Editor for the six previous years. He recently served as a guest editor for the IMA Journal on Management Mathematics with colleagues from England.  He won the Eugene L. Grant award in 2000 for the best paper published in Volume 44 of The Engineering Economist and again in 2005 for best paper in Volume 49.

   HeHartman is very active in the Institute of Industrial Engineers (IIE), the American Society of Engineering Education (ASEE), and the Institute for Operations Research and Management Science (INFORMS). He has served as the director of the Engineering Economy Divisions for both IIE and ASEE and has also served on the planning committee for the Industrial Engineering Research Conference. He is currently on the Board of Trustees for IIE as Vice President for Publications. He recently served on the subcommittee for Engineering Economy on revising ANSI standards, an effort led by IIE.

   Hartman received his M.S. (1994) and Ph.D. (1996) in Industrial and Systems Engineering from the Georgia Institute of Technology after receiving his B.S. (1992) in General Engineering from the University of Illinois at Urbana-Champaign.  He visited Lehigh University for the 1996-97 academic year before joining the faculty as an Assistant Professor in 1997.  He received tenure in the spring of 2002.  Additionally, he has been a licensed Professional Engineer in the state of Pennsylvania since 2003.  He previously worked for Norfolk Southern Corporation, IBM, and the Illinois Department of Transportation. 

He Hartmanresides in Easton, PA with his wife and three children.

 

 

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©2007 | Prentice Hall | On-line Supplement | Instock
ISBN-10: 0131582607 | ISBN-13: 9780131582606
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