Engineering 361Engineering 361Engineering EconomicsEngineering Economics© Dr. B. C. Paul, 2001© Dr. B. C. Paul, 2001

Revised 2008Revised 2008

Why Am I Here? Top Why Am I Here? Top ReasonsReasons

I have a natural love for the subjectI have a natural love for the subject I heard a really good instructor was teaching the I heard a really good instructor was teaching the

coursecourse I like skipping my meal to feast on intellectual I like skipping my meal to feast on intellectual

stimulationstimulation I love the punishment and pressure (I also slam my I love the punishment and pressure (I also slam my

hand in the car door for fun)hand in the car door for fun) My department requires this course and I want to get My department requires this course and I want to get

out of here and make some moneyout of here and make some money The class is about money and how to get more of it – The class is about money and how to get more of it –

Whats not to like?Whats not to like?

Why Your Department Why Your Department Requires itRequires it

Your degree teaches you how to design thingsYour degree teaches you how to design things Building them costs moneyBuilding them costs money People Build Things Because They Make People Build Things Because They Make

MoneyMoney The difference between a paper decoration The difference between a paper decoration

and a project may come down to whether you and a project may come down to whether you can show it will make moneycan show it will make money

Another ReasonAnother Reason

Taking Care of #1Taking Care of #1 Personal Investments involve making moneyPersonal Investments involve making money Credit cards, loans and mortgages all require Credit cards, loans and mortgages all require

paying extra moneypaying extra money Choosing ways of meeting needs have both Choosing ways of meeting needs have both

extra costs and cost savingsextra costs and cost savings Understanding how money and interest works Understanding how money and interest works

helps you to keep more of the green for helps you to keep more of the green for yourselfyourself

How will I be Graded?How will I be Graded?

Grading will be based on points earnedGrading will be based on points earned Points come from Homework (about 23 Points come from Homework (about 23

problems) and Two Testsproblems) and Two Tests Each Test will be 25% of the grade (50% Each Test will be 25% of the grade (50%

total for tests)total for tests) Homeworks will be equally weighted and Homeworks will be equally weighted and

the average score will be 50% of the the average score will be 50% of the gradegrade

What Will You Do With What Will You Do With the Points?the Points?

Grading will be on a strictly % basisGrading will be on a strictly % basis 90% + = A90% + = A 80% + = B80% + = B 70% + = C70% + = C 60% + = D60% + = D <60% - You'll get to enjoy my course again <60% - You'll get to enjoy my course again

in the fallin the fall

What Kind of Tests Do What Kind of Tests Do You Give?You Give?

Tests are open book open notesTests are open book open notes If you can hook to internet you can use thatIf you can hook to internet you can use that If you want to bring a computer or financial calculator you can If you want to bring a computer or financial calculator you can

use thatuse that You cannot use another person in any formYou cannot use another person in any form

Usually about 2 problemsUsually about 2 problems Often similar to homework (another reason to do your Often similar to homework (another reason to do your

homework)homework) May have multiple problems with you picking what to doMay have multiple problems with you picking what to do

Don’t give you a do them all and take grade on bestDon’t give you a do them all and take grade on best Old Test Archives on the Web lets you look at previous Old Test Archives on the Web lets you look at previous

teststests I also have often posted practice tests.I also have often posted practice tests.

More on TestsMore on Tests

In general tests are time intensiveIn general tests are time intensive If don’t already have an idea what the If don’t already have an idea what the

answer isanswer is If your trying to do research during the testIf your trying to do research during the test Your probably a sunk monkeyYour probably a sunk monkey

HomeworkHomework

Homework is intended as an application Homework is intended as an application exercise for classexercise for class Get your hands on the problem or procedureGet your hands on the problem or procedure

Working in groups is acceptableWorking in groups is acceptable Sometimes learning from your peers or being the Sometimes learning from your peers or being the

teacher for a while is best way to learnteacher for a while is best way to learn

Everyone must turn in an individual assignmentEveryone must turn in an individual assignment Just copying the work of others is not Just copying the work of others is not

acceptableacceptable

Homework TimingHomework Timing

Most homework can be done in 20 minutes or Most homework can be done in 20 minutes or lessless If it is taking you more you have probably become If it is taking you more you have probably become

lost (might be good to consult a friend or the lost (might be good to consult a friend or the instructor)instructor)

Warning on Wait till 30 minutes before class Warning on Wait till 30 minutes before class approachapproach Often are best able to do homework right after Often are best able to do homework right after

learning about how – not waiting several dayslearning about how – not waiting several days If something goes wrong you won’t make itIf something goes wrong you won’t make it

TextbookTextbook

Don’t require a textbookDon’t require a textbook Makes class attendance more criticalMakes class attendance more critical

Some People Learn Best from Reading or Alternate Some People Learn Best from Reading or Alternate PerspectivesPerspectives Engineering Economic AnalysisEngineering Economic Analysis Donald G. Newnan, Jerome P. Lavelle, Ted G. EschenbachDonald G. Newnan, Jerome P. Lavelle, Ted G. Eschenbach (8(8thth Addition) Addition) Or Essentials of Engineering Economic Analysis Or Essentials of Engineering Economic Analysis Donald G. Newnan, Jerome P. Lavelle, Ted G. EschenbachDonald G. Newnan, Jerome P. Lavelle, Ted G. Eschenbach (2nd Addition)(2nd Addition) Two books are same for chapters coveredTwo books are same for chapters covered

Portions of these books are available on-linePortions of these books are available on-line

Comments on Learning Comments on Learning ResourcesResources

Resources AvailableResources Available Class Lectures (attending class)Class Lectures (attending class) Doing ProblemsDoing Problems Class WebsiteClass Website

Class AttendanceClass Attendance

In general this is #1 correlation with A studentsIn general this is #1 correlation with A students Professors are most likely to test what they teachProfessors are most likely to test what they teach

If its on their mind when their lecturing its likely to be on their If its on their mind when their lecturing its likely to be on their mind when they testmind when they test

My class is designed to emphasize lecture heavilyMy class is designed to emphasize lecture heavily Material found only in the text book isn’t going to be on the testMaterial found only in the text book isn’t going to be on the test My approach to subject differs from the bookMy approach to subject differs from the book

Uses a lot of examples to illustrateUses a lot of examples to illustrate Uses a lot of intuitive logic as opposed to proofs and derivationsUses a lot of intuitive logic as opposed to proofs and derivations

Doing ProblemsDoing Problems

Given a series of assigned problemsGiven a series of assigned problems Most assignments are a single problemMost assignments are a single problem Purpose is to give you hands on experience Purpose is to give you hands on experience

practicing something covered in lecturepracticing something covered in lecture An issue of BalanceAn issue of Balance

Tried to keep modest reasonable workload for 2 Tried to keep modest reasonable workload for 2 credit classcredit class

ProblemProblem Some people learn by repeatedly doingSome people learn by repeatedly doing Not enough homework problems to beat it into Not enough homework problems to beat it into

your skullyour skull Can do supplemental problems from bookCan do supplemental problems from book

Class WebsiteClass Website

Web site has copies of all lecture notes Web site has copies of all lecture notes postedposted Some print out and take notes besideSome print out and take notes beside Warning – some feel easy access to notes Warning – some feel easy access to notes

removes need to attend classremoves need to attend class Not enough text on power point slides to teach Not enough text on power point slides to teach

everythingeverything

www.engr.siu.eduwww.engr.siu.edu

Enterwww.engr.siu.edu

This brings up theCollege Web Site

By the time I show you how to get there you’ll be ready to Book Mark

Pull Out the Best Pull Out the Best DepartmentDepartment

Mining EngineeringWeb page.

From the Departmental From the Departmental PagePage

Select Faculty andStaff

From the Faculty and Staff From the Faculty and Staff Page Click the Coolest Page Click the Coolest Faculty MemberFaculty Member

Which is MeOf Course!

(Dr. Bradley C Paul)

Next Go to the Course Next Go to the Course MaterialsMaterials

Select Courses

This onesGood looking

Because of Copyrighted Because of Copyrighted Materials the Site is Materials the Site is Password Protected to Password Protected to Ensure Academic Fair UseEnsure Academic Fair Use

This is tough

Your User Name isCurrentStudent

Your Password isSenior Design 460

I Know All that Digging Was Fun I Know All that Digging Was Fun But You May Want to Consider But You May Want to Consider Bookmarking this as a Favorite (ok Bookmarking this as a Favorite (ok at least for now)at least for now)

Has lists of classTimes, room numbersContact information

Also has a ReadingRoom.

Reading Room Has an Area Reading Room Has an Area for Engineering Economicsfor Engineering Economics

Has Books, and IRS Has Books, and IRS PublicationsPublications

Ok it also has yourTextbook

Well – At Least the Part Well – At Least the Part We CoverWe Cover

Files will downloadAs PDF

(Means you needAdobe Acrobat onYour computer –It’s a free program)

Has Problems from Has Problems from Textbook Available (if you Textbook Available (if you need drilling practice)need drilling practice)

Also has the InterestFormulas and Tables(relax if you don’tKnow what they areRight now)

Has specific readingsFor each lecture(if you want to doSupplemental reading)

The Class WebsiteThe Class Website

The textbookThe textbook The textbook or parts covered are available online The textbook or parts covered are available online

as PDF filesas PDF files Can read book anywhere you have accessCan read book anywhere you have access Do I need to buy the textDo I need to buy the text

Tried to design so that you don’t have to spend your Tried to design so that you don’t have to spend your moneymoney

If you don’t buy you won’t have the resourceIf you don’t buy you won’t have the resource Future referenceFuture reference May not always have web access during test – tests are May not always have web access during test – tests are

open book but have to have the bookopen book but have to have the book

Back to the Introductory Back to the Introductory PagePage

Scrolling Down We SeeSupplemental Class Resources

Now We Are In the Area Now We Are In the Area to Find Those Course to Find Those Course NotesNotes

Hey!! Here’s Our Course

Woo – I Think We Have Woo – I Think We Have SomethingSomething

One Feature isCalled Where WeAre

Features of Where We Features of Where We AreAre

It tells you what lecture we are on.

You can track when assignments arePosted and due (in case your not sureWhether you went to sleep during class)

Key Announcements cover things like upcomingtests

Tips can giveAnswers toProblems I findComing up.

The Coordinated Class The Coordinated Class Schedule ListSchedule List

Whats on the Whats on the Coordinated Schedule?Coordinated Schedule?

Links to the LectureSlides

Woo – Where Have I Seen Woo – Where Have I Seen This BeforeThis Before

What Else is ThereWhat Else is ThereYou Can See if ThereWas an assignmentIssued with a lecture

You can pull upSelected reading forThe lectures

Reading Assignments in Reading Assignments in Adobe PDFAdobe PDF

What If I Pick One of What If I Pick One of Those AssignmentsThose Assignments

The Assignment PageThe Assignment Page

Gives Issue and DueDates

Tells about whetherIs has been turnedIn or graded

Wouldn’t be complete if it didn’t give you the assignment

Has all the usual Syllabus Has all the usual Syllabus StuffStuff

Here

Note that you were notGiven a paperSyllabus because itsAll on-line.

Can Track Assignments Can Track Assignments from Here Alsofrom Here Also

One of the Features One of the Features Under TestsUnder Tests

The Old TestArchives

Links to Previous TestsLinks to Previous TestsSome With and Some Some With and Some Without a KeyWithout a Key

The Class WebsiteThe Class Website

Old Test ArchivesOld Test Archives Can get copies of old tests, often with the answer Can get copies of old tests, often with the answer

keyskeys

Helpful for seeing what kind of questions the Helpful for seeing what kind of questions the professor asksprofessor asks

May take the test and then use key to May take the test and then use key to evaluate your answerevaluate your answer In general I discourage the look at question – look In general I discourage the look at question – look

at answer and say “Oh I know that method”at answer and say “Oh I know that method”

The Topical OutlineThe Topical Outline

Topical OutlineAlso Leads to CourseNotes

Shows the Class All Shows the Class All Divided into Major UnitsDivided into Major Units

Shows Each Topical Area Shows Each Topical Area in the Unitsin the Units

Material for Each TopicMaterial for Each Topic

Lecture notesEither in PowerPoint or HTML(for those withoutPower point or aReader)

Some lecturesHave a RealplayerAudio lecture

Links to ReadingAssignments orAssignments ifapplicable

So Whats Under That So Whats Under That Resources Tab?Resources Tab?

The Resources PageThe 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 StuffMore Resources Stuff

Quick Review of the Course the way I organize it

Useful Spreadsheets

Whats Useful About Whats Useful About Them?Them?

Class Assistant Does All theBasic Types of CalculationsNeeded for this class

Nice Alternative toBuying a specialCalculator or a lotOf time doing math

Other SpreadsheetsOther Spreadsheets

Spreadsheet to help estimate home ownershipCosts and different ways of financing it

One comparing money from different types of loansAnd credit cards.

These go along with taking care of #1