Conference Session

Frontiers in Engineering Economy

Collection

2010 Annual Conference & Exposition

Authors

John White, University of Arkansas; Kenneth Case, Oklahoma State University; David Pratt, Oklahoma State University

Tagged Divisions

Engineering Economy

two 6-year terms on the National Science Board. Recipient of numerous awards, his primary professional interests are in economic analysis, facilities planning, and logistics.Kenneth Case, Oklahoma State University Kenneth E. Case, PhD, PE, is Regents Professor Emeritus of Industrial Engineering and Management at Oklahoma State University. Named Outstanding Engineer in Oklahoma in 1987, he has served as Senior Examiner and on the Panel of Judges for the Malcolm Baldrige National Quality Award. Past-President and Fellow of the Institute of Industrial Engineers, Past-President and Fellow of the American Society for Quality, and member of the National Academy of Engineering, he is the

Conference Session

Advances in Engineering Economy Pedagogy

Collection

2010 Annual Conference & Exposition

Authors

Paul Kauffmann, East Carolina University; Stephanie Sullivan, East Carolina University; Gene Dixon, East Carolina University; B.J. Kim, East Carolina University

Tagged Divisions

Engineering Economy

concepts contained in each are not linked to clearly illustratehow these courses together represent an essential, integrated, and complementary body ofknowledge. This presents a lost opportunity in reinforcing concepts in areas such as projectvaluation, variation in estimates, statistical risk, expected value and similar real world topicswhich are essential in a project engineering workplace. This paper presents a curricular plan toaccomplish integration of key topics in these courses in a focused and effective manner. Itbegins with examining general concepts in engineering curriculum integration. Next it examineskey curricular topics in engineering economics, statistics, and project management courses andmaps specific areas which can be

Conference Session

Including Engineering Economy in All Curricula

Collection

2010 Annual Conference & Exposition

Authors

Leland Blank, Texas A&M University

Tagged Divisions

Engineering Economy

education internationally in the UAE, Qatar, Saudi Arabia, Australia, Hungary, China, Japan, and South Africa. In addition to his academic appointments, Dr. Blank worked in industry for Southwestern Bell Telephone, GTE Data Services, and San Antonio Public Service. Lee has authored nine engineering textbooks for McGraw-Hill on the subjects of engineering economy and engineering statistics. His current book is the 7th edition of Engineering Economy (in preparation for 2011 release). His primary areas of interest are engineering economics, international higher education, and strategic planning

Conference Session

Advances in Engineering Economy Pedagogy

Collection

2010 Annual Conference & Exposition

Authors

Christopher Jablonowski, University of Texas, Austin

Tagged Divisions

Engineering Economy

compromise performance in subsequentintervals. The same issue arises when modeling a drilling campaign, that is, explicit specificationof inter-well dependence.The challenges in implementing an analysis with dependence originate in data collection andestimating relationships, and deciding how to systematically incorporate these assumptions intothe analysis. The data requirements are significant, relationships must be estimated, andassumptions must be specified for how new information will be incorporated into subsequentwell plans. Researchers are actively investigating methods for incorporating statisticaldependence into probabilistic modeling.2Learning CurvesFor the purposes of this discussion, it is helpful to distinguish between the

Conference Session

Frontiers in Engineering Economy

Collection

2010 Annual Conference & Exposition

Authors

Ted Eschenbach, TGE Consulting

Tagged Divisions

Engineering Economy

Ch. 16 Short-term liabilities Ch. 17 Planning & control Ch. 18 Corporate restructuringPages of interest rate tables 32 01 8 18The exemplar finance text is topically more comprehensive than the exemplar engineeringeconomy text, however the engineering economy text has much more detailed models of whatare the economics of an engineering project. The larger number of problems for the engineeringeconomy text suggests that more problems are

Conference Session

Frontiers in Engineering Economy

Collection

2010 Annual Conference & Exposition

Authors

Neal Lewis, University of Bridgeport; Ted Eschenbach, TGE Consulting; Joseph Hartman, University of Florida

Tagged Divisions

Engineering Economy

phase is increasingly more expensive, and each is dependent on the success of the Page 15.607.3previous phase.As summarized in Figure 1, the testing and approval process is expected to take ten years. If allgoes according to plan, the drug would have 10 years of exclusive marketing rights, beginningwith FDA approval. In Phase I testing, the drug would be given to 20 – 80 healthy people todetermine human safety. The testing is expected to cost $8 million (in year 2) and take two yearsto complete, with an estimated 70% chance of success. In Phase II testing, the drug would begiven to 100 – 300 people to determine the efficacy for treating