Conference Session

Engineering Economy -- Outside the Introductory Course

Collection

2008 Annual Conference & Exposition

Authors

Neal Lewis, University of Bridgeport; Ted Eschenbach, TGE Consulting

Tagged Divisions

Engineering Economy

demonstrating the applicability of financial options theory to realinvestment purposes. There was little effort to apply the theory to real world problems, andmuch of what was written was quite unreadable by managers in the industrial sector. Theacademic literature was largely dismissed by working managers, with the notable exception ofMerck4.Practitioner guides began to appear in the late 1990s, with the intent of bringing real optionsanalysis to the financial manager in a useable form. The books explained the concept of viewingdecisions as a set of options, and how the mathematics of financial options could be adapted toimprove how managers valued strategic decisions. From a viewpoint of application, these bookswere a major step forward.Real options

Conference Session

Frontiers in Engineering Economy

Collection

2009 Annual Conference & Exposition

Authors

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

Tagged Divisions

Engineering Economy

testit on real world applications to projects. That is our domain as engineering economists andengineering managers.Finance academics tend to view the world from the perspective of calculus and continuousequations. While this may be confining, it is at least consistent. As engineering economists, wedeal with both discrete and continuous problems; this unfortunately can lead to inconsistency.There is no single approach to solving real options problems. This lack of uniformity may beone of the many issues hindering more widespread adoption.Most of the literature discounts future costs using continuous discounting. This is true whendirectly applying the Black-Scholes equation (and related models), and continuous discounting isthe predominant

Conference Session

Using a Real-Options Analysis Tutorial in Teaching Undergraduate Students

Collection

2016 ASEE Annual Conference & Exposition

Authors

John A. White Jr., University of Arkansas

Tagged Divisions

Engineering Economy

analyses should be performed: As to when real-options analysesshould be performed, Eschenbach, et al pointed out, “Real options have their application only inthose projects where the NPV is close to zero, where there is uncertainty, and where managementhas the ability to exercise [its] managerial options.” [2, p. 401]When deciding if an individual investment should be pursued in the future, students have nodifficulty accepting the decision rule: pursue if the present worth is positive-valued; otherwise, donot pursue the investment. However, they do not readily accept a decision to pursue a futureinvestment having a negative-valued present worth because of the intrinsic value of the flexibilityto pursue (or not pursue). Realizing such decisions are

Conference Session

Engineering Management Applications

Collection

2012 ASEE Annual Conference & Exposition

Authors

Craig G. Downing, Rose-Hulman Institute of Technology

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering

organizations strategically position themselves to becomeglobally competitive and sustainable, sourcing and acquiring strong technical talent is essential.Making this charge more daunting is the perceived, and in some cases real, shortage of talent.While policy makers and pundits may disagree on this issue, research performed in early 2011 byAberdeen Group’s Human Capital Management division indicates that companies have realizedthat the ability to locate and land top talent will be one of their competitive differentiators1.In fact, another recent survey by ManpowerGroup stated that engineering positions were thethird hardest jobs to fill for U.S. companies. Applicants’ lack of appropriate skills or experiencewas the primary driver for the talent

Conference Session

Engineering Management Applications

Collection

2012 ASEE Annual Conference & Exposition

Authors

S. Jimmy Gandhi, Stevens Institute of Technology; Alex Gorod, Visiting Fellow, University of Adelaide

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering

systems. He isthe founder of SystemicNet, LLC, in New York and a visiting fellow at the University of Adelaide inAustralia. Page 25.1314.1 c American Society for Engineering Education, 2012 Importance of Understanding Systemic Risk in Engineering Management EducationAbstract Recent research suggests that despite risk management gaining importance in thebusiness world, a high percentage of multinational companies believe they are not doing all theycan to manage risk effectively. The study indicates that large companies are not focusingsufficiently on integrating

Conference Session

Pedagogical Advancements in Engineering Management

Collection

2012 ASEE Annual Conference & Exposition

Authors

S. Jimmy Gandhi, Stevens Institute of Technology; Brian Sauser, Stevens Institute of Technology; Brian E. White, Complexity Are Us - Systems Engineering Strategies; Alex Gorod, Visiting Fellow, University of Adelaide; Vernon Ireland, University of Adelaide

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering, Systems Engineering

” problems.4 Strategic Assumptions Surface Testing recognises the benefits of various stances of a range of participative, adversarial, integrative, and managerial-minded stakeholders, and locates them on a certainty/importance scale. Page 25.191.3 Soft Systems Methodology is a most powerful technique for solving wicked problems es- pecially using rich pictures developed from many conceptual models of the real world, and enhancing these by using additional perspectives (or modalities)5 including faith, love, jus- tice, social intercourse, feeling, and sensory perception. These are especially relevant in

Conference Session

Applications of Engineering Economy

Collection

2008 Annual Conference & Exposition

Authors

Donald Merino, Stevens Institute of Technology; Jakob Carnemark, SKANSKA

Tagged Divisions

Engineering Economy

undergraduate engineering students; they are only covered in some graduate engineeringprograms. Yet, as this case illustrates, these techniques are important to select among variousengineering designs and to make capital selection decisions.Future research efforts are identified that will more fully explore the case presented.Keywords: Capital Projects, Cost / Benefit Estimation, Data Center Redundancy, Life CycleAnalysis, Cost-Effective Analysis, Multi-Attribute Analysis, Engineering Economics.IntroductionAn organization’s computer network is critical to the operation of the enterprise. While the Page 13.954.2attack on the World Trade Center may be a

Conference Session

Applications of Engineering Economy

Collection

2008 Annual Conference & Exposition

Authors

John Robertson, Arizona State University; Michael Kozicki, Arizona State University; Slobodan Petrovic, Arizona State University

Tagged Divisions

Engineering Economy

measure the capacity of an individual or group tomake it a success. To be successful as a distinct technology, it will have to rise farbeyond the level of individual enthusiasms.Background methodologyNew technologies (of any kind) face three major hurdles before they can be considered asuccess in the business world. 1. If they offer a radically new application or market opportunity, there are too few customers to provide the revenue needed to support mature development. We may now feel smug when we read Ken Olsen’s 1977 statement that, “there is no reason for any individual to have a computer in his home” 2. However, in the context in which it was offered, he made a valid claim and the 30 years it took to move from lab

Conference Session

Integrating Engineering Economy into Curricula

Collection

2014 ASEE Annual Conference & Exposition

Authors

Christina Jauregui Barboza, Stevens Institute of Technology (SSE)

Tagged Divisions

Engineering Economy

Paper ID #8909Case Study Application of After Tax Analysis to a Renewable Energy ProjectMrs. Christina Jauregui Barboza, Stevens Institute of Technology (SSE) Christina Jauregui Barboza is an Engineering Management Doctoral Candidate in the School of Systems and Enterprises at Stevens Institute of Technology. She received a Masters of Engineering Degree in Systems Engineering in 2008 and a Bachelor of Engineering Degree in Engineering Management in 2006 both from Stevens Institute of Technology. She holds a teaching assistantship position for the Engineering Management program at Stevens Institute of Technology and has

Conference Session

Engineering Economy Division Technical Session 3

Collection

2017 ASEE Annual Conference & Exposition

Authors

Tagged Topics

Diversity

Tagged Divisions

Engineering Economy

% 12.5% 15.0% 7.7% 10.0% 5.0% 0.0% Very Important Neutral Somewhat Unimportant Noanswer Important UnImportant Figure 10: Understand Real Life Applicability Similarly, about half of the students placed a relatively large importance on using a case study thatwas based on a real-world situation. It would be interesting to understand why others did not thinkit was as important. 6. How important was it to do a case study related to your primary major? Importanceofcasestudybeingrelatedto

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

Real Options Simple: An Overview and Applications in Flexible/Modular Decision Making,” The Engineering Economist, 50(1), 25-53.26. Miller, L.T.; Choi, S.H.; and Park, C.S. (2004) “Using an Options Approach to Evaluate Korean Information Technology Infrastructure,” The Engineering Economist, 49(3), 199-219..27. Miller, L.T. and Park, C.S. (2004) “Economic Analysis in the Maintenance, Repair, and Overhaul Industry: An Options Approach,” The Engineering Economist, 49(1), 21-41.28. Herath, H.S.B. and Park, C.S. (2002) “Multi-Stage Capital Investment Opportunities as Compound Real Options,” The Engineering Economist, 47(1), 1-27.29. Copeland, T.E. and Keenan, P.T. (1998) “Making Real Options Real,” The McKinsey Quarterly, 1(3), 128

Conference Session

Student Development and Assessment in IE Programs

Collection

2012 ASEE Annual Conference & Exposition

Authors

Terri M. Lynch-Caris, Kettering University; Jonathan Weaver, University of Detroit Mercy; Darrell K. Kleinke, University of Detroit Mercy

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering, Systems Engineering

classroom that are relevant and applicable in the modern world. Students seldom learn structured techniques (beyond brainstorming) that can aid in the concept generation technique. • Approach: Provide a flexible procedure for students to work on a project related to syllabus topics and allow innovative design ideas to be researched and presented to the class. The students will use the NABC methodology along with biomimicry design principles to inspire innovation. A standard rubric will be provided for assessment. • Benefits per cost: Students benefit by demonstrating their ability to “walk the entrepreneurial talk” by becoming innovators related to a course topic. In addition, the students will

Conference Session

Curricula Innovations in Engineering Economics

Collection

2015 ASEE Annual Conference & Exposition

Authors

Gloria Margarita Fragoso-Diaz, Tarleton State University; Billy Gray, Tarleton State University; Erick Jones, University of Texas, Arlington

Tagged Divisions

Engineering Economy

whatthat solution represents. Once again, the gap between the theory and practice happens as studentsare unable to relate to real world problems. The teaching of cost analysis involves mathematicalcalculation and use of formulas. Many times these formulas and numerical procedures asexplained by Townend (2001) have been perceived by the engineering students “as a collectionof abstract techniques.” In their research, case studies have been introduced to eliminate thatperception. Future research includes the application of specific sections within the case to avoidthe “abstract” effect. Raju and Sankar (1999) explained the need to develop cases for classroominstruction. Although, their main focus was the interdisciplinary aspect of including other

Conference Session

Engineering Economy Division Technical Session 3

Collection

2016 ASEE Annual Conference & Exposition

Authors

Paulina Z. Sidwell, McLennan Community College

Tagged Topics

ASEE Diversity Committee, Diversity

Tagged Divisions

Engineering Economy

cooperatives in which they developed case studies in atopic of their choosing, pertaining to the study-abroad portion of the course. Although theexperience was brief, anecdotal evidence leads us to believe the international travel componentsuccessfully enhanced the course’s learning objectives, while additionally contributing to astudent’s broad understanding of the international components impacting many contemporaryeconomic factors, providing a unique experience with case studies while in the field using realdata for real-world applications within the confines of cultural awareness and globalperspectives.IntroductionMcLennan Community College’s engineering program has experienced strong, steadfast growthsince its reboot in 2009. This sustainable

Conference Session

Industrial Engineering Division Tech Session 2, IE-ing the Classroom

Collection

2017 ASEE Annual Conference & Exposition

Authors

Nadiye O. Erdil, University of New Haven

Tagged Topics

Diversity

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering

assignmentsand course grades.IntroductionQuality control is one of the primary areas of specialization in Industrial and SystemsEngineering (ISE), therefore, a course on quality is typically offered as a core course in the ISEcurriculum. Compared to the other ISE specialization areas such as operations research, qualityfinds applications in all industries and functions, and is employed in all types of sectors includingmanufacturing, healthcare, entertainment, education, military, and so on. The Lean and SixSigma methods, that have gained popularity in the last decades, further expand the range ofapplications of quality. Given the importance of quality in today’s world, enhancing studentmotivation and improving student learning in courses on quality is

Conference Session

Improving IE Course Content

Collection

2012 ASEE Annual Conference & Exposition

Authors

Leonardo Bedoya-Valencia, Colorado State University, Pueblo; Nebojsa I. Jaksic, Colorado State University, Pueblo

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering

) established bythe Accreditation Board for Engineering and Technology (ABET). The outcomes are:1. Basic knowledge of the tools of operations research (a, e, k)2. Insight into the modeling and application of solutions to operations research problems (g, i)3. Basic knowledge of some software used for operations research modeling (e, k)In the topics “Introduction to Model Building” and “Linear Programming” (9 hours total), theLego® experiment is presented to the students in addition to the discussion of three case studiesshowing real-world implementation of linear optimization models. Later on, 9 typical linearproblems are discussed in detail. Initially, the general model for production mix is discussed andit is linked to the Lego® experiment. Next

Conference Session

Engineering Economy Division Technical Session 3

Collection

2016 ASEE Annual Conference & Exposition

Authors

Jingjing Tong, Southeast Missouri State University; Heather Nachtmann, University of Arkansas

Tagged Topics

ASEE Diversity Committee

Tagged Divisions

Engineering Economy

Analysis of Disruptions on the Mississippi River: An Engineering Economy Educational Case StudyAbstractStudent ability and understanding of engineering economy is promoted through real worldapplication. As engineering and engineering technology educators, we are encouraged to educateour students in contemporary issues related to engineering education. This paper providesengineering economy instructors with a real world educational case study based on maritimelogistics. An instructor’s solutions manual is available from the authors.OverviewReal-world application of engineering concepts motivates and engages students in engineeringeconomy coursework. We present an educational case study that has real-world application in themaritime

Conference Session

Engineering Economy Division Technical Session 3

Collection

2017 ASEE Annual Conference & Exposition

Authors

Billy Gray, Tarleton State University; Daren Davis, Tarleton State University; Erick C Jones P.E., University of Texas, Arlington

Tagged Divisions

Engineering Economy

, and case teaching amongst thosewhom were involved in the survey [9]. The “lack of focus in real-world problem” still remains inthe areas of science, technology, engineering, and mathematics [17]. Hartman (1999) discussedsome of the disadvantages that students may see when they actually face economic decisions inthe real world setting. This included that the efforts for improving how engineering economy istaught, specifically cost analysis, has not been advancing. Suggestions for teaching cost analysisand the evaluation of alternatives in engineering economy in undergraduate courses wereincluded in Hartman’s discussion.Prince and Felder (2006) classified two different teaching methodologies; deductive andinductive. Deductive teaching is

Conference Session

Engineering Economy Course Strategy Panel Session

Collection

2021 ASEE Virtual Annual Conference Content Access

Authors

Karen M. Bursic, University of Pittsburgh

Tagged Divisions

Engineering Economy

and the expectation is that it will return to that format in fall 2021.Approach to Instruction and TechnologyA variety of active learning pedagogies have been experimented with in the course over theyears. The instructor gives short lectures with “clicker” (student response system) participationquestions throughout to keep students engaged. We are currently using Top Hat as our studentresponse system. Lectures are broken up with in-class group problems or mini case studies sostudents practice with real world style questions (that go beyond the typical back of the chapterproblems). Weekly quizzes are given via Top Hat (with immediate feedback) so students canassess their understanding. Students can view course announcements, assignments and

Conference Session

Methods, Cases, and Directions

Collection

2012 ASEE Annual Conference & Exposition

Authors

Bidhan C. Roy, University of Wisconsin, Platteville; Osama M. Jadaan, University of Mount Union; Mitchell Dean Cornelius, University of Wisconsin, Platteville

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering, Systems Engineering

and based on the IRR analysis, would you like to invest in the projects of this company.WARNING: In real life, any decision on whether to invest or not, will depend on more factorsthan those presented above.Discussion and Future DirectionsThis engineering economy module for nanotechnology has been designed in order to introducethis new innovative field to undergraduate students from an economic standpoint of view. Sincecommercial applications of nanotechnology are still in its infancy, data from financial literatureis speculative at its best. Therefore, we focused solely on nanotechnology based small andmedium enterprises (SME’s) listed at NASDAQ. This was because their business is exclusivelybased on nanotechnology and their financial

Conference Session

Engineering Economics New Frontiers

Collection

2015 ASEE Annual Conference & Exposition

Authors

Simon Thomas Ghanat P.E., The Citadel; Kenneth Brannan, The Citadel; Ronald W. Welch, The Citadel; Kevin C Bower P.E., The Citadel

Tagged Topics

Diversity

Tagged Divisions

Engineering Economy

it to their interests 6, 11, 12, 13. If students are able to work on a topic that hasmeaning or relevance to them, they are more likely to see the value and become more motivated6,14 . One  way  to  increase  students’  motivation is to provide them with assignments that focus onreal-world applications. Focusing on real-world problems helps students see the actualapplications of the theories learned in class 6, 11, 12, 13. The real-life examples and case studieshelp students see their classroom material come to life6, 13.The primary purposes of assessments are to evaluate student learning and to inform and improveteaching and learning. Student learning can be assessed using direct and indirect measures14.Best practices recommend the use of

Conference Session

Engineering Economy Division Technical Session 1

Collection

2016 ASEE Annual Conference & Exposition

Authors

Paul C. Lynch, Penn State University Erie, The Behrend College; Joseph Wilck, United States Air Force Academy; Omar Ashour, Pennsylvania State University Erie, The Behrend College

Tagged Topics

Diversity

Tagged Divisions

Engineering Economy

Engineering at Penn State UniversityPark, expressed the need for the engineering economy class and its curriculum to serve as thecrossroads between business, engineering, and entrepreneurship. The executives saw that one ofthe biggest deficiencies in young engineers entering their companies was the lack of a generalknowledge of important business skills and the lack of application of the engineering economycurriculum prior to entering the work force. After collecting this feedback from the corporateexecutives it was evident that every engineering student should not only be exposed to thetraditional engineering economy time value of money formulas but also key financial accountingtopics with much emphasis on real life applications. The advisory board

Conference Session

Engineering Economics New Frontiers

Collection

2015 ASEE Annual Conference & Exposition

Authors

Paul C. Lynch, Pennsylvania State University, University Park; Cynthia Bober, Penn State University; Joseph Wilck, East Carolina University

Tagged Divisions

Engineering Economy

andwhat they felt could be done to improve the case study experience. Not all students responded tothe open ended questions. Tables 2 below shows a breakdown of the results of the feedbackgiven:Table 2: Results of student pros and cons of case study learning experience responses. Like most about the case study experience? What could be done to improve the case study experience? (60) Real world problem solving (21) More information given in the project problem statement (7) Enjoyed the competition aspect (16) More Q&A, communication, or more time with sponsor (4) Freedom to be creative (7) Less assumptions and more precise data givenOver 54% of the students noted they liked the real world problem

Conference Session

Technology and Equipment to Improve IE Instruction

Collection

2012 ASEE Annual Conference & Exposition

Authors

Richard A. Pitts Jr., Morgan State University

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering, Systems Engineering

Robotics Laboratory in an Industrial Engineering ProgramAbstractRobotics is the study of the design, manufacture and application of robots used in a variety ofexisting systems or systems to be created. The impact and benefits of robotics in education at alllevels have been documented by many researchers and educators all across the country, as wellas, the world. Several universities have developed robotics programs which provide uniqueopportunities for students to learn about robotic systems through coursework and conduct high-level research. When these courses are combined with hands-on laboratory modules, roboticsprovides a means for student to utilize their analytical skills learned in other Science,Technology

Conference Session

Innovative IE Course Content

Collection

2013 ASEE Annual Conference & Exposition

Authors

John P. Mullen, New Mexico State University

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering

valuesand data sets. After the analysis is complete, we compare the different results to the actualmodels. I also provide feedback on any errors made at this stage. Students are required to read Page 23.1255.8every team’s one-page executive summary, so there is sharing of ideas and techniques.Step 2: The ProjectThe applied project involves modeling and analyzing a real-world system, such as a drive-up fastfood window, a barber shop, a ticket counter, etc. Many projects are connected with work-relatedproblems. Because the world is not always nice, I provide additional models and act as aconsultant. Students then take two to four weeks to contract

Conference Session

Engineering Economy Division Technical Session 3

Collection

2017 ASEE Annual Conference & Exposition

Authors

Ted Eschenbach, TGE Consulting; Jerome P. Lavelle, North Carolina State University; Neal A Lewis, University of New Haven

Tagged Divisions

Engineering Economy

4.41 0.72…how insurance works 4.49 0.65…basics of personal budgeting 4.31 0.79Question 3: How familiar are you with investing? n %Never studied 33 28.4Some study 47 40.5Some real world 10 8.6Some of both

Conference Session

Industrial Engineering Division Tech Session 1: IE-ing a Broader Perspective

Collection

2017 ASEE Annual Conference & Exposition

Authors

Cristina D. Pomales-Garcia, University of Puerto Rico, Mayaguez campus; Christopher Papadopoulos, University of Puerto Rico, Mayaguez campus

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering

students’engagement at three different levels of moral development, including value realization,prevention and integration, as well as insights from a perspective of capabilities approach andsocial well-being with an emphasis on bodily health. Rubrics for project proposal, finalwritten report and poster are included as part of the documentation for the project evaluation.Key Words: project-based learning, engineering education, engineering design, socialresponsibility, well-beingIntroductionDesign projects within Industrial Engineering (IE) typically provide students with “real-world” experiences in the manufacturing or service industries. Corresponding assessmentemphasizes technical efficiency and skills obtained by the participating students. Theseprojects

Conference Session

Engineering Economics Teaching Tools

Collection

2015 ASEE Annual Conference & Exposition

Authors

Shervin Zoghi, California State University, Fresno

Tagged Topics

Diversity

Tagged Divisions

Engineering Economy

techniques, and integratedcurricula, engineering students can successfully bridge the gap between the real world and theclassroom. These can be achieved through a variety of mediums, one of which includescollaborative learning. An article by Prism2 succinctly highlights the benefits: (1) Higher levelsof achievement; (2) Greater academic self-esteem; (3) Solving more complex problems; (4)Positive relationships.IntroductionEngineering economics studies various financial and economic problems pervasive to engineersin a variety of industries. Like all engineering courses, economics-based engineering courseshave a strong quantitative component; however, unlike the more traditional courses, studyingengineering economics requires extreme elasticity in

Conference Session

Engineering Economics Teaching Tools

Collection

2015 ASEE Annual Conference & Exposition

Authors

Ted Eschenbach P.E., University of Alaska Anchorage; Neal A Lewis, University of Bridgeport

Tagged Divisions

Engineering Economy

engineers take—should cover this. Fortunately, a short discussion of a powerful real-world model for investingalso helps support understanding of (1) the relationship between risk and return, and (2) the valueof diversification. Increasing a course’s relevancy to the student’s life has been shown toincrease both motivation and understanding.Keywords: risk, return, diversification, investingIntroductionEngineering economy and finance courses and texts overlap but they focus on different topics.Risk coverage in finance focuses on the value of diversification in reducing risk, the CapitalAsset Pricing Model, and the relationship between risk and return. In contrast, risk coverage inengineering economy typically focuses on calculating the standard

Conference Session

Engineering Economy Division Technical Session

Collection

2021 ASEE Virtual Annual Conference Content Access

Authors

Kellie Grasman, Missouri University of Science and Technology

Tagged Divisions

Engineering Economy

or video form within the deliverable. Instructions for use of VoiceThread are included atthe end of the project description below. Neither the instructor nor student team members needto be in the same physical location for the project to be executed and presented successfully.The project is submitted in phases to allow for detailed instructor feedback and refinement.Students practice the application of fundamental concepts introduced in traditional classroomand homework problem-solving to a real engineering economic analysis scenario.Assessment:The complete curriculum element, in the form of a detailed project description divided intophased deliverables, is provided below. Additionally, detailed grading rubrics are provided