Management and Engineering Economy

Course title: Management and Engineering Economy

Code: FEIT04L004

Number of credits (ECTS): 6

Weekly number of classes: 3+1+1+0

Prerequisite for enrollment of the subject: Passed: Mathematics 1

Course goals/Competences: Acquiring knowledge for managerial skills and techniques needed to create and lead complex engineering projects and successful business in the new market-oriented environment. Obtaining knowledge for the basic economical methods, analysis and criteria for project evaluation.

Total available number of classes: 180

Curriculum: Historical development of management. Managerial schools. Basic principles of the engineering management. Contemporary directions in the development of the engineering management. Main characteristics of U.S. and Japanese style of management. Basic functions of the management: planning, organizing, staffing, decision making and control. Mathematical methods and techniques applied in engineering management: linear programming, network planning (CPM. PERT, PDM). Methods for prediction, trend analyses. Methods for decision making support. Communication, motivation and leadership in engineering projects. Fundamentals of engineering economics. Types of interest rates. Time value of the money, investments and cash flows in engineering projects. Depreciation and residual values. Definition and calculation of annuity. Methods for economical evaluation of engineering projects (NPV, BCR, IRR). Inventory models. Ethics in modern engineering practice.

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