Engineering 110: Introduction to Technology Management & Economics for Engineers and Scientists

Spring 2013 M/W 6-7:50pm, Humanities A51 Instructor: Meliha Bulu-Taciroglu melike@seas.ucla.edu TAs: Michael Tu, Ravi Ramakrishnan, emtu@ucla.edu rramakr2@ucla.edu

Office Hours: Tuesday, 11am -1pm, Boelter Hall 6532L Text: D. G. Newnan, J. P. Lavelle, T. Eschenbach Engineering Economic Analysis, 11th Edition, 2012 & accompanying Study Guide Lecture Notes posted on the CourseWeb. Grading: Class Participation : Economics is a dynamic topic. We will follow current events and discuss them in class to see the links between theory and practice. You will be provided with news articles (via posted links on the CourseWeb). You are expected to participate in the current events discussions. You are encouraged to continue the discussions on the online forum. Only in-class current events discussion knowledge will be tested. Homework 30%: Homeworks are going to be posted on the CourseWeb. You will submit electronic files (PDF files only!). No hard copies will be accepted. No late submissions will be accepted. The names of the files that you submit should have the following format: assignmentname_lastname_firstname. If your name is Adam Smith and you are submitting Homework 1, the name of your file should be: homework1_smith_adam. The complete solution should be included in homeworks including the methodology that is used. (For example, only one number as the answer of a question is not acceptable even though it may be correct.) Last Homework will be a Case Study : You are going to be working on your last Homework with a group. The details will be posted as the Quarter progresses. *Graduate Students must write an additional 10-15 page paper, for details, contact the instructor or one of the TAs by November 9, 2012. Midterm 30%: April 29, Monday at regular class time. Closed notes and book. A formula sheet will be provided. You will need a calculator (calculators that can hold text in memory are not allowed.) Final 40%: June 10, Monday, 8-11am. Cumulative with an emphasis on the recent topics. Closed notes and book. A formula sheet will be provided. You will need a calculator (calculators that can hold text in memory are not allowed.) IMPORTANT NOTE: It is your responsibility to make sure that all Homework and Midterm scores appear on CourseWeb correctly. If you see any missing scores let us know before the Final Exam!!!

Course Objectives: The objective of this course is to introduce engineers and scientists to the fundamental principles of economics as they apply to Technology Management. Course Contents: This course will cover the most critical components of micro (individual, firm, and industry) and macro (government, national, international) level economics as they relate to technology management. Students will be equipped with economics terminology so that they can follow the current economic events and discuss their innovations impact with business decision makers. A primary objective is to prepare students for the work environment where articulating ideas spontaneously and clearly is critical. Hence, students are expected to read and be prepared to discuss the current economics and technology management topics. The course is intended for junior and senior-level engineering undergraduate students as well as engineering graduate students. No prior course work in accounting, business, economics, finance, marketing or technology management is necessary. Course Schedule & Topics Week 1. Introduction to Microeconomics of Product Markets I. Introduction II. Course Objectives III. The Microeconomics of Product Markets Understanding the language of economics: fixed, variable, marginal, average, sunk, opportunity, recurring, and non-recurring, incremental, cash and life cycle costs. Understanding the methods of forecasting: per unit, segmenting, indices, power-sizing, triangulation, learning curves. IV. Making Economic Decisions: Problem complexity, role of engineering economic analysis, decision making process, ethics. Week 2. Profit Maximization, Supply Curve, Demand Curve, Price I. Economies of Scale II. Economic Profit and Profit Maximization III. Supply Dynamics IV. Supply and Demand Interaction and Price Week 3. Further Analysis of Production and Markets I. Externalities and Market Failure II. Consumer and Producer Surplus III. What Can Companies Do to Further Increase Their Profits IV. Efficiency Impact of Market Intervention V. Net Present Worth Week 4. Understanding the Financing of Technology I. Time Value of Money: computing cash flows, time value of money, discount rates, interest equivalence

II. Computing Cash Flows: types and receipts and disbursements III. Present Worth Analysis Week 5. Midterm and Annual Cash Flow Analysis Midterm Exam (Monday April 29, 2013 in class) I. Annual Cash Flow Analysis Week 6. Rate of Return Analysis and Introduction to Macroeconomics I. Internal Rate of Return II. Introduction to Macroeconomic Principles: GDP, National Income, Inflation, Unemployment I. Week 7. World Economy with Numbers I. Choosing the Best Alternative II. Nominal vs. Real GDP III. Macroeconomic Policies and Their Effects Week 8. The Future and Uncertain Events I. Estimates and their Use in Economic Analysis II. Ranges of Highest Likelihood III. Simple Probability in Forecasting IV. Joint Probability Distributions V. Decision Trees Week 9. International Economics I. Currency Valuation II. Trade and its effects Week 10. I. Interaction of Technology Management and Global Economics Final Exam: Monday, June 10, 2013 (8-11am)