ENG M 401

Financial Management for Engineers

Spring/Summer 2019

Course Overview

Xinming Li
Dept. of Mechanical Engineering
University of Alberta
 ENG M 401 – Fundamentals of Engineering Management

The Basics
• Room and time: ETLC E1-003, TR 5:00 PM – 6:25 PM

• Instructor: Xinming Li

• Email: Xinming.li@ualberta.ca

• Office: DICE 10-365 (10th floor)

• Office Hours: Tues 1-3PM

– Email me the urgent question only and by starting your subject “ENG
M 401”
• Course Web-Site: eClass system

• TA: NA
Xinming Li, Dept. of Mech. Eng.
2 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Your Instructor
• Assistant Professor, Engineering Management (Dept. Mech. Eng.)
2018-present
• Education:
– B.Sc. Petroleum Engineering, 1995, China University of Petroleum, Beijing
– M.Sc. Construction Engineering and Management, 2013, University of
Alberta
– Ph.D. Construction Engineering and Management, 2017, University of
Alberta

• Research:
– Ergonomics
– Productivity improvement
– Industrialized construction

Xinming Li, Dept. of Mech. Eng.

3 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Course Description
• This is an introductory course on engineering economics,
finance, and management.

• Main topics include:

– Introduction to Financial Statements
– Income Statements
– Depreciation & Income Statements
– Balance Sheets
– Cash Flow
– Time Value of Money
• Present Worth Analysis and Net Present Value
• Interest Calculation
• Rate of Return
• Ratio Analysis
• Payback and Break-Even Analysis
– Inflation
Xinming Li, Dept. of Mech. Eng.
4 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Miscellaneous Grade Approx %

A+ 8%
A 12%
• Marking Scheme1: A-
B+
17%
16%
– Six Assignments: 20% B
B-
16%
12%
C+ 7%
– Two quizzes: 10% C 5%
C- 3%
– Mid-term2: 30% D+
D
2%
1%
– Final: 40% F 1%

1Grades will roughly follow the recommended grade distribution provided by the registrar’s
office (see the University of Alberta Marking and Grading Guidelines).
2For the student who can not make the mid-term exam, the weight of the mid-term may be

switched to final exam by 100% only if the student informs the instructor with a reasonable
excuse before the start of the exam. In this case, his/her final exam will count for 70% in
total. For those who do not inform the instructor before the exam, the mid-term will be
graded as zero.

• Dates to remember:
– Midterm, June 20
– Final Exam, August 9
Xinming Li, Dept. of Mech. Eng.
5 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Textbook
• Textbook (Recommended, but not required):
– P. Flynn, Financial Management for Engineers, 4th Edition, Castle Rock
Research Corp., Edmonton, AB, 2010 (reprinting of 2009 version of the
4th edition, with errata corrected).
The cost is low compared to other text books, but has increased from previous years (it
is now just under $70).
It is available at the UofA Bookstore.
• Additional Reading (strictly optional, not required):
– C.S. Park, M.J. Zuo, and R. Pelot. Contemporary Engineering
Economics: A Canadian Perspective, Third Edition, Pearson Canada,
2011. (ISBN 978-0-321-53876-5)
– D. G. Newnan, J. Whittaker, T. G. Eschenbach, J. P. Lavelle,
Engineering Economic Analysis, 2nd Canadian Edition, Oxford
University Press, Don Mills, ON, 2009. (ISBN 978-0-19-543017-2)
– L. M. Fraser, A. Ormiston, Understanding Financial Statements, 8th
Edition, Pearson Prentice Hall, Upper Saddle River, NJ, 2006. (ISBN 0-
13-187856-5)

Xinming Li, Dept. of Mech. Eng.

6 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Assignments
• Assignments must be handed in Assignment Box next to
the Undergraduate Student Services outside 2-300
(Donadeo ICE) by 11:59 PM on the due date.

• Complete solutions will be provided on the course web-site

shortly after the due date of each assignment, and
assignments will not be accepted after solutions have been
posted.

• Assignments will be marked based on effort, but full marks

will be given based on correctness.
– If you make a reasonable attempt at all problems, you’ll get most of
the marks. However, without the correct results, full marks will not be
given to you.
Xinming Li, Dept. of Mech. Eng.
7 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Exams
• Exams are non-cumulative.
– In the final exam, I will not explicitly test you on material already
covered by mid-term exam.
• Exams will have two parts:
– Single/Multiple choice and True/False questions,
– Questions that require detail explanations and calculations
• Quiz will be written in the regular classroom at the regular
class time.
• Mid-term and final exams may be written in a different
classroom. Thus please pay attention to the
announcements during the class or in the eClass.

Xinming Li, Dept. of Mech. Eng.

8 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Calculator Policy
• The university has a calculator policy in place regarding
which calculators are allowed to be used in midterm and
final exams.
– Stickers are provided for approved calculators, so do your
homework and ensure you’re using an approved non-
programmable calculator.

• This class will be following that policy.

Xinming Li, Dept. of Mech. Eng.

9 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Prerequisite Checks
• The Engineering Faculty will be conducting prerequisite
checks to ensure students enrolled in a class have the
proper prerequisites or other requirements.

• No specific prerequisites for this class (that I know of) but I

don’t think first year students or students in a qualifying year
are allowed to take this class.
– Some departments or programs prohibit 2nd year students as well.
– Individual departments or may have other requirements.

• Instructors aren’t allowed to waive prerequisites.

– Only done at the discretion of the Undergraduate Chair

Xinming Li, Dept. of Mech. Eng.

10 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

How to Get an A+ in This Course

• General suggestions:
– Come to every class & take good notes
– Ask questions and be involved in in-class discussions
– Review lecture materials weekly (eClass)
– Study the in-class examples and practice
– Do all assignment problems
– Use a spreadsheet program
– Prepare ahead for quizzes and both exams

• Exam-writing tips:
– Do easy questions first
– Don’t rush
– Show all your work (to maximize part marks for incorrect answers)
– Exam will have at least one assignment problem or in-class
example

Xinming Li, Dept. of Mech. Eng.

11 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Inappropriate Academic Behaviour

• UofA Code of Student Behaviour provides details
regarding inappropriate academic behaviour:

• 30.3.2(2) Cheating
– 30.3.2(2)a No Student shall in the course of an examination or other
similar activity, obtain or attempt to obtain information from another
Student or other unauthorized source, give or attempt to give
information to another Student, or use, attempt to use or possess for
the purposes of use any unauthorized material.
– 30.3.2(2)b No Student shall represent or attempt to represent him or
herself as another or have or attempt to have himself or herself
represented by another in the taking of an examination, preparation
of a paper or other similar activity. See also misrepresentation in
30.3.6(4).

Xinming Li, Dept. of Mech. Eng.

12 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Inappropriate Academic Behaviour (2)

• 30.3.2(2) Cheating (cont’d)
– 30.3.2(2)c No Student shall represent another’s substantial editorial
or compositional assistance on an assignment as the Student’s own
work.
– 30.3.2(2)d No Student shall submit in any course or program of
study, without the written approval of the course Instructor, all or a
substantial portion of any academic writing, essay, thesis, research
report, project, assignment, presentation or poster for which credit
has previously been obtained by the Student or which has been or is
being submitted by the Student in another course or program of
study in the University or elsewhere.
– 30.3.2(2)e No Student shall submit in any course or program of
study any academic writing, essay, thesis, report, project,
assignment, presentation or poster containing a statement of fact
known by the Student to be false or a reference to a source the
Student knows to contain fabricated claims (unless acknowledged
by the Student), or a fabricated reference to a source.

Xinming Li, Dept. of Mech. Eng.

13 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Inappropriate Academic Behaviour (3)

• 30.3.2(1) Plagiarism
– No Student shall submit the words, ideas, images or data of another
person as the Student’s own in any academic writing, essay, thesis,
project, assignment, presentation or poster in a course or program of
study.
• 30.3.6(4) Misrepresentation of Facts
– No Student shall misrepresent pertinent facts to any member of the
University community for the purpose of obtaining academic or other
advantage. See also 30.3.2(2) b, c, d and e.
• 30.3.6(5) Participation in an Offence
– No Student shall counsel or encourage or knowingly aid or assist,
directly or indirectly, another person in the commission of any
offence under this Code

Xinming Li, Dept. of Mech. Eng.

14 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Inappropriate Academic Behaviour (4)

• The following sanctions given in 30.4.3 (2) and (3) of the
Code are commonly used for plagiarism, cheating and
participating in an offence:
– A mark of 0 on an assignment
– Reduction of a grade in a course
– A grade of F for a course.
– A remark on a transcript indicating Inappropriate Academic
Behaviour (in addition to sanctions above)
– Expulsion
– Suspension

• The following sanctions may be used in rare cases:

– Suspension of a degree already awarded
– Rescission of a degree already awarded

Xinming Li, Dept. of Mech. Eng.

15 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Inappropriate Academic Behaviour (5)

• The procedure for dealing with Inappropriate Academic
Behaviour is also laid out by the Code:
– The instructor meets with the student to determine whether he/she
feels an offence has occurred
– The instructor submits written report to the Dean
– The Dean meets with the student to determine whether to lay
charges
– The Discipline Officer conducts an investigation and decides upon
sanction

• Notes:
– The instructor has no discretion, and is required to report an
offence
– The instructor is not allowed to issue sanctions directly
– The student is permitted to appeal the charges and/or the sanction

Xinming Li, Dept. of Mech. Eng.

16 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Re-Exam and Missed Assignment/Exam Policies

• In the event of a failing grade (F), an exam rewrite may be
granted subject to the student meeting all re-examination
requirements. Application must be with the Faculty of
Engineering and/or Dept. of Mechanical Engineering.
• An excused absence from an exam may only be granted if there
are sufficient grounds for it as per university policy, and may
require supporting documentation. Note that vacations or non-
emergency travel are not sufficient grounds for an excused
absence. An excused absence may be granted for no more than
one exam. In which case the missed midterm exam will be
replaced by the weighted average of the final and the other
midterm exam. The final exam will be replaced by a 3-hour
comprehensive exam covering the entirety of the semester’s
material (scheduled after the semester is complete). An excused
absence may be granted for no more than one assignment; its
weight will be distributed equally to the other assignments. An
excused absence will not be granted for an exam if a re-
examination is granted.

Xinming Li, Dept. of Mech. Eng.

17 Spring/Summer 2019
 ENG M 401 – Fundamentals of Engineering Management

Final Point

Good Luck!

Xinming Li, Dept. of Mech. Eng.

18 Spring/Summer 2019