DEPARTMENT OF MECHANICAL ENGINEERING

Aligarh Muslim University, Aligarh

Course Title : Engineering Economy and Management
Course Number : MEH3450
Credits : 4
Course Category : HM
Pre-Requisites(s) : None
Contact Hours : 3-1-0
Type of Course : Theory
Course Assessment : Course Work 15%
Mid Semester Examination (1 Hour) 25%
End Semester Examination (2 Hours) 60%
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Course Objectives
1. Prepare engineering students to analyze cost/revenue data and carry out economic analysis for decision making
and to justify or reject alternatives/projects on an economic basis.
2. To familiarize the student with the basic concepts of management applied to contemporary organizations.

Course Outcomes
After taking this course students should be able to
1. Set up technically and financially sound decisions by comparing and analyzing alternative projects.
2. Develop a working knowledge of money management.
3. Define and Apply techniques, skills and modern engineering tools necessary for engineering management practice
in contemporary organizations.
4. Choose and manage resources using different operation strategies with a view to stay ahead in offering competitive
products/services

Syllabus
UNIT – I : Introduction to Engineering Economy: Necessities and Luxuries, Market segments, Supply
and Demand, Diminishing returns, Economic Indicators (GDP, GNP, GNI, Fiscal Deficit etc.); Time Value
of Money: Time value equivalence, Cash flow diagrams, Conversion factors, Nominal and effective interest
rates; Evaluating & Comparing Alternatives: Present, Future & Equivalent annual worth, Comparison
with unequal lives, Perpetuities and Capitalized costs

UNIT – II : Breakeven Analysis; Demand Forecasting, Financial Management, Process, Balance sheet
and financial ratios; General Replacement Studies: Defender and challenger (both equal and unequal
lives), When to replace; Benefit-Cost Analysis: Benefit/cost criterion, Benefit/cost comparisons;
Depreciation: Purpose and use, Declining value and replacement of assets, Depreciation and tax,
Straight line method, Declining and double declining balance method; Inflation and its effects, Inflation, its
causes and consequences;

UNIT–III : Introduction to Management: Management Process: Planning, organizing, leading and

controlling, Types of managers, Managerial levels and skills, Role of managers; Environmental and
Ethical issues; Decision Making, Types of decisions, Decision making environments (certainty,
uncertainty and risk), Techniques for decision making (payoff matrix, decision trees); Marketing
Management: Process, Marketing Mix and strategies

UNIT - IV : Planning & Strategic Management: Need and importance, Vision, mission, goals and
strategies, Type of plans (operational and strategic); Organizing: Principles of Organizational design
(Division of work, departmentalization, hierarchy and coordination), Unity of command, span of control,
chain of command, Tall and flat organizational structures, Power and authority; Leadership and
Motivation: Leadership styles, Managerial grid, Importance of Motivation, Maslow’s and Hertzberg’s
theories; Controlling, Importance, Control Process; Operations Management: Process, Framework
(capacity planning and scheduling, process, quality, inventory and workforce)

Books:
1. Management by R.W.Griffin; Publisher: Houghton Mifflin Company
2. Engineering Economy by Henry E. Riggs; Publisher McGraw Hill