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Academic Year: | 2012/3 |
Owning Department/School: | Department of Chemical Engineering |
Credits: | 6 |
Level: | Intermediate (FHEQ level 5) |
Period: |
Semester 2 |
Assessment: | EX 100% |
Supplementary Assessment: | Like-for-like reassessment (where allowed by programme regulations) |
Requisites: | |
Description: | Aims: To provide an introduction to the economic parameters and methods for evaluating the costs and profitability of engineering projects, and the legal framework in which they have to operate. Learning Outcomes: After successfully completing this unit students should be able to: * Make quick engineering estimates of chemical process plant capital and operating costs; * Determine the profitability of simple projects using traditional and cash flow techniques; * Describe the legal framework in which companies are required to operate. Skills: Industrial awareness, economic awareness, analysis and problem solving. Content: * Interest relationships, discount formulas; * Sources of investment capital; profit and cash flow relationships; payback period; * Contribution and variable costing, breakeven production diagrams; * Basis for rate of return concept, minimum acceptable rate of return, risk factor; * Profitability methods based on cash flow, cumulative cash flow curves, determination of NPV, DCF rate of return, EMIP, IRR, discounted breakeven point; * Capital cost estimation: short-cut methods e.g. ratio methods, use of cost indices, factored estimates, introduction to detailed cost estimation; * Manufacturing cost estimation: short-cut methods; * Optimal costing methods, incremental costs and profitability; * Common/statute law with examples in Health & Safety at Work & Environmental Protection Act; structure of the courts; * Law of contract, law of agency, sale of goods, law of partnership; * Joint stock companies: memoranda; articles of association; shares; debentures; board of directors; * Commercial arbitration, trade union law, restrictive trade practices; * Contract of service: duties of employer and employee. |
Programme availability: |
CE20094 is Compulsory on the following programmes:Department of Chemical Engineering
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