Concerned about capital equipment alternative investment decisions? Not
certain if you need to invest or if the investment makes economic sense?
Need to communicate sensible investment decision criteria to your team?
Engineering Economics is
an intense 16-hour program focused on capital
investment decision-making and related manufacturing investment issues. At the
conclusion of this program, your staff will understand:
Financial management concepts
Your organization's criteria for investment decisions.
The time-value-of-money concept.
How to assess alternative investments.
How to assess and minimize risk associated with alternative investments.
Make vs. buy assessments.
How to use Excel for simplifying
and accelerating capital investment and make vs. buy assessments.
Engineering Economics, a set of approximately
Case studies, a collection of
real-world capital investment examples and assignments.
Excel templates for net present
value assessments, learning curve analysis, make vs. buy assessments, and
financial calculations (including present value, future value, and payment
Who Should Attend
Manufacturing managers, manufacturing engineers, industrial engineers, and
others with a role in capital investment decision criteria should attend this
Engineering Economics Outline
nature of a corporation. Why
Terminology and Accounting Concepts. Revenue,
profit, net profit, and loss. Working
taxes, interest, depreciation, and amortization. Costs.
and discount rate. The
balance sheet: Assets,
liabilities, expenses, and PPE. Operating
expenses and cash flow. Balancing
technology and cost.
Value of Money. Interest. The
concept of compounding interest. Present
present value. Examples.
Equipment Decisions. Investment
decision considerations and the
engineer’s financial role. The
economic analysis process and economic analysis objectives.
elements (including equipment, labor, material, facilities, and other costs).
determination approaches. Case
Decision Approaches. Why
different approaches exist. Return
rate of return/minimum rate of return/internal rate of return.
payback method. The
net present value method. Advantages
and disadvantages of each approach. Discount/interest
rate relevance. Case
and Quantifying Cost Elements. Recurring
versus nonrecurring cost
approach, engineered, time study, and blended approaches.
learning curve theory. Advantages
and disadvantages of each approach. Case study.
depreciation concept. Straightline,
double declining balance, sum-of-the-rears-digits, and sinking fund
Investment Math and Excel.
Excel for future value, present value, payment, and net present value
Excel for interest rate sensitivity testing. Using
Excel for payback evaluations. Using
Excel for sensitivity assessments. Using
Excel for learning curve projections. Group
Activity: Excel-based financial
identification and evaluation. Predicting
future requirements. Risk
analysis from financial, design, facilitization, supplier, source selection,
maintenance, regulatory, safety, and other perspectives. The
Yes-No risk analysis approach. Risk
Investment Decision Drivers. Qualitative
and quantitative factors. Investment
capital investment and marketing strategy.
Wrap Up. Key
You Will Learn
seasoned consulting manufacturing executive/instructor will present this
course in an interactive lecture and workshop format.
with the lectures, we use exercises, puzzles, case studies, and
interesting group activities to enrich the instruction and emphasize the
will receive a printed Participant Handbook that includes all materials
presented in class, which will help you remember and retain what you
learned and apply it on your job.
will learn key capital improvement and make versus buy decision making concepts from theoretical,
practical, and organizational perspectives.
been all over the world helping manufacturers improve. Would
you like to see a few photos from our travels here and
abroad? Very few are work related; most are just some of the
great local sights we get to see!