CONTENTSoftheSecondCustomEditionofthePearsonebook

forENGR301EngineeringManagementPrinciplesandEconomics

Chapters1,2,6and7weretakenfromJFPinto,ProjectManagementAchieving
CompetitiveAdvantage,3rded.,Pearson
Chapters3,4and5werewrittenbyCJWillis
Chapters814weretakenfromNMFraser&EMJewkes,EngineeringEconomics
FinancialDecisionMakingforEngineers,5thed.,Pearson
Section13.2.5waswrittenbyGJGouw

Chapter1Introduction:WhyProjectManagement?
PROJECTPROFILE:RescueofChileanMiners
Introduction
1.1WhatisaProject?
GeneralProjectCharacteristics
1.2WhyareProjectsImportant?
PROJECTPROFILE:ProjectsinChina:PushingtheInnovativeEnvelope
1.3ProjectLifeCycles
PROJECTMANAGERSINPRACTICE:StephanieSmith,WestinghouseElectricCompany
1.4DeterminantsofProjectSuccess
PROJECTMANAGEMENTRESEARCHINBRIEF:AssessingInformationTechnology(IT)
ProjectSuccess
1.5DevelopingProjectManagementMaturity
1.6ProjectElementsandTextOrganization
Summary
KeyTerms
DiscussionQuestions
CaseStudy1.1MegaTech,Inc.
CaseStudy1.2TheITDepartmentatHamelinHospital
CaseStudy1.3DisneysExpeditionEverest
InternetExercises
PMPCertificationSampleQuestions
Notes

Chapter2TheOrganizationalContext:Strategy,Structure,andCulture
PROJECTPROFILE:TheU.S.ArmyReturnstotheEraofBlimps
Introduction
2.1ProjectsandOrganizationalStrategy
2.2StakeholderManagement
IdentifyingProjectStakeholders
ManagingStakeholders
2.3OrganizationalStructure
2.4FormsofOrganizationalStructure
FunctionalOrganizations
ProjectOrganizations
MatrixOrganizations
MovingtoHeavyweightProjectOrganizations

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PROJECTMANAGEMENTRESEARCHINBRIEF:TheImpactofOrganizationalStructure
onProjectPerformance
2.5ProjectManagementOffices
2.6OrganizationalCulture
HowDoCulturesForm?
OrganizationalCultureandProjectManagement
PROJECTPROFILE:ACultureofCaring:SanotiAventisandItsCommitmenttoGlobal
MedicalAssistance
Summary
KeyTerms
DiscussionQuestions
CaseStudy2.1RollsRoyceCorporation
CaseStudy2.2ClassicCase:ParadiseLost:TheXeroxAlto
CaseStudy2.3ProjectTaskEstimationandtheCultureofGotcha!
CaseStudy2.4WidgetsRUs
InternetExercises
PMPCertificationSampleQuestions
IntegratedProjectBuildingYourProjectPlan
Notes

Chapter3CanadianFormsofBusinessOrganizations
SoleProprietorship
Partnership
Corporation
Cooperative
ReviewQuestions
References
AdditionalResources

Chapter4ContractsandContractTypes
OverviewofaContract
ContractTypes
ProvisionsforRiskAllocation
ReviewQuestionsandExercises
References
AdditionalResources

Chapter5ProjectDeliverySystems
DesignBidBuildProjectDeliverySystem
TurnkeyProjectDeliverySystem
OwnerBuilderProjectDeliverySystem
ProfessionalConstructionManagementProjectDeliverySystem
ReviewQuestions
References
AdditionalResources

Chapter6ProjectScheduling:Networks,DurationEstimation,andCriticalPath
PROJECTPROFILE:SouthAfricaGetsStadiumsReadyfor2010WorldCup
Introduction
6.1ProjectScheduling

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6.2KeySchedulingTerminology
6.3DevelopingaNetwork
LabelingNodes
SerialActivities
ConcurrentActivities
MergeActivities
BurstActivities
6.4DurationEstimation
6.5ConstructingtheCriticalPath
CalculatingtheNetwork
TheForwardPass
TheBackwardPass
ProbabilityofProjectCompletion
LadderingActivities
HammockActivities
OptionsforReducingtheCriticalPath
PROJECTMANAGEMENTRESEARCHINBRIEF:SoftwareDevelopmentDelays
andSolutions
Summary
KeyTerms
SolvedProblems
DiscussionQuestions
Problems
InternetExercises
MSProjectExercises
PMPCertificationSampleQuestions
Notes

Chapter7CostEstimationandBudgeting
PROJECTPROFILE:CostOverrunsContinuetoDogImportantProjects
7.1CostManagement
DirectVersusIndirectCosts
RecurringVersusNonrecurringCosts
FixedVersusVariableCosts
NormalVersusExpeditedCosts
7.2CostEstimation
LearningCurvesinCostEstimation
SoftwareProjectEstimationFunctionPoints
PROJECTMANAGEMENTRESEARCHINBRIEF:SoftwareCostEstimation
ProblemswithCostEstimation
PROJECTMANAGEMENTRESEARCHINBRIEF:DelusionandDeceptionTakingPlacein
LargeInfrastructureProjects
7.3CreatingaProjectBudget
TopDownBudgeting
BottomUpBudgeting
ActivityBasedCosting
7.4DevelopingBudgetContingencies
Summary
KeyTerms
SolvedProblems
DiscussionQuestions

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Problems
CaseStudy7.1TheDulhastiPowerPlant
CaseStudy7.2BostonsCentralArtery/TunnelProject
InternetExercises
PMPCertificationSampleQuestions
IntegratedProjectDevelopingtheCostEstimatesandBudget
Notes

Chapter8ProjectControl:AnIntroductiontoEarnedValueManagement(EVM)
WhatIsEarnedValueManagement?
TheCostSchedulePlan
EarnedValueTerminology
UseofEarnedValueManagementforPerformanceReporting
ReviewQuestionsandExercises
References

Chapter9TimeValueofMoney
ENGINEERINGECONOMICSINACTION,PART9AAStealForSteel
9.1Introduction
9.2InterestandlnterestRates
NETVALUE9.1PrimeInterestRates
9.3CompoundandSimpleInterest
9.4EffectiveandNominalInterestRates
9.5ContinuousCompounding
9.6CashFlowDiagrams
9.7Equivalence
MathematicalEquivalence
DecisionalEquivalence
MarketEquivalence
ReviewProblems
Summary
ENGINEERINGECONOMICSINACTION,PART9BYouJustHavetoKnowWhen
Problem
MiniCase9.1StudentCreditCards

Chapter10CashFlowAnalysis
10.1Introduction
10.2TimingofCashFlowsandModelling
ENGINEERINGECONOMICSINACTION,PART10AApplesandOranges
10.3CompoundInterestFactorsforDiscreteCompounding
10.4CompoundInterestFactorsforSingleDisbursementsorReceipts
10.5CompoundInterestFactorsforAnnuities
10.6ConversionFactorforArithmeticGradientSeries
10.7ConversionFactorforGeometricGradientSeries
NETVALUE10.1ESTIMATINGGROWTHRATES
10.8NonStandardAnnuitiesandGradients
10.9PresentWorthComputationsWhenN>
ReviewProblems
Summary
ENGINEERINGECONOMICSINACTION,PART10BNoFreeLunch

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Problems
MiniCase10.1TheCanadianOilSands
Appendix10ADerivationofDiscreteCompoundInterestFactors

Chapter11ComparisonMethodsPart1
11.1Introduction
ENGINEERINGECONOMICSINACTION,PART11AWhatsBest?
11.2RelationsAmongProjects
11.3MinimumAcceptableRateofReturn(MARR)
11.4PresentWorth(PW)andAnnualWorth(AW)Comparisons
11.4.1PresentWorthComparisonsforIndependentProjects
11.4.2PresentWorthComparisonsforMutuallyExclusiveProjects
11.4.3AnnualWorthComparisons
NETVALUE11.1CARPAYMENTCALCULATORS
11.4.4MethodTwo:ComparisonofAlternativeswithUnequalLives
11.5PaybackPeriod
ReviewProblems
Summary
ENGINEERINGECONOMICSINACTION,PART11BDoingItRight?
Problems
MiniCaseStudy11.1RockwellInternational
Appendix11ATheMARRandtheCostofCapital

Chapter12ComparisonMethodsPart2
ENGINEERINGECONOMICSINACTION,PART12AWhatsBest?Revisited
12.1Introduction
12.2TheInternalRateofReturn
12.3InternalRateofReturnComparisons
12.3.1IRRforIndependentProjects
12.3.2IRRforMutuallyExclusiveProjects
12.3.3MultipleIRRs
NETVALUE12.1ADDITIONALPROJECTCOMPARISONRESOURCES
12.3.4ExternalRateofReturnMethods
12.3.5WhentoUsetheERR
12.4RateofReturnandPresent/AnnualWorthMethodsCompared
12.4.1EquivalenceofRateofReturnandPresent/AnnualWorthMethods
12.4.2WhyChooseOneMethodOvertheOther?
ReviewProblems
Summary
ENGINEERINGECONOMICSINACTION,PART11BTheInvisibleHand
Problems
MiniCase12.1TheGaloreCreekProject

Chapter13DepreciationandFinancialAccounting
ENGINEERINGECONOMICSINACTION,PART13AThePitBull
13.1Introduction
13.2DepreciationandDepreciationAccounting
13.2.1ReasonsforDepreciation
13.2.2ValueofanAsset
13.2.3StraightLineDepreciation

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13.2.4DecliningBalanceDepreciation
13.2.5AdditionalTopicsinDepreciationMethods
13.3ElementsofFinancialAccounting
13.3.1MeasuringthePerformanceofaFirm
13.3.2TheBalanceSheet
13.3.3TheIncomeStatement
13.3.4EstimatedValuesinFinancialStatements
13.3.5FinancialRatioAnalysis
NETVALUE13.1SECURITIESREGULATORS
13.3.6FinancialRatios
ReviewProblems
Summary
ENGINEERINGINACTION,PART13BUsuallytheTruth
Problems
MiniCase13.1ResearchInMotion
Appendix13ACostEstimation

Chapter14Taxes
ENGINEERINGECONOMICSINACTION,PART14AItsintheDetails
14.1Introduction
14.2PersonalIncomeTaxesandCorporateIncomeTaxesCompared
14.3CorporateTaxRates
14.4BeforeandAfterTaxMARR
14.5TheEffectofTaxationonCashFlows
14.5.1TheEffectofTaxesonFirstCost
14.5.2TheEffectofTaxesonSavings
14.5.3TheEffectofTaxesonSalvageorScrapValue
14.6PresentWorthandAnnualWorthTaxCalculations
14.7lRRTaxCalculations
14.7.1AccurateIRRTaxCalculations
14.7.2ApproximateAfterTaxRateofReturnCalculations
14.8SpecificTaxRulesinCanada
14.8.1TheCapitalCostAllowanceSystem
NETVALUE14.1CANADAREVENUEAGENCYWEBSITE
14.8.2UndepreciatedCapitalCostandtheHalfYearRule
14.8.3TheCapitalTaxFactorandCapitalSalvageFactor
14.8.4ComponentsofaCompleteTaxCalculation
ReviewProblems
Summary
ENGINEERINGECONOMICSINACTION,PART14BTheWorkReport
Problems
MiniCase14.1FlatTaxes
Appendix14ADerivingtheCapitalTaxFactor

Chapter15Inflation
ENGINEERINGECONOMICSINACTION,PART15ATheInflatedExpert
15.1Introduction
15.2MeasuringtheInflationRate
NETVALUE15.1STATISTICSCANADA
15.3EconomicEvaluationwithInflation
15.3.1ConvertingBetweenRealandCurrentDollars

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15.4TheEffectofCorrectlyAnticipatedInflation
15.4.1TheEffectofInflationontheMARR
15.4.2TheEffectofInflationontheIRR
15.5ProjectEvaluationMethodsWithInflation
ReviewProblems
Summary
ENGINEERINGINACTION,PART15BExploitingVolatility
Problems
MiniCase15.1EconomicComparisonofHighPressureand
ConventionalPipelines:AssociatedEngineering
Appendix15AComputingaPriceIndex

SummaryofUsefulFormulasforDiscreteModels

DiscreteCompoundInterestFactors

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