Updated 22 August 2016

ENG M 401 Section A2

Fundamentals of Engineering Management
September 2016 December 2016
MWF, 9:00 AM to 9:50 AM
Room: ETLC E1-013
Instructor:

Pedram Mousavi, Associate Professor, Engineering Management

Office:

10-241 Donadeo Innovation Center for Engineering (10th floor)

Office Hours:

Monday and Wednesday 2-3 PM

Web-Site:

eClass system website

Course Text (required, available at the UofA Bookstore):

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).

Marking Scheme (letter grades will be based on the recommended UofA grade distribution):
Assignments (9)*:
Midterm Exam #1:
Midterm Exam #2:
Midterm Exam #3:

16%
28%
28%
28%

*Assignments are due via assignment-box in Undergraduate Student Services outside 2-300 (Donadeo
ICE) by 12 PM on the due date and cannot be accepted after solutions have been posted.

Course Content: The application of the fundamentals of engineering economics, financial analysis, and
market assessment to engineering alternatives in the planning, development, and ongoing
management of industrial enterprises. The course covers the use of engineering, economic,
financial, and market assessment information in investment and business operation decisions in
technology oriented companies.
Course Format: This course will be lecture based, primarily using PowerPoint slides that will be made
available in advance from the course web-site. These are supplemented with white-board notes
for selected discussions and in-class spreadsheet and problem-solving examples. Required
reading and other student resources will be contained in the text-book, and course web-site.
Study Materials: Previous exam and assignment solutions are not permitted and will not be provided.
Some sample exam problems are available on the eClass system, and others will be discussed in
class.
Additional Reading (strictly optional, NOT required):

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, 2007. (ISBN 0-13-187856-5)

Note: Credit cannot be granted for this course if you have already taken ENGG 310.
The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be
familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are
particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at
www.ualberta.ca/secretariat/appeals.htm) and avoid any behaviour which could potentially result in suspicions of cheating,
plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in
suspension or expulsion from the University.
Policy about course outlines can be found in Section 23.4(2) of the University Calendar.

Updated 22 August 2016

Tentative Course Schedule:

Day

Lecture

Date

Fri

#1

02 Sep 2016

Mon

Topic

Chapter

05 Sep 2016

Course Introduction
Engineering, Business, and Society
Labour Day Holiday No Class

Wed

#2

07 Sep 2016

Introduction to Financial Statements

Fri
Mon

#3
#4

09 Sep 2016
12 Sep 2016

Introduction to Financial Statements

Income Statements

2
3

Wed

#5

14 Sep 2016

Income Statements (cont.)

Fri
Mon

#6
#7

16 Sep 2016
19 Sep 2016

Income Statements (cont.)

Depreciation

3
3

Wed

#8

21 Sep 2016

Depreciation (cont.)

Fri
Mon

#9
#10

23 Sep 2016
26 Sep 2016

Depreciation (cont.)
Depreciation & Income Statements

3
3

Wed

#11

28 Sep 2016

Depreciation & Income Statements (cont.)

Fri
Mon

#12
#13

30 Sep 2016
03 Oct 2016

Balance Sheets
Balance Sheets (cont.)

4
4

Wed

#14

05 Oct 2016

Balance Sheets (cont.)

Fri
Mon
Wed
Fri
Mon
Wed

#15
#16
#17
#18
#19

07 Oct 2016
10 Oct 2016
12 Oct 2016
14 Oct 2016
17 Oct 2016
19 Oct 2016

Exam #1
Thanksgiving Day Holiday No Class
Exam #1 Review
Balance Sheets (cont.)
Cash Flow Statements
Cash Flow Statements (cont.)

4
5
5

Fri

#20

21 Oct 2016

Ratio Analysis and Leverage

Mon
Wed
Fri

#21
#22
#23

24 Oct 2016
26 Oct 2016
28 Oct 2016

Ratio Analysis and Leverage (cont.)

Time Value of Money
Time Value of Money (cont.)

6
7
7

Mon

#24

31 Oct 2016

Time Value of Money (cont.)

Wed
Fri
MonFri
Mon
Wed

#25
#26

Time Value of Money (cont.)

Exam #2

7
-

Fall Term Reading Week No Class

#27
#28

02 Nov 2016
04 Nov 2016
7-11 Nov
2016
14 Nov 2016
16 Nov 2016

Exam #2 Review
Interest Calculations

Fri

#29

18 Nov 2016

Interest Calculations (cont.)

Mon
Wed
Fri

#30
#31
#32

21 Nov 2016
23 Nov 2016
25 Nov 2016

Interest Calculations (cont.)

Present Worth Analysis
Present Worth Analysis (cont.)

7
7
7

Mon

#33

28 Nov 2016

Rate of Return

Wed

#34

30 Nov 2016

Rate of Return (cont.)

Assignment

(#1, Sep 14)1.6,

2.1, 2.2

(#2, Sep 21) 3.2,

3.3, 3.4, 3.5

(#3, Sep 28) 3.10,

& out of text
question

(#4, Oct 5), 3.6,

3.7, 3.8

(#5, Oct 14) 4.2,

4.3

(#6, Oct 28) 5.1,

5.2, 4.5

(#7, Nov 14) out

of text question

(#8, Nov 25) 7.1,

7.4, 7.5

(#9, Dec 05) out

of text question

Updated 22 August 2016

Fri
Mon
Wed

#35
#36
#37

02 Dec 2016
05 Dec 2016
07 Dec 2015

Rate of Return (cont.)/ Inflation

Review questions
Exam #3

Audio or video recording of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior
written consent of the instructor or as a part of an approved accommodation plan. Recorded material is to be used solely for
personal study, and is not to be used or distributed for any other purpose without prior written consent from the instructor.