MANIPAL UNIVERSITY JAIPUR

School of Automobile, Mechanical, and Mechatronics Engineering

Department of Mechanical Engineering
Course Hand-out
Engineering Economics| MEE 2001 | 3 Credits | 3 0 0 3
Session: Aug 24 – Dec 24 | Faculty: Dr Ashok Kumar Sharma/ Dr Ravi Kant Gupta/ Dr Subrata Bandhu Ghosh/
Dr Rahul Goyal/ Dr Ashish Goyal/ Dr Rakesh Kumar/ Dr Vinod Singh Yadav/ Dr Anurag Joshi/ Dr Vijay Shankar
Kumawat/ Dr Shyam Sunder Sharma/ Dr Rahul Khatri/ Dr Sumit Taneja | Class: III Semester (BTech IoT – A,
B,C,D/ CCE – A,B,C/ DS- A,B,C,D,E,F,G/ IT – A,B,C,D,E/ SAMME/SCCE

A. Introduction: The Department of Mechanical Engineering offers the course Engineering Economics,
where students from a wide range of disciplines can gain knowledge of economics as it applies to the
engineering profession. This course would help students by teaching them the basics of economics
and cost analysis as they relate to engineering projects. By learning how to assess cost and income
data and make economic decisions, students will be better equipped to defend or reject alternatives
and projects based on sound economic reasoning after finishing this course.

B. Course Outcomes: At the end of the course, students will be able to

1. Describe various economic decision-making concepts and types of estimates.

2. Assess the financial viability of engineering projects.
3. Discuss budget and budgetary control concepts.
4. Analyse for replacement analysis and break-even analysis.
5. Estimate the projects for economic feasibility by risk analysis to enhance entrepreneurship skills.

C. Program Outcomes and Program Specific Outcomes

[PO.1]. Engineering knowledge: Apply the knowledge of mathematics, science, engineering

fundamentals, and an engineering specialization to the solution of complex engineering
problems.
[PO.2]. Problem analysis: Identify, formulate, research literature, and analyze complex engineering
problems reaching substantiated conclusions using first principles of mathematics, natural
sciences, and engineering sciences.
[PO.3]. Design/development of solutions: Design solutions for complex engineering problems and
design system components or processes that meet the specified needs with appropriate
consideration for the public health and safety, and the cultural, societal, and environmental
considerations.
[PO.4]. Conduct investigations of complex problems: Use research-based knowledge and
research methods including design of experiments, analysis and interpretation of data, and
synthesis of the information to provide valid conclusions.
[PO.5]. Modern tool usage: Create, select, and apply appropriate techniques, resources, and modern
engineering and IT tools including prediction and modeling to complex engineering activities
with an understanding of the limitations.
[PO.6]. The engineer and society: Apply reasoning informed by the contextual knowledge to
assess societal, health, safety, legal, and cultural issues and the consequent responsibilities
relevant to the professional engineering practice
[PO.7]. Environment and sustainability: Understand the impact of the professional engineering
solutions in societal and environmental contexts, and demonstrate the knowledge of, and need
for sustainable development
[PO.8]. Ethics: Apply ethical principles and commit to professional ethics and responsibilities and
norms of the engineering practices
[PO.9]. Individual and team work: Function effectively as an individual, and as a member or leader
in diverse teams, and in multidisciplinary settings
 [PO.10]. Communication: Communicate effectively on complex engineering activities with the
engineering community and with society at large, such as, being able to comprehend and write
effective reports and design documentation, make effective presentations, and give and receive
clear instructions
[PO.11]. Project management and finance: Demonstrate knowledge and understanding of the
engineering and management principles and apply these to one’s own work, as a member and
leader in a team, to manage projects and in multidisciplinary environments
[PO.12]. Life-long learning: Recognize the need for, and have the preparation and ability to engage
in independent and life-long learning in the broadest context of technological change.

Program Specific Outcomes

[PSO.1].
Model and analyse of Mechanical Engineering systems and components.
[PSO.2].
Design and performance evaluation of energy systems.
[PSO.3].
Testing of materials and analysis of manufacturing processes for mechanical engineering applications.

D. Assessment Rubrics:

Criteria Description Maximum Marks

Sessional Exam 30
Internal In class Quizzes and Assignments, 30
Assessment Activity feedbacks (CWS)
(Summative)
End Term Exam End Term Exam 40
(Summative)
Total 100
Attendance A student must have maintained a 75% attendance rate in order to sit for
(Formative) the final test at the conclusion of the semester. The 25% allowance covers
all leaves, not just medical ones.

E. Syllabus
F. Concept and Value Analysis, Economic Decision Making, Types of Estimates, Accounting and
Control, Elements of Cost, Prime Cost, Overheads, Types of Cost, Process Cost & Cost of Production,
Break Even Analysis, Inventory Control & Management, EOQ, Financial Analysis, Simple payback,
Return on Investment, NPV (Net Present Value), IRR (Internal rate of Return), Life Cycle Cost
Method, Sensitivity Analysis, Project Financing Options. Budget and Budgetary Control, Concept of
Budgeting, Type of Budgets. Risk - Risk vs Return, System Concept and Value Analysis, System
Analysis & System Engineering, Value Analysis. Replacement Analysis, Depreciation, Network
Analysis, Network Techniques, PERT (Programme evaluation and review technique), CPM (Critical
Path Method).
G. Text Books
T1. R. Panneerselvam, Engineering Economics, Prentice Hall of India.
T2. J.L. Riggs, D.D. Bedworth and S.U. Randhawa, Engineering Economics, McGraw Hill Education.
T3. P.L. Mehta, Managerial Economics, Sultan Chand & Sons.
H. Reference Books
R1. E.L. Grant, W.G. Ireson and R.S. Leavenworth, Principles of Engineering Economic Analysis, John
Wiley.
R2. G,J. Tuesen, W.J. Fabrycky and H.G. Tuesen, Engineering Economy, Prentice Hall of India.
R3. L. Blank and A. Tarquin, Engineering Economy, McGraw Hill Education.
 Mode of Corresponding Mode of
Session Delivery CO Assessing
Lecture Topics
Outcomes the
Outcome
Understand Lecture, ME2001.1 Quiz 1
the basic Practice ME2001.2 Assignment
Introduction to Concept questions Mid Term
1. concepts and
and Value Analysis End Term
significance of
value analysis.
Learn the Lecture, ME2001.1 Quiz 1
principles of Practice ME2001.2 Assignment
Economic Decision economic questions Mid Term
2. End Term
Making decision-
making in
engineering.
Identify Lecture, ME2001.1 Quiz 1
different types Practice ME2001.2 Assignment
of cost questions Mid Term
3. Types of Estimates End Term
estimates and
their
applications.
Understand Lecture, ME2001.1 Quiz 1
basic Practice ME2001.2 Assignment
accounting questions Mid Term
4. Accounting and Control principles and End Term
their role in
financial
control.
Recognize the Lecture, ME2001.1 Quiz 1
various Practice ME2001.2 Assignment
5. Elements of Cost elements that questions Mid Term
constitute cost End Term
in production.
Differentiate Lecture, ME2001.2 Quiz 1
Practice Assignment
between prime
6. Prime Cost questions Mid Term
cost and other
End Term
types of cost.

Analyze the Lecture, ME2001.2 Quiz 1

Practice Assignment
significance of
7. Overheads questions Mid Term
overheads in
End Term
total cost.

Identify various Lecture, ME2001.2 Quiz 1

Practice Assignment
types of cost
8. Types of Cost questions Mid Term
and their
End Term
implications.
Understand Lecture, ME2001.2 Quiz 1
process costing Practice Assignment
Process Cost & Cost of and its role in questions Mid Term
9. End Term
Production determining
the cost of
production.
Perform break- Lecture, ME2001.2 Quiz 1
even analysis Practice Assignment
10. Break Even Analysis and questions Mid Term
understand its End Term
implications
 for decision
making.
Learn Lecture, ME2001.2 Quiz 1
techniques for Practice Assignment
Inventory Control & effective questions Mid Term
11. End Term
Management inventory
control and
management.
Calculate the Lecture, ME2001.2 Quiz 1
EOQ and Practice Assignment
EOQ (Economic Order understand its questions Mid Term
12. End Term
Quantity) application in
inventory
management.
Develop skills Lecture, ME2001.2 Quiz 1
for analyzing Practice Assignment
financial questions Mid Term
13. Financial Analysis End Term
statements
and
performance.
Understand Lecture, ME2001.2 Quiz 1
and calculate Practice Assignment
the simple questions Mid Term
14. Simple Payback End Term
payback period
for
investments.
Calculate ROI Lecture, ME2001.2 Quiz 1
and Practice Assignment
Return on Investment understand its questions Mid Term
15. End Term
(ROI) significance in
evaluating
investments.
Calculate NPV Lecture, ME2001.2 Quiz 1
and Practice Assignment
understand its questions Mid Term
16. NPV (Net Present Value) End Term
use in financial
decision-
making.
Determine IRR Lecture, ME2001.2 Quiz 1
and its role in Practice Assignment
IRR (Internal Rate of questions Mid Term
17. comparing
Return) End Term
investment
opportunities.
Analyze costs Lecture, ME2001.2 Quiz 1
Practice Assignment
using the life
18. Life Cycle Cost Method questions Mid Term
cycle cost
End Term
method.
Perform In class ME2001.2 Quiz 1I
sensitivity practice Assignment
19. Sensitivity Analysis analysis to questions Mid Term
assess risk and End Term
uncertainty.
Identify and Lecture, ME2001.2 Quiz 1I
evaluate Practice Assignment
Project Financing questions Mid Term
20. various project
Options End Term
financing
options.
 Understand Lecture, ME2001.2 Quiz 1I
the concepts of Practice Assignment
Budget and Budgetary questions Mid Term
21. budgeting and
Control End Term
budgetary
control.
Learn different Lecture, ME2001.2 Quiz 1I
types of Practice Assignment
22. Concept of Budgeting budgets and questions Mid Term
their End Term
applications.
Analyze Lecture, ME2001.2 Quiz 1I
Practice Assignment
various types
23. Type of Budgets questions Mid Term
of budgets and
End Term
their purposes.
Understand Lecture, ME2001.2 Quiz 1I
the Practice Assignment
relationship questions Mid Term
24. Risk - Risk vs Return between risk End Term
and return in
financial
decisions.
Explore system Lecture, ME2001.3 Quiz 1I
concepts and Practice Assignment
System Concept and questions Mid Term
25. their
Value Analysis End Term
application in
value analysis.
Learn Lecture, ME2001.3 Quiz 1I
techniques for Practice Assignment
System Analysis & questions Mid Term
26. system analysis
System Engineering End Term
and system
engineering.
Apply value Lecture, ME2001.3 Quiz 1I
analysis Practice Assignment
27. Value Analysis techniques to questions Mid Term
improve cost- End Term
efficiency.
Understand Lecture, ME2001.4 Quiz 1I
and perform Practice Assignment
replacement questions Mid Term
28. Replacement Analysis End Term
analysis for
equipment and
assets.
Calculate Lecture, ME2001.4 Quiz 1I
depreciation Practice Assignment
and questions Mid Term
29. Depreciation understand its End Term
impact on
financial
statements.
Develop skills Lecture, ME2001.5 Quiz 1I
in network Practice Assignment
30. Network Analysis analysis for questions Mid Term
project End Term
management.
Explore various Lecture, ME2001.5 Quiz 1I
network Practice Assignment
31. Network Techniques techniques and questions Mid Term
their End Term
applications.
 Understand Lecture, ME2001.5 Quiz 1I
PERT (Programme Practice Assignment
and apply PERT
32. Evaluation and Review questions Mid Term
in project
Technique) End Term
management.
Apply CPM Lecture, ME2001.5 Quiz 1I
techniques to Practice Assignment
CPM (Critical Path identify the questions Mid Term
33. End Term
Method) critical path in
project
schedules.
Analyze real- Lecture, ME2001.5 Quiz 1I
world case Practice Assignment
Case Studies and studies to questions End Term
34.
Applications apply the
concepts
learned.
Review key Lecture, ME2001.5 Quiz 1I
concepts and Practice Assignment
assess questions End Term
35. Review and Assessment understanding
through
discussions and
quizzes.
 CORRELATION WITH PROGRAM

CO OUTCOMES SPECIFIC OUTCOMES

STATEMENT
P P P P P P P P P P P P PS PS
O O O O O O O O O O O O O O PSO
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
Describe various economic
[MEE200 decision-making concepts
1.1] and types of estimates. 3 1 3 3 3
[MEE200 Assess the financial viability
1.2] of engineering projects. 3 2 1
[MEE200 Discuss budget and
1.3] budgetary control concepts. 3 3 3 2 2
[MEE200 Analyse for replacement
1.4] analysis and break-even
analysis. 3 3 3 2 1 3 2
[MEE200 Estimate the projects for
1.5] economic feasibility by risk
analysis to enhance
entrepreneurship skills. 3 3 1 1