COURSE # MGM-244
FINANCIAL ANALYSIS and ECONOMICS FOR ENGINEERING
and TECHNOLOGY MANAGEMENT
... excellent financial analysis refresher putting engineers ‘in-the-loop’...
This course is about decision making in technology-oriented environments where decisions made by engineers and technical professionals inevitably have financial and economic consequences. This course focuses on the analysis of costs and revenues that occur at different times in the lifecycle of a project or product, and how these can be managed efficiently and effectively.
Applications and benefits:
You will benefit by enhancing your understanding of:
- Terminology and Taxonomy of economics.
- Interpretation of financial statements.
- Tools & Skills used for effective financial and trade-off analyses.
- Assessment of the implications of financial choices.
- Productive ways to contribute to the economic decisions affecting product design.
- Development of sound financial projections.
- Ways to evaluate business investment decisions.
Who should attend:
Starting with the proposal phase, and through the product development and lifecycle, financial savvy and sound economic principles play paramount roles in the decisions in which engineers participate. This course provides practicing engineers and IT professionals, as well as engineering and technical management, with invaluable insight into the intricacies, methodologies and tools used in this process.
Course Outline:
- Making Financial Decisions
- Categorizing the problems
- The role of engineering economic analysis and the decision-making process
- Cost Categories and Cost Estimating
- Fixed variable, marginal and average costs
- Sunk costs
- Opportunity costs
- Recurring and nonrecurring costs
- Incremental costs
- Cost estimating types and models
- Interest and Equivalence
- Computing cash flows
- Time value of money
- Equivalence
- Continuous compounding
- Nominal and effective compounding
- Spreadsheets for economic analysis
- Present Worth Analysis
- Assumptions
- Economic criteria
- Applications
- Spreadsheets for preset worth
- Annual Cashflow Analysis
- Assumptions
- Economic criteria
- Applications
- Spreadsheets for cash flow analysis
- Rate of Return Analysis
- Assumptions
- Economic analysis
- Applications
- Spreadsheets for rate of return analysis
- Cost Effectiveness Analysis
- Performance models and cost effectiveness models
- Production Functions: Economics of Scale
- Choosing Among Alternatives: Decisions criteria
- Examples:
- Minimum Available Budget
- Minimum Performance Requirement
- Maximum Effectiveness/Cost Ratio
- Maximum Effectiveness-Cost Different
- Composite Options
- Impact of Taxes, Inflation and Uncertainty on Analysis
- Income Tax Rates
- Estimates and Their Use in Economic Analysis
- Risk versus return
- Inflation and price change
- Replacement Analysis
- The replacement problem
- Replacement Analysis and Decision Making
- After-tax Replacement Analysis
- The Nature of Financial Statements
- The Balance Sheet
- The Income Statement
- The Cash Flow Statement
- The Statement of Changes in Shareholders Equity
- The Context of Financial Analysis
- Managing Operating Funds
- Funds Flow Cycles
- Variability of Funds Flows
- Interpreting Funds Flow Data
- Projection of Financial Requirements
- Pro forma Statements
- Pro forma Income Statement
- Pro Forma Balance Sheet
- Pro Forma Cash Flow Statement
- Cash Budgets
- Operating Budgets
- Assessment of Business Performance
- Ratio Analysis and Performance
- Management’s Point of View
- Operational Analysis
- Resource Management
- Profitability
- Owner’s Point of View
- Lender’s Point of View
- Ratios as a System
- Integration of Financial Performance Analysis
- Applications, Case Studies, Examples From Work Environments
About the Instructor
Dr. John O. Aje is Director of Technology and Engineering Systems and Associate Professor at the University of Maryland University College, Graduate School of Management & Technology. As the lead Administrator for advanced degrees in Technology Management and Engineering Management programs, Dr. Aje has structured the programs to produce managers for high-technology companies, large scale public and private technical organizations, and research institutions. He is an experienced practitioner and consultant in projects and large scale program management. He has lectured and written extensively in the field of technology management and is the Editor in Chief and founder of Technology Management Journal.
Dr. Aje received his B.S. and M.S. in Chemical Engineering from Clemson University and North Carolina State University respectively, and a M.S. and D.Sc. in Engineering Management from George Washington University.
Details:
Course: MGM-244 Duration: 3 Days FEE: $1,499 CEUs: 2.16
Please direct any additional inquiries regarding this course to Anita Hellstrom, Program Coordinator, by e-mail, FAX: (240) 371-4488 or TELEPHONE: (202) 241-6326.
Call toll free 1-800-683-7267 from anywhere in the Continental U.S. or CANADA.
Last modified November 11, 2011.
