IL4002 Engineering Economics and Cost Estimation Syllabus:
IL4002 Engineering Economics and Cost Estimation Syllabus – Anna University PG Syllabus Regulation 2021
COURSE OBJECTIVES:
To study and understand the concept of Engineering Economics and apply in the real world.
To gain knowledge in the field of cost estimation to enable the students to estimate the cost of various manufacturing processes.
UNIT I INTRODUCTION TO MANAGERIAL ECONOMICS AND DEMAND ANALYSIS
Definition of Managerial Economics – Nature and scope of Managerial Economics – Managerial Economics and other disciplines. Objectives of the firm – Factors influencing Managerial decisions – Basic concepts of Managerial Economics. Demand Analysis – Defining demand, Types of demand and Determinants of demand, Elasticity of demand and demand forecasting.
UNIT II PRODUCTION AND COST ANALYSIS
Production Analysis – Production function, Returns to a factor, Returns to scale, ISO quants and Least cost combination of inputs. Cost Analysis – Cost concepts, Determinants of cost, Short-run cost-output Relationship, Long-run cost output relationship, Economies and Diseconomies of scale and Estimating cost – Output Relationship.
UNIT III PRICING
Determinants of price – Pricing under different objectives – Pricing under different market structures – Price discrimination – Pricing of Joint products – Pricing methods in practice.
UNIT IV ESTIMATION OF MATERIAL AND LABOUR COSTS
Introduction to Estimation and Costing – Elements of costs – Allocation of overheads – Estimation of Material cost – Estimation of Labour cost, Indirect Expenses and Depreciation.
UNIT V ESTIMATION OF OPERATIONAL COST
Estimation in Machine shop – Estimation in Forging shop –Estimation in welding shop.
TOTAL: 45 PERIODS
COURSE OUTCOMES:
Students will be able to estimate cost of products, analyze product cost and suggest cost reduction measure.
CO1: know about method to Perform and evaluate present worth, future worth and annual worth analyses on one of more economic alternatives.
CO2: able to Calculate payback period and capitalized cost on one or more economic alternatives.
CO3: know about method to carry out and evaluate benefit/cost, life cycle and breakeven analyses on one or more economic alternatives
CO4: Students able to Prepare the cost estimation report for any project.
CO5: Learn about cost accounting, replacement analysis.
TEXT BOOKS:
1. V.L.Mote, Samuel Paul and G.S.Gupta, “ Managerial Economics – concepts and cases”, McGraw Hill Education (India), 2017.
2. Yogesh Maheshwari, “Managerial Economics”, Third edition, PHI 2012.
3. T.R.Banga and S.C.Sharma, “Mechanical Estimating and Costing”, 16th Edition, Khanna Publishers, 2012.
REFERENCES:
1. A.Ramachandra Aryasri and V.V.Ramana Murthy, “Engineering Economics and Financial Accounting”, McGraw Hill Education (India), New Delhi, 2004.
2. R.Paneerselvam, “Engineering Economics”, PHI, 2013.