Department of Chemical Engineering, Unit Catalogue 2007/08 |
CE20094 Management 1 |
| Credits: 6 |
| Level: Intermediate |
| Semester: 2 |
| Assessment: EX 100% |
| Requisites: |
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Aims: To provide an introduction to the economic parameters and methods for evaluating the costs and profitability of engineering projects, and the legal framework in which they have to operate.
Learning Outcomes: After successfully completing this unit students should be able to: * Make quick engineering estimates of chemical process plant capital and operating costs; * Determine the profitability of simple projects using traditional and cash flow techniques; * Describe the legal framework in which companies are required to operate. Skills: Industrial awareness, economic awareness, analysis and problem solving. Content: * Interest relationships, discount formulas; * Sources of investment capital; profit and cash flow relationships; payback period; * Contribution and variable costing, breakeven production diagrams; * Basis for rate of return concept, minimum acceptable rate of return, risk factor; * Profitability methods based on cash flow, cumulative cash flow curves, determination of NPV, DCF rate of return, EMIP, IRR, discounted breakeven point; * Capital cost estimation: short-cut methods e.g. ratio methods, use of cost indices, factored estimates, introduction to detailed cost estimation; * Manufacturing cost estimation: short-cut methods; * Optimal costing methods, incremental costs and profitability; * Common/statute law with examples in Health & Safety at Work & Environmental Protection Act; structure of the courts; * Law of contract, law of agency, sale of goods, law of partnership; * Joint stock companies: memoranda; articles of association; shares; debentures; board of directors; * Commercial arbitration, trade union law, restrictive trade practices; * Contract of service: duties of employer and employee. |