At a glance
- Duration5 days
- LocationCranfield campus
What you will learn
On successful completion of the course you will be able to:
- Apply the time value of money concept to judge project Return on Investment.
- Construct complex engineering economics analyses of proposals to determine Return on Investment in complex, multifaceted, scenarios.
- Evaluate the impact of design options on the value of the system resilience afforded by those option through the system life cycle.
- Perform analysis of engineering economics problems with uncertainty, cost estimation and other limitations to data completeness and quality.
- Analyse scenarios with return in either or both the financial and physical domains.
Unit 1: Foundations
- Value and utility – financial value and cost of systems and benefits provided in the application domain
- Alternatives in design and engineering
- Interest, compound interest, time value of money
- Formulae for equivalent value over time
Unit 2: Methodology
- Life cycle cost situation
- Life cycle cost analysis
- Cost over the life cycle
- Estimating cost – methods analogy, parametric methods, accounting data, reference class forecasting
Unit 3: Errors in estimation and sensitivity analysis
- Errors in estimation – methods to describe
- Sensitivity analysis – single and multiple alternatives
- Monte Carlo analysis and applications
Unit 4: Additional Factors Affecting Decisions
- Depreciation (real and book value)
- Taxation effects on analysis
- Projects with no financial return (typically government asset and service provision)
Unit 5: Application to complex System Planning
- Optimisation of investment decisions
- Planning of fleet size
- Economic life calculations
Unit 6: System Life Cycle Events
- Effect of change of scenario during life
- Valuation of system resilience
Location and travel
Situated close to Milton Keynes and Bedford, the Cranfield campus is situated in Wharley End, very close to Cranfield village, and is about 10 minutes from the M1 motorway. There is rail and road access to most major airports as well as coach and train stations. Cranfield campus also has its own airport for private executive business travel.
Download a visitor guide including map, directions and health and safety information.
Read our Professional development (CPD) booking conditions.