The role of the engineer is to apply the wealth of scientific knowledge to produce products and services for the benefit of mankind. A design can demonstrate excellence in technical achievements but if the end user cannot afford it, the whole project will be one of futility. Taking into account the vast sums of money involved in the design, development of products and establishment of production facilities, poorly managed projects can seriously damage the profitability and survival of a company.
This module creates an opportunity for the learner to be acquainted with the theoretical principles and practical applications of finance and cost management aspects as applied to projects and programmes.
To achieve this objective, it is necessary to:
- Firstly, clarify the study field of engineering economics and its function in the decision-making process,
- Secondly, to understand the elementary principles of cost estimation, allocation of cost elements and, financial risk management,
- Thirdly, to understand the cost control principles in the management of a project or programme