School of Mechanical and Manufacturing Engineering UNSW Engineering GSOE9830 Economic Decision Analysis in Engineering Term 3, 2021 GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 1 Course Overview Staff Contact Details Convenors Name Email Availability Location Phone Dr. Shiva Abdoli s.abdoli@unsw.edu.au 9:00 - 12:00 midday and by appointment (02) 9348 0088 Lecturers Name Email Availability Location Phone Guy Allinson g.allinson@unsw.edu.au 9:00 - 12:00 midday and by appointment (week 1-5) (02) 9385 5189 School Contact Information Location UNSW Mechanical and Manufacturing Engineering Ainsworth building J17, Level 1 Above Coffee on Campus Hours 9:00–5:00pm, Monday–Friday* *Closed on public holidays, School scheduled events and University Shutdown Web School of Mechanical and Manufacturing Engineering Engineering Student Support Services Engineering Industrial Training UNSW Study Abroad and Exchange (for inbound students) UNSW Future Students Phone GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 2 (+61 2) 9385 8500 – Nucleus Student Hub (+61 2) 9385 7661 – Engineering Industrial Training (+61 2) 9385 3179 – UNSW Study Abroad and UNSW Exchange (for inbound students) (+61 2) 9385 4097 – School Office** **Please note that the School Office will not know when/if your course convenor is on campus or available Email Engineering Student Support Services – current student enquiries e.g. enrolment, progression, clash requests, course issues or program-related queries Engineering Industrial Training – Industrial training questions UNSW Study Abroad – study abroad student enquiries (for inbound students) UNSW Exchange – student exchange enquiries (for inbound students) UNSW Future Students – potential student enquiries e.g. admissions, fees, programs, credit transfer School Office – School general office administration enquiries NB: the relevant teams listed above must be contacted for all student enquiries. The School will only be able to refer students on to the relevant team if contacted Important Links Student Wellbeing Urgent Mental Health & Support Equitable Learning Services Faculty Transitional Arrangements for COVID-19 Moodle Lab Access Computing Facilities Student Resources Course Outlines Makerspace UNSW Timetable UNSW Handbook GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 3 Course Details Units of Credit 6 Summary of the Course Project initiation and development, review of practical decision-making problems and relevant techniques, benefit/cost analysis, time value of money, Nominal and effective interest rate, calculation involving multiple interest formulae, internal rate of return, payback period method, comparisons of alternative investments, depreciation methods, income tax consideration, inflation, replacement analysis, sensitivity analysis, life-cycle costing, economic analysis of projects. Course Learning Outcomes After successfully completing this course, you should be able to: Learning Outcome EA Stage 1 Competencies 1. Apply the knowledge of systematic evaluation of the costs and benefits of proposed technical and business project and ventures PE1.2, PE1.3, PE2.4 2. Understand cost concepts, cash flows, their estimation and interest formulae. Also, to understand various depreciation methods and learn about the effect of income tax on economy studies PE1.2, PE1.3, PE3.4 3. Be familiar with various methods for economy studies and comparing alternative investments PE2.3, PE2.4, PE3.4 4. Understand the role of probability analysis in decision making and decision tree analysis PE1.1, PE1.2, PE1.3, PE2.4, PE3.4 5. Value information and analyse a portfolio of investments PE2.1, PE2.2, PE2.3, PE3.1, PE3.6 6. Carry out Monte Carlo simulations PE2.1, PE2.2, PE2.3, PE2.4 Teaching Strategies Please refer to the information in Moodle GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 4 Assessment Assessment task Weight Due Date Course Learning Outcomes Assessed 1. Class quiz N/A Not Applicable 1, 2, 3, 4, 5, 6 2. Mid term Test 50% 11/10/2021 08:00 PM 1, 2, 3, 4, 5, 6 3. Final end-of-term examination 50% Not Applicable 1, 2, 3, 4, 5, 6 Assessment 1: Class quiz Assessment length: Short questions Deadline for absolute fail: N/A Marks returned: There is no mark allocated to this assessment The class quiz includes short questions that require short calculations or descriptive answers. Assessment criteria This is an online short quiz to assess the students understanding of the basics concepts and will start at week 2 and the students can take it at any time. Additional details The students don't have to submit their answers but will get feedback about the right answers. Assessment 2: Mid term Test Start date: 11/10/2021 06:00 PM Assessment length: 2 hours Submission notes: Via Moodle Due date: 11/10/2021 08:00 PM Deadline for absolute fail: This is the exam, no submission is allowed after the deadline Marks returned: within 2 weeks after submission The class test consists of short questions that require short descriptive answers and/or short calculations. This is not a Turnitin assignment Additional details Deadline for absolute fail: N/A Assessment 3: Final end-of-term examination GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 5 Assessment length: 2 hours Submission notes: Via Moodle Marks returned: 2 weeks after submission The final examination for the course is a written end-of-session examination of two hours duration and will include only material covered in the second module of the course. The final exam has questions that require descriptive answers and/or calculations. This is not a Turnitin assignment Additional details The final exam will happen during the exam period, the date TBC Deadline for absolute fail: N/A GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 6 Attendance Requirements Students are strongly encouraged to attend all classes and review lecture recordings. Course Schedule View class timetable Timetable Date Type Content Week 1: 13 September - 17 September Lecture Introduction, Net cash flow analysis, Net cash flow and profit, Taxation. Week 2: 20 September - 24 September Lecture Tax and loss carry forward, Sunk Costs, Inflation, Real and Nominal cash flow Week 3: 27 September - 1 October Lecture Net present value (NPV), Features of NPV, Real and Nominal NPVs Week 4: 4 October - 8 October Lecture Internal Rate of Return (IRR), Multiple IRRs, Comparing Investments, Week 5: 11 October - 15 October Lecture Incremental net cash flow, Tax relief. Mid-term Exam on Monday 11/10/2021 Week 6: 18 October - 22 October Lecture Uncertainty in decision analysis, Sensitivity analysis, Probability distributions Week 7: 25 October - 29 October Lecture Multiple random variable analysis and, Using skewed probability distributions, Monte Carlo simulation Week 8: 1 November - 5 November Lecture Uncertain decisions and risk sharing Week 9: 8 November - 12 November Lecture Many Investments and decision tree, value of information (Part 1) Week 10: 15 November - 19 November Lecture Decision trees (Part 2) GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 7 Resources Prescribed Resources Lecture outlines, course notes and exercises will be provided on Moodle. Moodle: https://moodle.telt.unsw.edu.au/login/index.php Recommended Resources Text Book 1 W.G. Sullivan, E.M. Wicks, C.P. Koelling, “Engineering Economy”, Prentice Hall International, 17th Ed., 2018. This textbook is available for purchase at the UNSW book shop. Text Book 2 (optional) “Decision Analysis for Petroleum Exploration”, Paul Newendorp and John Schuyler, Planning Press 2000 UNSW Library website can be accessed at https://www.library.unsw.edu.au/ Course Evaluation and Development Feedback on the course is gathered periodically using various means, including the UNSW myExperience process, informal discussion in the final class for the course, and the School’s Student/Staff meetings. Your feedback is taken seriously, and continual improvements are made to the course based, in part, on such feedback. In this course recent improvements resulting from previous years’ feedback include more real-life examples and case studies, as well as problems solved in demonstration and provided on Moodle. All of these suggestions are incorporated into the course syllabus. GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 8 Submission of Assessment Tasks Assessment submission and marking criteria Should the course have any non-electronic assessment submission, these should have a standard School cover sheet. All submissions are expected to be neat and clearly set out. Your results are the pinnacle of all your hard work and should be treated with due respect. Presenting results clearly gives the marker the best chance of understanding your method; even if the numerical results are incorrect. Marking guidelines for assignment submissions will be provided at the same time as assignment details to assist with meeting assessable requirements. Submissions will be marked according to the marking guidelines provided. Late policy Work submitted late without an approved extension by the course coordinator or delegated authority is subject to a late penalty of 20 percent (20%) of the maximum mark possible for that assessment item, per calendar day, for a minimum of zero marks. The late penalty is applied per calendar day (or part thereof), including weekends and public holidays, that the assessment is overdue. Work submitted after the ‘deadline for absolute fail’ is not accepted and a mark of zero will be awarded for that assessment item. For example: Your course has an assessment task worth a total of 30 marks (Max Possible Mark) You submit the assessment 2 days after the due date The assessment is marked as usual and achieves a score of 20 marks (Awarded Mark) The late policy is applied using Late Mark = Awarded Mark - (Days*Penalty per Day)*Max Possible Mark. Your adjusted final score is 8 marks (20 - ((2*0.2)*30)). For some assessment items, a late penalty may not be appropriate. These are clearly indicated in the course outline, and such assessments receive a mark of zero if not completed by the specified date. Examples include: 1. Weekly online tests or laboratory work worth a small proportion of the subject mark, or 2. Online quizzes where answers are released to students on completion, or 3. Professional assessment tasks, where the intention is to create an authentic assessment that has an absolute submission date, or 4. Pass/Fail assessment tasks. Examinations You must be available for all quizzes, tests and examinations. For courses that have final examinations, these are held during the University examination periods: February for Summer Term, May for T1, August for T2, and November/December for T3. Please visit myUNSW for Provisional Examination timetable publish dates. For further information on GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 9 exams, please see the Exams webpage. Special Consideration If you have experienced an illness or misadventure beyond your control that will interfere with your assessment performance, you are eligible to apply for Special Consideration prior to submitting an assessment or sitting an exam. UNSW now has a Fit to Sit / Submit rule, which means that if you attempt an exam or submit a piece of assessment, you are declaring yourself fit enough to do so and cannot later apply for Special Consideration. For details of applying for Special Consideration and conditions for the award of supplementary assessment, please see the information on UNSW’s Special Consideration page. Please note that students will not be required to provide any documentary evidence to support absences from any classes missed because of COVID-19 public health measures such as isolation. UNSW will not be insisting on medical certificates from anyone deemed to be a positive case, or when they have recovered. Such certificates are difficult to obtain and put an unnecessary strain on students and medical staff. Applications for special consideration will be required for assessment and participation absences – but no documentary evidence for COVID-19 illness or isolation will be required. Special Consideration Outcomes Assessments have default Special Consideration outcomes. The default outcome for the assessment will be advised when you apply for Special Consideration. Below is the list of possible outcomes: GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 10 Outcome Explanation Example Time extension Student provided more time to submit the assessment e.g. 1 more week of time granted to submit a report Supplementary assessment Student provided an alternate assessment at a later date/time e.g. a supplementary exam is scheduled during the supplementary exam period of the term Substitute item The mark for the missed assessment is substituted with the mark of another assessment e.g. mark for Quiz 1 applied also applied as mark for Quiz 2, meaning if a student achieved a mark of 20/30 for Quiz 1 and was granted Special Consideration for Quiz 2, a mark of 20/30 would be applied for Quiz 2, etc Exemption All course marks are recalculated excluding this assessment and its weighting e.g. The course has an assessment structure of: - Assignments 30%, - Lab report 30%, - Final Exam 40%. If the Lab report is missed and student is granted Special Consideration, then the assessment structure may be reweighted as follows: - Assignments 50% - Final Exam 50% as though the Lab report did not exist Non-standard Course Coordinator is contacted for the outcome when special consideration is granted as the outcome differs on a case-by-case basis e.g. typical for group assessments where time extension supplementary assessment could be granted to the group member, time extension could be granted to the whole group, etc. Clarify with your Course Convenor for GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 11 Academic Honesty and Plagiarism UNSW has an ongoing commitment to fostering a culture of learning informed by academic integrity. All UNSW students have a responsibility to adhere to this principle of academic integrity. Plagiarism undermines academic integrity and is not tolerated at UNSW. Plagiarism at UNSW is defined as using the words or ideas of others and passing them off as your own. Plagiarism is a type of intellectual theft. It can take many forms, from deliberate cheating to accidentally copying from a source without acknowledgement. UNSW has produced a website with a wealth of resources to support students to understand and avoid plagiarism, visit: student.unsw.edu.au/plagiarism. The Learning Centre assists students with understanding academic integrity and how not to plagiarise. They also hold workshops and can help students one-on-one. You are also reminded that careful time management is an important part of study and one of the identified causes of plagiarism is poor time management. Students should allow sufficient time for research, drafting and the proper referencing of sources in preparing all assessment tasks. If plagiarism is found in your work when you are in first year, your lecturer will offer you assistance to improve your academic skills. They may ask you to look at some online resources, attend the Learning Centre, or sometimes resubmit your work with the problem fixed. However more serious instances in first year, such as stealing another student’s work or paying someone to do your work, may be investigated under the Student Misconduct Procedures. Repeated plagiarism (even in first year), plagiarism after first year, or serious instances, may also be investigated under the Student Misconduct Procedures. The penalties under the procedures can include a reduction in marks, failing a course or for the most serious matters (like plagiarism in an honours thesis) even suspension from the university. The Student Misconduct Procedures are available here: www.gs.unsw.edu.au/policy/documents/studentmisconductprocedures.pdf GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 12 Academic Information Credit points Course credit is calculated in Units-Of-Credit (UOC). The normal workload expectation for one UOC is approximately 25 hours per term. This includes class contact hours, private study, other learning activities, preparation and time spent on all assessable work. Most coursework courses at UNSW are 6 UOC and involve an estimated 150 hours to complete, for both regular and intensive terms. Each course includes a prescribed number of hours per week (h/w) of scheduled face-to-face and/or online contact. Any additional time beyond the prescribed contact hours should be spent in making sure that you understand the lecture material, completing the set assignments, further reading, and revising for any examinations. On-campus class attendance **T3-2021 UPDATE** Classes will be entirely ONLINE until at least Week 6, after which we will receive further advice from UNSW about the return of face-to-face classes. Students who are enrolled in face-to-face classes will have access to the course's online content but NO classes will be changed to reflect online delivery until Week 6 due to uncertainty regarding delivery mode for the rest of the term. Please go to your course's Moodle modules and MS Teams sites for further information about accessing course resources and content. - - - - - - - - - - - - - - - - - - - - - - - - Public distancing conditions must be followed for all face-to-face classes. To ensure this, only students enrolled in those classes will be allowed in the room. No over-enrolment is allowed in face-to-face classes. Students enrolled in online classes can swap their enrolment from online to a limited number of on-campus classes by Sunday, Week 1. Please refer to your course's Microsoft Teams and Moodle sites for more information about class attendance for in-person and online class sections/activities. Your health and the health of those in your class is critically important. You must stay at home if you are sick or have been advised to self-isolate by NSW health or government authorities. Current alerts and a list of hotspots can be found here. You will not be penalised for missing a face-to-face activity due to illness or a requirement to self-isolate. We will work with you to ensure continuity of learning during your isolation and have plans in place for you to catch up on any content or learning activities you may miss. Where this might not be possible, an application for fee remission may be discussed. Further information is available on any course Moodle or Teams site. In certain classroom and laboratory situations where physical distancing cannot be maintained or there is a high risk that it cannot be maintained, face masks will be considered mandatory PPE for students and staff. For more information, please refer to the FAQs: https://www.covid-19.unsw.edu.au/safe-return-campus-faqs Guidelines All students are expected to read and be familiar with UNSW guidelines and polices. In particular, GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 13 students should be familiar with the following: Attendance UNSW Email Address Special Consideration Exams Approved Calculators Academic Honesty and Plagiarism Image Credit Photo by Stephen Blake March 2017, Willis Annexe (J18) Thermofluids lab CRICOS CRICOS Provider Code: 00098G Acknowledgement of Country We acknowledge the Bedegal people who are the traditional custodians of the lands on which UNSW Kensington campus is located. GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 14 Appendix: Engineers Australia (EA) Professional Engineer Competency Standard Program Intended Learning Outcomes Knowledge and skill base PE1.1 Comprehensive, theory based understanding of the underpinning natural and physical sciences and the engineering fundamentals applicable to the engineering discipline ✔ PE1.2 Conceptual understanding of the mathematics, numerical analysis, statistics, and computer and information sciences which underpin the engineering discipline ✔ PE1.3 In-depth understanding of specialist bodies of knowledge within the engineering discipline ✔ PE1.4 Discernment of knowledge development and research directions within the engineering discipline PE1.5 Knowledge of engineering design practice and contextual factors impacting the engineering discipline PE1.6 Understanding of the scope, principles, norms, accountabilities and bounds of sustainable engineering practice in the specific discipline Engineering application ability PE2.1 Application of established engineering methods to complex engineering problem solving ✔ PE2.2 Fluent application of engineering techniques, tools and resources ✔ PE2.3 Application of systematic engineering synthesis and design processes ✔ PE2.4 Application of systematic approaches to the conduct and management of engineering projects ✔ Professional and personal attributes PE3.1 Ethical conduct and professional accountability ✔ PE3.2 Effective oral and written communication in professional and lay domains PE3.3 Creative, innovative and pro-active demeanour PE3.4 Professional use and management of information ✔ PE3.5 Orderly management of self, and professional conduct PE3.6 Effective team membership and team leadership ✔ Powered by TCPDF (www.tcpdf.org) GSOE9830 // Term 3, 2021 // published at 16-09-2021 © UNSW Sydney, 2021 15