Course Catalogue.

After participating in this course, you will be able to:

• Understand accounting, finance and engineering economics through explanation of definitions, discussions, case studies and calculations examples
• Have a better appreciation of different types of financial reports and financial reporting requirements
• Have a better understanding of financial metrics and financial ratios, including Payback Period, FV, PV, and Time Value of Money Conversions. IRR, ROI, NPV, ROE, ROR, Current Ratio, Acid Test Ratio, Plant Turnover Ratio
• Understand inventory concepts such as: FIFO, LIFO, EOQ, Inv. Turnover Ratio, WIP Inv., and Inv. Carrying Costs
• Know more about depreciation and different types of costs, including Life Cycle Costs, Period Costs, Direct and Indirect Costs

Description
Engineers cannot see their designs come to fruition, take shape, and be implemented without the acquisition of necessary funds. Since most engineering curricula don’t include significant financial analysis and engineering economics skill dissemination, this course fills that gap. In this course, you learn about finance, engineering economics, and corporate reporting requirements.

It helps engineers objectively and quantitatively show the pros and cons of design options to clients and employers, fulfilling the Code of Engineering Ethics for Licensed Professional Engineers. The course, themed after Prof. Rauf's book "Finance and Accounting for Energy Engineers," is a type of "Crash MBA" for engineers, professionals, and managers. It covers time value of money calculations using equations or financial factor tables, explained simply and illustrated through practical examples, as in Prof. Rauf's book.

You will learn asset depreciation methods and their influence on net profit and taxes. Learn about the widely used and accepted capital investment performance metrics, such as financial ratios, payback period, breakeven, and NPV, etc. You learn about fundamental accounting methods: The Income Statement and the Balance Sheet. You will get an appreciation of the role played by inventory systems in the control of net income, net profits and tax liability. Life cycle cost and other cost classifications in industrial and commercial organizations are covered.

Who Should Attend

Designed for engineers, professional engineers, energy professionals, engineering managers, technical professionals, facilities managers and other professionals who are not intimately familiar or current on finance, accounting, time value of money analysis, and engineering economics principles and practices.  This course will also benefit manufacturing managers, project and program managers, maintenance managers, energy engineers and other energy professionals, engineering and crew managers and architects.

Optional Reference Material:
Finance and Accounting for Energy Engineers, By S. Bobby Rauf, River Publishers.

Course Syllabus

• Accounting and Finance Concepts: Definitions, Discussion and Examples of Calculations.
• Economics and engineering economics
• Common Organizational Structures - Role of Financial Analysts, Accountants, Controllers and CFO’s
• Income Statements and Balance Sheets. Cash Flow and Working Capital Concepts
• Financial Reporting Requirements
• Financial Metrics and Ratios: Payback Period, FV, PV, Time Value of Money Conversions. IRR, ROI, NPV, ROE, ROR, Current Ratio, Acid Test Ratio, Plant Turnover Ratio
• Depreciation Alternatives: S/L, Prod. Based on SOY Digits.
• Inventory Concepts: FIFO, LIFO, EOQ, Inv. Turnover Ratio, WIP Inv., Inv. Carrying Costs.
• Lease vs. Buy Decisions. Repair vs. Replace Decisions
• Costs: Life Cycle Cost. Period Costs, Direct and Indirect Costs.