CHE 423 Chemical Engineering Economics

Credit Structure :(3-0)3

Catalog Description:

Importance of economics in engineering, role of engineers in economics. Market and process surveys in relation to feasibility analysis. Site selection, capital investment and production cost analysis. Interest, taxes, insurance, depreciation, profitability, alternative investments and replacements in chemical engineering.

 

Course Objectives:  Course aims to achieve the following:

                  

        To learn the actions and decisions engineers have to make in industry to design a new plant or a new

        process,

       To be able to calculate the fix and working capital requirements of an investment,

       To be able to predict and analyze the product cost and understand the economic evaluation of production,

        To understand the time value of money and how to use this concept in economic evaluations,

        To be able to calculate profitability of industrial projects,

        To be able to analyze and evaluate alternative investments and replacements,

        To understand the effect of inflation in industry,

        To learn the basic principles of project management and accounting,

        To improve their ability in searching and finding information,

        To broaden their perspective in economic concerns,

        To familiarize them with industrial life and professional responsibilities,

        To improve their functioning in teams,

        To improve their report writing and presentation skills,        

                    

Prerequisites:
Concurrent with CHE 417

 

Textbook(s):
M.S.Peters, K.D.Timmerhaus, "Plant Design and Economics for Chemical Engineers", McGraw Hill, 1991.

 

Reference:
None

 

Syllabus:    Introduction (0.5 wk)

                    Plant Design Process (1 wk)

                    General Considerations ( 1 wk)

                    Capital Investment (2 wk)

                    Product Cost – Economic Production (2 wk)

                    Time Value of Money and Profitability (2.5 wk)

                    Analysis of Alternatives (1 wk)

                    Analysis of Replacements (1 wk)

                    Inflation and Project Management (1 wk)

                    Basic Accounting  ( 1 wk)

 

 

Homeworks, Quizzes, Projects:

 3-4 Quizzes and a Term Project made by teams

 

Computer Usage:

Term project presentation.

 

Laboratory work:

None

 

Category Content:

Mathematics and Basic Sciences: None

Engineering Sciences: None

Humanities & Social Sciences: 1 credit

Departmental: 2 credits

 

Instructors:
Inci Eroglu, Ayhan Gerçeker, Önder Özbelge, Canan Özgen