The Advanced Certificate in Cost Engineering (ACCE)
How does one rationally select the design with the most favorable economic result? The answer to this question can also be put forth in two words: Engineering Economy.
Engineering Economy provides a systematic framework for evaluating the economic aspects of competing design solutions. Just as engineers model the stress on a support column, or the thermodynamic response of a steam turbine, they must also model the economic impact of their recommendations.
Engineering Economy—what is it, and why is it important? Any engineering project must be not only physically realizable but also economically affordable. Understanding and applying cost principles to engineering have never been more important. Engineering is more than a problem-solving activity focusing on the development of products, systems, and processes to satisfy a need or demand. Beyond function and performance, solutions must also be viable economically. Design decisions affect limited resources such as time, material, labor, capital, and natural resources, not only initially (during conceptual design) but also through the remaining phases of the life cycle (e.g., detailed design, manufacture and distribution, service, retirement and disposal).You will get the skills to:
- Understand the different types of cost concepts and designs
- Understand the various methods used to gauge cost estimates
- Learn about the time value of money over a project term
- Become aware of taxation issues
- Learn about evaluating Projects with the Benefit−Cost Ratio Method
- Understand the importance of sensitivity analysis, break even, and profit territory
- Learn about the importance of risk and how to manage associated risks
- Learn about planning your capital budget
- Understand the key factors in the decision making process