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What you'll learn...
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Congratulations! You've mastered the technical side of your profession. Your education, talent and drive as an engineer have prepared you for the next step up, and you're ready to make your move to a more advanced career level. Engineers who run divisions, firms or companies must master another spectrum of skills; they must understand engineering economics.
In order to advance to upper and top management, engineering professionals must have a clear understanding of the finance and economics that directly impact the engineering profession and the firm or clients they serve. This seminar is designed to prepare engineering, manufacturing, production and operational professionals with the economic and financial knowledge they need to advance to top management. Specifically you will learn how to:
- Understand and analyze financial statements and use financial ratios.
- Use cost accounting, standard costs and variance analysis reports to improve inventory production procedures.
- Automatically use the ExcelTM regression analysis function to calculate fixed and variable production costs.
- Compute production break-even quantities.
- Calculate and present capital expenditure (engineering) proposals using six different methodologies - and you'll know which method to use in different circumstances.
- Present winning capital expenditure proposals to the public sector.
- Construct and use a decision tree.
At the conclusion of this nuts 'n' bolts, on-the-job training workshop you will have a clear understanding of the financial concepts you must master to pass the PE exam and stay on the fast track to top management. Prepare yourself for your next move up.
To access online engineering tools, please visit :
http://www.prenhall.com/park
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Comprehensive Seminar Agenda
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Understanding Finance, the Decision Making Process for Capital Projects and Using Spreadsheet Models for Engineering Economics
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Engineering Economics Overview
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- Engineer's Role in Business Leadership
- Types of strategic engineering economic decisions
- Large-scale engineering projects
- The finances behind strategic engineering decisions
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Understanding Financial Statements
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- Why do Engineers need to understand the financial statements?
- Understanding the balance sheet
- The basic accounting equation and the definition of capital
- How to instantly determine liquidity and too much debt
- How the firm gets equity: only two ways
- Using the income statement to manage a business
- How to use profit check points
- Why gross margin is the critical measure for engineers
- Inventory valuation and its impact on financial statements
- Understanding the Statement of Cash Flows
- The business operating cycle: how a business earns its cash
- Sources and Uses of Cash
- Depreciation: expense vs. cash flow
- The engineer’s focus on the investing section: capital budgeting
- Ratio analysis calculations and what the numbers really mean
- Liquidity ratios
- Activity ratios
- Leverage ratios
- Profitability
- Trends and graphs to spot problems
- Using an Excel template for instant "can’t miss" financial analysis
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Understanding Cost Concepts and Cost Classification
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- Cost Flows in Manufacturing
- Fixed Cost and Variable Cost
- Standard cost and Variance Analysis
- Cost Behavior - Cost Volume Profit Analysis
- Flexible Budgeting for fixed and variable costs
- Using Excel Data Tables and Goal Seek for instant "what if" analysis
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Understanding the Time Value of Money
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- Future and present value calculations for a single amount
- Future and present value of a recurring annuity
- Nominal and effective interest rates
- Applications - loan analysis, buy versus lease decision
- Convenient automated calculations
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Principles of Investing
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- Investment Basics: Liquidity, Risk, and Return
- How to determine your expected return
- How to determine expected financial risk
- Investment Strategies
- Group Practice Problems
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Capital Expenditure Analysis
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- Evaluating Capital Expenditure (Engineering Project)
- Non Discounted Methodologies
- Payback and Return on Investment (ROI)-Accounting rate of return
- Drawbacks and potential distortions
- Discounted Methodologies
- Net Present Value (NPV), discounted cash flow (DCF) and discounted payback
- Internal Rate of Return (IRR)
- Annual Equivalent Worth Analysis (Unit cost/profit calculation)
- Using the profitability index (PI)
- Benefit-Cost Ratio Analysis for Government Projects
- Methods for Comparing Alternatives
- Total investment Approach
- Incremental Analysis
- Handling Unequal Service Life Problems
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Developing Project Cash Flows
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- Estimating Cash Inflows and Outflows
- Net income versus Cash flow
- Depreciation and Corporate taxes
- Development of project cash flows
- Considering inflation in project cash flow analysis
- Cost of Capital and Understanding Economic Value Added (EVA)
- Calculating the after tax cost of debt
- Calculating the cost of equity
- Calculating the weighted after-tax cost of capital
- What is an EVA (Economic Value Added)?
- Using Value-Line to rapidly calculate EVA
- How to Select Huddle Rates
- When Project Financing Source is known
- When Project Financing Source is unknown
- When capital is rationed
- Comprehensive Case Study: Capital Expenditure Decision Making
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Handling Project Uncertainty
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- Describing project risk
- Sensitivity Analysis
- Breakeven Analysis
- Scenario Analysis
- Understanding probability concepts
- Monte Carlo Risk Simulation
- Understanding decision trees
- How to construct a decision tree
- Comprehensive case study
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Using Internet to conduct engineering economic analysis
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- On-line financial calculators
- Cash Flow Analyzer (Java program)
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Materials Preview
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Attend the seminar to learn how to use these valuable tools.
Preview the seminar materials here.
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Who Should Attend?
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Engineers, manufacturing and production professionals who need to understand all aspects of engineering economics and want to make the critical jump from middle management to corporate leader should plan to attend this seminar. Included in this group are: Civil, Mechanical, and Design Engineers; Manufacturing, Production, Electrical and Industrial Engineers; Product Engineers, Project Managers and Plant Managers; Manufacturing, Production and Operations Professionals; and R&D and Quality Control Professionals. This seminar is also ideal for cost accountants and financial professionals who need a basic state-of-the art refresher in the area of capital budgeting, spreadsheet computations and engineering economics. This seminar is ideal for any engineer who needs a clear understanding of the financial concepts that must be mastered to pass the PE exam. Engineers who want to develop some of the key skills needed for the next step up should plan to attend NCCE's Modern Engineering Economics.
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Instructor
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In-house Presentations ...
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If you have a group of 12 or more employees who need to learn engineering economics, NCCE's customized training is a cost-effective solution for your organization. Bring the Modern Engineering Economics in-house and ensure that your staff possesses the know-how to work in today's volatile business environment.
This course can be custom-tailored to a 4, 8, 12 or 16 hour presentation, and can be designed to address specific projects that your company is tackling.
Some of the organizations who have taken advantage of NCCE's custom training include Hewlett-Packard; Stanley Tools; US Small Business Administration; Polaroid; Ernst & Young; U.S. Robotics; Aetna, Inc.; Western Union; Siemans Westinghouse; Harley-Davidson; General Mills; Florida Power & Light; AOL; and Motorola.
For more information or to schedule a custom in-house program, email NCCE at contact@nccetraining.com or telephone 800-635-9615.
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