Engineering Economics and Management

Question 1 a) Distinguish between Scientific Management and Administrative Management. (3 marks) b) Outline the work and findings of one researcher in the Scientific Management field. (5 marks) c) Identify four important management skills that help managers succeed. Give an example of each. (4 marks) d) Explain (using an example) how managers should define goals in the workplace, and outline the possible consequences if managers do not clearly define goals. (6 marks) e) Explain Time Management in a work context. Distinguish between urgent and important tasks in the workplace, and outline the order in which these tasks should be completed, in the interests of good time management. (7 marks) Question 2 a) In the context of Engineer report writing, outline the 5 P’s approach, as covered in class. (5 marks) b) Outline important considerations when writing a formal email in college or the workplace? (4 marks) c) Explain how and why an Engineering Team Manager might: i) Stimulate conflict in their team ii) Manage and control conflict in their team (8 marks) PTO DT022/2 16356 PRFD2111 DT023/2 15444 PRFD 2111 DT026/2 Page 2 of 5 d) Imagine you are the Team Lead of a small workgroup. Outline how you would communicate the following information to your subordinates, and explain your reasons for selecting this method of communication: i) One person needs to be told their request for a transfer has been approved. A second needs to be told they are being transferred although they did not ask for a transfer. A third person needs to be told their request for a transfer has been declined. ii) The project schedule for the next month needs to be communicated to the team. (8 marks) Question 3 a) Given below (TableQ3a) are some financial ratios for Arcline Engineering Ltd for years 2013 and 2012. Explain how five of these ratios are calculated, comment on what they tell us about the company and state whether each ratio is an improvement on the previous year or not. Ratio 2013 2012 Current ratio 1.41 1.72 Acid test 0.89 0.96 Total asset turnover 2.24 2.63 Return on Owners Investment 16.3% 14.8% Inventory turnover 3.8 4.3 Accounts receivable turnover 3.7 3.8 Accounts payable turnover 2.8 3.2 Table Q3a (15 marks) b) Explain why a company with a high current ratio could still go bankrupt. (6 marks) c) With reference to the Sources and Uses of Funds Statement, explain the following: i) An increase in a liability is a source of funds ii) An increase in assets in a use of funds (4 marks) DT022/2 16356 PRFD2111 DT023/2 15444 PRFD 2111 DT026/2 Page 3 of 5 Question 4 a) Explain, using a diagram, what is meant by Break Even Analysis. Include definitions and examples of fixed and variable costs in your answer. (5 marks) b) Give an example of when a variable cost might not rise with production levels? Use a graph to illustrate your answer. (5 marks) c) A factory established to manufacture three products, A, B and C has fixed costs of €16,000. Current rates of production are 105 per week for A, 200 per week for B and 150 per week for C. The total weekly variable costs are €200 for A, €400 for B and €300 for C. Sales price for A is €110, for B is €100 and for C is €90. Find: (i) The unit variable cost for each of A, B and C. (ii) The unit contribution for each of A, B and C. (iii) The current total weekly profit. (iv) Assuming the fixed costs are distributed to A, B and C in proportion to their turnover, determine the breakeven number per week for A, B and C. (15 marks) Question 5 a) Draw the demand curve and explain. Explain what is happening when a demand curve shifts to the right. Explain what is happening when a demand curve shifts to the left. Use examples and diagrams to illustrate your answers. (9 marks) b) Draw the supply curve and explain. Outline which ‘other factors’ affect quantity supplied. Use examples to illustrate your answer. (8 marks) PTO DT022/2 16356 PRFD2111 DT023/2 15444 PRFD 2111 DT026/2 Page 4 of 5 c) Explain the purpose and give an example of: i) A ceiling price ii) A floor price Outline the possible (unintended) outcomes when both are introduced. (8 marks) Question 6 a) Examining economic growth rates around the world shows disparities in the rates at which different country’s economies grow. What factors influence the growth rate of economies? (8 marks) b) Explain, with the aid of a diagram, the complete circular flow model of economic activity. (12 marks) c) Explain how Gross Domestic Product (GDP) is calculated. What accounts for differences between GDP and Gross National Product (GNP) in Ireland.