A Refresher On Engineering Economics
This PowerPoint Briefing is intended as refresher training or introductory training to the discipline of engineering economics as practiced by cost analysts. Basic concepts such as the purpose and intent of engineering economics, the time value of money, the effects of inflation, the selection of a discount rate, net present value, future value, annual equivalents amounts and internal rate of return will be clearly explained in a jargon free way. The basic set up of engineering economic problems will be covered as well as tricks and tips, common errors and how to avoid them. Realistic examples will be used that cost estimators might normally encounter.
Dr. Joseph W. Hamaker retired as Director of the Cost Analysis Division of NASA Headquarters in September 2006. In his NASA HQ position, Dr. Hamaker led the development of independent cost estimates for NASA programs, as well as the establishment of strategic management and policy for the overall NASA cost estimating process. Prior to assuming the lead cost position at NASA HQ in September 2002, he spent 29 years at NASA’s Marshall Space Flight Center in Huntsville AL, the last 16 as Manager of the Engineering Cost Office there. He now works for SAIC as a Senior Cost Analyst and performs program and project independent reviews, cost and schedule estimating, risk/uncertainty analysis and related economic assessments, cost estimating tool development and related work for new and ongoing space projects. Dr. Hamaker earned his BS degree in Industrial Engineering from Tennessee Technological University and three degrees from the University of Alabama in Huntsville: a BA in economics, an MS in Engineering Management, and a PhD in Industrial and Systems Engineering. He is a SCEA Certified Cost Analyst and an ISPA Certified Parametric Practitioner.