2013 Professional Development Seminars - 18

management and leadership

Principles of Cost and Finance for Engineers
I.D.# C0828

April 15 – 17, 2013 (8:30 a.m. – 4:30 p.m.)– this course is
being held at SAE International Automotive Headquarters, Troy, Michigan
www.sae.org/pdevent/C0828
In today’s corporate environment of shrinking budgets, required
structural cost reductions, sharing of global designs/services, and pricing
pressures, it is critical that engineers possess a working knowledge of
engineering economics principles. To fully understand the economic
viability of engineering decisions, engineers need to find the appropriate
balance between design alternatives, resulting costs, and impact on their
enterprise. This seminar introduces participants to the cost, finance and
economic concepts and their applications to products and services. This
three-day course provides you with practical information normally obtained
through university level economics and business management courses
and will help you to maximize efficiencies from both an engineering and
business perspective.
Note: Attendees are requested to bring with them a business or scientific
calculator capable of doing exponential calculations.
Learning Objectives
By attending this seminar, you will be able to:
•	 Understand the hierarchy of economics, finance and cost in making
financial decisions
•	 Review financial statements and ratios in assessing the financial state of
a business
•	 Select the best decision-making criteria in making project decisions and
allocating capital
•	 Implement a benchmarking plan to establish a competitive market
position
•	 Determine the enterprise costs of raising capital through debt and equity
offerings
•	 Analyze make-buy and buy-lease options and other alternative decisions
based on the best financial strategies
•	 Understand the financial sensitivity of project decisions and the use of
decision tools for integrating business requirements
•	 Determine and optimize all costs in the production process
•	 Select the optimum cost accounting strategy and inventory plan
•	 Identify the appropriate cost estimation methodology for metallic,
electronic & plastic components
•	 Select cost control alternatives from marketing, engineering, commercial
& geographic options
Who Should Attend
This seminar will benefit engineers having responsibilities in
manufacturing, maintenance, research, design, product and process
development, program and project management, troubleshooting, and
materials management. Additionally, individuals in non-engineering
disciplines, including marketing and general management, will benefit from
an introduction to the engineering perspective.
Topical Outline
DAY ONE - Principles of Economics & Finance
•	 Process & Responsibility for Determining Cost
•	 Economics, Finance & Cost Principles
•	 Macroeconomics and Growth
•	 Microeconomics, Supply & Demand
•	 International Economics & Comparative Advantage
•	 Finance & Accounting: Corporate
•	 Finance
•	 Financial Statements & GAAP
•	 Financial Analysis & Ratios, Case Analysis
•	 Capital Sources & Allocation
•	 Time Value of Money and Decision Making
•	 Interest: simple and compounded; Inflation

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•	 Worth: present and future values
•	 Decision Making
•	 Net Present Value, Payback Period
•	 AAR, Internal Rate of Return, Profitability Index
•	 Case Analysis
•	 Benchmarking Module
DAY TWO - Cost Impact & Enterprise Decisions
•	 Cost Impact on the Enterprise
•	 Cost of capital, cost of equity and debt, WACC, Case Analysis
•	 Cost of Ownership, Depreciation; Accelerated cost recovery;
Depletion
•	 The influence on tax obligations
•	 Alternative Financial Decisions Using Case Analysis
•	 Make-Buy; Buy-Lease; Repair-Replace
•	 Investments of Unequal Life
•	 Sensitivity & Scenario Analysis
•	 Matrix Priority Rating Systems
DAY THREE - Cost Management
•	 Production Cost Relationships
•	 Break-even Point
•	 Marginal Costing
•	 Elements of the Production Process
•	 Pricing influences -- Quality; Competition
•	 Elasticity of Demand
•	 Cost Principles & Definition
•	 Accounting, Opportunity, Estimating
•	 Fixed, Variable, Cost Function, Transfer Pricing
•	 Economies of Scale
•	 Managerial & Cost Accounting
•	 Cost Volume Profit Analyses
•	 Standard Costing
•	 Throughput Costing & Case Analysis
•	 Activity-based
•	 Inventory Management
•	 Types
•	 Accounting
•	 Cost Estimating Methodology
•	 Activity-based costing
•	 Cost analysis process examples (metallic, electronic, plastic)
•	 Cost Control Alternatives
•	 Marketing & content evaluation
•	 Engineering & redesign (DFSS, DFMA, VE, Benchmarking)
•	 Commercial Decisions (Purchasing, Economies of Scale)
•	 Regions of manufacture & transportation
Instructor: James Masiak
James Masiak has more than 25 years of experience in the
implementation of business processes for General Motors. Mr. Masiak’s
most recent activities include the implementation of an enhanced
engineering product cost management process within GM North
America, the alignment of cross functional organizational initiatives, and
development of an engineering resource allocation plan for GM Regions.
Mr. Masiak was also responsible for the development and implementation
of Global Engineering and Business Strategies across all of General Motors
International Operations. Mr. Masiak received his B.S. in Mechanical
Engineering from Wayne State University, his M.S. in Mechanical
Engineering from Massachusetts Institute of Technology, and his M.B.A.
from Michigan State University Executive Management Program.
Fees – List: $1,625 • SAE Members – Classic: $1,465 •
Premium: $1,375 • Elite: $1,295
2.0 CEUs

www.sae.org/congress/seminars • 1-877-606-7323 (U.S. & Canada) or 1-724-776-4970
http://www.sae.org/pdevent/C0828 http://www.sae.org/congress/seminars
2013 Professional Development Seminars

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