Valid for: 2021/22
Faculty: Faculty of Engineering, LTH
Decided by: PLED I
Date of Decision: 2021-04-21
Main field: Technology.
Compulsory for: B3, K3, KLMT3
Elective for: BI4, BME4, RH4
Language of instruction: The course will be given in Swedish
The aim of the course is to give a general economic overview and basic knowledge within enginerial ethics. The students should, from an economic perspective, arrive at an understanding of the interplay of the various part systems in the enterprise. The course is intended to give a basic ability to understand and utilize economic, business and ethical concepts. Basic models used in this context are also included in the course. Relying on this basic knowledge, the students must be able to form judgements taking into account the whole of the enterprise. Special stress is laid on the basic knowledge of economics, which will be necessary in the professional life of a Master of Science Engineer.
Knowledge and understanding
For a passing grade the student must
Competences and skills
For a passing grade the student must
Judgement and approach
For a passing grade the student must
After a general introduction of the enterprise as an object for
study, a number of basic economic and ethical concepts and models
are introduced. The areas of business plan, strategy, organization
and marketing are first covered. Thereafter, the basic concepts of
cost and income analysis, followed by outcome-planning models,
describing how these basic economic concepts are influenced by
volume. Product calculation is treated comprehensively. Both
self-cost and contributory calculations are described in order that
the student should be able to apply the models and understand their
strengths and weaknesses.
When one is acquiring data for various calculations and models, one
needs an overall comprehension of how economic information is
stored within a company. This knowledge is supplied by a general
description of the accountancy law including, amongst other things,
exercises where students have to apply a running account and
balance the books. Stress is laid on external reporting. A general
run through of the basic plan is included in the course. An
overview of the content of the law on annual accounts is given. The
focus, here, is on the understanding of the annual report of the
enterprise and on being able to carry out an analysis of the
accounts. The students are invited to apply these basic skills in
business accountancy in a laboratory exercise, where, in groups of
two, they are given the opportunity to simulate business
transactions in a limited company. Every business transaction is
noted and, during the game, a number of balance sheets are drawn
up. A follow-up on how the enterprise is doing is carried out,
using key values.
Throughout the course, special stress is laid on the basic
knowledge of business administration, which will be necessary for
the professional activities of a Master of Science Engineer. This
is especially noteworthy when investment decisions are discussed.
Here, the basic static models of investment decision-making are
comprehensibly described, as it is very important that a person
with a Master of Science in Engineering should be able to carry out
profitability calculations, as the basis for decision-making in
investment situations. If this basis for investment is to be
complete for a manufacturing enterprise, it is often necessary to
make estimates of capital requirements. Detailed analysis of the
requirement for capital is comprehensively treated during the
course. Means of financing the activities of an enterprise are also
described.
Finally, ethical issues, associated with business decisions in
technical and organizational contexts are discussed. The various
tools, methods and models that are included in the course are based
on assumptions and values whose consequences are not always
obvious. The course identifies and analyzes complex situations that
the engineer faces and where loyalty conflicts are visualized, such
as between the engineer's ethics, the client and the society's
different norms and regulations. This is examined in a prepared,
case-based group exercise.
Grading scale: TH - (U,3,4,5) - (Fail, Three, Four, Five)
Assessment: A pass grade in a written examination and two cases. The examination contains both theoretical questions and problem solving.
The examiner, in consultation with Disability Support Services, may deviate from the regular form of examination in order to provide a permanently disabled student with a form of examination equivalent to that of a student without a disability.
Parts
Code: 0118. Name: Managerial Economics, Basic Course.
Credits: 6. Grading scale: TH. Assessment: 30 p of 60 p Contents: Passed written examination
Code: 0218. Name: Case.
Credits: 0. Grading scale: UG. Assessment: Prepared assignment and participation in a case discussion.
Code: 0318. Name: Ethic.
Credits: 1,5. Grading scale: UG. Assessment: Prepared assignment and participation in a case discussion. Contents: Case based examination
The number of participants is limited to: No
The course overlaps following course/s: MIO012, MIO080, MIOA01, MIOA12
Course coordinator: Peter Berling, peter.berling@iml.lth.se
Course homepage: http://www.pm.lth.se
Further information: This course may not be part of the Master degree together with the courses MIOA12, MIO012, or MIOA01.