Download Engineering Management Examination, Cork Institute of Technology, Autumn 2010 and more Exams Business Management and Analysis in PDF only on Docsity!
CORK INSTITUTE OF TECHNOLOGY
INSTITIÚID TEICNEOLAÍOCHTA CHORCAÍ
Autumn Examinations 2010
Module Title: Engineering Management
Module Code: ELEC 7009
School: Electrical Engineering
Programme Title: Bachelor of Engineering in Electrical Engineering
Programme Code: EELEC_7 _Y
External Examiner(s): Mr. G. Beecher, Dr. M. Duffy Internal Examiner(s): Mr. K. Davis
Instructions: Answer 4 Questions
Duration: 2 Hours
Sitting: A utumn 2010
Requirements for this examination:
Note to Candidates: Please check the Programme Title and the Module Title to ensure that you have received the correct examination paper. If in doubt please contact an Invigilator.
Q1. (a) As engineering manager , you are asked to evaluate the purchase of a new piece of machinery for your company. The capital investment required is €25,000 and after seven years, has an end of life scrappage value of €7,500. If this machine, results in an annual saving of €3850, is the purchase of the machine viable over the lifetime of the machine, assuming a discount rate (DR) of 5%. All calculations must be shown. Discount cash flow tables are attached. (10 Marks)
(b) Calculate the Internal Rate of Return (IRR) for the purchase of this machine? (8 Marks) (c) Explain what is meant by the term “depreciation” and give an example of how depreciation is used to calculate the taxable income of a company. (7 Marks)
Q2. (a) You are asked to carry out an investment appraisal to determine the profit margin on a fixed price construction project. The project was won with a tender price of €75,000. It will involve €35,000 of raw material, 1000 hours of labour (estimated to cost €20 per hour) and rental equipment costs €2,750 per week. Five workers, each working a standard 40 hour week, are assigned to the project. Draw a breakeven chart that clearly shows the project’s
Fixed costs Variable costs Contract price Profit margin if completed on schedule (10 marks) (b) If the workers, each worked 20 hours overtime per week, at an overtime rate of €40 per hour, would the project’s profit margin increase or decrease? (6 marks)
(c) What are “Life Cycle Costs” and give two examples where the “life cycle costs” should be considered when making investments. (9 Marks)
Q4. (a) Describe the four management functions and the type of management activity associated with each function. (6 marks)
(b) Define conceptual, human and technical skills and discuss their relevance for managers. (6 marks)
(c) Outline five sources of power and explain how each causes different subordinate behaviour. ( 8 marks)
(d) Explain the difference between a “Team” and a “Group” and outline the skills required for a successful team (5 marks)
Q5. (a) Outline and discuss the key segments of Business Plan (for a small business). (9 marks)
(b) Outline and discuss the difference between debt financing and equity financing. (4 marks) (c) Relative to starting of a new business, list the advantages and disadvantages of the following: (i) Buying an existing business. (4 marks) (ii) Buying a Franchise. (4 marks) (iii) Developing a spin off business. (4 marks)
Q6. (a) List six of the General Principals of Prevention as defined in Schedule 3, Section 8 of the Safety, Health and Welfare at Work Act (2005). (6 marks)
(b) A Risk Assessment is conducted in three steps. Describe these steps and give examples of a risk assessment of an electrical workshop (6 marks)
(c) What is a “safety statement” and why are these statements produced by businesses? (6 Marks)
(d) Draw the structure of the Irish Court System and give an example of how a company might find itself before each court type ( 7 marks)
