Download FE Review for ESM 450

FE Review
http://www.raperkins.net/Presentatio
ns/PresentationsIndex.htm
Dr. Robert A . Perkins, PE
253 Duckering
[email protected]
What is FE
• Fundamentals of Engineering
– AKA “EIT”
• Tests basic knowledge
• Prepared by NCEES
– National Council of Examiners of Engineering
and Surveying
– http://www.ncees.org/
Books and Calculators
•
•
•
•
•
No books
Some calculators banned
NCEES “Supplied-Reference Handbook
Download pdf and print
http://www.ncees.org/exams/study_material
s/#fe
• Will get an identical at exam.
Licensure
• In order to protect the public health and
safety
• Requires
– Education
– Experience
– Examination
• Exam has AM and PM sessions
– four hours each
• 120 multiple choice questions in AM
– That’s two minutes each
• 60 multiple choice in PM
– Four minutes each
• Take home message?
• “Your exam results are determined by the
number of items you answered correctly for
the exam in its entirety. There are no
minimum requirements for particular
sections or topics within an exam. You are
not penalized for incorrect answers.”
(NCEES website)
Not to worry
• No one gets 100%
• You only need 70%
Ethics Specs for AM
• V. Ethics and Business Practices 7%
• A. Code of ethics (professional and
technical societies)
• B. Agreements and contracts
• C. Ethical versus legal
• D. Professional liability
• E. Public protection issues (e.g., licensing
boards)
Econ Specifications for AM
• VI. Engineering Economics 8%
• A. Discounted cash flow (e.g., equivalence,
PW, equivalent annual cash flow, FW, rate of
return)
• B. Cost (e.g., incremental, average, sunk,
estimating)
• C. Analyses (e.g., breakeven, benefit-cost)
• D. Uncertainty (e.g., expected value and risk)
Civil PM
• No econ, but 10% is:
For EE and ME
• Ethics and Econ first
• Then a little contracts
• Then construction, a little
A. Code of ethics (professional and
technical societies)
• See FE book, pages 121-122
– Read
• Number 1, paramount, first and foremost,
etc., obligation is to……..
• Codes and Standards
• Conflict of Interest
• Don’t lie
•
•
•
•
C. Ethical versus legal
D. Professional liability
E. Expert witness
F. Public protection issues (e.g., licensing
boards)
Let’s do AM Econ
• A. Discounted cash flow (e.g.,
equivalence, PW, equivalent annual
cash flow, FW, rate of return)
• Go to Overheads
• Must use formulas and tables
• You estimate your new generator will
require a major overhaul at five and 12
years after it is installed. Each overhaul
cost $85,000. Assume it will be junked at
the end of year 15, before a third overhaul is
needed. What is the equivalent annual cost
of the two overhauls if i=8% ?
•
•
•
•
(On board)
All needed factors are in Handbook
An relevant tables.
With that, all should be direct, except finding Rate
of Return
– don’t try to inverse formulae
• Solve for factor, then work backwards in tables
– Linear interpolation is fine, if you need it.
Problems
• Board and Overheads.
B. Cost (e.g., incremental,
average, sunk, estimating)
• Incremental two meanings
– Means the difference between alternatives
– Which is all we have to analyze
– As we have done in 450, or
• The cost of the next unit
– one more unit, relates to next
• Average
– Fixed versus variable
Fixed vs. Variable Costs
• Fixed
– Many overhead costs, boss, rent, etc.
– Must pay no matter how many units you make
• Variable
– per unit extra cost
• For Average
– Divide the fixed by the number of units and add the unit
cost
– Duh
Sunk
Estimating
• No idea
• Common sense
• Nothing in Handbook
C. Analyses (e.g., breakeven,
benefit-cost)
• Benefit Cost, see book
• Breakeven
– Bear Air
– Consulting firm
D. Uncertainty (e.g., expected
value and risk)
• You are familiar with expected value
• Just multiply the probabilities by there
value
• Probabilities must add to one.
PM General
• IV. Engineering Economics 10%
• A. Cost estimating
• We’ve done that
B. Project selection
•
•
•
•
Compare alternatives, a la, PW or EACF
Sometimes
Find project with greatest rate of return
one pot of money
– pick project with greatest return
– then second
– until pot is empty.
C. Lease/buy/make
• Just breakeven by another name
• Fixed vs. variable costs
D. Replacement analysis
(e.g., optimal economic life
• Find life that EACF is minimum
• Did in 450
• But too complex for FE
Civil PM
• No econ, but 10% is:
A. Procurement Methods
Engineering Contracts
• A/E = Architect/Engineer
Owner
A/E
Contractor
30
A/E contract
• Sophisticated vs. non-sophisticated
– Many are non-sophisticated
• Often lack clear definition at start
31
Design Phases
• Preliminary
– Planning
– Programming
• Design
– 10, 35, 75, 95%
– Bid documents
• Construction
32
A/E Construction Phase
• May vary greatly between owners and
projects
• Frequent source of litigation and problems
• “Inspection”
• Shop drawings
• Job site safety
• Agency
• Progress payments
33
A/E fees
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•
•
•
Fixed fee
Percentage of construction cost
Expenses plus fee
Hourly (“Billing Rate”)
34
Standard A/E Contracts
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•
•
•
•
AIA
NSPE
ASCE
others
All have “sub-consultant” (subcontractor)
forms
35
Construction Contracts
• Traditional
Owner
A/E
Contractor
36
• Design-build
Owner
A/E Contractor
OR
A/E
37
• Construction (Project) Management
Owner
CM
A/E
Contractor
38
•
•
•
•
Turnkey
Fast track
End result
CMAR
39
Construction Contract Payment
• Fixed price
• Unit price
• Cost plus
40
200,000 CY of ?
• Fixed price
• Unit price
• Cost plus
rock
Borehole
Cut line
rock
1 mile
41
Item
Excavate
soil
Excavate
Rock
Est.
Unit
Quant.
150,000 CY
Unit
Price
Extend
50,000 CY
Total
42
Public Construction Contracts
• History
• Federal
– CFRs
– 41CFR
– FARs
• State
– Title 36
• Local
43
The Public Contracting Process
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•
•
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•
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Advertise
Receive Proposals
Open Proposals (Bids)
Evaluate and Award
Work
Changes
Completion
Warrantee
44
Private Contracting
• Not controlled by law, except
– subcontracts or suppliers on public works
• Corporate rules
– SEC
– Accounting and Auditing
• Biggest difference is that private can select
bidders
45
Mechanics Liens and Bonding
• Common law situation:
• Bank lends money to project
– Secured creditor
• A/Es, laborers, material suppliers
– Not secured
• Builder goes belly up
– Bank gets value in building
– Others get nothing
46
Mechanics Liens and Bonding
• Mechanics lien laws give laborers and
others the right to get paid.
• Lenders and owners often require “payment
bonds” of contractors.
• Different than:
– Bid bonds
– Performance bonds.
• Most public construction requires all three.
47
“Construction Documents”
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•
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•
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Agreement
Drawings
General Conditions
Special Conditions
Technical Specifications
– Reference specifications and technical
documents
• Hierarchy statement
48
Bid Documents
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Many formalities for public construction
“Front end” plus Construction Documents
Bid form
Bid bond
Many miscellaneous forms, see ADOT
“Non-responsive” vs. “Informalities”
49
B. Allocation of Resources
• Direct vs. Overhead
• See Excel WBS
C. Contracts and Contract Law
What is a “Contract?”
• A contract is “an agreement,
enforceable by law”
52
Rules of formation
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Competent parties
Legal subject matter
Meeting of the minds
Consideration
Form
53
Competent Parties
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Charters of municipalities
Principal - agent
Licensed
“Foreign” corporations
Charters of corporations
– ultra vires
54
Legal Subject matter
• Can’t be contrary to statutes, common law,
or public policy
• Must be incapable of being performed
legally at time of agreement in order for
courts to set aside.
• If only one party intended illegal actions it
still valid contract
• “adhesion contracts”
• What if law changes?
55
Meeting of minds
• Offer and acceptance
56
Termination of offer
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Acceptance
Revocation by offeror
Time, expiration
Various rules, mail box rule, dates and
times, etc.
• Rejection by offeree
• Counter offer
57
Acceptance
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Never silence
Some overt act
Unless previous dealing indicate otherwise
Conditions precedent and subsequent
Mistakes
Lies, fraud, duress
58
Consideration
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Must
Have value,
Be legal
Be possible
Present or future
Estopple or injurious reliance
59
Form
• Statue of Frauds
• Certain things must be in writing, state law
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–
–
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Terms more than one year
Transfer of real property
Sale of goods more than $500
But not services
60
D. Scheduling
Why Project Management?
• Most engineers spend most of their work careers
working on projects.
• Some organizations work only on projects.
• Other organizations work on delivering a product
or service,
– that is the organization’s function
– Power plant
• But projects are how these functional
organizations grow and change
– Projects need special management techniques, different
than the functional organization.
62
What is a project?
• One-of-kind undertaking
• Definite objective
• Start and end points
63
Project Characteristics
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Temporary
Use scarce resources
Specific objectives
Unique outcomes
Special budget
One person has responsibility
64
Project Life Cycle
ee Recognize Need
Design?
Budget
Conceptual Phase
5-15%
+/- 100%
Design
35, 95,
100%
+/- 10%
Production or construction
Changes
Operation, Turn-on
O&M
Divestment, Tear down
65
Three aspects of P.M
• Schedule
– time
• Cost
– budget
• Production
– performance, specification
– Chapters 3 and 4
66
Bar Chart Schedules
•
•
•
•
Most common
Simple
(Excel)
Gantt chart
67
Gantt
CPM
• Critical Path Method
• PERT (Program Evaluation and Review
Technique)
– uses statistical methods
69
Activity on Arrow Method
• Each Activity has tail on beginning node
and head at end node.
Dig foundation
2
5
Node or
Event
70
Ship
Swings
Erect
Swings
Finish
foundation
18
Set
Anchors
Test
Swings
All activities that enter a node must be complete
before any of the activities leaving the node can start.
Each activity will have a unique start and end node
71
Pencil Method
Duration
ES
Activity name
LS
EF
LF
72
Forward Pass
• Take Early Start of each activity and add
duration, this is the Early Finish of that
activity
• Take largest number (latest date) of the all
the Early Finishes entering a node, this is
the earliest any activity can leave the node
• Work through until you get an EF for the
project.
73
Backward Pass
• Take the EF of the Project, this is also the
LF of the Project.
• Subtract the duration, this is the LS of that
activity.
• Which is the LF of all the activities entering
that node
• Take the smallest number (earliest date) of
the LS of the activities leaving the node,
this is the LF of the activities entering the
node.
74
Critical Path and Float
• On the critical path, the ES and LS are
equal, as are the EF and LF.
• Other paths have float or slack
• MS Project gives
– “free slack,” until next activity is delayed
– “total slack,” until job is delayed
– We are only interested in TOTAL SLACK.
75
CPM Example
• Machine A makes part,
• Machine B finishes part,
A
B
Product
76
On board
Activity
Duration
Predecessor
Clean and Adjust
A
Start and Test A
7 days
0
3
Clean and Adjust
B
Start and Test B
6
Clean and Adjust
A
0
Test System
2
3
Clean and Adjust
B
S&T A, and S&T
B
77
•
•
•
•
•
•
TE = (O + 4M + P) ÷ 6
T expected =
Optimistic time, plus
4 times the most likely time, plus
Pessimistic time
Divided by six
78
CPM as Management Tool
• Delays on critical path delay job
• Document delays
• Delay on activities with float will not delay
job, up to the amount of float
• Experiment with different allocations of
overtime, “crashing” activities
79
Project Management, Safety
• Who is responsible for job site safety?
• Whose who at the zoo?
– Who do you work for?
– Who is your contract with?
– What does the contract say?
Construction Estimating
• Home office vs. Project
• Etc.
• Quantities?