FE Review http://www.raperkins.net/Presentations/PresentationsIndex.htm

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FE Reviewhttp//www.raperkins.net/Presentations/P
resentationsIndex.htm

• Dr. Robert A . Perkins, PE
• 253 Duckering
• raperkins_at_alaska.edu

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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/

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Books and Calculators

• No books
• Some calculators banned
• NCEES Supplied-Reference Handbook
• Download pdf and print
• http//www.ncees.org/exams/study_materials/fe
• Will get an identical at exam.

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Licensure

• In order to protect the public health and safety
• Requires
• Education
• Experience
• Examination

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• Exam has AM and PM sessions
• four hours each
• 120 multiple choice questions in AM
• Thats two minutes each
• 60 multiple choice in PM
• Four minutes each
• Take home message?

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• 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)

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Not to worry

• No one gets 100
• You only need 70

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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)

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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)

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Civil PM

• No econ, but 10 is

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For EE and ME

• Ethics and Econ first
• Then a little contracts
• Then construction, a little

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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
• Dont lie

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• C. Ethical versus legal
• D. Professional liability
• E. Expert witness
• F. Public protection issues (e.g., licensing
  boards)

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Lets 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

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• 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 i8 ?

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• (On board)
• All needed factors are in Handbook
• An relevant tables.
• With that, all should be direct, except finding
  Rate of Return
• dont try to inverse formulae
• Solve for factor, then work backwards in tables
• Linear interpolation is fine, if you need it.

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Problems

• Board and Overheads.

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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

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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

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Sunk
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Estimating

• No idea
• Common sense
• Nothing in Handbook

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C. Analyses (e.g., breakeven, benefit-cost)

• Benefit Cost, see book
• Breakeven
• Bear Air
• Consulting firm

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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.

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PM General

• IV. Engineering Economics 10
• A. Cost estimating
• Weve done that

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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.

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C. Lease/buy/make

• Just breakeven by another name
• Fixed vs. variable costs

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D. Replacement analysis (e.g., optimal economic
life

• Find life that EACF is minimum
• Did in 450
• But too complex for FE

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Civil PM

• No econ, but 10 is

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A. Procurement Methods
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Engineering Contracts

• A/E Architect/Engineer

Owner
Contractor
A/E
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A/E contract

• Sophisticated vs. non-sophisticated
• Many are non-sophisticated
• Often lack clear definition at start

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Design Phases

• Preliminary
• Planning
• Programming
• Design
• 10, 35, 75, 95
• Bid documents
• Construction

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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

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A/E fees

• Fixed fee
• Percentage of construction cost
• Expenses plus fee
• Hourly (Billing Rate)

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Standard A/E Contracts

• AIA
• NSPE
• ASCE
• others
• All have sub-consultant (subcontractor) forms

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Construction Contracts

• Traditional

Owner
Contractor
A/E
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• Design-build

Owner
Contractor
A/E
A/E
OR
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• Construction (Project) Management

Owner
C M
Contractor
A/E
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• Turnkey
• Fast track
• End result
• CMAR

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Construction Contract Payment

• Fixed price
• Unit price
• Cost plus

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200,000 CY of ?

• Fixed price

• Fixed price
• Unit price
• Cost plus

Borehole
Cut line
rock
rock
1 mile
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(No Transcript)
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Public Construction Contracts

• History
• Federal
• CFRs
• 41CFR
• FARs
• State
• Title 36
• Local

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The Public Contracting Process

• Advertise
• Receive Proposals
• Open Proposals (Bids)
• Evaluate and Award
• Work
• Changes
• Completion
• Warrantee

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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

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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

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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.

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Construction Documents

• Agreement
• Drawings
• General Conditions
• Special Conditions
• Technical Specifications
• Reference specifications and technical documents
• Hierarchy statement

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Bid Documents

• Many formalities for public construction
• Front end plus Construction Documents
• Bid form
• Bid bond
• Many miscellaneous forms, see ADOT
• Non-responsive vs. Informalities

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B. Allocation of Resources

• Direct vs. Overhead
• See Excel WBS

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C. Contracts and Contract Law
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What is a Contract?

• A contract is an agreement, enforceable by law

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Rules of formation

• Competent parties
• Legal subject matter
• Meeting of the minds
• Consideration
• Form

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Competent Parties

• Charters of municipalities
• Principal - agent
• Licensed
• Foreign corporations
• Charters of corporations
• ultra vires

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Legal Subject matter

• Cant 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?

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Meeting of minds

• Offer and acceptance

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Termination of offer

• Acceptance
• Revocation by offeror
• Time, expiration
• Various rules, mail box rule, dates and times,
  etc.
• Rejection by offeree
• Counter offer

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Acceptance

• Never silence
• Some overt act
• Unless previous dealing indicate otherwise
• Conditions precedent and subsequent
• Mistakes
• Lies, fraud, duress

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Consideration

• Must
• Have value,
• Be legal
• Be possible
• Present or future
• Estopple or injurious reliance

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Form

• Statue of Frauds
• Certain things must be in writing, state law
• Terms more than one year
• Transfer of real property
• Sale of goods more than 500
• But not services

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D. Scheduling
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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 organizations function
• Power plant
• But projects are how these functional
  organizations grow and change
• Projects need special management techniques,
  different than the functional organization.

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What is a project?

• One-of-kind undertaking
• Definite objective
• Start and end points

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Project Characteristics

• Temporary
• Use scarce resources
• Specific objectives
• Unique outcomes
• Special budget
• One person has responsibility

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Project Life Cycle
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Three aspects of P.M

• Schedule
• time
• Cost
• budget
• Production
• performance, specification
• Chapters 3 and 4

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Bar Chart Schedules

• Most common
• Simple
• (Excel)
• Gantt chart

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Gantt
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CPM

• Critical Path Method
• PERT (Program Evaluation and Review Technique)
• uses statistical methods

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Activity on Arrow Method

• Each Activity has tail on beginning node and head
  at end node.

Dig foundation
5
2
Node or Event
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Ship Swings
Erect Swings
Finish foundation
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Test Swings
Set Anchors
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
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Pencil Method
Duration
ES
EF
Activity name
LF
LS
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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.

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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.

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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.

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CPM Example

• Machine A makes part,
• Machine B finishes part,

A
B
Product
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On board
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• TE (O 4M P) 6
• T expected
• Optimistic time, plus
• 4 times the most likely time, plus
• Pessimistic time
• Divided by six

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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

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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?

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Construction Estimating

• Home office vs. Project
• Etc.
• Quantities?