Description:

The course is designed to guide the technical oriented students toward an introduction into economical and financial foundations needed for technical work in new product development and technical process management. Furthermore the lectures will provide the students the knowledge considering the economic and financial control of the company necessary for successful management of a company. The objective is to explain the principles of economic and financial considerations needed to be respected during the process of the new product development and technical processes management. To provide students with knowledge of contemporary approaches to the management, economic and economical principles and techniques used in business.

Contents:

1. Goals and ules of the course, basic economic functions and terms
2. Budgeting, cost types and cost examples related to specific resources in an industrial company
3. Introduction to costing, types of costing methods
4. Application of Hourly Cost Tariffs and Contribution Margin calculation
5. Introduction to Project management ? basic terms, process of project planning, project management tools
6. Summary of the first part, links and interactions in the enterprise planning
7. Introductory to Financial Management
8. Financial statements
9. Financial statements analysis and interpretation
10. Working Capital Management
11. Sources of Finance
12. Capital Investment Appraisal
13. Business planning

Seminar contents:

1. Operation Budget Creation based on Activities. Assignment.
2. Operation Budget of Engineering Team - presentation. Debate on its key items.
3. Costing. HCT Method application ? specific versions I. Relation to Target Costing Approach.
4. Costing. HCT Method application ? specific versions II. Student cases presentations.
5. Financial Statements Analysis.
6. Working Capital Management
7. Assessment of Sources of Finance + Capital Investment Appraisal

Recommended literature:

1/ Freiberg, F.: Outlines, solved cases in electronic form.
2/ Zralý, M.: Outlines, solved cases in electronic form.
3/ Atrill, P.: Financial Management for non-specialists, Prentice Hall, London1997.
4/ Cokins, G.: Activity-Based Cost Management: An Executive Guide, ISBN: 0-471-44328-X, John Wiley & Sons
5/ Cokins, G.: Performance management: Finding the Missing Pieces (To close the gap), John Willey & Sons, Inc.
6/ Davila, T., Epstein, K.J., Shelton, R.: Making Innovation Work, How to Manage It, Measure It and Profit from It, Pearson Education Inc., Wharton School Publishing
7/ Zralý, M.: Hour Overhead Tariffs Method - Effective Tool for Time Oriented Activity Based Management, In: Proceedings of EIASM ?8th Manufacturing Accounting Research Conference- Cost and Performance Management in Services and Operation?, ISBN 978-88-8443-182-0, University of Trento, Trento, 2007
8/ Zralý, M.: Integration Concept of Management Control and its Contribution to Performance Management, In: Proceedings of EIASM ?4th Conference on Performance Measurement and Management Control?, ISBN 978-88-8444-183-0, Nice, France, 2007
Other recommended reading: see syllabus to single topics + notes during the lectures.

Abbreviations used:

Semester:

• W ... winter semester (usually October - February)
• S ... spring semester (usually March - June)
• W,S ... both semesters

Mode of completion of the course:

• A ... Assessment (no grade is given to this course but credits are awarded. You will receive only P (Passed) of F (Failed) and number of credits)
• GA ... Graded Assessment (a grade is awarded for this course)
• EX ... Examination (a grade is awarded for this course)
• A, EX ... Examination (the award of Assessment is a precondition for taking the Examination in the given subject, a grade is awarded for this course)

Weekly load (hours per week):

• P ... lecture
• C ... seminar
• L ... laboratory
• R ... proseminar
• S ... seminar