Charles Dow was the original editor of the Wall Street Journal. He was the originator of​ "Dow Theory," which holds that the prices of transportation​ stocks, such as Heartland​ Express, can predict changes in the price of industrial​ stocks, such as ExxonMobil. An article in the Wall Street Journal refers to Dow Theory as the​ "granddaddy of technical​ analysis."

​Source: Spencer​ Jakab, "Keep on Trucking Despite Dow​ Theory," Wall Street Journal​, July​ 16, 2012.

Dow Theory is considered technical analysis rather than fundamental analysis because it​ _______.

A. requires complicated computer programs to generate its results

B. requires analysis of multiple stocks to generate its results

C. relies on forecasting future profits of firms in order to forecast future stock prices

D. relies on patterns of past stock prices to predict future stock prices

Would an investor be able to earn an​ above-average return on her stock investments by selling industrial stocks whenever she saw declines in transportation stocks and buying industrial stocks whenever she saw increases in transportation​ stocks?

A. ​Yes, the long history associated with this theory illustrates its ability to guarantee​ above-average returns.

B. ​No, this strategy neglects all available information except for past stock prices.

C. ​No, this strategy only focuses on expected future returns and neglects past performance.

D. ​Yes, rational expectations theory predicts that investors employing technical analysis are likely to earn​ above-average returns

​?[Related to the Chapter Opener​] The chapter opener states that​ "many investors who bought stocks in 2000 and held them through 2010 found that they had received a negative real return on their investment over the​ 10-year period." Why would investors have invested in stocks during those years if they received a negative real​ return?

A. Investors may have used rational expectations to predict continued growth in the markets.

B. Investors may have believed the high rate of returns from the 1980s would continue.

C. Investors may have used adaptive expectations to formulate their future stock price forecasts.

D. All of the above.

An article in the Economist noted that while economic growth in China was​ slowing, stocks have more than doubled in value. The article stated that unlike in developed countries where large institutional investors buy the overwhelming majority of the stock​ purchased, in China​ 90% of buying is done by individual investors. It described the demand for stock by these investors as a mania.

​Source: A Crazy ​Casino, Economist​, May​ 26, 2015.

What does the article mean when it describes stock buying by individual investors as a​ mania?

A. Investors are purchasing stock irrationally.

B. Investors are crazy.

C. Investors are enthusiastic about purchasing stock.

D. The demand for stock is incredibly high.

? Individual investors would be More likely to exhibit this behavior than institutional investors.

An article in the Economist in 2016 noted that since​ 2000, an investor in the United Kingdom would have earned a higher return from buying British government bonds than from buying stock issued by British firms. The article concluded​ that: There has been a negative equity risk premium this century.

​Source: Stocks for the Long ​Run? Economist​, January​ 13, 2016.

?Equity premium represents the additional return investors must receive in order to invest in stocks.

?Why might the equity risk premium in the United Kingdom have been negative during this​ period?

A. Banks were paying high interest rates on bonds.

B. The returns on bonds outpaced the returns on stocks.

C. Investors fled to other countries.

D. The returns on stocks outpaced the returns on bonds.

​?[Related to Making the​ Connection] Economist Peter Temin of MIT argues​ that, If the crash of 1929 was an important independent shock to the​ economy, then the crash of 1987 should have been equally disastrous.

​Source: Peter​ Temin, Lessons from the Great Depression​, ​Cambridge, MA: MIT University​ Press, 1989 p. 41.

Which of the following events would be considered important independent shock to an economy​?

A. A stock market crash.

B. The breakout of war in the Europe.

C. Inflation.

D. An increase in the Federal Funds rate.

?What reason might Temin give to support his argument that what happened to the economy following the crash of 1987 is evidence against the crash of 1929 being an important shock to the​ economy?

A. Economic conditions were more severe after the crash of 1929 even though the decline in the market in 1987 was twice as large as the decline in the market in 1929.

B. The market decline in 1929 was twice as large as the market decline in 1987.

C. The market decline in 1987 was twice as large as the market decline in 1987.

D. Economic conditions were more severe after the crash of 1987 because the decline in the market was twice as large as in 1929.

Christina Romer would argue that the impact of the crash of 1929 was more severe because of its effect on consumer confidence as well as the lack of regulations in place at the time.

The business writer Michael Lewis has quoted Michael​ Burry, a fund​ manager, as​ saying: "I also immediately internalized the idea that no school could teach someone how to be a great investor. If that were​ true, it'd be the most popular school in the​ world, with an impossibly high tuition. So it must not be​ true." Do you agree with​ Burry's reasoning?

Source​: Michael​ Lewis, The Big​ Short: Inside the Doomsday Machine​, New​ York: W.W.​ Norton, 2010, p. 35.

A. ​No, according to the adaptive markets​ hypothesis, attempting to beat average market returns is a futile exercise.

B. ​Yes, according to the adaptive markets​ hypothesis, if you could derive an adaptive model to forecast stock​ returns, it is possible to earn infinitely high profits.

C. ​No, according to the efficient markets​ hypothesis, attempting to beat average market returns is a futile exercise.

D. ​Yes, according to the efficient markets​ hypothesis, if you could derive an efficient model to forecast stock​ returns, it is possible to earn infinitely high profits.

[Related to Making the​ Connection] A column in the Wall Street Journal​, asks the​ question: Are capital gains so different from earned income that they should be taxed at a different ​rate?

​Source: Scott Sumner and Leonard E.​ Burman, It Fair to Tax Capital Gains at Lower Rates Than Earned ​Income? Wall Street Journal​, March​ 1, 2015.

What is a capital​ gain?

A. A distribution of profit to investors.

B. The increase in capital from one year to the next.

C. An increase in the price of a stock.

D. A profit from the sale of an investment.

In what way are capital gains taxed differently than salary and wage​ income?

A. Capital gains are adjusted to account for inflation.

B. Salary and wage income is subject to deductibles.

C. Salary and wage income is taxed at a lower rate than capital gains.

D. Capital gains are taxed at a lower rate than salary and wage income.

One economic argument for taxing capital gains differently than other income is that investors have to pay taxes on their nominal gain without an adjustment for inflation.

Final Project: Leadership and Strategy Plan

For this Final Project, you select a pressing health problem affecting a community and develop a leadership and strategy plan for addressing the problem. You link this problem to a corresponding Healthy People 2020 objective(s).  

Scenario  
You are a new Health Program Planner recently hired by the Lake Troubled Shallows Department in Minnesota. Prior to your arrival, a comprehensive community health needs assessment was conducted by the Health Department. Based on the assessment, the following top five community health needs were identified. • Heart disease and stroke prevention • Diabetes screening • Physical activity • Maternal, infant and child health monitoring and treatment • Mental health and mental disorders screening and treatment

The executive director of the Lake Troubled Shallows Health Department has tasked you with targeting one of the aforementioned community health needs as a top priority during your first year. The director has asked you to develop a leadership and strategy plan to address your identified community health need.  

As part of the pre-planning stage of developing your leadership and strategy plan, first select and match one the Healthy People 2020 objectives to one of the top five needs identified by the Health Department.  

For instance, if you choose “physical activity,” review the various physical activity objectives under the general Healthy People 2020 Objectives. Then, select a specific, measurable sub-objective.  

You will need to review the current national data on your chosen objective.  

Next, for purposes of this assignment, you should assume that the health status of  
individuals residing in Lake Troubled Shallows is representative of the overall health  
status of individuals living within Minnesota. You can go to the Minnesota State Health  
Department’s website to find additional data on state level progress and resources to  
support your leadership and strategy plan at:  

http://www.health.state.mn.us/healthymnpartnership/hm2020/#fw
  
Lake Troubled Shallows Health Department’s Vision, Mission, and Guiding Principles:  

Vision: Healthy People Living in Healthy Communities  

Mission: To promote and protect health while preventing disease  

Guiding Principles:  
• Evidence-based practices  
• Collaboration and communication with community members and partners  
• Education and outreach  
• Empowering people to make healthy choices  

You have been given an initial program startup budget of $250,000 (including your  
salary and benefits) to aid you with initial program planning and implementation. (Note:  
you will develop an annual operating budget in the Assignment.).  


The Executive Director of the Lake Troubled Shallows Health Department has asked  
that you submit a “Leadership and Strategy” plan to her within the next 2–3 months. The  
next section contains the required components of the plan that you must submit to her.  

Assignment Instructions  
Once you have completed background research and identified a community health  
need, you develop a leadership and strategy plan to address it.  

Paper Format:  
13-to 15-page paper (not including title page), APA format  

Leadership and Strategy Plan  
• Executive Summary (1 page)  
• Table of Contents (1 page)  
• Manuscript (see components list below)  

The manuscript section of your Final Project will need to address the following  
components:  
• Introduction (1–2 pages):  
Select a problem from one of the five problems identified in the Background  
(Scenario) and match it to one Healthy People 2020 objective (sub-objectives  
that are measurable). Describe the rationale for selection of this problem and the  
magnitude of the problem (e.g., incidence, prevalence, impact on communities  
and society).  

? Strategic Plan (2 pages plus SWOT analysis worksheet, revised from Week 7):  
Use the SWOT analysis template completed in Week 7 as a starting point for this  
section. (You will include your completed template in the appendices of this Final  
Project.) For this Final Project, address the following based on your SWOT  
analysis:  
o Identify any connections between listed items in the quadrants (i.e., is there an opportunity that can be taken advantage of to address a particular threat or weakness?). o Propose strategies to maintain, enhance or leverage potential strengths (e.g., make appropriate assumptions about internal strengths of the Health Department). o Propose strategies to minimize weaknesses (e.g., make appropriate assumptions about internal weaknesses of the Health Department). o Propose options for leveraging or taking advantage of opportunities. o Explain the potential impact of threat/challenges and what you should do to address or prepare for the threat. o Explain potential strategic issues that the health department may need to address.  

• Program Description (2 pages): o Review the evidence for a program intervention—ideally, this will be quality, evidence-based public health information demonstrating best  
practices from peer-reviewed literature. Find at least three sources of  
evidence, preferably peer-reviewed. o Briefly describe the hypothetical program to address your chosen community health problem. Based on your SWOT Analysis, include 3–5  
specific and measurable program objectives that you hope to accomplish  
within 1 year (Refer to SMART Objectives Template as a guide for  
developing appropriate program objectives).  

• Leadership Challenges and Systems Thinking (3 pages):  
(Refer to Weeks 1 and 2 Learning Resources.) Describe and explain the leadership approach you will take to execute your plan. Include the leadership style(s) you will employ and the leadership skills necessary to be effective including emotional intelligence and cultural competence.  

o Briefly describe how you will apply systems thinking to your identified community health issue in order to communicate to others (stakeholders) with regards to how your proposed plan may impact the community. A common systems thinking tool is a casual loop diagram. Please review the resources from Week 2 related to systems thinking and create a simple casual loop diagram that relates to your program development. o Note: You can use PowerPoint (go to “Insert” then “SmartArt”) to create your casual loop diagram and copy and paste the graphic into the paper. o The following is an example of a simple casual loop diagram:  



Morbidity and Mortality risks of HIV/AIDs
Evaluation of evidencebased screening, treatment, and education Options
Community Awareness of risks and treatment options
Engagement of key stakeholders in the community
Development of public health initiatives
• Ethical Implications (0.5–1 page):  
(Refer to Week 3 Learning Resources.) Describe anticipated ethical issues or  
concerns of your leadership and strategy plan. What are some of the challenges  
anticipated?  

• Engaging Communities and Building Constituencies (1.5–2 pages):  

(Refer to Week 4 Learning Resources.) Describe how you will engage  
community partners and key stakeholders. Describe key partners and  
stakeholders and the level of engagement needed. Discuss anticipated conflict  
resolution and negotiation skills that will be required.  

• Budgeting, Financing, and Human Resources (1–1.5 pages):  
(Refer to Weeks 5 & 6 Learning Resources.)  
You have been given a budget of $250,000 in initial start-up funds, which  
includes your salary and benefits. You must develop an annual operating budget  
(in addition to the $250,000 start-up funding). o Explain the funding issues related to your Final Project community health problem. Include such characteristics as whether these issues are long-or  
short-term, how urgent they are, and which stakeholders might be most  
affected. Identify in your budget any additional staff that you will need to  
hire, including a brief description of their roles and responsibilities. o Complete the blank budget worksheet provided (similar to the one you completed in Week 5) indicating the funding opportunities and costs  
related to the chosen project. o Based on your research, as well as the information included in the budget worksheet, recommend some potential funding sources (including grant  
funding) and explain why you recommend them. In your explanation,  
include variations in funding and how these variations influenced your  
decision making. You are expected to search various funding sources  
such as community-level grants, state funding, nonprofit associations, etc.  

• Performance Management & Health Informatics (2 pages): o (Refer to Weeks 8 and 9 Learning Resources.) Based on your SWOT Analysis, include 3–5 specific and measurable process objectives that you  
hope to accomplish within 1 year. (Refer to SMART Objectives Template  
as a guide for developing appropriate program objectives.) o Explain how you will measure the objectives identified in your program description to determine if you have reached them. Include a description  
of how you will get the data with which to evaluate your objectives.  
Remember the need to be realistic in your use of data sources and,  
wherever possible, aim to use data that are being collected by others  
(e.g., BRFSS -Behavioral Risk Factor Surveillance System, America’s Health Rankings report -State Health Statistics at AmericasHealthRankings.org).  

• Reference List (minimum of 8–10 credible references; e.g., peer-reviewed,  
governmental websites)  

• Appendices  
The appendices will include completed versions of additional documents required  
to complete this Assignment: o SWOT Analysis Template (including SMART Objectives Template) o Excel Budget Worksheet

Students are to complete journal entries for each month, including adjusting and closing, trial balances, and financial statements consisting of Income Statement, Statement of Retained Earnings, and Balance Sheet in classified format. The minimum chart of accounts for the Peavy Cleaning Corporation practice case is the following (more or less may be used):

• Assets – Cash, Accounts Receivable – Regular Customers, Accounts Receivable – Warhawk Gym, Prepaid Insurance, Supplies, Cleaning Equipment, Truck and Land.
• Liabilities – Accounts Payable – Home Improvement, Accounts Payable – Big Sparkle, Notes Payable – Land, Notes Payable – Truck, Unearned Service Revenue
• Stockholder’s Equity – Common Stock, Retained Earnings, Dividends – Mark Peavy
• Revenue – Service Revenue, Sales Discounts
• Expenses – Auto Expense, Insurance Expense, Office Expense, Organization Expense, Rent Expense, Salary and Wage Expense

Please use the excel function data on stocks, bonds, bills to start discussion on time value.

First question:

Using the data and $100 invested in stocks, bonds and bills, confirm the values at 2011.

Terminal value at 2011= $100(1+r1)(1+r2)...(1+r84)

where r1= actual return given for 1928

r2=actual return given for 1929

r84=actual return given for 2011 for stocks, bonds and bills

Second Question:

Investing over 84 years is a little far fetched unless your grandfather was like Donald Trump's G.PA. Now consider dividing 1928-2011 to three sub-period of 1928-56 (28 years), 1956-1984 28 yr) and 1984-2011 (27 yr). Let's see how investment of $100 in stocks, bonds, bills using again the actual returns provided in each asset class (stocks, bonds, bills) perform? Compare, the future value of each investment as if in the second 28 years, and last 27 years you start with $100 investment in stocks, bonds, bills. What are the lessons we learn in this exercise as far as your future contribution to your own 401K is concerned?

Engineering Ethics Course

Codes of Ethics Assignment

Review the DIA Runaway Concrete case (Case below) and the ASCE code of ethics. Which of the ASCE’s fundamental canons do you believe were violated in this case? For each canon you select, justify your selection with an explanation.

Runway Concrete at the Denver International Airport

In the early 1990s, the city of Denver, Colorado, embarked on one of the largest public works projects in history: the construction of a new airport to replace the aging Stapleton International Airport. The new Denver International Airport (DIA) would be the first new airport constructed in the United States since the Dallas–Fort Worth Airport was completed in the early 1970s. Of course, the size and complexity of this type of project lends itself to many problems, including cost overruns, worker safety and health issues, and controversies over the need for the project. The construction of DIA was no exception.

Perhaps the most widely known problem with the airport was the malfunctioning of a new computer-controlled high-tech baggage handling system, which in preliminary tests consistently mangled and misrouted baggage and frequently jammed, leading to the shutdown of the entire system. Problems with the baggage handling system delayed the opening of the airport for over a year and cost the city millions of dollars in expenses for replacement of the system and lost revenues while the airport was unable to open. In addition, the baggage system made the airport the butt of many jokes, especially on late-night television.

More interesting from the perspective of engineering ethics are problems during the construction of DIA involving the concrete used for the runways, taxiways, and aprons at the airport. The story of concrete problems at DIA was first reported by the Denver Post in early August of 1993 as the airport neared completion. Two subcontractors filed lawsuits against the runway paving contractor, California-based construction company Ball, Ball, & Brosamer (known as 3Bs), claiming that 3Bs owed them money. Parts of these suits were allegations that 3Bs had altered the recipe for the concrete used in the runway and apron construction, deliberately diluting the concrete with more gravel, water, and sand (and thus less cement), thereby weakening it. 3Bs motivation for doing so would be to save money and thus to increase their profits. One of the subcontractors, CSI Trucking, whose job was to haul the sand and gravel used in the concrete, claimed that 3Bs hadn’t paid them for materials that had been delivered. They claimed that these materials had been used to dilute the mixture, but hadn’t been paid for, since the payment would leave a record of the improper recipe.

At first, Denver officials downplayed the reports of defective concrete, relying on the results of independent tests of the concrete. In addition, the city of Denver ordered core samples to be taken from the runways. Tests on these cores showed that the runway concrete had the correct strength. The subcontractors claimed that the improperly mixed concrete could have the proper test strength, but would lead to a severely shortened runway lifetime. The FBI also became involved in investigating this case, since federal transportation grants were used by Denver to help finance the construction of the runways.

The controversy seemed to settle down for a while, but a year later, in August of 1994, the Denver district attorney’s office announced that it was investigating allegations that inspection reports on the runways were falsified during the construction. This announcement was followed on November 13, 1994, by a lengthy story in the Denver Post detailing a large number of allegations of illegal activities and unethical practices with regard to the runway construction.

The November 13 story revolved around an admission by a Fort Collins, Colorado, company, Empire Laboratories, that test reports on the concrete had been falsified to hide results which showed that some of the concrete did not meet the specifications. Attorneys for Empire said that this falsification had happened five or six times in the course of this work, but four employees of Empire claimed that the altering of test data was standard operating procedure at Empire.

The nature of the test modifications and the rationale behind them illustrate many of the important problems in engineering ethics, including the need for objectivity and honesty in reporting results of tests and experiments. One Empire employee said that if a test result was inconsistent with other tests, then the results would be changed to mask the difference. This practice was justified by Empire as being “based upon engineering judgment” [Denver Post, Nov. 13, 1994]. The concrete was tested by pouring test samples when the actual runways were poured. These samples were subjected to flexural tests, which consist of subjecting the concrete to an increasing force until it fails. The tests were performed at 7 days after pouring and also at 28 days. Many of the test results showed that the concrete was weaker at 28 days than at 7 days. However, the results should have been the opposite, since concrete normally increases in strength as it cures. Empire employees indicated that this apparent anomaly was because many of the 7-day tests had been altered to make the concrete seem stronger than it was.

Other problems with the concrete also surfaced. Some of the concrete used in the runways contained clay balls up to 10 inches in diameter. While not uncommon in concrete batching, the presence of this clay can lead to runways that are significantly weaker than planned.

Questions about the short cement content in 3Bs concrete mixture also resurfaced in the November Denver Post article. The main question was “given that the concrete batching operation was routinely monitored, how did 3Bs get away with shorting the cement content of the concrete?” One of the batch plant operators for 3Bs explained that they were tipped off about upcoming inspections. When an inspector was due, they used the correct recipe so that concrete would appear to be correctly formulated. The shorting of the concrete mixture could also be detected by looking at the records of materials delivered to the batch plants. However, DIA administrators found that this documentation was missing, and it was unclear whether it had ever existed.

A batch plant operator also gave a sworn statement that he had been directed to fool the computer that operated the batch plant. The computer was fooled by tampering with the scale used to weigh materials and by inputting false numbers for the moisture content of the sand. In some cases, the water content of the sand that was input into the computer was a negative number! This tampering forced the computer to alter the mixture to use less cement, but the records printed by the computer would show that the mix was properly constituted. In his statement, the batch plant operator also swore that this practice was known to some of the highest officials in 3Bs.

Despite the problems with the batching of the concrete used in the runways, DIA officials insisted that the runways built by 3Bs met the specifications. This assertion was based on the test results, which showed that although some parts of the runway were below standard, all of the runways met FAA specifications. 3Bs was paid for those areas that were below standard at a lower rate than for the stronger parts of the runway. Further investigations about misdeeds in the construction of DIA were performed by several groups, including a Denver grand jury, a federal grand jury, the FBI, and committees of Congress.

On October 19, 1995, the Denver Post reported the results of a lawsuit brought by 3Bs against the city of Denver. 3Bs contended that the city still owed them $2.3 million (in addition to the $193 million that 3Bs had already been paid) for the work they did. The city claimed that this money was not owed. The reduction was a penalty due to low test results on some of the concrete. 3Bs claimed that those tests were flawed and that the concrete was fine. A hearing officer sided with the city, deciding that Denver didn’t owe 3Bs any more money. 3Bs said that they would take their suit to the next higher level.

As of the spring of 2011, DIA has been in operation for many years and no problems have surfaced regarding the strength of the runways. Unfortunately, problems with runway durability might not surface until after several more years of use. In the meantime, there is still plenty of litigation and investigation of this and other unethical acts surrounding the construction of this airport.

ASCE code of ethics

Canon 1.

Engineers shall hold paramount the safety, health and welfare of the public and shall strive to comply with the principles of sustainable development in the performance of their professional duties.

a. Engineers shall recognize that the lives, safety, health and welfare of the general public are dependent upon engineering judgments, decisions and practices incorporated into structures, machines, products, processes and devices.

b. Engineers shall approve or seal only those design documents, reviewed or prepared by them, which are determined to be safe for public health and welfare in conformity with accepted engineering standards.

c. Engineers whose professional judgment is overruled under circumstances where the safety, health and welfare of the public are endangered, or the principles of sustainable development ignored, shall inform their clients or employers of the possible consequences.

d. Engineers who have knowledge or reason to believe that another person or firm may be in violation of any of the provisions of Canon 1 shall present such information to the proper authority in writing and shall cooperate with the proper authority in furnishing such further information or assistance as may be required.

e. Engineers should seek opportunities to be of constructive service in civic affairs and work for the advancement of the safety, health and well-being of their communities, and the protection of the environment through the practice of sustainable development.

f. Engineers should be committed to improving the environment by adherence to the principles of sustainable development so as to enhance the quality of life of the general public.

Canon 2.

Engineers shall perform services only in areas of their competence.

a. Engineers shall undertake to perform engineering assignments only when qualified by education or experience in the technical field of engineering involved.

b. Engineers may accept an assignment requiring education or experience outside of their own fields of competence, provided their services are restricted to those phases of the project in which they are qualified. All other phases of such project shall be performed by qualified associates, consultants, or employees.

c. Engineers shall not affix their signatures or seals to any engineering plan or document dealing with subject matter in which they lack competence by virtue of education or experience or to any such plan or document not reviewed or prepared under their supervisory control.

Canon 3.

Engineers shall issue public statements only in an objective and truthful manner.

a. Engineers should endeavor to extend the public knowledge of engineering and sustainable development, and shall not participate in the dissemination of untrue, unfair or exaggerated statements regarding engineering.

b. Engineers shall be objective and truthful in professional reports, statements, or testimony. They shall include all relevant and pertinent information in such reports, statements, or testimony.

c. Engineers, when serving as expert witnesses, shall express an engineering opinion only when it is founded upon adequate knowledge of the facts, upon a background of technical competence, and upon honest conviction.

d. Engineers shall issue no statements, criticisms, or arguments on engineering matters which are inspired or paid for by interested parties, unless they indicate on whose behalf the statements are made.

e. Engineers shall be dignified and modest in explaining their work and merit, and will avoid any act tending to promote their own interests at the expense of the integrity, honor and dignity of the profession.

Canon 4.

Engineers shall act in professional matters for each employer or client as faithful agents or trustees, and shall avoid conflicts of interest.

a. Engineers shall avoid all known or potential conflicts of interest with their employers or clients and shall promptly inform their employers or clients of any business association, interests, or circumstances which could influence their judgment or the quality of their services.

b. Engineers shall not accept compensation from more than one party for services on the same project, or for services pertaining to the same project, unless the circumstances are fully disclosed to and agreed to, by all interested parties.

c. Engineers shall not solicit or accept gratuities, directly or indirectly, from contractors, their agents, or other parties dealing with their clients or employers in connection with work for which they are responsible.

d. Engineers in public service as members, advisors, or employees of a governmental body or department shall not participate in considerations or actions with respect to services solicited or provided by them or their organization in private or public engineering practice.

e. Engineers shall advise their employers or clients when, as a result of their studies, they believe a project will not be successful.

• Professional cards in recognized, dignified publications, and listings in rosters or directories published by responsible organizations, provided that the cards or listings are consistent in size and content and are in a section of the publication regularly devoted to such professional cards.

• Brochures which factually describe experience, facilities, personnel and capacity to render service, providing they are not misleading with respect to the engineer's participation in projects described.

• Display advertising in recognized dignified business and professional publications, providing it is factual and is not misleading with respect to the engineer's extent of participation in projects described.

• A statement of the engineers' names or the name of the firm and statement of the type of service posted on projects for which they render services.

• Preparation or authorization of descriptive articles for the lay or technical press, which are factual and dignified. Such articles shall not imply anything more than direct participation in the project described.

• Permission by engineers for their names to be used in commercial advertisements, such as may be published by contractors, material suppliers, etc., only by means of a modest, dignified notation acknowledging the engineers' participation in the project described. Such permission shall not include public endorsement of proprietary products.

f. Engineers shall not use confidential information coming to them in the course of their assignments as a means of making personal profit if such action is adverse to the interests of their clients, employers or the public.

g. Engineers shall not accept professional employment outside of their regular work or interest without the knowledge of their employers.

Canon 5.

Engineers shall build their professional reputation on the merit of their services and shall not compete unfairly with others.

a. Engineers shall not give, solicit or receive either directly or indirectly, any political contribution, gratuity, or unlawful consideration in order to secure work, exclusive of securing salaried positions through employment agencies.

b. Engineers should negotiate contracts for professional services fairly and on the basis of demonstrated competence and qualifications for the type of professional service required.

c. Engineers may request, propose or accept professional commissions on a contingent basis only under circumstances in which their professional judgments would not be compromised.

d. Engineers shall not falsify or permit misrepresentation of their academic or professional qualifications or experience.

e. Engineers shall give proper credit for engineering work to those to whom credit is due, and shall recognize the proprietary interests of others. Whenever possible, they shall name the person or persons who may be responsible for designs, inventions, writings or other accomplishments.

f. Engineers may advertise professional services in a way that does not contain misleading language or is in any other manner derogatory to the dignity of the profession. Examples of permissible advertising are as follows:

g. Engineers shall not maliciously or falsely, directly or indirectly, injure the professional reputation, prospects, practice or employment of another engineer or indiscriminately criticize another's work.

h. Engineers shall not use equipment, supplies, laboratory or office facilities of their employers to carry on outside private practice without the consent of their employers.

Canon 6.

Engineers shall act in such a manner as to uphold and enhance the honor, integrity, and dignity of the engineering profession and shall act with zero-tolerance for bribery, fraud, and corruption.

a. Engineers shall not knowingly engage in business or professional practices of a fraudulent, dishonest or unethical nature.

b. Engineers shall be scrupulously honest in their control and spending of monies, and promote effective use of resources through open, honest and impartial service with fidelity to the public, employers, associates and clients.

c. Engineers shall act with zero-tolerance for bribery, fraud, and corruption in all engineering or construction activities in which they are engaged.

d. Engineers should be especially vigilant to maintain appropriate ethical behavior where payments of gratuities or bribes are institutionalized practices.

e. Engineers should strive for transparency in the procurement and execution of projects. Transparency includes disclosure of names, addresses, purposes, and fees or commissions paid for all agents facilitating projects.

f. Engineers should encourage the use of certifications specifying zero-tolerance for bribery, fraud, and corruption in all contracts.

Canon 7.

Engineers shall continue their professional development throughout their careers, and shall provide opportunities for the professional development of those engineers under their supervision.

a. Engineers should keep current in their specialty fields by engaging in professional practice, participating in continuing education courses, reading in the technical literature, and attending professional meetings and seminars.

b. Engineers should encourage their engineering employees to become registered at the earliest possible date.

c. Engineers should encourage engineering employees to attend and present papers at professional and technical society meetings.

d. Engineers shall uphold the principle of mutually satisfying relationships between employers and employees with respect to terms of employment including professional grade descriptions, salary ranges, and fringe benefits.

Canon 8.

Engineers shall, in all matters related to their profession, treat all persons fairly and encourage equitable participation without regard to gender or gender identity, race, national origin, ethnicity, religion, age, sexual orientation, disability, political affiliation, or family, marital, or economic status.

a. Engineers shall conduct themselves in a manner in which all persons are treated with dignity, respect, and fairness.

b. Engineers shall not engage in discrimination or harassment in connection with their professional activities.

c. Engineers shall consider the diversity of the community, and shall endeavor in good faith to include diverse perspectives, in the planning and performance of their professional services.

Student Instruction Sheet Early Supplier Integration in the Design of the Skid-Steer Loader (John Deere Case; page 448; 6th edition of Schroeder) Instructions to Students:

1. Read the case carefully, assimilating all facts and data.

2. Read the Problem Solving Rubric attached. This is how the quality of your case will be gauged.

3. Please write a report covering the following bullet points - while minding the attached rubric on problem solving. (Do not do the Discussion Questions at the end of the case).

-Describe all of the problems faced by Scott Nolan and his company in this case. Be sure to provide justification of why all of these problems are important. Make sure you understand all of the contextual data provided in the case, especially the financial, quality, product development, schedule, and related data.

-For each problem, propose solutions, giving a complete rationale / justification. Be sure to use the data in the case and provide financial and business analysis (qualitative and quantitative) where necessar.

-For each solution, evaluate its potential impact and feasibility.

-You can organize your report so that you address problem, solutions and feasibility issues for each important problem – in separate sections.

4. Your answers should be concise, concrete, action oriented, and well-supported. Please limit your narrative to five pages, single-spaced. You can add appendices, charts, graphs, and exhibits as desired.

5. When you are finished, upload your file to the Dropbox named John Deere Case.

“Congratulations, Scott. You are the new supply management manager of our new Deere & Com- pany Commercial Worksite Products manufacturing facility in Knoxville, TN. As you know, we really need your help to make this new facility fully operational in 24 months. I am sure you realize that a critical responsibility of your new job is to integrate suppli- ers into the product development process for our own Deere manufactured skid-steer loader as quickly as needed. You will be reporting directly to me, and I need a proposal from you by the time we meet next week on June 15, 1996.” As Scott hung up the telephone with James Field, plant manager and his immediate boss, he realized that this was not a simple request. In his proposal, he knew he would need to (a) identify and justify which suppliers to integrate in the product development phase and (b) specify how to structure the interactions with these cho- sen suppliers. The recommendations in his proposal had to ensure that this new plant would be up and run- ning smoothly by the target date in July 1998. EXHIBIT 1 Example of Deere Skid-Steer loader. DEERE & COMPANY New Holland produced its own line of skid-steer loaders that competed directly with the Deere brand, it agreed to sell its excess capacity to manufacture essentially the same product for Deere & Company, allowing aesthetic changes for brand differentiation only. Market In 1995–1996, Deere’s average market share for the skid-steer loader varied between 1 to 3 percent. Market data indicated that this market niche was growing at 15–20 percent per year and was projected to reach overall sales of $1.2 billion, or approximately 60,000 units by year 2000–2001. Given these numbers, corpo- rate headquarters became increasingly interested in establishing the Deere skid-steer loader as one of the leading worldwide competitors in this market niche with a goal of more than tripling its market share. In order to reach such an aggressive goal, Deere realized its market penetration strategy needed to focus on fundamental order-winning criteria in such areas as: Product Features: Because the skid-steer loader is a fixed-investment asset, product features that improve ease of use (e.g., versatility of load place- ment), reduce operational costs (e.g., fuel-efficiency), and reduce maintenance requirements (e.g., self- lubricating parts) would make the difference between the Deere brand and competing products. Product Range: To better serve the customers, Deere knew that it needed to offer some product variety, as typically required for industrial equipment, given dif- ferent usage requirements. Therefore, a range of Deere & Company, headquartered in Moline, IL, had more than 150 years of history, making it one of the world’s oldest business enterprises. A well-respected company, Deere & Company had a core business port- folio in 1996 comprised of the manufacturing, distribut- ing, financing, and servicing of agricultural equipment (e.g., combines and tractors), construction and forestry equipment (e.g., log skidders and forklifts), and commer- cial and consumer lawn care equipment (e.g., lawn and garden tractors and mowers), as well as other techno- logical products and services. With more than 38,000 employees worldwide, Deere & Company conducted business in more than 160 countries. THE SKID-STEER LOADER The Product The skid-steer loader, a small loader with a 1,000- to 3,000-pound-load capacity, was targeted for construc- tion and ground care sites in need of light, versatile and easy-handling land-moving equipment. Deere & Company pioneered the skid-steer loader market more than 25 years ago, but, subsequently, the company had contracted the engineering and manufacturing to New Holland, an independent contractor. Although 416 Part Seven Case Studies models, perhaps differentiated on load capacity and available options (e.g., hand or foot controls) was needed. Product Delivery: Deere knew that demonstrating its skid-loader’s versatile functionality and being able to demonstrate and deliver the product to the actual work site was an important sales incentive. Price: Last but not least, the demand for skid-steer loaders was highly price sensitive. As a result, minimiz- ing cost of goods sold without sacrificing timely deliv- ery of a high-quality Deere skid-loader was imperative. The situation before 1996 was therefore pretty clear. As long as engineering and production of Deere brand skid-steer loaders were in the hands of a third party— one that, in fact, competed in the same market niche— there would be little opportunity to gain significant benefits over competing products and product features. The same argument held for cost considerations, mak- ing better delivery and service the only competitive advantages. Furthermore, expecting market demand for skid-steers would increase, New Holland had refused to sell additional production capacity to Deere & Company. As a result, Deere & Company decided that it needed to regain direct control of the design and manufacturing of this potential lucrative product. THE “GREENFIELD” KNOXVILLE DECISION In April 1996, corporate headquarters approved a capi- tal investment project of $35 million dedicated to regaining control of the design and manufacturing of the steer-skid loader. This capital investment decision also approved the placement of the design, manufacturing, and marketing functions in a new facility to be built near Knoxville, TN. The mandate was clear—engineer and manufacture a high-quality skid-steer loader that would be 20% lower in costs than that of the best competitor’s by August 1998, consistent with other identified order- winning criteria. SCOTT NOLAN, CQE, PE, AND NEW SUPPLY MANAGEMENT MANAGER?Nolan joined Deere & Company as a manufacturing engineer, after graduating from Iowa State University with a mechanical engineering degree in 1979. Along the way, he has received an MBA (in 1989) from the University of Iowa, as well as professional certification as a Certified Quality Engineer and as a Professional Engineer. In 1989, Nolan began working in supply man- agement for the Horicon, WI, lawn and garden equip- ment manufacturing facility. The opportunity to join a new Deere manufacturing facility in the role of supply management manager was a welcomed promotion and challenge. SUPPLIER INTEGRATION IN SKID-STEER LOADER DESIGN?Having worked in supply management for the seven past years, Nolan was well aware of the general princi- ple of involving suppliers in product development and manufacturing decisions and the frequently touted ben- efits of lower costs structures, faster product develop- ment cycle and reduced operational inefficiencies. He believed, however, that not all suppliers needed to be or should be involved, especially in the early stages of the new product development process. Furthermore, involv- ing suppliers should not be “lip-service”; the selected suppliers should be well integrated into the various product development activities. CONCLUSION Reflecting on this knowledge, Nolan realized that he must answer two important questions in his proposal— these being: (a) How to choose the suppliers that should be inte- grated early in developing the new Deere skid-steer loader? (b) And, equally important, what principles/practices/ techniques should be adopted to structure the inter- actions during the early product development phase with these selected suppliers so that the full-scale production of skid-steer loader units would begin by the target date in July 1998? With less than a week before his meeting with James Field, Nolan sat down in front of his home computer and began drafting the proposal.

1. Write the SQL code required to list the employee number, first and last name, middle initial, and the hire date. Sort your selection by the hire date, to display the newly hired employees first.

2. Modify the previous query and list the employee first, last name and middle initial as one column with the title EMP_NAME. Make sure the names are listed in the following format: First name, space, initial, space, last name (e.g. John T Doe). Hint: use + to concatenate the fields and use ' ' to add a space to your text. E. g. EMP_FNAME + ' ' + EMP_LNAME.

3. Write the SQL code that will list only the distinct project numbers in the ASSIGNMENT table, sorted by project number.

4. Using the EMPLOYEE and PROJECT tables, write the SQL code that will join the tables on their common attribute and display the the names and numbers of the projects and the employees who lead these projects.

5. Modify the query in 5 to display all employees and not just the ones who lead projects.

6. Using the EMPLOYEE, JOB, and PROJECT tables in the ConstructCo database, write the SQL code that will join the EMPLOYEE and PROJECT tables using EMP_NUM as the common attribute. Display the attributes shown in the results presented in the attached screen shot, sorted by project value.

7. Using JOB and EMPLOYEE tables, list the jobs and the names of employees who currently have these job categories. List all jobs, even the ones that do not have any matches in the EMPLOYEE table.

8. Write a query to list the names of all employees, the names of the projects to which they are assigned, and the name of employees who lead these projects.

Hint for Question 8: in this question, you will need to join EMPLOYEE to ASSIGNMENT to PROJECT to EMPLOYEE again. Being in the join twice, EMPLOYEE needs aliases:

SELECT ...
FROM EMPLOYEE E1
LEFT JOIN ASSIGNMENT ON ...
LEFT JOIN PROJECT ON ...
LEFT JOIN EMPLOYEE E2 ON ...

When you have aliases, every field from the table should be preceded by the table alias, e.g. SELECT E1.EMP_LNAME, not SELECT EMP_LNAME.

CODE:

/* Database Systems, Coronel/Morris */
/* Type of SQL : SQL Server */

CREATE TABLE ASSIGNMENT (
ASSIGN_NUM int,
ASSIGN_DATE datetime,
PROJ_NUM varchar(3),
EMP_NUM varchar(3),
ASSIGN_JOB varchar(3),
ASSIGN_CHG_HR numeric(8,2),
ASSIGN_HOURS numeric(8,2),
ASSIGN_CHARGE numeric(8,2)
);
INSERT INTO ASSIGNMENT VALUES('1001','3/22/2018','18','103','503','84.5','3.5','295.75');
INSERT INTO ASSIGNMENT VALUES('1002','3/22/2018','22','117','509','34.55','4.2','145.11');
INSERT INTO ASSIGNMENT VALUES('1003','3/22/2018','18','117','509','34.55','2','69.10');
INSERT INTO ASSIGNMENT VALUES('1004','3/22/2018','18','103','503','84.5','5.9','498.55');
INSERT INTO ASSIGNMENT VALUES('1005','3/22/2018','25','108','501','96.75','2.2','212.85');
INSERT INTO ASSIGNMENT VALUES('1006','3/22/2018','22','104','501','96.75','4.2','406.35');
INSERT INTO ASSIGNMENT VALUES('1007','3/22/2018','25','113','508','50.75','3.8','192.85');
INSERT INTO ASSIGNMENT VALUES('1008','3/22/2018','18','103','503','84.5','0.9','76.05');
INSERT INTO ASSIGNMENT VALUES('1009','3/23/2018','15','115','501','96.75','5.6','541.80');
INSERT INTO ASSIGNMENT VALUES('1010','3/23/2018','15','117','509','34.55','2.4','82.92');
INSERT INTO ASSIGNMENT VALUES('1011','3/23/2018','25','105','502','105','4.3','451.5');
INSERT INTO ASSIGNMENT VALUES('1012','3/23/2018','18','108','501','96.75','3.4','328.95');
INSERT INTO ASSIGNMENT VALUES('1013','3/23/2018','25','115','501','96.75','2','193.5');
INSERT INTO ASSIGNMENT VALUES('1014','3/23/2018','22','104','501','96.75','2.8','270.9');
INSERT INTO ASSIGNMENT VALUES('1015','3/23/2018','15','103','503','84.5','6.1','515.45');
INSERT INTO ASSIGNMENT VALUES('1016','3/23/2018','22','105','502','105','4.7','493.5');
INSERT INTO ASSIGNMENT VALUES('1017','3/23/2018','18','117','509','34.55','3.8','131.29');
INSERT INTO ASSIGNMENT VALUES('1018','3/23/2018','25','117','509','34.55','2.2','76.01');
INSERT INTO ASSIGNMENT VALUES('1019','3/24/2018','25','104','501','110.5','4.9','541.45');
INSERT INTO ASSIGNMENT VALUES('1020','3/24/2018','15','101','502','125','3.1','387.5');
INSERT INTO ASSIGNMENT VALUES('1021','3/24/2018','22','108','501','110.5','2.7','298.35');
INSERT INTO ASSIGNMENT VALUES('1022','3/24/2018','22','115','501','110.5','4.9','541.45');
INSERT INTO ASSIGNMENT VALUES('1023','3/24/2018','22','105','502','125','3.5','437.5');
INSERT INTO ASSIGNMENT VALUES('1024','3/24/2018','15','103','503','84.5','3.3','278.85');
INSERT INTO ASSIGNMENT VALUES('1025','3/24/2018','18','117','509','34.55','4.2','145.11');

/* -- */

CREATE TABLE EMPLOYEE (
EMP_NUM varchar(3),
EMP_LNAME varchar(15),
EMP_FNAME varchar(15),
EMP_INITIAL varchar(1),
EMP_HIREDATE datetime,
JOB_CODE varchar(3),
EMP_YEARS int
);
INSERT INTO EMPLOYEE VALUES('101','News','John','G','11/8/2000','502','4');
INSERT INTO EMPLOYEE VALUES('102','Senior','David','H','7/12/1989','501','15');
INSERT INTO EMPLOYEE VALUES('103','Arbough','June','E','12/1/1996','503','8');
INSERT INTO EMPLOYEE VALUES('104','Ramoras','Anne','K','11/15/1987','501','17');
INSERT INTO EMPLOYEE VALUES('105','Johnson','Alice','K','2/1/1993','502','12');
INSERT INTO EMPLOYEE VALUES('106','Smithfield','William','','6/22/2004','500','0');
INSERT INTO EMPLOYEE VALUES('107','Alonzo','Maria','D','10/10/1993','500','11');
INSERT INTO EMPLOYEE VALUES('108','Washington','Ralph','B','8/22/1991','501','13');
INSERT INTO EMPLOYEE VALUES('109','Smith','Larry','W','7/18/1997','501','7');
INSERT INTO EMPLOYEE VALUES('110','Olenko','Gerald','A','12/11/1995','505','9');
INSERT INTO EMPLOYEE VALUES('111','Wabash','Geoff','B','4/4/1991','506','14');
INSERT INTO EMPLOYEE VALUES('112','Smithson','Darlene','M','10/23/1994','507','10');
INSERT INTO EMPLOYEE VALUES('113','Joenbrood','Delbert','K','11/15/1996','508','8');
INSERT INTO EMPLOYEE VALUES('114','Jones','Annelise','','8/20/1993','508','11');
INSERT INTO EMPLOYEE VALUES('115','Bawangi','Travis','B','1/25/1992','501','13');
INSERT INTO EMPLOYEE VALUES('116','Pratt','Gerald','L','3/5/1997','510','8');
INSERT INTO EMPLOYEE VALUES('117','Williamson','Angie','H','6/19/1996','509','8');
INSERT INTO EMPLOYEE VALUES('118','Frommer','James','J','1/4/2005','510','0');

/* -- */

CREATE TABLE JOB (
JOB_CODE varchar(3),
JOB_DESCRIPTION varchar(25),
JOB_CHG_HOUR numeric(8,2),
JOB_LAST_UPDATE datetime
);
INSERT INTO JOB VALUES('500','Programmer',           '35.75','11/20/2017');
INSERT INTO JOB VALUES('501','Systems Analyst',      '96.75','11/20/2017');
INSERT INTO JOB VALUES('502','Database Designer',    '125',   '3/24/2018');
INSERT INTO JOB VALUES('503','Electrical Engineer',  '84.5', '11/20/2017');
INSERT INTO JOB VALUES('504','Mechanical Engineer',  '67.9', '11/20/2017');
INSERT INTO JOB VALUES('505','Civil Engineer',       '55.78','11/20/2017');
INSERT INTO JOB VALUES('506','Clerical Support',     '26.87','11/20/2017');
INSERT INTO JOB VALUES('507','DSS Analyst',          '45.95','11/20/2017');
INSERT INTO JOB VALUES('508','Applications Designer','48.1',  '3/24/2018');
INSERT INTO JOB VALUES('509','Bio Technician',       '34.55','11/20/2017');
INSERT INTO JOB VALUES('510','General Support',      '18.36','11/20/2017');

/* -- */

CREATE TABLE PROJECT (
PROJ_NUM varchar(3),
PROJ_NAME varchar(25),
PROJ_VALUE numeric(10,2),
PROJ_BALANCE numeric(10,2),
EMP_NUM varchar(3)
);
INSERT INTO PROJECT VALUES('15','Evergreen','1453500','1002350','103');
INSERT INTO PROJECT VALUES('18','Amber Wave','3500500','2110346','108');
INSERT INTO PROJECT VALUES('22','Rolling Tide','805000','500345.2','102');
INSERT INTO PROJECT VALUES('25','Starflight','2650500','2309880','107');