Session 1b

Decision Models -- Prof. Juran2 Overview Spreadsheet Conventions Copying, Pasting, Reporting Introduction to Solver

Decision Models -- Prof. Juran3 Spreadsheet Conventions Basic Idea: Customer-friendly Easy to Read Easy to Audit Easy to Adapt –“Parameterization” –“Dragability”

Decision Models -- Prof. Juran4 Spreadsheet Conventions Clear, logical layout Separation across multiple sections and/or worksheets Clear headings for inputs, decision variables, and outputs Formatting for user clarity Text boxes and cell comments

Decision Models -- Prof. Juran5 Written Reports 0. Conclusions and Recommendations –Done last, appears first 1. Managerial Problem Definition 2. Formulation 3. Solution Methodology 4. Discussion? Appendices?

Decision Models -- Prof. Juran6 Written Reports Minimal Raw Spreadsheet Elements –i. e. none Graphical Communication –Equation Editor –Charts, Graphs –Spreadsheet Captures

Decision Models -- Prof. Juran7 Optimization Example: Malcolm’s Glass Shop

Decision Models -- Prof. Juran8 Managerial Problem Definition Malcolm owns a glass-molding machine capable of producing two products: six- ounce juice glasses and ten-ounce cocktail glasses. He needs to decide how many of each product he ought to make each week in order to make the greatest profit. He is limited by the production rate of the machine, demand for one of the products, and storage space.

Decision Models -- Prof. Juran9 Formulation Decision variables: How many to produce of two products. Objective: Maximize Profit. Constraints: The molding machine can only produce so many glasses in a week. There is a market limit for 6-oz glasses. There is a limit on storage space. Malcolm can’t make negative amounts of either product.

Decision Models -- Prof. Juran10 Formulation Maximize Profit from 6-oz glasses + Profit from 10-oz glasses Subject to: Molding Machine capacity used for 6-oz + Molding Machine capacity used for 10-oz <= Total Molding capacity 6-oz glasses produced <= Total Demand for 6-oz glasses Storage Space used for 6-oz + Storage Space used for 10-oz <= Total Storage Space 6-oz glasses produced >= 0 10-oz glasses produced >= 0

Decision Models -- Prof. Juran11 Formulation

Decision Models -- Prof. Juran12 Formulation

Decision Models -- Prof. Juran13 Solution Methodology

Decision Models -- Prof. Juran14 Solver Dialog Box

Decision Models -- Prof. Juran15

Decision Models -- Prof. Juran16

Decision Models -- Prof. Juran17 Solver Answer Report

Decision Models -- Prof. Juran18 Communicating Graphically

Decision Models -- Prof. Juran19 Enhancing Charts

Decision Models -- Prof. Juran20 Enhancing Charts

Decision Models -- Prof. Juran21 Conclusions and Recommendations Make 642 cases of 6-oz glasses and 428 cases of 10-oz glasses. Earn $5,143 profit.

Decision Models -- Prof. Juran22 Summary Spreadsheet Conventions Copying, Pasting, Reporting Introduction to Solver