1. BUSINESS DRIVEN TECHNOLOGY Decision Analysis Tools in Excel
Plug-In T3:
Decision Analysis Tools in Excel

2. Describe the use of a PivotTable
LEARNING OUTCOMES
Describe the use of a PivotTable
Summarize the tools used when building a PivotTable
Compare the functions of Goal Seek and Solver
List the advantages of using the Scenario Manager
1. Describe the use of a PivotTable
A PivotTable analyzes, summarizes, and manipulates data in large lists, databases, worksheets, or other collections. It is called a PivotTable because fields can be moved within the table to create different types of summary lists providing a “pivot.” PivotTables offer flexible and intuitive analysis of data.
2. Summarize the tools used when building a PivotTable
Row field — Row field labels have a row orientation in a PivotTable report and are displayed as row labels. These appear in the ROW area of a PivotTable report layout.
Column field — Column field labels have a column orientation in a PivotTable report and are displayed as column labels. These appear in the COLUMN area of a PivotTable report layout.
Data field — Data fields from a list or table contain summary data in a PivotTable, such as numeric data (e.g., statistics, sales amounts). These are summarized in the DATA area of a PivotTable report layout.
Page field — Page fields filter out the data for other items and display one page at a time in a PivotTable report.
3. Compare the functions of Goal Seek and Solver
Goal Seek is an analytical function that attempts to find the value of the inputs necessary to achieve a desired level of output. The Goal Seek function can eliminate unnecessary calculations that can be used to determine a single variable value in a formula.
Solver is best used for forecasting for problems that contain more than one variable. The Solver add-in utility is needed to analyze the scenarios in decision-making situations that involve consideration of values and constraints for several variables simultaneously. This function uses multiple changing variables and constraints to find the optimal solution to solve a problem.
4. List the advantages of using the Scenario Manager
Scenario Manager allows 32 different scenarios or groups of values to be defined. The Scenario Manager can then be used to selectively display the desired values or scenario in the worksheet. The Scenario Manager eliminates the need to have multiple copies of the same worksheet representing different situations. For each group of input values a scenario must be named and stored before it can be used.

3. There are four topic areas in this plug-in:
Introduction
There are four topic areas in this plug-in:
The PivotTable function is an organization and analysis tool that displays fields and records
The Goal Seek function is used to find an unknown value that produces a desired result
The Solver function is used to calculate an optimum solution based on several variables and constraints
The Scenario Manager function is used to create and evaluate a collection of “what-if” scenarios containing multiple input values

4. PivotTables
A PivotTable analyzes, summarizes, and manipulates data in large lists, databases, worksheets, or other collections
PivotTables offer flexible and intuitive analysis of data
The data in the data area of the PivotTable cannot be directly entered or changed

5. PIVOTTABLE TERMINOLOGY
Row field - a row orientation in a PivotTable report and are displayed as row labels
Column field - a column orientation in a PivotTable report and are displayed as column labels
Data field - list or table contain summary data in a PivotTable, such as numeric data
Page field - filter out the data for other items and display one page at a time in a PivotTable report

6. BUILDING A PIVOTTABLE
Build a PivotTable with the Data, PivotTable, and PivotChart Report option, which displays a series of PivotTable Wizard dialog boxes
The wizard steps through the process of creating a PivotTable

7. BUILDING A PIVOTTABLE

8. Using the PivotTable Feature
Select the PivotTable Data worksheet from the Analysis Data.xls workbook
Click any cell in the list
Excel knows to use the data in the Excel list to create a PivotTable
Choose Data, PivotTable and PivotChart Report
The PivotTable and PivotChart Wizard — Step 1 of 3 dialog box opens

9. Using the PivotTable Feature

10. Using the PivotTable Feature
In the Where Is the Data That You Want to Analyze? area, choose Microsoft Excel List or Database
In the What Kind of Report Do You Want to Create? area, choose PivotTable
Click the Next button
The PivotTable and PivotChart Wizard — Step 2 of 3 dialog box opens
In the Range box, the range should be $A$1:$E$49

11. Using the PivotTable Feature
The PivotTable and PivotChart Wizard — Step 3 of 3 dialog box opens
This is used to tell Excel whether to place the PivotTable on an existing or new worksheet
Select New Worksheet
Click the Layout button
Excel opens the PivotTable and PivotChart Wizard—Layout dialog box

12. Using the PivotTable Feature

13. Using the PivotTable Feature
The fields appear on buttons to the right in the dialog box
These currently are the column fields
The four areas you can define to create your PivotTable are ROW, COLUMN, DATA, and PAGE.

14. Using the PivotTable Feature
Drag the field buttons to the areas to define the layout of the PivotTable
Drag the Month button to the PAGE area
Drag the Sales button to the DATA area
Drag the Region button to the COLUMN area
Drag the Magazine button to the ROW area
Click OK to return to the PivotTable and PivotChart Wizard — Step 3 of 3 dialog box
Click the Finish button

15. Using the PivotTable Feature

16. MODIFYING A PIVOTTABLE VIEW
After a PivotTable is built, modifications can be done at any time
Drag the buttons off the diagram, and arrange the fields like this:
Magazine in the PAGE area
Month in the COLUMN area
Sale in the DATA area
Sales Rep in the ROW area

17. Modifying A PivotTable View

18. PIVOTTABLE TOOLS
PivotTable - A menu that contains commands for working with a PivotTable
Format Report - Enables the user to format the PivotTable report
Chart Wizard - Enables the user to create a chart using the data in the PivotTable
Hide Detail - Hides the detail information in a PivotTable and shows only the totals
Show Detail - Shows the detail information in a PivotTable

19. PIVOTTABLE TOOLS
Refresh External Data - Allows the user to refresh the data in the PivotTable after changes to data are made in the data source
Include Hidden Items in Totals - Lets the user show the hidden items in the totals
Always Display Items - Always shows the field item buttons with drop-down arrows in the PivotTable
Field Settings - Displays the PivotTable Field dialog box so that the user can change computations and their number format
Hide Field List - Hides and shows the PivotTable Field List window

20. BUILDING A PIVOTCHART
PivotChart - a column chart (by default) that is based on the data in a PivotTable
To build a PivotChart:
Click the Chart Wizard on the PivotTable toolbar
Excel will automatically create a new worksheet, labeled Chart 1, and display the current PivotTable information in chart form

21. BUILDING A PIVOTCHART

22. Goal Seek
Goal Seek - an analytical function, which allows a value in a formula to be adjusted in order to reach a desired result or answer
The Goal Seek feature can eliminate unnecessary calculations
Goal Seek repeatedly tries new values in the variable cell to find a solution to the problem

23. Goal Seek

24. Using the Goal Seek Command
To use the Goal Seek command:
Choose Tools, Goal Seek
Specify the cell that contains the desired value in the Set cell text box
Type in or select B3
Enter the desired value or answer in the To value text box
Type in 2500
Enter the cell whose value will be changed in the By changing cell text box
Type in or select $B$1
Choose OK
If a solution is found, the Goal Seek Status dialog box appears
Select OK

25. Using the Goal Seek Command

26. Using the Goal Seek Command

27. Solver
Solver - part of a suite of functions sometimes called what-if analysis tools
Solver is used when forecasting a problem contains more than one variable
Solver uses multiple changing variables and constraints to find the optimal solution to solve a problem

28. If it has not already been installed, do the following:
INSTALLING SOLVER
Both Goal Seek and Solver tools come with the standard Excel package, but Solver has to be installed
If it has not already been installed, do the following:
Open Excel and go to Tools, Add-Ins
After clicking Add-Ins, scroll down to Solver Add-in and click the box

29. SETTING UP THE PROBLEM
Build a Solver-friendly worksheet, set up the table similar to Figure T3.10:

30. SETTING UP THE PROBLEM
The three variable cells in the worksheet are cells D5, D9, and D13
In the bottom-right corner of the screen is a list of constraints to use for forecasting
The worksheet must contain cells (G6 through G8) that contain the formulas used as constraints
The limiting values for the constraints are listed in cells G11 through G13
No more than 500 total cups of coffee (both regular and premium)
No more than 350 cups of premium coffee (both caffe latte and caffe mocha)
No more than 125 caffe mochas

31. SETTING UP THE PROBLEM
The subtotals for cells D6, D10, D14 need to be calculated, as well as the Total Revenue (sum of D6, D10, and D14)
The value for cell G6 should equal the value that will be calculated for D5 and the value for cell G7 will be the sum of the values from D9 and D13
Click the target cell G4 — the one containing the formula that is based on the variable cells you want the Solver to determine
Choose Tools, Solver
Select the Set Target Cell text box (unless it already contains the correct reference), and then click cell G4 to insert $G$4 as the target cell

32. SETTING UP THE PROBLEM

33. SETTING UP THE PROBLEM Select the By Changing Cells text box
Click the button in the text box to collapse the dialog box
Select each of the variable cells by holding down the Ctrl key and clicking D5, D9, and D13

34. Click Add to add the first constraint in the Add Constraint dialog box
SETTING UP THE PROBLEM
Click Add to add the first constraint in the Add Constraint dialog box
The first constraint is Pony Espresso can sell only 500 cups of coffee in one week
To enter this constraint, click cell G8, click <= in the operator drop-down list, and with the insertion point in the Constraint text box, type or click cell G11
Click Add to enter the first constraint and begin the second constraint — Pony Espresso can sell only 350 premium coffees in one week

35. SETTING UP THE PROBLEM
With the insertion point in the Cell Reference text box, click cell G7, click <= in the operator drop-down list, and in the Constraint text box, type or click cell G12
Click Add to enter the second constraint and begin the third — Pony Espresso can sell only 125 caffe mochas in one week
Click cell D13, click <= in the operator drop-down list, and in the Constraint text box, type, or click cell G13
Click OK to add all three constraints to the Solver Parameters dialog box

36. SETTING UP THE PROBLEM

37. SETTING UP THE PROBLEM
Click Solve to calculate the result, solver displays a dialog box describing the results of the optimization analysis
To display the new solution in the worksheet, click the Keep Solver Solution option button, and then click OK

38. SETTING UP THE PROBLEM

39. EDITING A SOLVER FORECAST
Choose Tools, Solver
Click the Value Of option button and type 800 in the text box to the right
The Value Of option button sets the target cell to a particular goal to determine the variable mix needed to reach the milestone

40. EDITING A SOLVER FORECAST
Click Solve to find a solution to the problem

41. Scenario Manager
Scenario - a set of input values and corresponding results from calculations that Excel can save and report as needed
A worksheet can be used to conduct a “what-if” analysis on a particular set of data
Excel’s Scenario Manager allows 32 different scenarios or groups of values to be defined

42. SETTING UP SCENARIOS
Each group of input values or scenario must be named and stored before it can be used
To set up a Scenario:
Open the worksheet Scenario Data.xls

43. SETTING UP SCENARIOS
Select the cells containing the first set of values to store in a scenario
On the toolbar, select Tools, Scenarios
Click Add to display the Add Scenario dialog box
Enter Original for the Scenario name
In the Changing Cells text box, type D9:D11 or use the Collapse Dialog button at the right side of the text box to manually select the cells that hold the Number of Technicians, Regular Hours, and Over Time Hours values

44. SETTING UP SCENARIOS
Choose OK
The Scenario Values dialog box will display the values for cells D9, D10, and D11 as 1, 300, and 0
Click OK

45. SETTING UP SCENARIOS
Once the original has been saved, the what-if scenarios need to be created
Click Add
In the Add Scenario dialog box, type Single Contractor Overtime
Click OK
In the Scenario Values dialog box for cell D10, type 300 and for cell D11 enter 40
The value in D9 remains at 1
Ensure that the Single Contractor Overtime scenario is selected, and click Show
Excel reports that this project will need an additional $3,000

46. SETTING UP SCENARIOS

47. SETTING UP SCENARIOS Create one more scenario
In the Scenario Manager dialog box, click Add
In the Scenario Name text box, type Two Contractors No Overtime
The Changing Cells (D9:D11) should already appear in the proper text box
Click OK to invoke the Scenario Values dialog box

48. SETTING UP SCENARIOS
Two outside contractors are brought in (by charging $200 for each additional technician)
Enter 2 in the text box for cell D9 and 0 in the text box for cell D11
In cell D10’s text box, type =300/2
Click OK, a message box says that Excel converted the formula into a value
Click OK to dismiss the message
Select Two Contractors and click Show
Excel displays 150 in cell D10 even though the total hours are 300
This scenario gives a completion cost of $15,200

49. Compare each scenario to determine the best solution, such as:
Compare the Scenarios
Compare each scenario to determine the best solution, such as:
Scenario Cost
Original $15,000
Single Contractor Overtime $18,000
Two Contractors No Overtime $15,200

50. Once scenarios have been defined, the data values can be modified
MODIFYING A SCENARIO
Once scenarios have been defined, the data values can be modified
To modify a Scenario:
Choose Tools, Scenarios
Select the desired Scenario name
Choose Edit
Modify the Scenario information, as desired
Close the Scenario Manager dialog box

51. CREATING A SCENARIO SUMMARY REPORT
The Summary Report creates a report that summarizes the result cells that are affected by a scenario
The Summary Report appears in the form of a summary table that is placed on a new worksheet, which can be printed

52. CREATING A SCENARIO SUMMARY REPORT
To Create a Scenario Summary Report:
Choose Tools, Scenarios
Choose Summary
Choose Scenario summary in the Report type group box
In the Result cells text box, type in D7, D12, D15, D16, D17
Result cells are the cells affected by the specified scenario
Choose OK

53. CREATING A SCENARIO SUMMARY REPORT