1. Excel Review Weekend Executive MBA April 2003

2. Agenda  Part 1 −Working smarter  Part 2 −What Dr. Kornish expects  Part 3 −Model building advice from the experts  Part 4 −Modeling exercises

3. Agenda – more detail  Part 1 Working smarter: A demo of a number of Excel techniques that will make you a more efficient user.  Part 2 What Dr. Kornish expects you to know: Critical model-building skills. Demonstrations and hands-on practice.  Part 3 Advice from Fuqua’s Decision Science faculty: Fundamentals of how to approach Excel model-building.  Part 4 Modeling exercises: Skills application.

4. Agenda – more on Part 2: What Dr. Kornish Expects You to Know  Critical “going in” knowledge −Bad & good formula-writing technique −About formulas −Key logical functions (IF, AND, OR, NOT, MIN, MAX) −Charting Basics −Printing −Online Help  Excel tools she’ll introduce in class −In the context of your work Data Tables Solver Etc. Pencil & paper (or PC) exercises Solver

5. My goals for this session  Decision Models Course Preparation −View selected techniques to make your work with Excel easier and more efficient. −Review and practice formula-writing basics and logical functions.  A Modeling Approach −Consider a straightforward framework for approaching Excel modeling.  Continuing −Suggest materials, resources, and suggestions for continued learning about Excel.

6. Handouts & Materials  On Paper −WEMBA Excel Review −Supplementary Excel materials  Diskette −Demo and practice files  WEMBA Excel Review Webpage −More files

7. Before getting started  1. Check a box −Complete the Excel self-assessment sheet  2. Resources for Learning More about Excel −See “Suggested Excel Resources” in the blue handout, page 1. −Text Recommendations For tutorial work For quick reference For comprehensive reference −Video/CD-ROM/Web Recommendations

8. Part 1: Working Smarter Part 2: What Dr. Kornish Expects Part 3: Model-Building Advice From the Experts Part 4: Modeling

9. Part 1: Working smarter  Topics from the handout Efficiency Techniques in Excel  Selected features on −Workbook organization −Data entry & edit −Arranging & viewing the worksheet

10. Part 1: Working Smarter Workbook Organization  Toolbars −Quick access, docking, customizing.  Worksheet tabs −Add, rename, delete, re-order, group.  Copying and/or moving worksheets −The best method.

11. Part 1: Working Smarter Data Entry & Edit  The formula bar −More than just formula display.  Formats −Number, alignment, fonts, duplication, etc.  Fill & extend −Fast repetition or extension.  Naming cells & ranges −How & why.

12. Part 1: Working Smarter Arranging & Viewing the Worksheet  One- and two-way splits −Never again lose sight of key headers.  Viewing multiple windows −In the same workbook or across workbooks.  Moving & selecting −Some useful power techniques.

13. Part 2: What Dr. Kornish Expects You to Know Part 1: Working Smarter Part 2: What Dr. Kornish Expects You to Know Part 3: Model-Building Advice From the Experts Part 4: Modeling

14. Writing formulas Formula review BadAndGoodFormulaTechnique.xls FormulaReview.xls

15. Logic Practice LogicPractice.xls MoreLogicPractice.xls

16. Charting Charting Basics.xls

17. Part 3: Model-Building Advice Part 1: Working Smarter Part 2: What Dr. Kornish Expects Part 3: Model-Building Advice From the Experts Part 4: Modeling

18. On Model-Building: Expert advice  Handout −Design & Audit Tips  Model components −Understand the components present in most spreadsheet models.  Checklist −Make those components part of a checklist.  Use the checklist items to: −Organize new models. −Improve existing models.

19. Five item modeling checklist  1. Identify Known Values −The givens; can’t be modified. −(Do you need more information?)  2. Identify Decision Variables −The quantities you control. −You’ll manipulate these items to find an optimal model solution.  3. Determine the Outputs −What you want to solve, show, find, maximize or minimize.

20. Checklist, continued  4. Be aware of any Constraints −Limits to inputs or outputs. Tradeoffs.  5. Build Relationships into the Model −Relationships between known values and variables, expressed in formulas.

21. Part 4: Modeling Part 1: Working Smarter Part 2: What Dr. Kornish Expects Part 3: Model-Building Advice From the Experts Part 4: Modeling

22. Oak Products: Overview  Oak Products −A small company that manufactures chairs. −The company has six chair models.  Each chair model −Requires a particular mix of components.  August is a slow month −Because August is traditionally a vacation month, only the parts already on hand in the factory can be used for August production. −Traditionally, Oak Products has made 40 of each model chair in August.

23. Question  Might a different product mix be more profitable?

24. To find out...  Data we need −the components each model requires −how many of each component are on hand −how much profit each model generates  Then −Analyze the data to determine the most profitable product mix, accounting for constraints.

25. Model Checklist  Objective −maximize August profit  Known Values −profit per chair, parts-on-hand, parts required  Constraints −limited parts on hand, parts requirements  Decision variables −how many of each model to make

26. Build the model See the Oak Products handout. Three stages: Part 1: Initial arranging of the data. Add any known values. Part 2: Build formulas to express data relationships. Part 3: Use the model to find the best answer.

28. Using the model to maximize total profit 405340 7552837 …with guesswork …with Solver

29. Identify for Solver  Target cell −Total Profit  Changing cells (or decision variables) −Quantity of each chair to produce  Constraints −No “negative production” −Use only inventory on hand

30. Oak Products model summary  As you work −use the 5-item model-building checklist  Put down what you know, then −get more data, if needed −rearrange the layout, if needed −express data relationships using formulas  Then use the model −change the decision variable values −perhaps use Solver to find the best solution

31. End