Excel Review
Global Executive MBA
April 2004
Session goals

Preparation for the coming term
− Review and practice essential Excel techniques.

A model building approach
− Consider recommendations for approaching Excel modeling.

Continuing
Materials, resources, and suggestions for continued review and/or
learning about Excel.
Agenda

Part 1
Critical Excel elements: Follow along on your PC as we review a set of
essential Excel techniques.

Part 2
Model-building advice from the experts: Fuqua’s Decision Science
faculty on the fundamentals of Excel model-building.
Apply the approach to model a problem (Oak Products) and use
Solver.

Part 3 – On Your Own
Practice exercises. Choose the materials that cover the areas in which
you most need practice.
Handouts & Materials

On the web
− Practice files
− Documentation
− Links to other sources

On Paper
− Slides from this presentation
− Basics Review (a description of
basic Excel techniques that
accompanies the BasicsReview.xls
file)
− Logic Exercises (on paper)
Part 1: Critical Excel elements
Part 1: Critical Excel elements
Part 2: Model building advice from the experts
Part 3: Exercises
Critical Excel Elements

Excel Basics Topics
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−
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Organization
Formatting
Editing
Formulas & logical functions
Forecasting
The Data Table
Charting
Online Help
File: BasicsPractice.xls
Practice: Naming Ranges

Ways to name a range
− Exercise 1: Insert, Name, Create
− Exercise 2: Insert, Name, Define
− Exercise 3: Use the “Name Box” on the formula bar

Exercise 4: Display named ranges

Exercise 5: Add a comment to a cell
In the file BasicsPractice.xls
see the worksheet named
Naming Ranges.
Practice: Formatting





Exercise 6: Merge and center
Exercise 7: Apply formatting
Exercise 8: Apply borders
Exercise 9: Create a text box
Exercise 10: Use the format painter
In the file BasicsPractice.xls
see the worksheet named
Formatting.
Practice: Basic Editing



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
Exercise 11: Edit Fill
Exercise 12: Excel Custom Lists
Exercise 13: Copy & Paste a Formula
Exercise 14: Convert Formulas to Values
Exercise 15: Transpose Data
In the file BasicsPractice.xls
see the worksheet named
Basic Editing.
Practice: Formulas



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
Exercise 16: Copy a Formula Using a Relative Reference
Exercise 17: Copy a Formula Using an Absolute Reference
Exercise 18: Use Built-in Functions
Exercise 19: Excel Logical Functions
...and practice on your own
Exercise 20: Formula Auditing Tools
In the file BasicsPractice.xls
see the worksheet named
Formulas.
First: The Excel IF Statement
A key logical Excel function
 The syntax
=IF(Condition-to-Test, Value-If-True, Value-If-False)
The IF function has three parameters:
1. Condition-to-Test
2. Value-If-True
3. Value-If-False
The Excel IF Statement
 =IF(Condition-to-Test, Value-If-True, Value-If-False)
This is a logical statement of some kind that returns
either TRUE or FALSE.
Examples:
A1>B5
(C22/C25)<=A1
AND(5<10, 10<20)
OR(5<10, 10>20)
MAX(C77:C80)>600
Additional logical functions
that may be embedded as IF
function parameters.
The Excel IF Statement
 =IF(Condition-to-Test, Value-If-True, Value-If-False)
The value the cell holding the IF statement takes on if
the Condition-to-Test evaluates to TRUE.
Examples:
2500
“Bill over due”
A15*B15
The Excel IF Statement
 =IF(Condition-to-Test, Value-If-True, Value-If-False)
The value the cell holding the IF statement takes on if
the Condition-to-Test evaluates to FALSE.
Examples:
2500
“Bill over due”
A15*B15
Paper-based Excel logic exercises
to work on by yourself for practice
Answers to all the
exercises are at the
end of the
document.
FALSE
TRUE
FALSE
An IF statement can contain 7 levels of nesting.
A nested IF statement
See the LogicPractice.xls file.
And – Also see the MoreLogicPractice.xls file.
Practice: Data Tables


Exercise 21: The One-Input Data Table
Exercise 22: The Two-Input Data Table
In the file BasicsPractice.xls
see the worksheet named
Data Tables.
Practice: Charting



Exercise 23: Generate a Quick Chart
Exercise 24: The Chart Wizard
Exercise 25: A Scatter Plot (XY Chart)
In the file BasicsPractice.xls
see the worksheet named
Charting.
Part 2: Model building advice
from the experts
Part 1: Critical Excel elements
Part 2: Model building advice from the experts
Part 3: Exercises
On Model-Building: Expert advice

Handout
− Excel 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.
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.
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.
A review of model building & Solver
File: OakProductsStart.xls
Solver
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.
− Oak Products makes 40 of each model chair in August.
Question

Might a different product mix be more profitable?
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.
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
To build the model
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.
Using the model to maximize total profit
40
75
53
5
40
28
40
37
…with guesswork
…with Solver
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
Part 3: Exercises
Part 1: Critical Excel elements
Part 2: Model building advice from the experts
Part 3: Exercises
Exercises on Your Own
Use the materials on the
GEMBA Excel Review
site to practice Excel
techniques with which
you need practice.
http://faculty.fuqua.duke.edu/~pecklund/GEMBA/index.htm
End