session 10 managerial spreadsheet modeling -- prof. juran1

Session 10

Managerial Spreadsheet Modeling -- Prof. Juran 1


Advanced Graphing• Waterfall Chart• Box and Whiskers (Box) Plot


Modified Stacked Column Chart

Popularized by McKinsey & Co.

Used to show effects of components of a larger change.

Waterfall Chart


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A B C D E F G H I J K L

Item Change Cumulative Change Endpoints Invisible Gain Loss Connecting LinesBase Case $110.94 $110.94 $110.94Revenues $71.96 $182.90 $110.94 $71.96 $0.00 $110.94 $182.90Variable Costs ($53.97) $128.93 $128.93 $0.00 $53.97 $182.90 $128.93Maintenance Costs $33.31 $162.24 $128.93 $33.31 $0.00 $162.24 $128.93Holding Costs $1.27 $163.51 $162.24 $1.27 $0.00 $162.24 $163.51Efficiency Gains $11.56 $175.07 $163.51 $11.56 $0.00 $163.51 $175.07Training Costs ($5.47) $169.60 $169.60 $0.00 $5.47 $169.60 $175.07Consultant Cost ($8.94) $160.66 $160.66 $0.00 $8.94 $169.60 $160.66Programmers ($28.76) $131.90 $131.90 $0.00 $28.76 $160.66 $131.90Hardware Cost ($5.90) $126.00 $126.00 $0.00 $5.90 $126.00 $131.90Software ($10.36) $115.64 $115.64 $0.00 $10.36 $126.00 $115.64with ERP and CRM $115.64 $115.64 $0.00 $0.00 $115.64

$0

$20

$40

$60

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$100

$120

$140

$160

$180

$200

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200


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B C D E F G HItem Change Cumulative Change Endpoints Invisible Gain LossBase Case $110.94Revenues $71.96 $182.90Variable Costs ($53.97) $128.93Maintenance Costs $33.31 $162.24Holding Costs $1.27 $163.51Efficiency Gains $11.56 $175.07Training Costs ($5.47) $169.60Consultant Cost ($8.94) $160.66Programmers ($28.76) $131.90Hardware Cost ($5.90) $126.00Software ($10.36) $115.64with ERP and CRM $115.64

=D4+C5

=D5+C6

=D6+C7

=D7+C8

=D8+C9

=D9+C10

=D10+C11

=D11+C12

=D12+C13

=D13+C14

=D14+C15


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B C D E F G HItem Change Cumulative Change Endpoints Invisible Gain LossBase Case $110.94 $110.94Revenues $71.96 $182.90Variable Costs ($53.97) $128.93Maintenance Costs $33.31 $162.24Holding Costs $1.27 $163.51Efficiency Gains $11.56 $175.07Training Costs ($5.47) $169.60Consultant Cost ($8.94) $160.66Programmers ($28.76) $131.90Hardware Cost ($5.90) $126.00Software ($10.36) $115.64with ERP and CRM $115.64 $115.64

=D4

=D15


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B C D E F G H I JItem Change Cumulative Change Endpoints Invisible Gain LossBase Case $110.94 $110.94Revenues $71.96 $182.90 $71.96 $0.00Variable Costs ($53.97) $128.93 $0.00 $53.97Maintenance Costs $33.31 $162.24 $33.31 $0.00Holding Costs $1.27 $163.51 $1.27 $0.00Efficiency Gains $11.56 $175.07 $11.56 $0.00Training Costs ($5.47) $169.60 $0.00 $5.47Consultant Cost ($8.94) $160.66 $0.00 $8.94Programmers ($28.76) $131.90 $0.00 $28.76Hardware Cost ($5.90) $126.00 $0.00 $5.90Software ($10.36) $115.64 $0.00 $10.36with ERP and CRM $115.64 $115.64 $0.00 $0.00

=MAX(C5,0)

=-MIN(0,C6)


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B C D E F G HItem Change Cumulative Change Endpoints Invisible Gain LossBase Case $110.94 $110.94Revenues $71.96 $182.90 $110.94 $71.96 $0.00Variable Costs ($53.97) $128.93 $128.93 $0.00 $53.97Maintenance Costs $33.31 $162.24 $128.93 $33.31 $0.00Holding Costs $1.27 $163.51 $162.24 $1.27 $0.00Efficiency Gains $11.56 $175.07 $163.51 $11.56 $0.00Training Costs ($5.47) $169.60 $169.60 $0.00 $5.47Consultant Cost ($8.94) $160.66 $160.66 $0.00 $8.94Programmers ($28.76) $131.90 $131.90 $0.00 $28.76Hardware Cost ($5.90) $126.00 $126.00 $0.00 $5.90Software ($10.36) $115.64 $115.64 $0.00 $10.36with ERP and CRM $115.64 $115.64 $0.00 $0.00

=D4-H5

=D5-H6

=D6-H7

=D7-H8

=D8-H9

=D9-H10

=D10-H11

=D11-H12

=D12-H13

=D13-H14


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B C D E F G HItem Change Cumulative Change Endpoints Invisible Gain LossBase Case $110.94 $110.94Revenues $71.96 $182.90 $110.94 $71.96 $0.00Variable Costs ($53.97) $128.93 $128.93 $0.00 $53.97Maintenance Costs $33.31 $162.24 $128.93 $33.31 $0.00Holding Costs $1.27 $163.51 $162.24 $1.27 $0.00Efficiency Gains $11.56 $175.07 $163.51 $11.56 $0.00Training Costs ($5.47) $169.60 $169.60 $0.00 $5.47Consultant Cost ($8.94) $160.66 $160.66 $0.00 $8.94Programmers ($28.76) $131.90 $131.90 $0.00 $28.76Hardware Cost ($5.90) $126.00 $126.00 $0.00 $5.90Software ($10.36) $115.64 $115.64 $0.00 $10.36with ERP and CRM $115.64 $115.64 $0.00 $0.00

Change fill colors; make invisible series “no fill.”

Add black borders to all visible data series.

Maybe add gradient shading, rounded corners?

Stacked bar graph using columns E, F, G, H


To add connecting dashed lines:

Add new series: J4 = E4; J5 = F5 + G5.

Spread out over the next two columns (manually, I’m afraid).

Copy value to cell below.

Copy and Paste Special to add these 3 new series to the chart.

Right-click on new series, and Change Series Chart Type to a Line graph.

Format Data Series: Line Color to black, Line Style to thin dashed.

Waterfall Chart

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I J K L M NConnecting Lines

$110.94$110.94 $182.90

$182.90 $128.93$162.24 $128.93$162.24 $163.51

$163.51 $175.07$169.60 $175.07$169.60 $160.66

$160.66 $131.90$126.00 $131.90$126.00 $115.64

$115.64

=E4

=F5+G5

=F6+G6


Used to show the main attributes of an empirical distribution.

“Box” shows 1st, 2nd, and 3rd quartiles.

“Whiskers” connect to minimum and maximum observations.

Box and Whiskers (a.k.a. Box) Plot


Find min, max, and quartiles:

Box Plot

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A B C D E F G HConsulting Financial Manufacturing Other

Max $160,210 $167,430 $119,317 $151,1723Q $127,540 $132,916 $104,001 $115,5642Q $112,077 $107,739 $96,937 $92,9471Q $98,855 $87,500 $83,844 $62,610Min $65,526 $53,712 $50,919 $21,464

=MAX(O19:O183)

=QUARTILE(O19:O183,3)



=MIN(O19:O183)


Construct 5 new series

Box Plot

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A B C D E F G HConsulting Financial Manufacturing Other

Max $160,210 $167,430 $119,317 $151,1723Q $127,540 $132,916 $104,001 $115,5642Q $112,077 $107,739 $96,937 $92,9471Q $98,855 $87,500 $83,844 $62,610Min $65,526 $53,712 $50,919 $21,464

1st Quartile $98,855 $87,500 $83,844 $62,6102Q - 1Q $13,221 $20,239 $13,093 $30,3363Q - 2Q $15,464 $25,177 $7,064 $22,617

Max - 3Q $32,670 $34,514 $15,316 $35,6081Q - Min $33,329 $33,788 $32,925 $41,146

=MAX(O19:O183)




=MIN(O19:O183)

=E5

=E4-E5

=E3-E4

=E2-E3

=E5-E6


Build the box (with a line for the median) by constructing a Stacked Column chart for the first 3 series.

– For the top two series (rows 10-11 in the data), change Border Color to Solid line (black).

– For the bottom series (row 9) change Border Change Fill to No fill.– Set Fill to No fill for all 3 series.

Box Plot


Draw the top whiskers by selecting the top series, and choosing Design | Chart Layouts | Add Chart Element | Error Bars | More Error Bar Options

– Set Direction to Plus and Error Amount to Custom.– Click on “Specify value” and select the positive range “Max – 3Q”

(row 13)

Box Plot


Similarly, draw the bottom whiskers by selecting the bottom (invisible) series

– Set Direction to Minus and Error Amount to Custom.– Click on “Specify values” and select the range “1Q - Min” (row 14)

Box Plot


Use < waterfall raw data > to draw a waterfall graph.

Use < jobs box plot data > to draw a box plot.

Hands-on Practice


• Deliverable: Buprenorphine graph

For Next Time

session 10 managerial spreadsheet modeling -- prof. juran1

Documents

new series box plot

whiskers box plot slide

waterfall chart slide

h slide

juran1 slide

juran4 slide

invisible series

change series chart