Unleashing the Power of Sankey Charts: Visualizing Flow in Your Business

Sankey charts are a powerful and versatile tool for visualizing flow in business processes. They are particularly useful for identifying bottlenecks, improving efficiency, and optimizing resource allocation. In this article, we will explore the basics of Sankey chart creation, the different types of flow analyses that can be performed with them, and real-world examples of how they can be applied to improve business processes.

What are Sankey Charts?

Sankey charts, also known as flow charts or directed graphs, are a type of diagram that show the flow of materials, information, or resources from one place to another. They are commonly used to model processes in industries such as manufacturing, logistics, and finance. Sankey charts are particularly useful for identifying bottlenecks and areas for improvement in these processes.

How to Create Sankey Charts

Creating a Sankey chart is relatively easy using a spreadsheet program like Microsoft Excel or Google Sheets. Here are the general steps:

1. Open a new spreadsheet document.
2. Insert a chart type. Choose “Sankey” from the drop-down menu.
3. Enter the data for each arrow. The data fields will be auto-generated based on the type of data entered.
4. Customize the chart as desired, including addinglabels, changing colors, or adjusting the width of arrows.

Types of Flow Analysis

There are several types of flow analysis that can be performed with Sankey charts. Here are a few examples:

1. Material Flow: This type of analysis is used to track the movement of materials through a manufacturing process. It can help identify bottlenecks and areas where materials may be lost or damaged.
2. Information Flow: This type of analysis is used to track the flow of data or information through a business process. It can help identify bottlenecks and areas where information may be delayed or lost.
3. Resource Flow: This type of analysis is used to track the allocation of resources such as personnel, equipment, or finances. It can help identify areas where resources may be over- or under-allocated, and areas where efficiency can be improved.

Real-World Examples

Sankey charts have been used in a variety of industries to improve business processes and identify areas for improvement. Here are a few real-world examples:

1. Manufacturing Industry: A manufacturing company used a Sankey chart to track the flow of materials through their production process. The chart helped them identify a bottleneck in the assembly line, which they were able to address by increasing the number of workers on the line. As a result, production time was reduced by 20%.
2. Logistics Industry: A logistics company used a Sankey chart to track the flow of packages through their delivery process. The chart helped them identify a bottleneck in their warehouse, which they were able to address by implementing a new inventory management system. As a result, delivery times were reduced by 30%.
3. Finance Industry: A financial institution used a Sankey chart to track the flow of funds through their investment process. The chart helped them identify a bottleneck in the investment review process, which they were able to address by streamlining the review process. As a result, investment approval times were reduced by 50%.

Conclusion

Sankey charts are a powerful and versatile tool for visualizing flow in business processes. They are particularly useful for identifying bottlenecks, improving efficiency, and optimizing resource allocation. By understanding the basic steps of creating Sankey charts and the types of flow analysis that can be performed with them, businesses can unlock the full potential of this valuable tool.

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