Unleashing the Power of Sankey Charts: Visualizing Data Flow and Optimizing Efficiency

Sankey charts are a powerful and versatile data visualization tool for understanding and optimizing the flow of data or resources between entities. Named after the Dutch inventor Charles-Henri Sankey, these charts have gained popularity in recent years due to their ability to clearly illustrate complex data relationships and help identify bottlenecks and inefficiencies. In this article, we will explore the basics of Sankey chart creation, as well as practical applications for optimizing data flow and resources.

What are Sankey Charts?

A Sankey chart is a type of flowchart that uses directed arrows to represent the movement of resources or data between different entities. Unlike traditional flowcharts, Sankey charts are designed to highlight the direction and magnitude of the data flow. This makes them ideal for visualizing data dependencies, identifying bottlenecks, and assessing the impact of changes on the flow of resources.

Sankey chart creation

Creating a Sankey chart is relatively straightforward using a spreadsheet program like Microsoft Excel or Google Sheets. Here’s a step-by-step guide to making a Sankey chart:

1. Open your spreadsheet program and create a new blank sheet.
2. Enter the values for your data in the range of cells A1 to the last used cell. Don’t worry about the orientation right now, as we’ll handle that later.
3. In cell B1, enter the name of the first entity in your data flow.
4. In cell C1, enter the name of the second entity in your data flow.
5. In cell B2, enter the value for the first data input for the first entity.
6. In cell C2, enter the value for the first data input for the second entity.
7. In cell B3, enter the value for the second data input for the first entity.
8. In cell C3, enter the value for the second data input for the second entity.
9. Fill in the rest of the cells in the same way, using the values from your data range.
10. Adjust the orientation of the arrows by entering values in the last column of cells, from right to left (rather than left to right for Excel). Don’t worry, we’ll discuss how to adjust orientation later.
11. Print or save your Sankey chart.

Adjusting the orientation of the arrows

In Sankey charts, the orientation of the arrows can be adjusted to show the direction of the data flow. This is done by entering values in the last column of cells, as described in step 10. The values in this column should follow the direction of the data flow. For example, if your data flow starts with Entity A and ends with Entity B, then the values in column F (for Entity A) should be entered in the last row and followed by the values for Entity B and so on.

Types of Sankey charts

There are several types of Sankey charts, each with its own unique applications:

1. Material Flow Charts: These charts illustrate the flow of materials or resources between entities, such as inventory, production, or supply chains.
2. Resource Allocation Charts: These charts show how resources are allocated among different entities, such as salaries, funding, or personnel.
3. Customer Order Charts: These charts demonstrate the flow of customer orders through different stages of production or service delivery, highlighting the inputs, processing, and outputs.
4. Financial Flow Charts: These charts illustrate the flow of funds or money between entities, such as income statements or balance sheets.
5. Social Network Charts: These charts show the connections and interactions between individuals or groups in a social or organizational setting.

Applications of Sankey charts

Sankey charts are particularly useful in analyzing and optimizing complex systems with multiple inputs and outputs, such as supply chains, financial systems, or social networks. Here are a few examples of how Sankey charts can be used:

1. Supply Chain Analysis: Sankey charts can be used to identify bottlenecks, inefficiencies, or opportunities for improvement in

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