Sankey charts are a popular type of data visualization that are used to represent the flow of data or material between different points or categories. They are named after James Sankey, an 18th-century steam engine inventor who used them to illustrate the flow of steam and water in his engine designs. Since then, Sankey charts have gained popularity in many fields, including business, engineering, and environmental science, as a way to convey complex flow patterns in a clear and intuitive way. In this article, we’ll explore how to create Sankey charts and discuss some of their applications.

Creating Sankey Charts
Sankey charts can be created using various tools and software, but we will focus on creating them using Microsoft Excel, a widely used spreadsheet program.

Here is a step-by-step guide to creating a Sankey chart in Excel:

Step 1: Prepare your data
To create a Sankey chart, you’ll need to prepare your data in a table format. The table should include two columns, one for the source point (categories or data sources) and another for the destination point (categories or data destinations). Each point will have values for the flow of data or material between itself and other points.

For example, let’s say we want to visualize the flow of money between different budget areas (such as personnel, supplies, and equipment) within a company. We would create a table with four columns: “Budget Area From,” “Budget Area To,” “Budget Category,” and “Amount.” The “Budget Area From” and “Budget Area To” columns will contain the names of the budget areas that are sending and receiving funds, while the “Budget Category” column will contain the category of the budget (i.e., personnel, supplies, equipment). The “Amount” column will contain the dollar amount of the flow.

Step 2: Select your data
Once you have prepared your data, select the entire table by clicking and dragging your mouse over all of the cells. This will ensure that all the data is included in your Sankey chart.

Step 3: Insert a Sankey chart
Click on the “Insert” tab on the Excel ribbon and then click on the “Insert Chart” dropdown menu. From there, click on the “Sankey” option in the “Diagrams” section.

Step 4: Select the appropriate chart layout
Excel will automatically insert a Sankey chart based on your data, but you can choose to display it horizontally or vertically by clicking the “Layout” tab in the ribbon and selecting the appropriate “Chart Layout” option.

Step 5: Customize your chart
At this point, you can customize your chart by adding titles, labels, and colors. You can also adjust the layout and spacing of your chart to make it more visually appealing and easier to read.

Apps that use Sankey Charts
Sankey charts have diverse applications in various industries:

1. Energy sector: In the energy sector, Sankey diagrams are used to illustrate the flow of energy between different components of production, transmission, and consumption. They can show the routes that energy takes through the grid, help identify bottlenecks, and assist policymakers in making informed decisions about energy distribution and storage.

2. Economics: In economics, Sankey diagrams help visualize the flow of goods and services between different sectors of an economy. This can be useful for policymakers and analysts to understand the connections between industries and to identify opportunities for economic development.

3. Supply chain management: In the field of supply chain management, Sankey diagrams can be used to show the flow of materials across the supply chain, making it easier to identify potential inefficiencies and track the progress of goods through the manufacturing and distribution processes.

4. Finance: In finance, Sankey diagrams can aid in visualizing the flow of money, debt, and investments within organizations, as well as between different countries or financial markets. This helps in understanding global economic relationships and identifying areas of risk or opportunity.

In conclusion, creating Sankey charts and understanding their applications can significantly enhance your ability to convey complex data relationships in an accessible and visually appealing manner. By following these steps and adapting them to suit various industries, you can create engaging Sankey charts that effectively communicate your data’s story.

SankeyMaster

SankeyMaster is your go-to tool for creating complex Sankey charts . Easily enter data and create Sankey charts that accurately reveal intricate data relationships.