Sankey charts are a powerful tool for visualizing complex data flow, including processes, logistics, and networks. These diagrams represent the relationship between a list of items to which certain values are assigned, such as flow rates, costs, or volumes. The sankey chart enables the viewer to quickly understand how the items are connected and how they interact with each other.

In this article, we will explore the basics of how to create a sankey chart, how to use it to analyze complex data flow, and provide some tips for interpreting its data.

Creating a Sankey Chart

A sankey chart is created using two nodes, each representing a different entity. The nodes are connected by links, each of which can have a different length or width, representing the flow rate or volume of the connection.

Here are the steps to create a sankey diagram:

1. Determine the entities: Start by determining the entities you want to visualize and list them.

2. Map the flow: Next, assign values to the entities. These values can represent different things like flow rates or volumes, but they must be consistent throughout the diagram.

3. Draw the diagram: Use shapes to represent each entity, either as nodes or as lines. Connect the nodes with lines representing the flow. Ensure that the lines are not crossed, so that the entities’ flows do not overlap.

4. Use colors or markers: Add colors or markers to differentiate between different entities or to highlight certain flows.

With these steps, we have created a sankey chart that visually represents the flow from one entity to another, highlighting the flow rates or volumes.

Using Sankey Charts

Sankey charts can be used to analyze different types of data flow. Here are some common examples:

1. Process flow: Sankey charts can also be used to visualize process flow, where each entity is a resource and each flow is the flow of material or labor between resources.

2. Supply chain: In a supply chain, a sankey chart can show the relationships between the items, the quantities, and the prices. It can help managers monitor the inventory levels, forecast demand and reduce waste.

3. Network analysis: A sankey chart can also be used to illustrate the connection of entities in a network. For example, in a transportation network, the sankey chart can show that vehicles are connected to a set of streets, and the length of a line indicates the travel distance.

4. Logistics: These charts can also be used for logistics, where the nodes of the chart represent shipping containers and the flow is between containers. The length of the lines can represent the weight of the goods.

Interpreting Data with Sankey Charts

Sankey charts are a powerful tool for visually analyzing complex data. Here are some tips for interpreting them:

1. Focus on the entities: The entities should be clearly visualized. The entities should be clearly labeled and connected with a distinct shape.

2. Use legends: Sankey charts often come with legends that list the entities and the data they represent. Use this to understand what the data signifies.

3. Check the scales: The scale of the diagram should be reasonable. Unnecessary or arbitrary scales can make the chart hard to understand. Check the legend.

4. Use multiple diagrams: In some cases, it may be useful to draw several diagrams to see how different elements are related to each other.

In conclusion, sankey charts are a powerful tool for visualizing complex data flow. It can help you to quickly understand the relationships between different entities and the flows that connect them. These charts can help managers and decision-makers to identify bottlenecks, control costs, forecast demand, and reduce waste. So using sankey charts to analyze data is a great way to gain insights and make informed decisions.

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