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Sankey charts are a powerful tool for visualizing the flow and optimization opportunities in your business. They are particularly useful in identifying and optimizing processes that involve multiple inputs, outputs, and conversion steps. By using a Sankey chart, you can easily see how value is transferred between different activities, as well as the bottlenecks and inefficiencies that may exist in these processes. In this article, we’ll explore the basics of Sankey chart creation and some of the many applications for this powerful visualization technique.
What is a Sankey Chart?
A Sankey chart is a flowchart that displays the direction and amount of flow between different entities or activities. It is named after the Dutch inventor Gerardus Sankey, who developed the first commercially available Sankey chart in the late 1920s. Sankey charts are particularly useful in identifying and optimizing processes that involve multiple inputs, outputs, and conversion steps. By visualizing the flow of value and resources between different activities, Sankey charts can help you identify unnecessary bottlenecks, inefficiencies, and opportunities for improvement.
How to Create a Sankey Chart
Creating a Sankey chart is a relatively simple process that can be done using a variety of software tools, such as Microsoft Excel, Visio, or online Sankey chart generators. Here are the basic steps for creating a Sankey chart:
- Determine the entities or activities that need to be included in the chart.
- Identify the flow of value or resources between these entities.
- Choose a Sankey chart style and enter the data into the chart.
- Customize the chart to reflect your specific needs (e.g., add annotations, change colors, etc.).
Some software programs also offer pre-built templates or templates for specific industries or processes, which can make creating a Sankey chart even easier.
Applications of Sankey Charts
Sankey charts can be used in a variety of business applications, including process optimization, resource allocation, and value chain analysis. Here are some examples of the ways Sankey charts can be used:
- Process Optimization: Sankey charts can be used to identify bottlenecks and inefficiencies in business processes, such as order-to-cash or supply-to-customer cycles. By visualizing the flow of value and resources between different activities, Sankey charts can help you identify opportunities for improvement and optimize your processes.
- Resource Allocation: Sankey charts can be used to allocate resources efficiently across different activities or departments. By visualizing the flow of value and resources between different entities, you can see how resources are being used and where there may be bottlenecks or inefficiencies.
- Value Chain Analysis: Sankey charts can be used to analyze the flow of value and resources throughout your business, from raw materials to finished products. By visualizing the various steps in the value chain, you can identify opportunities for cost savings, improved quality, or increased efficiency.
- Sustainability Analysis: Sankey charts can be used to identify the flow of resources and waste within your business, and to develop strategies for reducing waste and improving sustainability. By visualizing the flow of value and resources between different activities, you can see how resources are being used and identify opportunities for improvement.
Overall, Sankey charts are a powerful visualization technique that can help you identify and optimize processes in your business. By using a Sankey chart, you can easily see where value is flowing, identify bottlenecks and inefficiencies, and develop strategies for improving your processes and maximizing your business potential.
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.