Sankey charts are a type of flow diagram that are used to visualize the flow of resources or data between different entities. They are particularly useful for identifying bottlenecks and areas of inefficiency, as well as for optimizing resource allocation. In this article, we will explore the basics of Sankey chart creation, as well as some common applications and tips for using these powerful visual tools.

What is a Sankey Chart?

Simply put, a Sankey chart is a flow diagram that uses directed curves to represent the flow of resources or data between different entities. The diagram is named after the Dutch engineer and graph theorist Jan van Eijck, who first proposed the concept in the 1970s.

Sankey charts have been widely used in a variety of industries, including manufacturing, finance, and healthcare, to track and optimize resource allocation. They are particularly useful for identifying bottlenecks and areas where resources are wasted, as well as for exploring alternative ways of allocating resources to achieve greater efficiency.

How to Create a Sankey Chart

Creating a Sankey chart involves several steps, including:

1. Identifying the entities and resources that need to be depicted in the chart.
2. Determining the direction of the flow of resources or data between these entities, and drawing the corresponding curves.
3. Labelling the curves to indicate the resource or data being flowed, as well as the specific entities involved in the flow.
4. Customizing the appearance of the chart, including adding titles, borders, and other design elements.

There are several software programs that can be used to create Sankey charts, including Visio, Dia, and Lucidchart. These programs provide a range of templates and pre-built shapes that can be used to speed up the creation process. It’s also possible to create a Sankey chart from scratch using a drawing program like Adobe Illustrator or Inkscape.

Applications of Sankey Charts

Sankey charts offer a number of benefits beyond simply visualizing data flow. They can be used to:

1. Monitor and track resource allocation: Sankey charts can be used to track the flow of resources or data between different departments or processes within an organization. This can help identify areas where resources are being underused or overused, and can inform decisions about resource allocation.
2. Identify bottlenecks: Sankey charts can be used to identify bottlenecks in the flow of resources or data, where flow is slowed or blocked. This can help identify opportunities for optimization and improve overall efficiency.
3. Explore alternative ways of allocating resources: By visualizing the flow of resources or data for different scenarios, Sankey charts can help identify alternative ways of allocating resources to achieve greater efficiency. This can be especially useful when considering changes to organizational structure or processes.

Tips for Using Sankey Charts

Here are some tips for using Sankey charts effectively:

1. Use clear and concise labels: It’s important to use clear and concise labels on the curves in the chart to ensure that the flow of resources or data is easily understandable.
2. Customize the appearance of the chart: Customizing the appearance of the chart can make it easier to understand and interpret, such as by adding colors or patterns to the curves.
3. Consider the context: Sankey charts are best used in conjunction with other visualizations, such as tables or spreadsheets, to provide additional context and insight.
4. Regularly review and update the chart: Sankey charts are meant to be used as a tool for visualizing data flow, so it’s important to regularly review and update the chart as changes occur in the flow of resources or data.

Conclusion

Sankey charts are a powerful visual tool for

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