How to calculate Efficiency from a Sankey Diagram

Muhammad Nadeem Salam
5 min readMay 12, 2022

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A Sankey diagram is a type of flow diagram designed to show the flow of measurable quantities, like energy, cost, etc., through a network. It is widely used in marketing analysis, energy efficiency, production systems, and many other industries. In this article, we will learn how to calculate efficiency from a Sankey diagram.

Image Source: ChartExpo

Sankey Diagram

Sankey chart have directed arrows that show the flows from one set of values to the other. This directed flow is shown between at least two processes, called ‘nodes.’ And, the connections between these nodes are called ‘links.’

The width of the links is proportional to the flow quantity. This means, if a flow is twice the width, it shows double the quantity of the flow. As each flow is supported by a different color and has a varying width, data analysts find it easy to focus on the most prominent areas. This way, they can analyze the data better and draw conclusions.

Calculating Efficiency From A Sankey Diagram

Let us generalize a Sankey diagram with energy input ‘E,’ energy output ‘U,’ and dissipated energy ‘W.’ When you draw a Sankey diagram with these values, you will be able to clearly see the flow of energy, i.e., how much energy was input, how much was useful and how much was wasted. The width of the arrow is proportional to the energy output.

The efficiency in this type of Sankey diagram can be calculated by the following formula-

Efficiency = Useful Output Energy/Total Energy Input

This formula is used when you want to calculate efficiency in decimal. In order to calculate % frequency, use the following formula-

Efficiency = (Useful Output Energy/Total Energy Input) x 100

This is how you calculate efficiency from a Sankey diagram. No matter whether you are creating an energy flow, cost flow, or a supply chain flow diagram, this is the basic formula to calculate efficiency from a flow diagram.

The Role Of Sankey Diagrams In Data Visualization

The best way to determine the story behind the endless columns of numbers is to chart the data. When it comes to simplifying this complexity of data, a Sankey diagram comes in extremely handy.

In a Sankey diagram, the flow is drawn between at least two nodes. This tells the viewers not only about the quantity of flow but also shows the structure/distribution of the system. No other type of chart gives such information, making a Sankey diagram a great alternative to the flow or pie charts.

When you compare the functionality of a Sankey diagram to the conventional flow charts, they are better for visualizing the energy flow or material transfer.

● The larger the width of an arrow, the more the energy flow. This draws the viewers’ focus on the most important flows.

● The arrows are used to show flows from one process to the other, making a Sankey chart ideal for production systems.

● You can display the data interactively and communicate your message more effectively.

● By visualizing data in a Sankey diagram, the viewers can find out any inconsistencies in measurement or transmission.

● Sankey diagrams have a huge application in several industries, like marketing, supply chain management, etc.

When Is It Right To Use A Sankey Diagram?

Now that you know the role of a Sankey diagram in data visualization and how to calculate efficiency from it, you want to know the best times to use it. Each chart type has some pros and cons, and you need to decide which chart to use for given data sets.

Below are the times when it is best to use a Sankey Chart

● When you want to visualize the most important contributors in your marketing campaigns, a Sankey diagram is a good visualization chart to use. You can highlight the major areas of interest and communicate the information better.

● When you want to explain a complex process to your team or audience. Suppose your team is making decisions on PPC Ad spend. With a Sankey diagram, you can convey information about this metric more effectively.

● When you want to view a process in detail or from multiple levels, use a Sankey chart. You can use interactive elements to let the audience drill down deep into the data.

When Is A Sankey Diagram Not Applicable?

In addition to knowing the right times to use a Sankey chart, you should also know when charting the data on a Sankey won’t help.

If you or your audience isn’t familiar with this data visualization type, it might be difficult to understand the Sankey diagram. They may appear as a mystery to you. However, if you must use this chart type, you need to take time explaining the diagram.

Also, sometimes the links in a Sankey diagram become so crossed that it becomes difficult to make sense of the data. Furthermore, when the width of the nodes is similar, it is hard to compare the flow.

What To Keep In Mind Before Creating a Sankey Chart?

First and foremost, get clear on what you want to achieve with a Sankey diagram. Do you want to tell the story behind your data or want your audience to take any action?

Find out what fact your Sankey diagram shows to the audience. Is it the fact you wanted to support? Make sure that the viewers are familiar with the Sankey charts. If they aren’t, invest some time in explaining what is going on in the process.

Conclusion

A Sankey diagram is a useful type of data visualization that helps you show complex data in an interactive way. Whether you want to estimate the efficiency of a process in the supply chain or find out how certain facts influence marketing, there is no better option for visualizing the data than a Sankey diagram. The best thing is, you can dig deep into the details of the data with this chart. So, try using a Sankey diagram for visualizing the next set of data values.

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Muhammad Nadeem Salam
Muhammad Nadeem Salam

Written by Muhammad Nadeem Salam

Digital Marketing Manager | SEO Expert | Expert Analytics Insights

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