![]() ![]() These represent the impact of each product on the change in sales from 2008 to 2009. The red and green bars in between are “floating” columns. This represents the total sales of the seven products in 2009. The height of this bar corresponds to $13.5 million. The ending last blue bar represents sales in 2009. ![]() The first blue bar represents sales in 2008. ![]() The blue bars represent the initial and ending points. This data was used to make the waterfall chart shown in Figure 1. The final value is the total sales in 2009. Product B had $0.4 million less in sales in 2009 than in 2008. For example, Product A had $2.3 million more in sales in 2009 than in 2008. Each product is listed along with the change in its sales from 2008 to 2009. The initial value is sales for 2008, which was $7.9 million. Table 1: Sales by Product Data Sales by Product The data needed for the waterfall chart is shown in the table below. You can use a waterfall chart to do this. You would like to graphically see how the change in sales of those products from one to the next impacted your sales. Suppose you sell 7 products in your business. Of course, our SPC software, SPC for Excel, will construct the waterfall chart for you automatically. We will examine a waterfall chart example and then take a look at how to construct one using Microsoft Excel. Waterfall charts can be used in many areas including inventory analysis, profit-loss analysis, and sales analysis. How to Make a Waterfall Chart Using Excel.“A Waterfall Chart is a form of data visualization which helps in determining the cumulative effect of sequentially introduced positive or negative values.” Wikipedia, the on-line encyclopedia, defines this chart as the following: Waterfall charts are not “statistical” charts as such but they provide an easy method of visualizing how an initial value is impacted by series of intermediate positive and negative values leading to a final value. This month’s newsletter examines waterfall charts. ![]()
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