Click here to see a video of how the waterfall chart is made using SPC for Excel!
A waterfall chart visually shows what causes a variable to change over a given time period. For example, supposewe want to show what impacted profit over the year. You start with a baseline. The table below shows the data. The baseline is the profit for sales in 2007. This profit is 7.98 million. Then the products that were sold during 2008 are listed along with the change in profit from 2007 to 2008. For example, product A has 2.3 million more in profit than in 2007.
| Profit Information |
Amount ($MM) |
| Sales 2007 | 7.98 |
| Product A | 2.3 |
| Product B | -0.43 |
| Product C | 1.3 |
| Product D | 1.6 |
| Product E | -1.1 |
| Product F | 0.05 |
| Product G | 1.23 |
| Product H | 0.54 |
| Sales 2008 |
This data can be used to make a waterfall chart using the software. The waterfall chart based on this data is shown below.
The blue bars represent the starting and ending points of the data. A green bar represents an increase in the value; a red bar represents a decrease in the value.
This chart can also be easily updated if the data is revised or new data added. There is no need to remake the chart.
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