Is there a way to rearrange the values in the chart e.g. on the funnel chart I would like to order it by the order of the picklist…does this make sense?

Yes. Create a Salesforce formula field to assign numerical values to each picklist value. Then sort the model using this field.

So the numeric values assigned to each picklist vlaues can be used to order the funnel chart?

The model sort should sort the funnel.