In the 80s, Motorola developed a unique approach to quality control. The two engineers — Bill Smith and Mikel Harry were accredited to having developed Six Sigma. Ten years later, Jack Welch, the then CEO of General Electric, popularized the Six Sigma approach by making it an integral part of GE’s business strategy.
The Six Sigma methodology incorporates data-driven, statistics-based tools and techniques to facilitate better continuous improvement and process management. To get more details on Lean Six Sigma read our previous blogs. You’ll get more insights and information on this innovative methodology.
The SIPOC diagram is a part of the Six Sigma methodology. It’s one of the oldest and most trusted techniques that charts out a map for Six Sigma projects to critical business processes.
The term SIPOC seems to be an abbreviation of random letters, but it is written in a systematic fashion, which is relevant to its fundamentals. This gives high-level process understanding to those who are unfamiliar with the processes. It’s a method that any team leader can adopt and teach the team to better understand what can be done to help support the senior team in their quest to perform an effective Value Stream Mapping analysis and laying foundations to Root Cause Analysis: the SIPOC.As mentioned earlier, SIPOC models are mainly used in the DEFINE phase of the DMAIC process (in the Six Sigma process). It is utilized when project teams are trying to understand the wider situation of a business problem, project management and its process.
A SIPOC diagram helps project teams get a better understanding of the core processes. It is a useful tool to ensure project leaders and sponsors have a clear and same level of understanding of the project and the process outputs.
SIPOC diagram is one of the first techniques introduced. It is also one of the most trusted techniques to in lean manufacturing to map business processes in the most basic way. It gives a bird’ eye view of the entire process outputs, thus helping new individuals and teams to learn about the foundations of the business process improvement initiative.
SIPOC — Introduction
“You can observe a lot just by watching”
~Yogi Berra
The quote above aligns perfectly with SIPOC. The technique was introduced in the 80s under Total Quality Management (TQM). It’s a primary element process for business management flow.
Let’s decode the term SIPOC.
The term SIPOC seems to be an abbreviation of random letters, but it is written in a systematic fashion, which is relevant to its fundamentals. This gives high-level process understanding to those who are unfamiliar with the processes.
SIPOC stands for —
S – Suppliers
I – Inputs
P – Process
O – Outputs
C – Customers
The SIPOC is called a high-level process map (or Bird’s eye view). This technique allows a team to view processes concerning inputs, outputs, processes, suppliers, and customers. It provides a scope while showing the process boundaries. Thus, helping in identifying the relationship between the SIPOC elements to the customers and their requirements.
SIPOC Diagram
A SIPOC diagram is a visual representation for documenting a business process from start to end (before implementation). These diagrams are useful for focusing a discussion, helping team members agree upon a common language, and understanding a process for continuous improvement.
In the Six Sigma process, SIPOC is used during the DEFINE phase of the DMAIC methodology. Some organizations use SIPOC diagrams in the opposite manner (COPIS) to map the value of the customer to a business process.
How to create a SIPOC diagram?
When building a SIPOC diagram, always build from the inside out. Begin in the center with the process map. And follow up with the 6 steps mentioned below:
Step 1: Identify the process you want to map & define its scope and boundary points. Using action verbs, describe what the process is supposed to do and in how much time. Define its starting and ending points.
Step 2: Identify the outputs. What are the products and the services that the process produces?
Step 3: Define the recipients (the customers) of the outputs by name, title, system, or organizational entity.
Step 4: Define the customer requirements. What do the customers expect? What do they demand? What are they entitled to in their fair exchange of value?
Step 5: Define the inputs to the process. Identify the human, capital, information, materials, and natural resources the process requires to produce the identified outputs.
Step 6: Identify the sources (suppliers) of the inputs.
Follow these basic instructions and you’ll have a fully contained, high-level perspective of any process. This diagram alone is one of the most powerful techniques you can use to set the DMAIC of Six Sigma conditions.
Why utilize the SIPOC model?
Since its inception, SIPOC has proven to be a key model to business process improvements.
By graphically representing all elements of a process, it keeps everyone aligned, informing every step of the process.
The SIPOC model also helps in determining the variations in KPOV (Key Process Output Variable). KPOV variations can have a major impact on the manufacturing process, performance, reliability, and efficiency. Tracing back and correcting the variations leads to seamless process integration and improves optimization.
When to use the SIPOC diagram?
As mentioned earlier, SIPOC models are mainly used in the DEFINE phase of the DMAIC process (in the Six Sigma process). It is utilized when project teams are trying to understand the wider situation of a business problem and its process.
Here are the common use cases for the SIPOC diagram:
- To provide an overview to individuals and teams unfamiliar with the process
- (As a tool) to help design a new process
- As an establishment (starting point) for process improvement
And, as for its usefulness, a SIPOC diagram may be useful when:
- A process is being analyzed as part of a project transformation
- Team members are not familiar with the process and its elements
- Process documentation is outdated
- Defining a new process is necessary
- Procedures, work instructions, training resources, etc. are being developed
Benefits of SIPOC diagram
A SIPOC diagram helps project teams get a better understanding of the core processes. It is a useful tool to ensure project leaders and sponsors have a clear and same level of understanding of the project and the process.
Some of the common SIPOC diagram benefits include providing:
- A consistent approach to analyze and improve processes
- A simple and high-level view of the processes and their elements
- Collaborative team environment
- The origin for process improvements/transformations
- Input for training materials and process documentation
Summary
SIPOC diagram is one of the first techniques introduced. It is also one of the most trusted techniques to map business processes in the most basic way. It gives a bird’ eye view of the entire process, thus helping new individuals and teams to learn about the foundations of the business process improvement initiative.
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