How to create a SIPOC diagram

Businesses are constantly looking for ways to improve their current methods of production as well as the customer's satisfaction with the end results. Quality control is especially concerned with producing a product that is guaranteed to be to the customer's ultimate satisfaction.

A SIPOC diagram is created by a business team in order to clearly identify the various parts of a project before beginning to work. The letters in the word SIPOC stand for the following in the process:
S = Suppliers needed
I = Inputs needed
P = Process being improved
O = Outputs
C = Customers that receive the outputs of the process

SIPOC is a strategy typically used in conjunction with other methods to define and simplify otherwise complex projects. As the acronym suggests, it is appropriate to use the SIPOC method when it is unknown who will supply inputs to the process, what specifications are placed on the inputs, when it is unclear who the true customers of the process are, or when the requirements of the customers are unknown.

In definition a SIPOC diagram may sound somewhat complicated, it is actually relatively simple to complete. Below are some simple steps that you can follow to create a SIPOC diagram:

1. Provide a canvas - gather the group that will be participating in the creation of the SIPOC. Make sure that you have a large area to work on such as a projector transparency, flip charts, large sticky notes, or a white board. Write out the letters S-I-P-O-C leaving sufficient area around each letter to elaborate.
2. Begin with the "P" for the process. Clearly define the levels at which the process is to be improved. Map out four or five different steps ranging in level of difficulty.
3. Identify the Outputs of this Process.
4. Identify the Customers that will receive the Outputs of this Process. You may also consider the requirements and expectations of the customers at this point in the process or you may wait until later if you find it appropriate.
5. Identify the Inputs required for the Process to function properly.
6. Identify the Suppliers of the Inputs that are required by the Process.

Upon completing the SIPOC, the diagram should be presented to and reviewed by the project sponsor or project manager (who will then present it to the sponsor). The project sponsor will verify that the conclusions of the SIPOC are correct and will return the SIPOC to the team. The team will then move forward to other defining phases of the project. The team will then continue to gather information, write up defining information, allow for review, receive approval, make needed improvements or translations and release and end product to those who are next in the steps of development.

The SIPOC diagram forms the basis for much of the analysis done through the rest of the project. Another way to look at the SIPOC diagram is to see it as a map of progress, showing clear steps and results of those steps taken during the process. It is also important to keep in mind that suppliers are constantly providing input into the process. Because of the continual evolution and receipt of customer comments, the end result is something that will at least meet, if not exceed, customer expectations.

By analyzing the SIPOC diagram, a project team is able to recognize that their process included and needed good supplier review and approval in order to continue on making helpful steps towards identify the various parts of a project before actually investing the man hours and money of beginning the work.

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Categories: Management,

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Tags: SIPOC suppliers inputs process improve outputs customers satisfaction method define development