SIPOC (Suppliers-Inputs-Process-Output-Customers) is basically a diagram – a tool used in Six Sigma methodology. Of late, it has been the focus of many inquiries and discussions. It is explained in detail in the following paragraphs.
Before a process improvement project begins, the team uses the SIPOC diagram for identifying all the relevant elements of it. This tool is employed during the Measure phase of DMAIC methodology of Six Sigma. A complex project which is not very well scoped can be defined using this diagram. SIPOC is similar to tools like Process Mapping and in/Out of Scope but is more detailed than them.
SIPOC gets its name from the Suppliers (S) of your process, Inputs (I) to the process, the Process (P) which is developed by the team, Outputs (O) of the process, and Customers (C) of your process. Sometimes, Requirements (R) of the customers are also added to SIPOC.
The SIPOC is particularly employed for identifying:
- The suppliers who supply inputs to your process
- The input specifications
- The true customers of your process
- The requirements of customers
SIPOC diagrams are simple to design. They are created using the following steps:
- First, you have to create a suitable area for the SIPOC diagram which will allow additions by the team. This can be either a transparency, flip chart with headings written on each, or in the form of headings on post-it notes that are posted to a wall.
- Start with mapping the process to four or five high-level steps.
- Identify the process outputs.
- Identify the customers who will receive the outputs of your process.
- Identify the inputs for your process to function properly.
- Identify the suppliers who will give the inputs to your process.
- This is an optional step – identify the requirements of customers. This step will be verified during a later phase of Six Sigma measurement.
- Discuss with project sponsors and other stakeholders to verify it.
These are the steps involved in designing a SIPOC diagram.
Example
Simple Example of a SIPOC Diagram for a manufacturing process:
| COMPONENT | DESCRIPTION |
|---|---|
| Supplier | Raw material providers, equipment manufacturers, tool suppliers, maintenance service providers. |
| Inputs | Raw materials, equipment, tools, maintenance services, energy, labour, designs, instructions. |
| Process | Receive orders, plan production, procure raw materials and tools, design products, manufacture products, test and inspect products, package, and label products. |
| Outputs | Finished products, waste products, packaging, shipping documents, product instructions, invoices. |
| Customers | Retailers, wholesalers, distributors, end-users, customer service departments, regulatory bodies. |
Use of SIPOC Diagram
The SIPOC provides a high-level overview of the process that may cover inputs, outputs, and stakeholders. It is useful for a variety of process improvement where you can map out the key components to better understand the flow of process. Here as below, some key uses are common for manufacturing units:
It makes easy to understand process via making map of process.
If you want to understand any manufacturing process stages & stage, you have to need very first to understand its process flow map. The SIPOC diagram makes things easier that may describe – How each process & components are related to another process. In short, it is helpful to modernize the process.
Engaging stakeholders through communication.
The SIPOD diagram is an effective way to increase the communication with stakeholders. The stakeholders can realize they are part of the entire process system and its importance at it place. The stakeholders can be senior leaders, customers, team members, workman, interested parties, etc. The SIPOC makes better tune between processes and all associated parties.
It makes way simpler for overall process performance improvement.
The SIPOC diagram includes the inputs & outputs of a process. The detailed information makes easy to create key metrics, as well making a ground for measure the performance of a process. With this analysis, team can understand which process has low performance. Each low performance process can be cause by potential issues. Using root cause analysis team can eliminate issues that obstruction for process performance. As result the process performance will be increased at all levels of the process.
Identify potential hazards.
The SIPOC provides a map to simplify the complex process in systematic way. This map is helpful to a team for initial analyzing for risks and its key components. This exercise with SIPOC opens the door for further analysis of an individual process. The team can create HIRA, ERA, and risk matrix sheets to prioritize risks. As result the management enables proactive steps to mitigate these risks.
Continuous Improvement.
SIPOC Diagram covers all the processes of manufacturing. Hence, it will be easy to identify areas for improvement and track progress as well. Even the frequent monitoring of the process’s performance can be helpful for effective and continual improvement.
This is a really valuable tool for manufacturing units to improve their process performance. Moreover, it may also help management to conduct proactive steps to eliminate the possibility of potential hazards.