When performing any process discovery or improvement activity, one first needs to know about the big

picture and understand how it fits into the business. In this regard, SIPOC provides a simple framework. It
provides structure for my notes from requirement gathering sessions. In the Six Sigma world, this is also
known as Value Stream Mapping.

What is SIPOC anyway?

SIPOC is a high-level view of the as is state of a process under investigation. Typically, a simple data
collection template is used that helps facilitate the gathering of the relevant information (Suppliers,
Inputs, Processes, Outputs and Customers) about a process. One may want to use it prior to constructing
the actual process (BPMN/Flowcharts) but the value is in visually presenting and organizing the analysis
data.

SIPOC is an abbreviation of: Suppliers Inputs Process Outputs Customer, which is also known as
COPIS.

At the most basic level, the acronyms components stand for:

Supplier: Internal / external suppliers to the process.

Inputs: Inputs to the process. This can include information, forms, materials, etc.

Process: The means that convert the inputs into outputs in order fulfill your customers needs.

Outputs: Internal / external customers to the process.

When to Use It

One should use SIPOC when process management or improvement activity is underway, since its
important to get a high-level understanding of the processs scope first. The benefits happen when a team:

Needs to understand the basics that make up the process.

Needs to record knowledge about a process in an easy-to-view format.

Needs to make concise communication to others about a process.

When defining the scope of the project. If the project is on process improvement, mapping it would
provide an indication of the scope.

When documenting/assessing an existing process prior to the improvement effort. On drawing a SIPOC
diagram, youll be able to tell at a glance, whom your project will affect (stakeholders), which outputs are
non-value adding, which steps are redundant and where supplier performance is unsatisfactory.

When creating a process from scratch

If youre familiar with Six Sigma, this is typically employed at the Measure phase of the DMAIC
methodology.
Why to Use It

SIPOC helps provide a natural but structured way to discuss a process and get consensus on what it
involves before rushing off and drawing process maps. Its really useful when any of these points arent
clear:

Who supplies inputs to the process?

What specifications are placed on the inputs?

Who are the true customers of the process?

What are the requirements of the customers?

Summary of Benefits

SIPOC is a template for defining a process, before you begin to map, measure or improve it.

It helps define the boundary of the problem being analyzed.

Its a structured way to discuss the process and get consensus during a meeting/session.

It can help provide a structure when facilitating meetings.

It provides a visual representation of the problem.

SIPOCs Limitations

Since SIPOCs only a high-level view, theres still a need to do detailed process mapping. Its also important
to understand the processes that feed into it.

How to Use SIPOC

The tool is best used by a team. First, list the categories in order (Suppliers, Inputs, Process, Outputs and
Customers) across the top of a piece of paper or whiteboard. Then, fill in the diagram like this:

Processes: Begin with the Process column and number the highest level steps. Try to keep the list to only
four or five.

Use a Verb + Noun format for the process steps. Such as Recruit Staff or Acquire Cookie.

Outputs: For each process step identify and document the outputs under the Outputs column. These are
the tangible things that the process produces:

A report or letter.

Goods and services your customers buy.

Not every process will have an output.

Customers: For each output, document the customers who will receive or benefit in the Customers
column. Every output should have at least one Customer.
Inputs: Identify inputs the process requires to produce the outputs. Capture these under the Inputs
column. Inputs are things that trigger the process. Theyre often tangible.

Customer Orders

Delivery Demand

Bill

Suppliers: Document the suppliers of each input under the Suppliers column.

Identify the suppliers of the inputs; these are the people (roles) who supply the inputs that are required
by the process.

Requirements (Optional): If you chose to include a sixth column for requirements, then identify the high
level preliminary requirements that each customer has for the process under consideration. Think about
why the process exists and what customer need is being fulfilled.

These requirements will help you to understand:

Your customer requirements.

Are you fulfilling those requirements?

Your supplier requirements.

Are your suppliers meeting your requirements?

Finally, you should identify the process owner the person responsible for the end-to-end process. Then,
review your results with the project sponsor, champion and any other stakeholders to verify their
requirements are being met.
Gap Analysis is a strategic planning tool to help you understand where you are, where you want to be
and how youre going to get there.

Heres a simple Gap analysis chart:

Here's an example of a GAP analysis for profit

Heres the Gap Analysis process:

Step 1: Decide the topic youre going to do the Gap Analysis on? This is the challenge youre trying to
tackle.

Gap Analysis sample topics include:

Revenue
Profit
Market Share
Product Functionality/Features

Step 2: Identify where you are right now based on metrics or attributes.

Examples:
 Revenue Were at $10 million in annual sales right now
Profit Were at $1.5 million in annual profit right now
Market Share We have 7% of the market share right now
Product Functionality/Features Our product has was just launched so it has limited features

Step 3: Identify where youd like to be over a specific time frame?

Examples:

Revenue Wed like revenue to grow to $35 million in annual sales by 2012
Profit Wed like profits to grow to $12 million per year by 2012
Market Share Wed like to own 15% of a particular market by 2012
Product Functionality/Features Wed like our product to have industry leading features by 2012

Step 4: Identify the gap between where you are and where you want to be.

Revenue They gap is $15 million per year in annual sales by 2012
Profit The gap is $5.5 million in annual profit by 2012
Market share The gap is 8% market share by 2012
Product Functionality/Features (lets use Web site as an example) The gap is that youd like to
have the following features by 2012: a blog, a sign-up form to let visitors follow your business on
Facebook and Twitter and a way for customers to buy products directly.

Step 5: Determine how the Gap should be filled.

I recommend using the 6 Ms from my Fishbone Analysis Article:

o Manpower The people resources you need.
o Methods The processes you need.
o Metrics The measurements you need.
o Machines The automation or technology you need.
o Materials The material items (such as physical goods or marketing collateral) you need.
o Minutes The time you need.
Or you could use a SWOT Analysis and simply list out your:
o Strengths, Weakness, Opportunities and Threats related to filling your Gap.

Some other related Gap Analysis definitions:

Usage Gap = Market Potential minus Existing Usage

Product Gap = The part of the market that your missing because of your product features.