Continuous Improvement Toolkit

SIPOC Analysis

S I P O C

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The Continuous Improvement Map
Managing Selecting & Decision Making Planning & Project Management*
Risk PDPC Break-even Analysis Importance Urgency Matrix Daily Planning PERT/CPM

FMEA RAID Log* Quality Function Deployment Cost Benefit Analysis MOST RACI Matrix Activity Networks

Risk Analysis* Payoff Matrix Delphi Method TPN Analysis SWOT Analysis Stakeholder Analysis

Fault Tree Analysis Decision Tree Pick Chart Voting Four Field Matrix Project Charter Improvement Roadmaps

Traffic Light Assessment Critical-to X Force Field Analysis Portfolio Matrix

PDCA Policy Deployment Gantt Charts
Kano Decision Balance Sheet Paired Comparison
Lean Measures OEE DMAIC Kaizen Events Control Planning
Cost of Quality* Pugh Matrix Prioritization Matrix
Process Yield A3 Thinking Standard Work Document control
Project KPIs KPIs Pareto Analysis Matrix Diagram
Understanding
Best Practices Implementing
Capability Indices
Descriptive Statistics Chi-Square Nonparametric
Cause & Effect TPM Automation Solutions***
Gap Analysis*
Probability Distributions Hypothesis Mistake Proofing Health & Safety
ANOVA DOE
Bottleneck Analysis
Histograms Normal Distribution Multivariate Multi-vari Studies Simulation Just in Time 5S
Reliability MSA Graphical Methods Scatter Plots Correlation Regression Quick Changeover Visual Management
Understanding Run Charts 5 Whys Product Family Matrix Flow Pull
Root Cause Analysis Data Mining
Performance**
Control Charts Fishbone Diagrams Relations Mapping SIPOC* Spaghetti** Process Redesign
Benchmarking***
Data collection planner* Sampling How-How Diagram*** Tree Diagram* Waste Analysis** Value Stream Mapping**

Check Sheets** Interviews Brainstorming SCAMPER*** Attribute Analysis Value Analysis** Process Mapping

Questionnaires Focus Groups Affinity Diagrams Morphological Analysis Flow Process Charts** Time Value Map**

Data Observations Mind Mapping* Lateral Thinking Flowcharting IDEF0 Service Blueprints
Collection Suggestion Systems Five Ws Group Creativity Designing & Analyzing Processes
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 SIPOC Analysis

A high-level summary of the process

Allows to provide an overview of a process at a glance

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 SIPOC Analysis

SIPOC analysis provides a big picture view of the

important elements of the process to better
understand the context in which it operates

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 SIPOC Analysis

A data collection tool for gathering information related

to a process including customers, suppliers, inputs and
outputs

Suppliers Inputs Process Outputs Customers

Represents the main components of the process

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 SIPOC Analysis

Widely used in process design and improvement initiatives

(such as Six Sigma) to defines the scope of a project when
it is too early for a detailed process mapping

1 2 3 4

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 SIPOC Analysis

Used to identify important elements of a process

before starting a project

DMAIC Kaizen Events

Also used when defining and designing new processes

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 SIPOC Analysis

SIPOC analysis can be used before drawing a process

map or a flowchart as it helps gather relevant
information about the process

S I P O C 10 20 30

60 50 40

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 SIPOC Analysis

SIPOC analysis can also be used when investigating a

process to present the collected information on an
easy-to-view format

S I P O C

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 SIPOC Analysis

It is a practical way of making sense of the

Voice of the Customer

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 SIPOC Analysis

Benefits

Help ensure everyone understands the Helps communicate information about

core process the process to other stakeholders

Helps define the scope of work for a Helps identify the areas that are within
project or beyond the control of the team

Helps understand the relationships Helps to begin thinking in terms of

between the inputs and outputs cause and effect

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 SIPOC Analysis

SIPOC Map
Helps specify the main activities of the process and
identify the potential suppliers, inputs, outputs,
and customers

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

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 SIPOC Analysis

SUPPLIERS

Any person or company that

supplies inputs

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 SIPOC Analysis

INPUTS

The materials, energy,

information, people, customer
requirement, customer
feedback, and financial
resources which are needed to
execute the process

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 SIPOC Analysis

PROCESS

The collection of activities

that together transform
inputs into outputs that is of
value to the customer

These are just the major high-level process activities

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 SIPOC Analysis

OUTPUTS

The tangible product or

service that results from the
process

Outputs can be goods, services, information, reports, decisions, …

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 SIPOC Analysis

CUSTOMERS

The person or company that

receives the outputs of the
process

Customers have requirements to be fulfilled

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 SIPOC Analysis

CUSTOMERS

There may be many

stakeholders who have
something at stake in the
success of the process.
They don’t have to be actual
customers of the process

Obtain input from the primary users/recipients of the process

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 SIPOC Analysis

Suppliers Inputs Process Outputs Customers

Resource Resources needed Macro Process Process

suppliers by the process description outputs customers
The provider of Materials, people, The sequenced The product or The users /
the necessary information, and activities that service results recipients of the
inputs that other resources transform the from the process outputs
directly contribute required to input into value- (wanted and
to creating the execute the added outputs to unwanted)
outputs process customers

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 SIPOC Analysis

Suppliers and customers may be external or internal

to the organization or department

Suppliers Inputs Process Outputs Customers

You receive inputs from your internal suppliers and send outputs to your
internal customers
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 SIPOC Analysis

SIPOC doesn't ask to provide links between suppliers

and inputs, or customers and outputs

Suppliers Inputs Process Outputs Customers

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 SIPOC Analysis

Process inputs can be reviewed based on the voice of

the customer feedback on whether the outputs met
their requirements
Customer Feedback

Suppliers Inputs Process Outputs Customers

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 SIPOC Analysis

SIPOC analysis helps the team to identify potential gaps

such as unnecessary inputs, outputs that customers
don’t want, and process steps that add no value

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 SIPOC Analysis
EXAMPLE – Submit and Implement an Idea Process

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

Employees Idea description Submit an idea Implemented Departments
Improvement
Evaluation panel Estimated benefits Review and Employees
evaluate the idea Appreciation letter
Costs or reward HR team
Implement the
Evaluation criteria idea Records

Report results

Appreciate /
reward employee

Representing the process and its key elements in a tabular format

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 SIPOC Analysis
EXAMPLE – Submit and Implement an Idea Process

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

Employees Idea description Submit and Implemented Departments
Implement an Improvement
Evaluation panel Estimated benefits Idea Employees
Appreciation letter
Costs or reward HR team

Evaluation criteria HR records

Review and Implement the Appreciate /

Submit an idea Report results
evaluate the idea idea reward employee

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 SIPOC Analysis
EXAMPLE – Purchase a Car Process

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

Dealers Models Determine car Car Individuals

Individuals Specifications option Payment Companies

Price Review Paperwork

specifications
Availability Service contract
Test drive
Delivery date
Negotiate price

Sign paperwork

Collect car

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 SIPOC Analysis
EXAMPLE – Purchase a Car Process

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

Dealers Models Purchase a Car Car Individuals

Individuals Specifications Payment Companies

Price Paperwork

Availability Service contract

Delivery date

Determine car Review Negotiate Sign

Test drive Collect car
option specifications price paperwork

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 SIPOC Analysis
EXAMPLE – Conduct a Job Interview Process

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

Job agencies Interview purpose Notify applicant of Interview notes Recruitment team
schedule
Job applicants Applicant profile Updated applicant Departments
Notify interview profile
Interview place panel
Time and date Prepare questions
Arrange room
Meet applicant
Ask questions
Close interview

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 SIPOC Analysis
EXAMPLE – Conduct a Job Interview Process

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

Job agencies Interview purpose Conduct a Job Interview notes Recruitment team
Interview
Job applicants Applicant profile Updated applicant Departments
profile
Interview place

Time and date

Notify Notify
Prepare Arrange Meet Close
applicant of interview Ask questions
questions room applicant interview
schedule panel

If there are more than seven steps, then the process is too detailed!

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 SIPOC Analysis

How to Construct a SIPOC Map

Clearly explain the purpose for creating the SIPOC map

Emphasize that the map must represent the situation as

it exist, now how it should be

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 SIPOC Analysis

How to Construct a SIPOC Map

Hang out five flip-charts representing the five SIPOC categories

Allow the team to provide inputs on each of the five

elements

S I P O C

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 SIPOC Analysis

How to Construct a SIPOC Map

Begin with the process by listing the key highest-level steps

Start with verbs whenever possible

S I P O C
Xxxx
Xxx
Xxxxx
Xxx

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 SIPOC Analysis

How to Construct a SIPOC Map

Identify the primary outputs of the process

Identify customers who will receive outputs

S I P O C
Xxxx Xxx Xxxx
Xxx Xxxx Xxx
Xxxxx Xxxx Xxxxx
Xxx Xxx

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 SIPOC Analysis

How to Construct a SIPOC Map

Identify the inputs required for the process to function properly

Identify the suppliers of those inputs

S I P O C
Xxxx Xxx Xxxx Xxx Xxxx
Xxx Xxxx Xxx Xxxx Xxx
Xxxxx Xxxx Xxxxx Xxxx Xxxxx
Xxxxx Xxx Xxx

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 SIPOC Analysis

How to Construct a SIPOC Map

Take time to ensure the appropriateness and

completeness of the recorded information

Discuss the SIPOC map with key stakeholders to verify

accuracy

S I P O C
Xxxx Xxx Xxxx Xxx Xxxx
Xxx Xxxx Xxx Xxxx Xxx
Xxxxx Xxxx Xxxxx Xxxx Xxxxx
Xxxxx Xxx Xxx

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 SIPOC Analysis

How to Construct a SIPOC Map

Identify KPIs to ensure the capability of the process to

deliver an output that meets customer requirements

S I P O C
Xxxx Xxx Xxxx Xxx Xxxx
Xxx Xxxx Xxx Xxxx Xxx
Xxxxx Xxxx Xxxxx Xxxx Xxxxx
Xxxxx Xxx Xxx

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 SIPOC Analysis

How to Construct a SIPOC Map

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS
5 4 Where does 2 3
the process start?

Who supplies What inputs What are the Who are the
each input? are needed by process customers of
the process to 1 outputs? each output?
meet the
customers' What is the
expectations? process?

Where does it
process finish?

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 SIPOC Analysis

Useful Questions
SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS
❖ Where does the ❖ Identify what is ❖ What are you ❖ What product ❖ Who are the
inputs of the needed for the producing with does the process customers of
process come process? the process? make? these outputs?
from?
❖ What effect do ❖ At what points ❖ What other ❖ Are they
❖ How do you the inputs have does the process outputs does the individuals,
communicate on the process start and finish? process make? departments,
requirements to and on the other processes?
the suppliers? outputs? ❖ How can you
summarize the ❖ What are the
❖ How do they process in few customers needs
affect the process steps (seven steps & requirements?
flow? or less)?
❖ What do the
❖ What are the ❖ Does the process customers expect
requirements for feed into another from each
each input? process? output?

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 SIPOC Analysis

Further Information
In your SIPOC analysis, you have created a top-level process
map showing the basic steps of the process

S I P O C

You may add the details to the process map that you will draw later
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 SIPOC Analysis

Further Information
Sometimes it is useful to display on the SIPOC map guides
to describe the process, and the resources that are
required to transform the inputs into outputs
Guides
Policies, procedures, specification, legislation, standards, objectives and targets

Suppliers Inputs Process Outputs Customers

Resources
People, equipment, hardware, software, systems, tools and facilities

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 SIPOC Analysis

Further Information
Another SIPOC model is the SIPOC+CM
C stands for the constraints facing the process
M stands for the measures being used
Constraints
Such as the shortage in human resources or limited funds

Suppliers Inputs Process Outputs Customers

Measures
Such as the number of defects or defective units

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 SIPOC Analysis

Further Information
The IPO is a simpler model that represents a simpler
structure for describing a process
(widely used in the IT industry)

Inputs Process Outputs

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