Problem-Solving Using the SIPOC Model: 8 Key Steps and Applications Discussed
The acronym SIPOC stands for Suppliers, Inputs, Process, Outputs and Customer, referring to an approach that helps organizations run more efficiently with less wasteful business operations.
SIPOC model is a visual tool to help understand an entire process, from start to finish (i.e. from supply down to the customer), offering insights into areas where problems exists. These issues can be from the supplier of raw materials, input specifications to the process, and can also be associated with processes and outputs not meeting the requirements of customers.
The goal of SIPOC table or a SIPOC diagram is to present an opportunity for the team, and all stakeholders to detect and actually work on process-related issues with the objective of finding lasting solutions.
This model relates the suppliers [S] of the process, the necessary inputs [I] to the process, the different functions of the process [P], the expected outputs [O] from the process, with the customer [C] of the result or output [O] of the process. This enables the team to take into consideration these process elements during planning and execution.
SIPOC Components
The SIPOC model consists of the following:
- Supplier – These are the providers of inputs into the process.
- Input – These refers to the materials, information and other resources needed to complete a process.
- Process – The process is the steps used in converting inputs into outputs.
- Outputs – These are the results of the process. They represent products or services resulting from the process.
- Customer – These are the end-user of recipient of the outputs from the process.
SIPOC Model Mode of Application
- COPIS Methodology
This involves following the C [Customer] - O [Outputs] - P [Process] - I [Inputs] - S [Suppliers] approach. In this case, ‘Customers’ come first, and then, ‘Outputs’, ‘Process’, ‘Inputs’, and lastly, the ‘Suppliers’. This mode of SIPOC application is often followed in the service industries where the ‘Customers’ first place their order or requirements, prompting the ‘Output’, which gets facilitated by ‘Process’, ‘Inputs’ and ‘Suppliers’.
- POCIS Approach
In this case, ‘Process’ and ‘Outputs’ represents the first two steps that generate requirements for ‘Customers’, supported by ‘Inputs’ and ‘Suppliers’. This approach is often followed by the companies in the manufacturing industries, as well as many other organizations.
Irrespective of the approach taken, the components of SIPOC are same which are the S [Suppliers] - I [Inputs] - P [Process] - O [Outputs] - C [Customers].
How to create a SIPOC diagram
The SIPOC diagram can be created by following these eight (8) simple steps:
- Select a process: This involves choosing a process that would benefit from the diagram.
- Assemble the Team: A team can then be assembled around the key players of that process.
- Identify the suppliers: Next, list the suppliers associated with each of the inputs of the process. A supplier is anyone or organization that has a direct impact on the outputs.
- Identify the inputs: The inputs are the resources that are necessary for the process to function properly. They are that which is required to be converted to the output. They include the raw materials required, some information and even manpower. Just like the outputs, only the important inputs should be listed in the chart.
- Define the process: Chart the “P” section. This section is an overview of the process in 4-5 high level steps that each consist of an action and a subject. It should consist of the starting and ending points for the process or a simple flowchart.
- Identify the outputs: The outputs can include the products, services or information. This section should include 3-4 outputs with little presented in a neutral tone, using nouns only.
- Identify the customers: These are the end users of the output of a process. They are the individuals that will receive the outputs or benefit from the process. They include the recipient of a part for further processing within the same organization, the shareholders, the management of the organization (all referred to as the internal customers) and, the users of the product or services of the organizations (external customers).
- Share the diagram: Once the diagram is complete, share with the team and other relevant stakeholders for review and validation before implementing or using it as a guide.
Benefits of the SIPOC Model
- The SIPOC model enables the complete process to be clearly seen for better comprehension.
- It enhances effective communication between process management teams, making sure all stakeholders are on the same page.
- With better understanding of the process, underlying causes of problems, organizations can develop practical strategies to improve processes.
- The SIPOC model allows teams to figure out the relationship and impact of the S [Suppliers], I [Inputs], and P [Process] are impacting O [Outputs] and C [Customer], and the customers’ needs can be met.
- The insights into factors that are affecting customers create significant improvement opportunities and enable better planning by the team; improves efficiency, and boosts revenue while cutting down costs of running the business.
About the Author
Adebayo is a thought leader in continuous process improvement and manufacturing excellence. He is a Certified Six Sigma Master Black Belt (CSSMBB), Digital Manufacturing Professional and ISO Management Systems Lead Auditor (ISO 9001, 45001 & ISO 22000) with strong experience leading various continuous improvement initiative in top manufacturing organizations.
You can reach him here.
