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.
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The SIPOC model consists of the following:
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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’.
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].
The SIPOC diagram can be created by following these eight (8) simple steps:
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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.
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