Continuous Improvement Toolkit

SIPOC ANALYSIS

S I P O C

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 SIPOC ANALYSIS
A SIPOC Map is a high-level summary of a process
which provides an overview of the process at a glance.

SIPOC analysis provides

a big picture view of the
key elements of a
process to understand
of the context in which
the process occurs.

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 SIPOC ANALYSIS
Represents the main components of the process . . .

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

And allows to gather information related to a process

including customers, suppliers, inputs and outputs
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 SIPOC ANALYSIS

SIPOC analysis is widely used in process design and

process improvement initiatives such as Lean Six Sigma
to define the scope and boundaries of the process.

1 2 3 4

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 SIPOC ANALYSIS

This will help to gather relevant information about the

process when it is too early for a detailed process map
or flowchart.

S I P O C 10 20 30

60 50 40

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 SIPOC ANALYSIS
SIPOC analysis is often conducted at the beginning of
the process improvement initiative.

During the Define phase of

the DMAIC methodology
or during the planning
phase of Kaizen events.
DMAIC Kaizen Event

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 SIPOC ANALYSIS

SIPOC analysis can also be used when investigating a

process to present the information in a format that
is easy to view and understand.

S I P O C

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 SIPOC ANALYSIS
And since it considers the customers and their needs,
it is a practical way to make sense of the Voice of the
Customer.

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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

BENEFITS

Ensures everyone understands the Communicate information about the

core process process to other stakeholders

Defines the scope of work for a Identify the areas that are within or
project beyond the control of the team

Helps understanding the relationships Helps to start thinking in terms of

between inputs and outputs cause and effect

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 SIPOC ANALYSIS
SIPOC Map
Specifies the main activities of the process and
identifies 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

Can be goods, services, information, reports and 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

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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 providers of Materials, people, The sequenced The products or The users or
the necessary information, and activities that services resulted 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.

INTERNAL OR EXTERNAL INTERNAL OR EXTERNAL

You receive inputs from your internal suppliers and

send outputs to your internal 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

To give the analysis further depth, you may link

between suppliers and inputs, or customers and
outputs.

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

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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 HR 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 Employees
Idea Appreciation letter
Costs or reward HR team

Evaluation criteria HR records

Appreciate /
Review and Implement the
Submit an idea Report results reward
evaluate the idea idea
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 Review Payment Companies

specifications
Price Paperwork
Test drive
Availability Service contract
Negotiate price
Delivery date
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

Job applicants Applicant profile

Interview Updated applicant Departments
profile
Interview place

Time and date

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

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 SIPOC ANALYSIS
How to Conduct a SIPOC Analysis

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 Conduct a SIPOC Analysis

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 Conduct a SIPOC Analysis

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 Conduct a SIPOC Analysis

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 Conduct a SIPOC Analysis

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 Conduct a SIPOC Analysis

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 Conduct a SIPOC Analysis

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 Conduct a SIPOC Analysis

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 individuals,
communicate on the process start and finish? the process departments,
requirements to and on the How can you make? other
the suppliers? outputs? summarize the processes?
How do they process in few What are the
affect the steps (seven customers needs
process flow? steps or less)? & requirements?
What are the Does the What do the
requirements for process feed customers
each input? into another expect from
process? each 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.

Inputs Process Outputs

Widely used in the IT industry

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 SIPOC ANALYSIS

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