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An Important Step Toward Process Improvement
The document explains SIPOC analysis, a process mapping tool that provides a high-level overview of processes by detailing Suppliers, Inputs, Process, Outputs, and Customers. It is commonly used in process improvement frameworks like Lean and Six Sigma to define project scope and enhance understanding of process elements and relationships. Benefits of SIPOC include identifying gaps, clarifying process functions, and ensuring alignment with customer requirements.
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An Important Step Toward Process Improvement
- 1. CITOOLKIT SIPOC Analysis An ImportantStep Toward Process Improvement S I P O C
- 2. citoolkit.com Definition A SIPOC Mapis a high-level summary of a process which provides an overview of the process at a glance. SIPOC Analysis 2 SIPOC analysis provides a big picture view of the key elements of a process to understand of the context in which the process occurs.
- 3. citoolkit.com Definition Represents the maincomponents of the process . . . SIPOC Analysis 3 SUPPLIERS PROCESS CUSTOMERS INPUTS OUTPUTS . . . and allows to gather information related to a process including customers, suppliers, inputs and outputs.
- 4. citoolkit.com Uses Widely used inprocess design and process improvement initiatives such as Lean Six Sigma to define the scope and boundaries of the process. SIPOC Analysis 4 S I P O C 10 50 20 60 40 30 Helps gathering relevant information about the process when it is too early for a detailed process map or flowchart.
- 5. citoolkit.com Uses Often conducted atthe beginning of the process improvement initiative. SIPOC Analysis 5 DMAIC Kaizen Event During the Define phase of the DMAIC methodology or during the planning phase of Kaizen events.
- 6. citoolkit.com Uses SIPOC analysis canalso be used when investigating a process to present the information in a format that is easy to view and understand. SIPOC Analysis 6 1 2 4 3
- 7. citoolkit.com Uses And since itconsiders the customers and their needs, it is a practical way to make sense of the Voice of the Customer. SIPOC Analysis 7
- 8. citoolkit.com Benefits SIPOC Analysis 8 Definesthe scope of work for a project 02 Helps understanding the relationships between inputs and outputs 03 Helps to identify the areas that are within or beyond the control of the team 05 Helps to start thinking in terms of cause and effect 06 Helps to identify potential gaps such as unnecessary inputs, outputs that customers don’t want, and process steps that add no value 04 Helps ensuring that everyone understands the core process and its main components 01
- 9. citoolkit.com Structure Specifies the mainactivities of the process and identifies the potential suppliers, inputs, outputs, and customers. SIPOC Analysis 9 INPUTS PROCESS OUTPUTS CUSTOMERS SUPPLIERS
- 10. citoolkit.com SUPPLIERS SIPOC Analysis 10 Anyperson or company that supplies inputs Suppliers include both external sources like vendors and regulatory agencies, and internal providers such as departments and individuals.
- 11. citoolkit.com INPUTS SIPOC Analysis 11 Theseinputs are typically provided by suppliers and are transformed or utilized within the process to generate the desired outputs. The materials, energy, information, people, customer requirement, customer feedback, and financial resources which are needed to execute the process
- 12. citoolkit.com PROCESS SIPOC Analysis 12 Theseare just the major high-level process activities to ensure everyone grasps the overall flow and purpose of the process. The collection of activities that together transform inputs into outputs that is of value to the customer
- 13. citoolkit.com OUTPUTS SIPOC Analysis 13 Theycould be in the form of physical products, services, reports, information, decisions, or any outcomes that meet the needs of the customers. Represent the results or deliverables generated by the process
- 14. citoolkit.com CUSTOMERS SIPOC Analysis 14 Theyare the ultimate recipients of the products, services, information, or decisions produced by the process. The individuals, groups, or entities that receive or benefit from the outputs of the process
- 15. citoolkit.com CUSTOMERS • Customers canbe internal or external to the organization. • They don’t have to be actual customers of the process. There may be many stakeholders who have something at stake in the success of the process. • Their satisfaction can determine the success and effectiveness of the process. SIPOC Analysis 15
- 16. citoolkit.com Summary SIPOC Analysis 16 SUPPLIERS Resource suppliers Theproviders of the necessary inputs that directly contribute to creating the outputs PROCESS Macro description The sequenced activities that transform the input into value-added outputs to customers CUSTOMERS Process customers The users or recipients of the outputs INPUTS Resources needed by the process Materials, people, information, and other resources required to execute the process OUTPUTS Process outputs The products or services resulted from the process (wanted and unwanted)
- 17. citoolkit.com Customer Feedback Process inputscan be reviewed based on the voice of the customer feedback on whether the outputs met their requirements. SIPOC Analysis 17 SUPPLIERS PROCESS CUSTOMERS INPUTS OUTPUTS Customer Feedback
- 18. citoolkit.com Steps for ConductingSIPOC Analysis SIPOC Analysis 18 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.
- 19. citoolkit.com Steps for ConductingSIPOC Analysis SIPOC Analysis 19 Hang out five large flipcharts to allow the team to provide their input on each of the five SIPOC elements • Allow the team to provide inputs on each of the five elements. S I P O C
- 20. citoolkit.com Steps for ConductingSIPOC Analysis SIPOC Analysis 20 Begin with the process by writing the key highest-level steps • Start each process step with a verb whenever possible. S I P Xxxx Xxx Xxxxx Xxx O C
- 21. citoolkit.com Steps for ConductingSIPOC Analysis SIPOC Analysis 21 Use brainstorming to identify the primary outputs and the customers who will receive those outputs • Use brainstorming to identify the primary inputs and the suppliers of those inputs. S Xxxx Xxx Xxxxx I Xxx Xxxx Xxxx Xxxxx P Xxxx Xxx Xxxxx Xxx O Xxx Xxxx Xxxx C Xxxx Xxx Xxxxx Xxx
- 22. citoolkit.com Steps for ConductingSIPOC Analysis SIPOC Analysis 22 Take time to ensure the appropriateness and completeness of the recorded information • Discuss the SIPOC map with key stakeholders to verify accuracy. • Identify KPIs to ensure the capability of the process to deliver an output that meets customer requirements.
- 23. citoolkit.com Steps for ConductingSIPOC Analysis Remember the correct order for conducting a SIPOC analysis. SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS Where does the process start? 1 What is the process? Where does it process finish? 2 What are the process outputs? 3 Who are the customers of each output? 5 Who supplies each input? 4 What inputs are needed by the process to meet the customers' expectations? Once you have gathered this information, organize it into a SIPOC diagram. SIPOC Analysis 23
- 24. citoolkit.com Useful Questions SIPOC Analysis24 SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS • Where does the inputs of the process come from? • How do you communicate requirements to the suppliers? • Identify what is needed for the process? • What effect do the inputs have on the process and on the outputs? • How do they affect the process flow? • What are the requirements for each input? • What are you producing with the process? • At what points does the process start and finish? • How can you summarize the process in few steps (seven steps or less)? • Does the process feed into another process? • What product does the process make? • What other outputs does the process make? • Who are the customers of these outputs? • Are they individuals, departments, other processes? • What are the customers needs & requirements? • What do the customers expect from each output?
- 25. citoolkit.com Example – Submitand Implement an Idea Process The following is an example of a SIPOC map for an idea generation and implementation process. SIPOC Analysis 25 Submit and Implement an Idea PROCESS Employees Evaluation panel SUPPLIERS Idea description Estimated benefits Costs Evaluation criteria INPUTS Implemented Improvement Appreciation letter or reward HR records OUTPUTS Departments Employees HR team CUSTOMERS Submit an idea Review and evaluate the idea Implement the idea Report results Appreciate / reward employee
- 26. citoolkit.com Example – Purchasea Car Process The following is an example of a SIPOC map outlining the car purchasing process at a car dealership. SIPOC Analysis 26 Purchase a Car PROCESS Dealers Individuals SUPPLIERS Models Specifications Price Availability INPUTS Car Payment Paperwork Service contract Delivery date OUTPUTS Individuals Companies CUSTOMERS Determine car option Review specifications Test drive Negotiate price Sign paperwork Collect car
- 27. citoolkit.com Example – Conducta Job Interview Process Here is an example of a SIPOC map illustrating the job interview process during recruitment within a company. SIPOC Analysis 27 Conduct a Job Interview PROCESS Job agencies Job applicants SUPPLIERS Interview purpose Applicant profile Interview place Time and date INPUTS Interview notes Updated applicant profile OUTPUTS Recruitment team Departments CUSTOMERS Notify applicant of schedule Notify interview panel Prepare questions Arrange room Meet applicant Ask questions Close interview
- 28. citoolkit.com Example – Conducta Job Interview Process Note that you can represent the process activities in this list format . . . SIPOC Analysis 28 Conduct a Job Interview Notify applicant of schedule Notify interview panel Prepare questions Arrange room Meet applicant Ask questions Close interview PROCESS Job agencies Job applicants SUPPLIERS Interview purpose Applicant profile Interview place Time and date INPUTS Interview notes Updated applicant profile OUTPUTS Recruitment team Departments CUSTOMERS
- 29. citoolkit.com Further Information In yourSIPOC analysis, you have created a top-level process map showing only the basic steps of the process. SIPOC Analysis 29 S I P O C You can add the details to the process map that you will draw later.
- 30. citoolkit.com Further Information Sometimes itis useful to display on the SIPOC map guides to describe the process, and the resources that are required to transform the inputs into outputs. SIPOC Analysis 30 Inputs Process Outputs Customers Suppliers GUIDES Policies, procedures, specification, legislation, standards, objectives and targets RESOURCES People, equipment, hardware, software, systems, tools and facilities
- 31. citoolkit.com Further Information Another SIPOCmodel is the SIPOC+CM . . . • ‘C’ stands for the constraints facing the process. • ‘M’ stands for the measures being used. SIPOC Analysis 31 Inputs Process Outputs Customers Suppliers CONSTRAINTS Such as the shortage in human resources or limited funds MEASURES Such as the number of defects or defective units
- 32. citoolkit.com Further Information The IPOis a simpler model that represents a simpler structure for describing a process. It focuses on the internal workings of a system or process. SIPOC Analysis 32 It is widely used in various fields, including business, engineering, and computer science, to analyze and design systems or processes for improved efficiency and effectiveness.
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