When developing or optimizing business processes, aligning your team is challenging. Everyone has varying workflow preferences, but consistency is key to streamlining overall operations.
Thankfully, using a SIPOC diagram can kickstart the exercise by helping participants visualize how the puzzle pieces fit together.
SIPOC stands for suppliers, inputs, processes, outputs, and customers. This process map explains how these factors interact, offering decision-makers a high-level perspective that helps them quickly understand the process and identify improvement areas.
What’s a SIPOC diagram?
SIPOC diagrams were developed as part of the total quality management (TQM) approach to continuous process improvement in the late 1980s. They provide a bird’s eye view of a business process by breaking it down into a flowchart or roadmap of its elemental parts.
This diagram illustrates how a process is triggered, by whom, where it sources materials or data, the mechanism converting those assets into an output, and the means to deliver those results to the consumer.
SIPOCs aren’t meant to provide an in-depth view of a process but to give stakeholders enough information to build alignment, make decisions, and brainstorm potential improvements. This tool is valuable to business process management (BPM) practices, aiding the investigation of workflows and implementing their continuous refinement through strategic initiatives to achieve Kaizen — the philosophy of ongoing and neverending improvement.
Core elements of a SIPOC diagram
Some organizations reverse the acronym, changing to COPIS and placing the customer requirements foremost in the mapping process according to agile principles. Regardless of which version you use, the meaning of each letter remains the same:
- Suppliers: The source of process inputs.
- Inputs: Resources required for the process to function.
- Process: Steps taken to convert inputs into outputs.
- Outputs: The results, products, or services generated by the process.
- Customers: Those who receive the output or benefit from the process.
Benefits of using a SIPOC diagram
Project managers often use SIPOC diagrams in conjunction with the lean Six Sigma process improvement methodology. Six Sigma aims to minimize defects and inconsistencies in the production process, identify value-adding opportunities, and streamline the customer experience.
At the core of this methodology is DMAIC: define, measure, analyze, improve, and control. Drafting a SIPOC diagram addresses the “define” phase of the DMAIC process.
Even if your team isn’t operating within the Six Sigma project management framework, you’ll still enjoy the following benefits when using a SIPOC diagram.
1. Define business processes
A high-level SIPOC diagram communicates key operational details in a way that’s easy to understand. It’s especially constructive when introducing an unfamiliar audience to a new business process.
2. Build stakeholder alignment
Using the SIPOC model at the beginning of process mapping gets everyone on the same page. Drafting a flowchart as a team serves as a productive initial step to identify an issue and drive improvement through brainstorming and problem-solving discussions.
3. Clarify processes
Process mapping with your team identifies critical information such as supplier contacts, project specifications, and target customers, helping stakeholders understand how work gets done. The diagram helps answer essential questions like:
- What changes will simplify the process?
- Are consumers receiving the highest quality product possible?
- Can we improve supplier management protocols?
- Are suppliers giving us what we need?
- Have we identified our customer demographic and created personas to match?
- Which inefficiencies can we address to improve product creation?
How to create a SIPOC diagram in 7 steps
It would be logical to draft a SIPOC diagram in the same order as the acronym, starting with the letter S. But, best practices recommend either beginning by identifying the process you want to map or, if you’re following an agile methodology, working backward from customers.
The step-by-step mapping process looks like this.
1. Select a process
Choose the business process, new or existing, that your group wants to visualize using the SIPOC model. The mapping process helps team members conceptualize the mechanism, brainstorm improvement ideas, and identify the best optimization strategies.
2. Define the process (P)
Break the process into 4–5 high-level steps, including the action and subject. If it helps, you can organize the procedure into a flowchart, with each step feeding into the next.
If you’re mapping a long or complex process, batch smaller steps together to provide a high-level perspective rather than a granular view of how it works.
3. Establish outputs (O)
Next, identify the outputs to understand the return from resources invested in the process and what goods consumers receive. Outputs can be anything that internal stakeholders or external clients receive at the end of the process, including:
- Services
- Materials
- Products
- Information
Whatever the process’s result, it should correspond with customer requirements and expectations.
4. Identify customers (C)
A customer is anyone who benefits from or receives a process output, including internal parties like coworkers, stakeholders, and external clients.
5. Catalog inputs (I)
The proper functioning of a process depends on the resources that feed the mechanism. Like outputs, these can include assets like:
- Services
- Materials
- Products
- Information
Creating a list of vendors aids your team in understanding resource requirements and evaluating whether the inclusion of a specific supplier’s product results in the desired output caliber.
6. List suppliers (S)
Suppliers generate process inputs, and their identification helps determine the number of individuals or groups you’re collaborating with and whether you’re managing their contribution effectively.
7. Share the process map
Once you’ve drafted your SIPOC diagram — whether it’s an entire process overview or a simple input-output diagram — share your map with management and other key stakeholders to help everyone understand how each business mechanism functions, from start to finish.
A SIPOC diagram example
Begin process mapping by drafting a five-column table. Label each column with the five titles from the SIPOC acronym: suppliers, inputs, process, outputs, and customers. Then, add corresponding items into each column until you’ve completed the entire process.
For example, look at a SIPOC diagram outlining the purchase process for an ecommerce website.
| SUPPLIERS | INPUTS | PROCESS | OUTPUTS | CUSTOMERS |
|---|---|---|---|---|
|
|
|
|
|
Once you’ve created your table, you can draft a visual flowchart or roadmap to illustrate the process further.
To save some time, create a template of your SIPOC diagrams. Templates not only increase productivity but ensure consistency across every process mapped.
Effective process mapping with Tempo Strategic Roadmaps
Take process mapping to the next level by creating a visual representation of your SIPOC document with Tempo’s Strategic Roadmaps. Strategic Roadmaps generates easy-to-read, audience-friendly roadmaps, helping stakeholders understand business processes at a high level.
Whether you’re working in product development or project management, Strategic Roadmaps can help map your processes to prioritize and track projects with ease.
