The Six Sigma methodology follows several different process variables; SIPOC is just one of the variables used by Six Sigma. SIPOC is a high-level picture of the process and provides a visual image of how the process is servicing the customer.

The SIPOC diagram is typically used to help identify all relevant process improvement projects before the actual work commences. Several organizations use SIPOC diagrams to define complex problems that may be difficult for some people to understand. If you are following the DMAIC Six Sigma methodology, you can expect to see the SIPOC diagram during the Measure phase.

The acronym SIPOC stands for:

• S - Suppliers that provide input in your process.
• I - Input to define the material, service or information that is used by the process to product the outputs.
• P - Process that your team is improving; typically it is a defined sequence of activities that will add value to inputs to produce outputs for the customer.
• O - Outputs are considered the products, services, and information the is valuable to the customer.
• C - Customers that use the outputs that are produced by the entire process.

SIPOC maps help teams in the Six Sigma process to clearly understand the purpose and the scope of a process. SIPOC begins by identifying the voice of your customer (VOC). It then gives insight to the inputs (the X variables) of a process that have impact on the critical outputs (the Y variables).

Your SIPOC map will be created following the identification of outputs, inputs, consumers, and suppliers. You can also start with the customer and work your way back to the supplier. The creation of an SIPOC map is a team project that will be done by your Six Sigma team. Typically it involves a detailed brainstorming session to discover all the details involved in the process.

Here is a breakdown of the different processes involved in the SIPOC diagram.

Suppliers are the individuals or companies who provide inputs to the process. These suppliers can be internal or external. The supplier may also be a customer. For example, if you are running a food establishment such as a sandwich shop your key suppliers will be for dough, condiments, vegetables, cheese, paper, telephone services, and heating supplies.

The inputs are generally materials, information or services that are required by the process in order to produce the outputs. It may also include other factors that influence the overall process. Again, for a sandwich shop the typical process is bread, condiments, cheese, meat, vegetables, and paper packaging.

As you define the process, you should lay out the key process steps and the sequences they follow. The steps need to be written after a manner that is meaningful and direct. For example, "answer drive-in telephone within 3 rings and take customer order on the drive-in headset." During this stage you will also establish the process boundaries as to what triggers the process and what marks the end of the process.

For the sandwich shop, the process starts from the time the customer walks in the door or pulls through the drive-in and will end when the customer leaves with their sandwich. Some important steps in the process include: receiving order from customer, make sandwich, pack sandwich, and deliver correct sandwich to customer. The outputs will include the product, information, service, or decisions that are produced from the execution of the process.

A typical SIPOC diagram is a 5-column tabular format. It is fairly simple to construct a SIPOC diagram. If possible, have your project team start at the beginning of the process phase. The team should ask numerous questions in the process phase about the actual process itself. Your team will them label the process with a summary of the most critical 3 to 6 steps.

Once the process has been analyzed, your team should document what processes are delivered to your customers. Try selecting 2 or 3 customers and brainstorm and prioritize them in order of importance. The process can be identified, prioritized, and the outputs can be aligned to the customers.

Using the DMAIC process, you will verify the assumptions you received from the customers. Using the DMAIC process you will be able to identify what input or information is needed to perform the process and who provides the input.

The SIPOC diagram will capture the as is state of your organization and the processes in question. The SIPOC diagram will allow your team to review all the processes in a visual manner so they can easily identify which steps need to be identified.

Here are the steps you need to follow in order to complete an SIPOC diagram:

First, create an area where the team can post additions to the SIPOC diagram. Transparencies and templates are commonly used by organizations; some even use post it notes. Flip charts with headings of SIPOC can be written on each of the flip charts.

Second, initiate the process by mapping it into 4 or 5 high level steps. Third, identify the outputs of the process. Fourth, identify all the customers who will be recipients of the outputs of the process. Fifth, identify the inputs that are required for the process to function correctly. Sixth, identify all the suppliers of the inputs that are required by the entire process. Seventh, identify all the requirements of the customer (this is an additional step as it will be verified during a later step in the Six Sigma process). Eighth, discuss the complete project with the project sponsor, champion, stakeholders, or other members who are involved in the verification process.

When you begin creating your SIPOC chart, you need to ask the following questions:

• What information, data, reports, etc. will come out of the outposts?
• Who are the customers?
• What data, supplies, and tools are required for the inputs?
• Who is needed to help perform the SIPOC action?
• Who or what functional organization, system, report, database, and supplies are needed for the inputs?

Reasons to use SIPOC

Since so many companies have different departments that speak several different languages (IT departments, accounting departments, etc.), a project team developed the process map to help in the insurance industry. The insurance company had business members who needed information on identifying, documenting, and conveying their needs to their IT group that was responsible for developing the automated workflow system for the process.

The team was composed of the business people and IT personnel who discussed the high-level needs of the business. Several models and tools were used to gather the suppliers, inputs, processes, outputs, and customers. Their data collection methods quickly became the SIPOC diagram. The SIPOC diagram is not only used to identify the process outputs and the customers receiving those outputs, it also helps scope the project so that everyone involved on the team sees the project in the same way.

Those companies who have implemented SIPOC have had successful results due to increased communication. The easy-to-read SIPOC chart allows everyone at the company to easily identify the process and effectively communicate their needs with one another.

Businesses that are using Six Sigma use SIPOC diagrams to avoid negative developments. The diagrams are used as a communication tool among employers, middle managers, managers, and top-level officials.

SIPOC diagrams are used as guidelines that detail each and every detail in the business process in an understandable language which makes it easier for everyone involved to have the same view of the project. Most businesses appreciate the use of SIPOC diagrams for their IT personnel. Since IT personnel speak in a different language from other members at the company, the SIPOC diagram allow everyone to understand the same language and obtain timely feedback and input from the different departments.

Management and IT personnel can add new business requirements to the SPIOC diagram at any time if the new requirements can be included without major overhauls. Several companies have found that using an SIPOC diagram will save them additional costs on other training programs to improve communications. If the Six Sigma program is to be successful, it cannot produce more than 3.4 defects per million opportunities, where an opportunity is defined as a chance for nonconformance.

Companies generally implement Six Sigma if they are failing to meet the needs of their customers. Six Sigma can help to improve any organization no matter how large or small it is. The Six Sigma methodology is a problem solving method that focuses on understanding the problem, collecting and analyzing data, identifying what the root causes of the problems are and finding ways to implement solutions. Manufacturing organizations are seen as a process and Six Sigma methods are designed to improve your existing processes.

If done properly Six Sigma will reduce costs, improve efficiency and ultimately lead to your customers overall satisfaction. Dedication to the process is essential along with strong communication between all levels. Six Sigma is more than a process change; it is a complete mindset change for the entire organization.