Gaining a clear understanding of the entire process often proves more difficult in practice than expected. To create structure and improve processes, the SIPOC model can be applied. In this blog, you will learn what SIPOC stands for, how to create a SIPOC effectively, and what a good SIPOC example should include.
What is the SIPOC model?
SIPOC is a visual tool that helps to understand a process at a high level. The acronym SIPOC stands for Supplier, Input, Process, Output, and Customer. The SIPOC model originates from the Six Sigma methodology – a key approach for achieving quality objectives within lean practices. Particularly in the Define phase of the DMAIC cycle, the SIPOC model is frequently used. The purpose of SIPOC is to provide a clear overview of all elements that influence a process, without diving too deeply into the details right away. By showing where inputs come from, what happens to them, and who receives the final output, the entire chain is displayed in one overview. This makes bottlenecks and opportunities for improvement visible at a glance. When it comes to identifying improvement areas, using SIPOC in a lean context is an excellent choice for continuously developing the organization.
What does SIPOC stand for?
As mentioned above, the SIPOC diagram consists of five columns: Supplier, Input, Process, Output, and Customer. Each column represents an important component of the process, but together they provide a complete overview of the value stream. Below, we explain how to fill in each column of the SIPOC diagram.
Supplier
The supplier is the party that provides the input needed to start the process. This can be internal departments, external suppliers, or even machines. The goal is to clarify who is responsible for the input and where any variation in quality or delivery might originate. In a production environment, for example, the supplier could be a raw material provider or an internal department supplying components. By identifying this specifically in the SIPOC model, it immediately becomes clear where improvements in the chain can best be implemented first.
Input
The input consists of the resources, information, or materials required to carry out the process. These can be physical raw materials, but also data, specifications, or instructions. This SIPOC step is intended to determine which input elements are necessary for a good end result. If the input does not meet the requirements, the entire process may suffer. Think of a packaging process, where inputs such as labels, materials, or production instructions are essential to complete the packaging successfully.
Process
In the Process column, the sequence of steps carried out to transform input into output is described. You can see this as the core of the SIPOC model. It is important that the process is represented at a high level – typically in three to seven steps – providing a general overview rather than a detailed work instruction. For example, a process might include the following steps: receiving raw materials (1), production (2), inspection (3), packaging (4), and shipping (5).
Output
The Output is the result of the process. This can be a physical product, but also a service, report, or digital file. The goal is to record what the process delivers and in what form. By defining this, it becomes easier to assess whether the output meets the customer’s expectations. For instance, the output of a quality control process could be a rejected batch.
Customer
At the end of the SIPOC lean model, we find the recipient of the output: the Customer. This can be an external customer or an internal department that receives the output to use in the next process. Think of a production line operator who needs the machine to continue manufacturing. In this final step of the SIPOC analysis, it is important to understand who the customer is and what they expect. Gaining insight into customer needs helps align processes more effectively and prevent waste.
How to conduct a SIPOC analysis
Creating a SIPOC is not complicated, but it does require good collaboration between the parties involved. To give a clear picture of the SIPOC analysis and the best way to carry it out, we have developed the following step-by-step plan:
- Define the process you want to analyse
Choose one clearly bounded process. This could be ‘Packaging finished products’ or ‘Handling customer complaints’. - Describe the purpose of the process
What should this process deliver and why was it designed? This helps keep the analysis focused. - Draw the SIPOC diagram
Create five columns headed Supplier, Input, Process, Output, and Customer. - Describe the Process (P)
Start with the process steps, usually three to seven. Keep it concise. - Fill in the Output (O)
What is the result of the process? What does it produce? - Identify the Customer (C)
Who receives this output? What are their expectations? - Then fill in the Input (I)
What is required for this process to be carried out correctly? - Note the Suppliers (S)
Who provides this input? - Review the whole together
Discuss whether the diagram is correct and whether all stakeholders recognize themselves in it. This creates buy-in for improvements.
Example of a SIPOC diagram
A good SIPOC template immediately shows who is involved in the process, what comes in as input, and what output the process delivers. Below is an example of what this might look like in a SIPOC diagram.
| Supplier | Input | Process | Output | Customer |
|---|---|---|---|---|
| Packaging supplier | Packaging material | 1. Receive raw materials | Packaged product | Distribution centre |
| Production department | Product batch | 2. Package the product | Labels applied | End customer |
| Quality department | Inspection report | 3. Perform quality check | Approved batch | Sales department |
Questions about SIPOC? Get in touch.
Do you already have a SIPOC template and want to create one that works perfectly for your organization? Our team is happy to help you bring more insight, structure, and efficiency to your processes. Feel free to contact us if you would like to learn how our EZ-GO platform can support your daily operations!