What Is SIPOC and How to Create a Diagram for Your Business
Companies need process improvement due to various reasons. Whether in the production section or shipping, business owners make constant decisions regarding multiple projects, and sometimes it can be difficult to keep everybody on the same page.
Thankfully, the SIPOC diagram does it very well. Sometimes, having a massive volume of information can be hard to digest, and the SIPOC model makes it more visual for easier understanding.
In this article, we will show you how to create the perfect SIPOC diagram template for your business. Be sure to follow each step carefully to guarantee a great document that will help not only your team but also your relevant stakeholders.
What Is a SIPOC Diagram
The acronym SIPOC stands for five different categories that compose the visual tool: Suppliers, Inputs, Process, Outputs, and Customers.
Each one regards a different aspect of the business. Together, the SIPOC elements compose one of the best tools for process mapping and improvement.
When searching for SIPOC templates, you will often find them referred to as part of the Six Sigma DMAIC methodology. Six Sigma’s primary objective is focusing on problem-solving methods and strategies, especially related to businesses.
Combining SIPOC with software will lead to a more organized plan of action, helping all the stakeholders and team members to better understand how to execute tasks.
How to Create SIPOC Diagrams
Now that you know what a SIPOC diagram template is and how it impacts your business, it is time to see how to create your own document. Follow all step process steps carefully to guarantee the best results out of your SIPOC.
Everything can have a different impact, from the visual format to the relevant elements you include. Here are the main steps for creating your SIPOC:
Identify Suppliers
When doing SIPOC diagrams, the first step is to list all the suppliers that help your business function properly. Every party providing the materials you use and directly impacting the outputs is considered a supplier.
It is important to note that sometimes you will have different suppliers for each business input. Double-check to ensure that you are not missing anyone.
This is fundamental for a good SIPOC. Clearly understanding who your suppliers are and what they provide you is indispensable, especially when building a complex project.
Identify Inputs
Inputs and outputs are vital when doing SIPOC, and they directly impact every aspect of your company. First, you need to identify the inputs required for your business process to work.
If you are having difficulty listing them, look back at your suppliers. They are the ones who provide input for you. The input required is raw materials and other vital parts for everything to work correctly.
Understand that you don’t need to list every single one of them. Listing the most important ones, like overarching inputs, is enough.
Underline the Process
You don’t have to write every detail about your business process. In your SIPOC diagram, you will overview it and list the four or five most important steps and procedures.
It is recommended that you list these business processes in chronological order. This will make it easier for the board members to understand and be on the same page as the rest.
In this step, you can do a simple flow chart if you prefer. Make sure to list only the vital parts and not fill the SIPOC with unnecessary steps.
Identify Outputs
Back to the inputs and outputs, after overviewing the process, it is time to list your outputs. When doing this step of your SIPOC diagram, it is common to use only nouns to list them.
Differently from the inputs, here you can list every one of them. The outputs can be items like:
Materials
Products
Services
Information
Identify Customers
The last letter of the SIPOC diagram regards the customers of a business and their requirements. You will list and briefly describe all processes and measurements directly related to the product.
Although this kind of information is connected to customers, it can also refer to regulatory bodies depending on your business. Be sure to consider them as well.
Listing these processes and measurements is essential. Don’t forget to list all of them.
Tips for a Better SIPOC Diagram
If you want to create even better SIPOC documents, these tips are for you. These steps will not only make your document look better but also make it easier to understand.
When starting the define phase or listing your main suppliers, clarity is the base for optimization. Here are quick tips that will help in this task:
Use Color Codes
Visually pleasing colors are more than just superficial details. Having a color code can help people to understand your document better. You should use a different color for each category (suppliers, inputs, process, outputs, and customers).
Keep It Always Updated
Sometimes changes must be made, and the SIPOC diagram is no different. Correcting process outputs or adding new business process steps are standard practices. You must keep it always fresh to correctly represent your business and its current methodology.
Where to Create a SIPOC Diagram
When searching for tools to create a SIPOC document, many options are available online. Each one has particular features and tools, from known software to specialized programs.
Among all the options available, we highly recommend using Microsoft PowerPoint. The software allows you to edit even the smallest details of your document and create visually outstanding presentations that can be displayed to all team members and stakeholders. Moreover, MS PowerPoint is an industry standard, meaning that you won’t need specialized software for each task that you do.
If you don’t have a Microsoft Office activation key, you can find one at RoyalCDKeys. This way, you can save money and still have access to all tools and features.
Ready to Use Templates
If you don’t want to create your SIPOC diagram from scratch, there is no problem. Here are some templates that you can download and edit using PowerPoint.
Be sure to choose a SIPOC diagram that fits your needs and expectations. This way, you will have a document that guarantees better results for your business.
Template #1
Simple SIPOC template for any kind of business. A template that features explanations for each category.
Template #2
Dark SIPOC presentation template. Document featuring all the main categories on a black background.
Template #3
SIPOC list template. A document that features a list-style diagram for filling each category.
Conclusion on SIPOCs
SIPOCs are powerful tools for mapping the processes of your business and making everyone understand it. From the measure phase to more detailed steps like inputs and outputs, the SIPOC is vital for good business analysis.
Although making a template for this task is relatively simple, the person responsible for the document must be really careful when filling in the categories. Every detail can make a huge difference.
Now that you know everything you need about the SIPOC methodology, it is time to start creating your own template. Be sure to follow each step to end up with a document that positively impacts your company.