SIPOC

What it means

SIPOC is a high-level process map that captures suppliers, inputs, the main process steps, outputs and customers in a single table. The name is an acronym of those five words. It helps define the boundaries of a process quickly before any detailed analysis.

Unlike a detailed process map, which records every step, decision and exception, SIPOC describes the process in just five to seven main steps. It is a bird's-eye view that aligns the team on what is part of the process and what is not.

The tool is used mainly at the start of improvement projects in Six Sigma and lean. It shows who contributes to the process, what they need and whom it serves, helping determine who should be involved in the project and what to measure.

How it works in practice

For the monthly close in an accounting firm, suppliers might be the client, the bank and the payroll accountant; inputs the documents, statements and payroll data; steps receiving documents, posting, review, VAT and reporting; outputs the return and results overview; and customers the client and the tax office.

The table is filled in with the people who work in the process, often starting from customers and outputs: what the customer needs and to what standard. Then the necessary inputs and where they come from are added.

SIPOC is a good starting point for further steps: a detailed map, value stream mapping or performance measurement. Often simply completing it reveals that the team is unclear about who the process's customer is or which inputs are missing.

What to watch out for

An overly detailed SIPOC loses its point. If the process has twenty steps, it is no longer an overview but a detailed map. The aim is agreement on boundaries and main elements, not capturing every exception.

SIPOC describes the process as it should be or as the team imagines it. The actual flow may differ, so it should be checked through observation and data, not just discussion in a meeting room.