Please DO NOT Start Your Continuous Improvement Project Without a SIPOC Diagram!

We all know the hardest part of taking on a Continuous Improvement project is getting started. I am by no means trying to slow you down with the title of this article, but I am cautioning leaders and practitioners alike that starting down the path of Continuous Improvement projects without a SIPOC Diagram as part of the beginning stages of the project could be detrimental to its success.

SIPOC stands for Suppliers – Input – Process – Outputs – Customer. With any Continuous Improvement activity, it is crucial to fully understand these parameters of the workstream. By performing this group activity, the team will uncover the various components of the “engine” that is creating work and will shed light on cross functional interdependencies as well as the current state of the workstream.

In this article I am going to briefly explain the following things:

1.     Who should facilitate the development of a SIPOC Diagram?

2.     What is a SIPOC Diagram?

3.     When should I use a SIPOC Diagram?

4.     Why should a SIPOC Diagram be used?

5.     How do you create a SIPOC Diagram?

Who should facilitate the development of a SIPOC Diagram?

The person responsible for developing a SIPOC Diagram should have the ability to facilitate group exercises and workshop type activity. This person does not necessarily have to have a working knowledge of the intricacies of the workstream but should have the ability to work through process related project and engage the team along the way. The leader of the workstream can be the person to facilitate the development of SIPOC diagram but it can certainly be a neutral person. Being a neutral person to the workstream could benefit the activity by way of ensuring full team engagement; leadership included. 

What is a SIPOC Diagram?

A SIPOC Diagram is a tool that is used to clearly identify Suppliers, Inputs, Process, Outputs and Customers. Suppliers are involved in providing the necessary material or resources necessary for a designated workstream to perform work and be efficient. Input are the various places that information or material come from to be able to produce product or provide service. The Process are the steps it takes for the work to happen. It is usually a high-level look into the process to see how the product or service moves through the workstream. The more detailed processes will be outlined in the Process or Value Stream Maps created after the SIPOC is developed and finalized. Outputs are what is being delivered out of the workstream once work has been completed. This can either be internally to other workstreams or externally to your customers. The Customer segment is the most important and is usually mistaken for highlighting the external customer only. This is a fundamental mistake that I have seen in developing SIPOC Diagrams. If there is one thing you get out this article this should be it; the CUSTOMER portion of the SIPOC Diagram applies not only to the external customer but the internal customer as well. The people that are depending on completion of your work, process, report, e-mail, metrics, etc. should always be identified in the analysis of this portion of the SIPOC development.      

When should I use a SIPOC Diagram?

As a person that thinks with a very binary mindset this question is tough for me to answer. I would say the question of when a SIPOC Diagram should be used is completely contingent upon what you and your team are trying to improve or solve for. If the Continuous Improvement activity involves a team that has been assigned to go “fix” a problem or bottleneck in the business, I would say a SIPOC Diagram is completely necessary. It is necessary because this activity will enable team engagement and will force dedicated resources to share the “tribal” knowledge that most workstreams have. 

If the improvement activity involves just an individual contributor, then I would consider it to be part of normal work or a task that needs complete. If an idea spawns from the task being done that can improve not only the work of the individual but also the work of the team then a business case should be made, and a team should be assigned. 

Why should a SIPOC Diagram be used?

Quite simple, in order for any process to be improved upon you must have a baseline measurement or current state of workstream to improve upon. Without understanding these key elements of the workstream that you or your team are performing a Continuous Improvement activity for; the rest of the event will more than likely lack clear understanding of all facets of the workstream. This can cause confusion as to what is being solved for. It can skew what the actual problem statement might be. It can cause a lack of team engagement. Most importantly it can result in project “scope creep” which is the main cause of projects being started but never driven to completion. This ultimately results in reverting back to the norm and tolerating the problem that is causing potential revenue loss and process inefficiencies.    

How do you create a SIPOC Diagram?

There are many ways this exercise can be facilitated but at RTG Solutions Group Inc. we have a proven method and approach that we use with our clients. When I or someone from the RTG team is facilitating this workshop exercise it is usually very close, if not in the area or place of work (Gemba). We simply use a whiteboard or easel paper to outline the various elements of the SIPOC Diagram and then transfer the information and create an electronic version of the diagram in Microsoft Visio. 

Although it sounds simple in theory the actual creation of the diagram is not the difficult part. The difficult part lies in the facilitation of the exercise. Facilitating these types of events have a lot to do with “feeling” the audience and asking the right question at the right time. This ensures the facilitator will capture all facets of the current state from the people that know the process the best. It also enables to the team members to engage in the improvement activity which is paramount to creating an atmosphere of Continuous Improvement. 

In addition, the facilitator has the responsibility of mediating the workshop to ensure every idea, thought and concern is talked through and dealt with. Facilitation is key to the successful development and usefulness of a SIPOC Diagram.

Conclusion

In conclusion, I would like to reinforce the absolute need to facilitate this exercise as part of the Planning Phase of your Continuous Improvement event. In my experience, not designing a SIPOC Diagram in the beginning phases of a project will most certainly lead to an increase in project scope and ultimately to a team that is never able to take credit for completed work that could lead to other Continuous Improvement projects. Knowing all facets of the workstream will provide the team clarity around what they are solving for without the need to be burdened with other inefficiencies that may be identified along the way. Team engagement and solving one problem at a time; it’s the essence of Continuous Improvement.  

If you or someone from your organization can benefit from the facilitation of this type of workshop exercise and are looking for a way to promote team engagement as well as foster an environment of Continuous Improvement, RTG Solutions Group would be more than happy to visit with you onsite and guide you through any of your Process Improvement needs. Contact us here. Thanks for reading!