MSG Team's other articles

11594 Top Five Challenges Facing the Chinese Economy

The Chinese economic prowess is second to none. They have certainly pulled off an economic miracle since Mao Zedong began unleashing his tough policies on the people. The transformation was painful. However, as a result, China has become a global economic behemoth, a power to be feared. It is the second largest economy in the […]

9476 Good Inventory Management Practices

Good inventory Management practices in the company help by adding value in terms of having control over and maintaining lean inventory. Inventory should not be too much or too less. Both the situations are bad for the company. However often we see that inventory is not focused upon by the management and hence lot of […]

11892 What is Six Sigma ? – A Tool to Conquer Variability

Definition of Six Sigma Six Sigma is not a mere methodology or a quality tool. It is a philosophy i.e. a systematic way of thinking to solve quality problems. Six sigma involves use of statistics to convert raw data into facts about how the processes of the organization are being run. The thrust is on […]

9893 Increasing Exports through Free Trade Zones (FTZ)

Countries have long since realized the importance of furthering their interest by supporting the International Trade and Exports from in house and actively supporting the industries to become globally competitive. Besides this objective, many governments also aim to promote Foreign Direct Investment into the country and encourage Multi National Companies to set shop and manufacture […]

10728 Privatization of Water

The world is facing a scarcity of water. Each year about 3.4 million people die due to the scarcity of water! Several million more fall sick due to the poor sanitary conditions of the water supplied. The current situation is proof of the fact that the global water supply is not being managed properly. Many […]

Search with tags

  • No tags available.

The Supplier, Input, Process, Output and Customer (SIPOC) Matrix is one of the most important tools that must be used at the beginning of any six sigma project. It is common practice amongst lower level management to view SIPOC as another template to be filled for the execution of a Six Sigma Project. However, people who truly know about what SIPOC is vouch for its usefulness. Some of the premier usages of SIPOC have been written as follows:

Levels of Process: Using the SIPOC Chart at the beginning of a six sigma project ensures that there is unanimity about the process being discovered. Any student of Business Process Management would know that Processes do operate at various levels. It can become difficult if people within the project team have different ideas with regards to the level of the process that is being worked upon. SIPOC comes to the rescue here and anyone who has doubt or confusion can look at the SIPOC chart to clarify.

Scope of Project: Processes tend to be continuous. In fact when one ends, the other one must start immediately. Since the whole organization is a link between the input and output stages, it can be a subjective matter as to where a process really begins or ends.

For instance some might say that the recruitment process begins at the stage when advertisements are placed in the newspapers, while others may say that it begins after the candidate has walked in for an interview. Both may be correct and present their case convincingly. However this needs to be done before the project has started.

Ambiguity in the middle of a six sigma execution can spell disaster for the people involved. SIPOC helps ensure that the scope of the project is known crystal clear. Participants will know exactly where the process starts where it ends and what it is supposed to do.

SIPOC Matrix

Value Stream Maps: The SIPOC chart comes in as a handy tool while creating Value Stream Maps. This is because the SIPOC Matrix ensures that the flow of material and information has been traced step by step and recorded. This information can be used in the value stream map to generate an “as-is” process, based on which further improvements are sought and a “to-be” process is generated.

Customer as a Supplier: The SIPOC is also essential in understanding information loops. In many cases, the customer himself/herself is the supplier. This is because the customer supplies vital information in the form of requirements. In such cases a method must be obtained to ensure that correct and material information is collected from the customers.

Entities Can be Suppliers or Customers: In many cases, suppliers can be customers too. For instance when you have to place an order with your supplier, you provide the outputs to them. Hence your suppliers are customers in that process.

Such reversal of roles is common in the case of processes. A SIPOC helps structure the process in such a way that it is easy to understand for all the people involved with minimal ambiguity.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Creating a SIPOC Chart

MSG Team

Check Sheet – A Basic Six Sigma Tool

MSG Team

Challenges Faced in Conducting Voice of Customer Exercise

MSG Team