MSG Team's other articles

11126 The Role of the Independent Directors

With the explosion of scandals pertaining to corporates due to mismanagement and fraud in recent years, the regulators all over the world have been implementing a series of policies aimed at improving corporate governance and ensuring that companies follow ethical and normative rules of business. A part of this initiative has been to goad the […]

9608 How Emerging Markets Transformed Themselves Over the Last Few Decades

From Backwaters to Powerhouses At the start of the 1970s a widely held belief in the United States and in Europe was about how there were no markets outside of their regions. The implication was that the Third World countries were not worthy of foreign investment as they were steeped in backwardness, immersed in poverty, […]

11629 Treasury Operations of Banks

Modern banks are huge entities employing thousands of people in their workforce. However, amongst the various departments present at banks, treasury department is the most important as well as the least understood. In this article, we will provide a brief overview of these treasury operations. Asset Liability Management The primary function of the treasury department […]

11041 Risks Associated with Sponsorship from Sponsored Entity’s Perspective

In the previous article, we have already seen that sponsorship is not really a risk-free activity. We became aware of the various types of risks which are faced by sponsors when they provide monetary assistance to sporting leagues. However, it is important to realize that the risks are not one-sided. Just like, sponsors are exposed […]

8953 Direct Public Offerings: Threat to Investment Banking

The costs of issuing an initial public offer can be prohibitive. There are many companies across the world that want to access finances from the general public but cannot do so because they find the costs prohibitive. Hence, in order to bypass the floatation costs, these companies decide to go public without taking the help […]

Search with tags

  • No tags available.

The SIPOC Chart, being one of the fundamental documents of any process improvement project must be developed in such a manner that it is easy to understand. It must also be coherent with the logic inbuilt in the process.

There is a method which has been described to ensure the proper development of the SIPOC Chart. The process is as follows:

  1. Start with Process: Most organizations will have explicit flow charts or process maps which exactly display all the stages of the process. Since the process has been explicitly defined, there will be little ambiguity. This is the reason why it is a good place to begin developing your SIPOC Matrix. List down each activity and event as mentioned in the process map. However, before the listing down process begins it is essential that one verifies the level which needs to be listed down.

  2. List the Metrics Measured at Process Steps: A well-defined process is one in which the management knows what behavior to expect. In management parlance they say what can be measured can be managed. Therefore the correct metrics must be developed that ensure that a look at these numbers will tell you the exact state of affairs within the process. This may not be important in a SIPOC map, but it is essential to know the target metrics before the SIPOC process is completed. Otherwise an iteration would be required and time will be wasted while executing the project.

  3. Complete Outputs with Measurements: The next step is to understand what the ideal output of the process should be. This is difficult to understand because sometimes the customers are not very explicit about their requirements. Once again, it must be ensured that the outputs are not described subjectively. The measurement should be objective. There must be an agreement between the process owners and the customers regarding the objectives which must be clearly defined and unambiguous. Map the outflow both in terms of materials as well as information.

  4. Complete Inputs with Measurements: Based on the outputs work back the inputs that will be required. Once again ensure that you consider both the material as well as information that will be required for the smooth functioning of the process. While you are mapping the inputs, also fill out the suppliers that will provide you with the same. Doing this at each and every stage of the process will help you complete the matrix.

  5. Prioritize and Plan: Once your matrix has been completed, you need to understand that not all inputs or outputs have the same weightage in the eyes of the customer. There are some outputs that the customers consider to be more important than others. Hence more attention needs to paid towards such critical outputs. Therefore outputs and customers must be prioritized. Same is the case with inputs and suppliers.

SIPOC provides immense insight into the process. It is said that insight is the basis of all innovaton. Hence SIPOC can be said to be the cause of innovation.

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 Posts

Executive Pay: The Curious Case of Carlos Ghosn’s Arrest

MSG Team

A Brief on Customs Brokerage

MSG Team