When creating new business processes, analysing and improving existing ones, or communicating a process with stakeholders, the SIPOC model may be what you need to have a clear understanding of the key parts of a high-level process.

Business processes exist at different levels and most of the processes often exist within a greater process that links other smaller-level processes together. A SIPOC diagram can help you to depict a process at a high-level; this being one that does not include all the fine detail of what tasks are actually performed and how, but one that stretches across departments, bringing together all the key elements of an operational process to provide goods and services to consumers, other businesses or even internal staff members (when considering the delivery of corporate training for example).

A SIPOC diagram is a visual representation of the core elements that feed into and out of the main stages of your process, creating useful points of reference when communicating and enabling you to keep the focus on these core parts of the process being discussed. This model is often utilised in quality assurance and lean management (the continuous improvement of a company) by supporting in streamlining processes, anticipating and identifying problems, and reducing wasteful activities.

What is a SIPOC diagram?

This type of workflow diagram is widely used in business process management and stands for Suppliers, Inputs, Process, Outputs and Customers. It is often displayed in the form of a table, with each column representing one letter in ‘SIPOC’. The model illustrates the direct relationship between customer expectations and contributions from suppliers, and how these are brought together through the process.

How to create a SIPOC diagram

Keep things simple. In each column, list just the key stages/elements of the highest-level of the process. There is no need to follow the columns in order, so depending on the process you are focusing on and whether it is an existing or future process, it may be easiest to start from the middle, ‘Process’, column, or even to work backwards from ‘Customers’ to ‘Suppliers’.

Suppliers

• These are the stakeholders that provide the inputs needed for the process to be executed. They are critical to the successful delivery of outputs and they should understand their role within the system. This facilitates coordinating their supply of inputs as required, and allows for easier adaptation to changes in demand from ‘Customers’.
• Suppliers could include team members who perform tasks within the process, manufacturers who supply materials, the entity from which land is rented and even the customers themselves who may need to supply billing information.

Inputs

• These are the resources and materials required from the suppliers for the process to be executed. They can include anything from physical/digital materials, tools/equipment and space, to services, knowledge and information.

Process

• Split your process up into approximately five high-level steps. These are steps that convert inputs to outputs and can be displayed in the form of a flowchart within your SIPOC diagram.
• If the process is complex and involves many different distinct steps, you could try to group these into larger stages.

Output

• List the resulting outputs of the process, helping you identify what you actually get from your ‘Inputs’. Just like with inputs, this includes physical/digital products, services, information and anything that your team or your customers get from the process.

Customers

• These are the people or organisations who are the final recipients of the product or service and can be both external clients and internal team members. Assessing this column can help you to focus on the real needs and expectations of those stakeholder and design or adapt the strategic delivery of the outputs.
• Your own company receiving payment for the good or service delivered is also considered as a customer to the outputs.

Conclusion

The SIPOC model can support you in identifying whether customer or stakeholder needs are effectively being met through the products and services offered by your organisation, whilst also assessing whether suppliers are meeting the requirements of the process. Additionally, the SIPOC model helps decision-makers to gauge whether the team is working through the process in the most efficient manner.

If you enjoyed learning about the SIPOC Model, and are interested in furthering your education in this area, you could consider enquiring about our Level 5 Award in Operations Management (forming part of our Level 5 Undergraduate Diploma in Business and Management and our Level 6 Bachelor in Business and Management) or the Henley Executive MBA.