SIPOC
SIPOC is an acronym, a six-sigma tool that stands for suppliers, inputs, process, outputs and customers. Six-sigma a business management strategy was developed by Motorola in 1986 to improve production and minimize mistakes. The basic idea was to create a format for the improvement of quality process, by creating an infrastructure for companies to follow.
Six-sigma projects follow a specific series of steps, SIPOC is no
different.The idea is simple enough-review and analyze all steps in a
process then find ways to improve it. This tool can be(and is) used in a
wide variety of industries seeking to optimize performance, lower
production costs, etc; or in other words create a better business model.
This method breaks down business to a science all while leaving room for improvements and alterations.
As technology and ideas shift forward so will the business model and SIPOC will accommodate those shifts in thinking. The beauty of the model is that as companies grow, so does its design. Open-ended with room for advancement the tool is primarily used to identify all relevant issue associated with a process improvement project before work begins.
The six-sigma tool SIPOC was designed to help understand the purpose and scope of a process.This is achieved by stakeholders at every level of the process. From conceptualization to completion every facet is considered by stakeholders.When starting a new process the order to follow is: customer backwards to supplier, however if an existing model is used the opposite is true.
SIPOC
- Suppliers-Provide inputs
- Inputs-define the material, service and/or information used
- Process-the series of activities that add value to inputs
- Outputs-the product, service or information
- Customers-the receivers of the outputs
Within the realm of the business world, this model is applied numerously and significantly by every type of business imaginable. The outline works because it covers all bases and seeks ways to improve upon the established methods currently in use. This benefits both consumer and supplier by fine-tuning the process until it becomes both time effective and cost-productive. Customers receive a polished product/ service, while suppliers save time and money doing what they do best- supply the demand.
SIPOC is simply a birds-eye view of the overall process and its recipients. The process views what works, what doesn't and creates ways to make the process more reliable and efficient. Tried and true the method is simple yet complex,satisfying and beautiful in its vast simplicity.
Categories: Six Sigma Success Stories