SIX SIGMA GREENBELT PROGRAM

DMAIC
- Moving towards defect free processes

Alexiv Villas
Oct 6-7, 2010

WWW.ECCINTERNATIONAL.COM

PHILIPPINES MALAYSIA VIETNAM INDONESIA INDIA CHINA 1

DAY 1
• Voice of the Customer

• CTQ Drilldown

• Project Selection Basics

• Project Charter and Team Charter

• Process Mapping - Basics

• Exercises

• Project Discussions
2
 Kano Model

• Model to study customer requirements and different perspectives of the same

• Simple model without a quantitative conversion capability

3
Q.1 Understanding the Voice of the Customer (VOC)

4
Quality Function Deployment

Translating customer
requirements into
system requirements
throughout the entire
development process

5
 Purpose of QFD

 Improve customer satisfaction

 Reduce development time
 Improve internal
communication
 Better document key issues
 Improve morale and efficiency
 Reduction in design changes
 Increased competitiveness
 High market acceptance

6
QFD Approach

Customer Requirements

Functional Measures

Parts Characteristic

Manufacturing Process

Production Requirements

7
 QFD Approach

1. Customer Requirements
3
2. Technical Requirements

2 3. Correlation Matrix

4. Relationship Matrix

5. Planning Matrix
1 4 5
6. Total Rank

7. Priority Setting
6

8
QFD Approach

9
Q.2

10
 Approaches to Project Selection
There are three basic approaches to Project Selection…

“Blatantly Obvious” “Brainstorming Approach”

Identifies projects based on individual’s

Things that clearly occur “experience” and “tribal knowledge” of
on a repetitive basis and areas that may be creating problems
in delivering our service(s) / product(s)
present problems in and hopefully tie to bottom-line
delivering our service(s) business impact.
or product(s).

“Structured Approach”
Identifies projects based on organizational data, provides a direct plan to effect core business
metrics that have bottom-line impact.

All three ways work…the Structured Approach is the most desirable.

11
Project Selection – Core Components

Business Case – The Business Case is a high level articulation of the

area of concern. This case answers two primary questions; one, what
is the business motivation for considering the project and two, what is
our general area of focus for the improvement effort?

Project Charter – The Project Charter is a more detailed version of the

Business Case. This document further focuses the improvement
effort. It can be characterized by two primary sections, one, basic
project information and simple project performance metrics.

Benefits Analysis – The Benefits Analysis is a comprehensive financial

evaluation of the project. This analysis is concerned with the detail of
the benefits in regard to cost & revenue impact that we are expecting
to realize as a result of the project.

12
 Project Selection - Governance
Responsible Frequency
Party Resources of Update

Business Champion Business Unit

N/A
Case (Process Owner) Members

Champion (Process
Project
Six Sigma Belt Owner) & Ongoing
Charter
Master Black Belt
Benefits Capture
Champion (Process
Benefits Manager or Ongoing /
Owner) &
Analysis Unit Financial D,M,A,I,C
Six Sigma Belt
Rep

13
A Structured Approach – A Starting Point
The Starting Point is defined by the Champion or Process Owner and
the Business Case is the output.
– These are some examples of business metrics or Key
Performance Indicators commonly referred to as KPI’s.
– The tree diagram is used to facilitate the process of breaking
down the metric of interest.
 EBIT Level 2
 Cycle time
 Defects Level 2
Level 1
 Cost
Level 2
 Revenue
 Complaints Level 2

 Compliance
 Safety
14
A Structured Approach - Snapshot

The KPI’s need to broken down into actionable levels.

Business Measures
Actionable Level
Key Performance Indicators (KPIs)

Level 2 Level 3 Activities Processes

Level 1
Level 2 Level 4 Activities Processes

15
Business Case Components – Level 1
Primary Business Measure or Key Performance Indicator
(KPI)

Level 2 Level 3 Activities Processes

Level 1
Level 2 Level 4 Activities Processes

– Focus on one primary business measure or KPI.

– Primary business measure should bear a direct line of site with the
organizations strategic objective.
– As the Champion narrows in on the greatest opportunity for
improvement, this provides a clear focus for how the success will be
measured.

16
Business Case Components – Business Measures

Post business measures (product/service) of the primary

business measure are lower level metrics and must focus on
the end product to avoid internal optimization at expense of
total optimization.

Business Business
Activities Processes
Primary Business Measure Measure

Measure Business Business

Activities Processes
Measure Measure

17
Business Case Components - Activities

Business Business
Activities Processes
Primary Business Measure Measure

Measure Business Business

Activities Processes
Measure Measure

Y = f (x1, x2, x3…xn )

1st Call Resolution = f (Calls, Operators, Resolutions…xn )

Black Box Testing = f (Specifications, Simulation, Engineering…xn)

18
Business Case Components - Processes

Business Business
Activities Processes
Primary Business Measure Measure

Measure Business Business

Activities Processes
Measure Measure

Y = f (x1, x2, x3…xn )

Resolutions = f (New Customers, Existing Customers, Defective Products…xn )

Simulation = f (Design, Data, modeling…xn )

19
 What is a Business Case?

The Business Case communicates the need for the project in

terms of meeting business objectives.

The components are:

– Output unit (product/service) for external customer
– Primary business measure of output unit for project
– Baseline performance of primary business measure
– Gap in baseline performance of primary business measure from
business objective

Let’s get
down to
business!
20
 Business Case

Business Case Development

• The business case describes the benefit for undertaking a
project. The business case addresses the following
questions:
– Does this project align with other business initiative?
– What is the focus for the project team?

• What impacts will this project have on other business

units and employees?

• What benefits will be derived from this project?

• Has the value of the benefits been qualified?

21
 Business Case Example

During FY 2005, the 1st Time Call Resolution Efficiency

for New Customer Hardware Setup was 89% .

This represents a gap of 8% from the industry standard

of 93% that amounts to US $2,000,000 of annualized
cost impact.

22
 The Business Case Template

Fill in the Blanks for Your Project:

During ___________________________________ , the ____________________ for

(Period of time for baseline performance) (Primary business measure)

________________________ was _________________ .

(A key business process) (Baseline performance)

This gap of ____________________________

(Business objective target vs. baseline)

from ___________________ represents ____________________ of cost impact.

(Business objective) (Cost impact of gap)

23
Q.3 Exercise objective: To understand how to create a “strong”
business case and select the right project

During ________________________ , the ____________________ for

(Period of time for baseline performance) (Primary business measure)

_______________________ was ___________________ .

(A key business process) (Baseline performance)

This gap of __________________________

(Business objective target vs. baseline)

from __________________ represents ____________ of cost impact.

(Business objective) (Cost impact of gap)

24
Project Charter

25
 What is a Project Charter?
The Project Charter expands on the Business Case, it clarifies the
projects focus and measures of project performance and is completed by
the Six Sigma Belt.
• The Problem
Components:
• Project Scope
• Project Metrics
• Primary & Secondary
• Graphical Display of Project Metrics
• Primary & Secondary
• Standard project information
• Project, Belt & Process Owner
names
• Start date & desired End date
• Division or Business Unit
• Supporting Master Black Belt
(Mentor)
• Team Members

26
 Project Charter - Definitions

• Problem Statement - Articulates the pain of the defect or error in

the process.

• Objective Statement – States how much of an improvement is

desired from the project.

• Scope – Articulates the boundaries of the project.

• Primary Metric – The actual measure of the defect or error in the

process.

• Secondary Metric(s) – Measures of potential consequences (+ / -)

as a result of changes in the process.

• Charts – Graphical displays of the Primary and Secondary Metrics

over a period of time.
27
Project Charter - Problem Statement
Migrate the Business Case into Problem Statement…

28
 Problem Statement

Description Of The “Pain”

What Is Wrong Or Not Meeting Our Customer’s Needs?

• Who is the customer of the process?
• What is the process?

When And Where Do The Problems Occur?

How Big Is The Problem?

What’s The Impact Of The Problem?

• If I let be what will happen?
• If I reduce it what will happen?
• If I increase it what will happen?

29
 Problem Statement Example

Poor Example:
Weak Problem statement
Our Fatal accuracy score is at 80% against the client target of 95% and
we Need to improve it

Improved Example:
Fatal accuracy score (what) this quarter (when) has been observed to be
at 80% for the last 4 months (extent) against the client target 95% which
has significant impact on customer satisfaction. (impact)

30
 Problem Statement

Key Considerations/Potential Pitfalls

• Is The Problem Based On Observation (Fact) 0r Assumption (Guess)?

• Does The Problem Statement Prejudge A Root Cause?
• Can Data Be Collected By The team To Verify and Analyze The
Problem?
• Is The Problem Statement Too Narrowly or Broadly Defined?
• Is A Solution Included In The Statement?
• Would Customers Be Happy If They Knew We Were Working On This?

31
Project Charter – Objective & Scope
Consider the following for constructing your Objective & Scope

• What represents a significant improvement?

• X amount of an increase in yield
• X amount of defect reduction
• Use Framing Tools to establish the initial scope

32
 Project Scope

• What Process Will The Team Focus On?

• What Are The Boundaries Of The Process We Are To
Improve? Start Point? Stop Point?
• What Resources Are Available To The Team?
• What (If Anything) Is Out Of Bounds For The Team?
• What (If Any) Constraints Must Te Team Work Under?
• What Is The Time Commitment Expected Of Team Members?
What Will Happen To Our “Regular Jobs” While We Are Doing
The Project?

33
 8 Steps to Scope a Project
1. Identify the customer
• Who receives the process output?
• May be an internal or external customer
2. Define customer’s expectations and needs
• Ask the customer
• Think like the customer
• Rank or prioritize the expectations
3. Clearly specify your deliverables tied to those expectations
• What are the process outputs?
• Tangible and intangible deliverables
• Rank or prioritize the deliverables
• Rank your confidence in meeting each deliverable
4. Identify CTQ’s for those deliverables
• What are the specific, measurables attributes that are most critical in the
deliverables
• Select those that have the greatest impact on customer satisfaction

34
 8 Steps to Scope a Project
5. Map your process
• The process of producing the deliverables
• The process as it is working prior to the project
• If you are delivering something, there is a process, even if it has not
been formularized
6. Determine where in the process the CTQ’s can be most seriously affected
• Use detailed flowchart
• Estimate which steps contain the most variability
7. Evaluate which CTQ’s have the greatest opportunity for improvement
• Consider available resources
• Compare variation in the processes with the various CTQ’s
• Emphasize process steps which are under the control of the team
conducting the project
8. Define the project to improve the CTQ’s you have selected
• Define the defect to be attacked

35
 Importance of Scoping

• Poor/improper scoping may result in following:

– Team loses interest in the project

– Project becomes difficult to implementation
– Even after implementation, the desired/significant benefits are
not seen
– Team focuses on trivial pain areas, and missing out the vital
ones
– Process selected is too broad to handle or too small to realize
breakthrough improvements

36
 The Goal Statement

Project Objective

• Definition of The Improvement The Team Is Seeking To Accomplish

• Starts With … Reduce, Eliminate, Control, Increase.
• Tends To Start Broadly – Eventually Should Include Measurable
Target And Completion Date
• Must Not Assign Blame, Presume cause, Or Prescribe Solution!

37
SMART Problem And Goal Statements

Specific

Measurable

Attainable

Relevant

Time Bound

38
 Goal Statement Example

Poor Example:
Put in place a Transaction monitoring evaluation system to increase
the fatal accuracy.

Improved Example:
Increase the fatal accuracy from the existing 80% to 95% by the end of
first quarter 2005

39
 Project Charter – Primary Metric
Establishing the Primary Metric:
The primary metric is a very
important measure in the Six
Sigma project, this metric is
a quantified measure of the
defect or primary issue of
the project.

We can only have One

Primary metric, recall the
equation y equals f of x, well,
Quantified measure of the defect once your defect is located
– Serves as the indicator of project then Y will be your
success defect…your primary metric
– Links to the KPI or Primary Business will measure it.
measure
– Only one primary metric per project
40
Project Charter – Secondary Metrics
Establishing Secondary Metric(s):

Secondary metrics are put

in place to measure
potential changes that may
occur as a result of making
changes to our Primary
Metric.
They will Measure ancillary
changes in the process,
both positive and negative.

– Measures positive & negative consequences as a result of

changes in the process
– Can have multiple secondary metrics

41
 Project Charter – Metric Charts
Generating Charts:

Primary and Secondary

Metrics should be
continually measured and
frequently updated during
the projects lifecycle.
Use them as your gauge
of Project Success and
Status. This is where
your Project’s progress
will be apparent.
Displays Primary and Secondary metrics over time
– Should be updated regularly throughout the life of the project
– One for primary metric and one for each of the secondary metrics
– Typically Time Series Plots
42
 Milestones

• A preliminary High Level Project Plan with dates

• Tied to phases of DMAIC process
• Should be aggressive (don’t miss “window of opportunity”)
• Should be realistic (don’t force yourself into corrective rather than
preventive solutions)

1-May 7-May 16-Jun 23-Jun 7-Jul Week: 1 2 3 4

Review Charter with
Define Champion x

Measure Collect VOC x x

Analyze Complete Map x x

Improve Validate Map x

Control Collect Data x

43
 Take Aways – Project Charter

• Key elements of a charter include: Business Case, Problem and Goal

• Statements, Project Scope, Milestones and Roles.
• The team charter is a vital part of the project’s overall success. It
communicates the project direction to all members of the team
• A Problem Statement describes what is wrong while a Goal Statement
defines the improvement objective.
• A charter clarifies what is expected of the project team, keep the team
focused, keeps the team aligned with organizational priorities, and
transfers the project from the champion to the improvement team

44
Q.4 Exercise objective: To begin planning the Project
Charter deliverable.
1. Complete the Project Charter template to the best of
your ability.
2. Be prepared to present your Stakeholder Analysis to
your mentor.

45
Team Charter

46
 Team Charter
Team Roles Refresh
Sponsor Team Charter explains following:
• Review the project progress once a month • How do you want the champion to
• Provide/modify direction/alignment with business work with the team?
realities • Is the team’s role to implement or
• Provide resources required from time to time recommend?

• Remove Roadblocks • When must the team go to the

champion for approval? What authority
Black Belt/MBB does the team have to act
• Provide content knowledge on Six Sigma tools to independently?
the team • What and how do you want to inform
Project Leader the champion about the team’s
progress?
• Keep the team focused. Arrange logistics and team
meetings and raise issues with Sponsor • What is the role of the team leader and
the team coach?
Team Member (s)
• Are the right members on the team?
• Participate in meetings, collect data, do analysis Functionally? Hierarchically?
using Quality tools, provide subject matter
expertise related to process

47
What is the Financial Evaluation?
The financial evaluation establishes the value of the project.

The components are:

– Impact
OK, let’s add it up!
• Sustainable
• One-off
– Allocations
• Cost Codes / Accounting System
– Forecast
• Cash flow
• Realization schedule

Typically a financial representative is responsible for evaluating the financial

impact of the project. The Belt works in coordination to facilitate the proper
information.

48
Benefits Capture - Calculation “Template”

Whatever your organization’s protocol may be these aspects

should be accounted for within any improvement project.

There are two types of

I
M
Impact, One Off &
Sustainable Impact “One-Off” Impact
P
A
C
Sustainable
T

C
O
S
Cost Codes allocate
T

C
Reduced
Costs
Increased
Revenue
Costs
Implemen-
tation
Capital the impact to the
O
D
E
S
appropriate area in the
“Books”
F
O Realization Schedule
R (Cash Flow)
E
C
A
S
T By Period
Forecasts allow for
(i.e. Q1,Q2,Q3,Q4)
proper management of
projects and resources

49
Benefits Capture – Basic Guidelines

• Benefits should be calculated on the baseline of key business

process performance that relate to a business measure or KPI(s).

• The Project Measure (Primary Metric) has to have a direct link

between the process and it KPI(s).

• Goals have to be defined realistically to avoid under or over setting.

• Benefits should be annualized.

• Benefits should be measured in accordance with Generally

Accepted Accounting Principles (GAAP).

50
Benefits Capture - Categorization

• Projects directly impact the Income Statement or Cash Flow

Statement.

• Projects impact the Balance Sheet (working capital).

• Projects avoid expense or investment due to known or expected

events in the future (cost avoidance).

• Projects are risk management, insurance, Safety, Health,

Environment and Community related projects which prevent or
reduce severity of unpredictable events.
You don’t want to take this one home!

51
 Benefits Calculation Involvement &
Responsibility

Project D-M-A-I-C Implementation 6 Month Audit

Selection

Financial Financial Financial Financial

Representative Representative Representative Representative

Champion Black Belt Champion Process Owner

& &
Process Owner Process Owner

52
 Benefits Capture - Summary

• Performance tracking for Six Sigma Projects should use the

same discipline that would be used for tracking any other high-
profile projects.

• The A-B-C-D categories can be used to illustrate the impact of

your project or a “portfolio” of projects.

• Establish The Governess Grid for Responsibility & Involvement.

It’s a wrap!

OSSS LSS Black Belt v9.0 - Define Phase 53

53
 A Good Project
• A good project:
• Problem & goal statement clearly stated
• Defect and opportunity definition is clearly understood
• Does not presuppose a solution
• Clearly relates to the customer and customer requirements
• Aligns to the business strategy
• Uses the tools effectively
• Data driven
• A bad project:
• Project is not focused – scope is too broad
• Not clear on what you are trying to fix
• Solution is already known/mandated without proper investigation
• Working on a project that will not move the needles
• Little or no use of tools
54
 Benefits Calculation Template
The Benefits Calculation Template facilitates and aligns with the
aspects discussed for Project Accounting.

55
Q.5 Exercise objective: Calculation of Project Benefits to
the Organization

56
 Overview of Process Mapping
In order to correctly manage a process, you must be able to describe it in a
way that can be easily understood.

– The preferred method for describing a process is to identify it with a generic name,
show the workflow with a Process Map and describe its purpose with an operational
description.

– The first activity of the Measure Phase is to adequately describe the process under
investigation.

Start Step A Step B Step C Step D Finish

57
 What is Process Mapping?

• Process mapping is a tool that is used to understand, analyse and

document processes and activities in an organisation and assist in
identifying opportunities for improvement

• A process map displays the sequential steps involved in converting

a specific input into the required output

58
 Advantages of Process Mapping

Process mapping can be extremely valuable because it can identify

improvements in a number of aspects in the work place, including:

• Increases understanding of the work process

• Provides understanding of resource allocation

• Documents training procedures

• Tracks workflow

• Increases staff awareness

59
 The Process Framework

Continuous Improvement

Identify and
Analyse & TO-BE Design
understand AS-IS Design Implementation
Evaluate
Best Practices

APPROACHES
BPI BT
BPR

60
 Process Mapping
There are usually three views of a process:

1 2 3
What you THINK it is.. What it ACTUALLY is.. What it SHOULD be..

61
 Functional View v Process View

Functional orientation

Process orientation

62
 Problems with Functional working

• Bottlenecks
• Repetition
• Bureaucracy
• No ownership
• Management frustration
• Too many steps
• Customer forgotten
• Opportunities for error or even corruption

63
 From Functional to Process View

Successful re-engineering requires a shift from function to process

Stage 1 Stage 2 Stage 3

P P
R R Requisition to Payment C
u u
e P e P u
r r
c a c a s
c c
e y e y Contact to Cash t
h h
i m i m o
a a
v e v e m
s s
i n i n Recruit to Retire e
i i
n t n t r
n n
g g s
g g

Functions drive Processes are acknowledged, Processes drive the

the business but Functions dominate business

64
Standard Process Mapping Symbols

Standard symbols for process mapping (available in Microsoft

Office™, Visio™, iGrafx™ , SigmaFlow™ and other products):

A RECTANGLE indicates an A PARALLELAGRAM shows

activity. Statements within that there are data
the rectangle should begin
with a verb

A DIAMOND signifies a decision An ELLIPSE shows the start

point. Only two paths emerge from and end of the process
a decision point: No and Yes

An ARROW shows the A CIRCLE WITH A LETTER OR

connection and direction
1 NUMBER INSIDE symbolizes
the continuation of a
of flow
flowchart to another page

65
 Process Mapping Levels
Level 1 – The Macro Process Map, sometimes called a Management level or
viewpoint.
Pizza
Customer Calls for Take Make Cook Box Deliver Customer
Corre
Hungry Order Order Pizza Pizza Pizza Pizza Eats
ct

Level 2 – The Process Map, sometimes called the Worker level or viewpoint. This
example is from the perspective of the pizza chef
Pizza
Dough

No
Take Order Add Place in Observe Check Yes Remove
from Cashier Ingredients Oven Frequently if Done from Oven 1

Start New
Pizza

Scrap
No
Tape
Pizza Place in Put on
1 Correct Box
Order on Delivery Rack
Yes Box

Level 3 – The Micro Process Map, sometimes called the Improvement level or
viewpoint. Similar to a level 2, it will show more steps and tasks and on it will be
various performance data; yields, cycle time, value and non value added time, defects,
etc.
66
 Facilitating

Prepare
• Use standard flowchart symbols
• Bring people together who know the process to prepare

Execute
• Use group facilitated sessions with process owners
• Use individual interviews where appropriate
• Document process and technology opportunities for improvement as
you go
• Understand cost, quality and time (processing time and elapsed time)
implications as you go

67
 Questions to ask - Process activities

• Who are the customers of the process?

• Who performs each activity?
• What generates the process/task?
• What forms and reports are used?
• What computer systems and files are used?
• How do we do it? Why do we do it?
• What decisions are made in the process?
• What happens next? What sequence are the activities performed in?
• Who reviews it and when?
• How long does it take?
• What is the nature, frequency and cause of errors/problems?
• How are errors/problems/exceptions handled?
• What is the output? How many?
• Where does the output go?
68
 Process mapping “DOs” and “DON’Ts”
• DO map the process as it actually
happens
• DO think about the process across
the entire organisation
• DO talk to the other people who are
involved in the process
• DO define the beginning and end of
the process before you start
• DO the process map at a high level
• DO ask questions
• DON’T map the process as you
think it happens or as you think it
ought to happen
• DON’T restrict your process map to
the activities in your own
department
• DON’T work in a vacuum
• DON’T attempt to process map
before you identify a beginning and
an end
• DON’T get bogged down with too
much detail
• DON’T struggle on your own
69
A Process Map of Process Mapping

Create the Level 2 Create a Level 3

Select the process
PFM PFM

Determine
Add Performance
approach to map Perform SIPOC
the process data

Complete Level 1 Identify all X’s and Identify VA/NVA

PFM worksheet Y’s steps

Identify customer
Create Level 1 PFM
requirements

Define the scope Identify supplier

for the Level 2 PFM requirements

OSSS LSS Black Belt v9.0 - Measure Phase 70

70
Information from Process Mapping
By mapping processes we can identify many important
characteristics and develop information for other analytical tools:

1. Process inputs (X’s)

2. Supplier requirements
3. Process outputs (Y’s)
4. Actual customer needs
5. All value-added and non-value added process tasks and steps
6. Data collection points
•Cycle times
•Defects
•Inventory levels
•Cost of poor quality, etc.
7. Decision points
8. Problems that have immediate fixes
9. Process control needs

71
Cross-Functional Flowcharts - ‘Swim Lanes’

Publication Process

Publication Process
Customer

Order received
Request

The
Printing

information
Dept

to be Printing Process
published is
collected
Packaging

The printed
material is stuck
Dept

and bound
together

Spelling checks
Dept

Ready for
QA

for grammar and

distribution?
spelling are run
Shipping

Order
Fulfilment
Process

72
Cross-Functional Flowcharts - ‘Swim Lanes’

Hints:
• Use workshops / focus groups
• Keep things moving
• Encourage everyone to join in
• Energise, share and build
• Use Paper / ‘Brown Paper Technique’ / White Board /
Flipcharts / PC based tool (e.g. Microsoft VISIO)

73
 Suggested steps in process mapping

• Start with a high-level flow (Context Diagram) and then drop to the
next level of detail if necessary (i.e. sub processes)
• Define the beginning and end of each sub process (stay focused)
• Define key inputs and outputs
• Walk through each key sub process step by step
• Don't waste time: If you get bogged down, take a break or move on
to another area
• Identify process and technology opportunities for improvement as
you go or at the end of each sub process
• Verify the accuracy of the flow

74
 Summary

At this point, you should be able to:

• Understand the various approaches to project selection

• Articulate the benefits of a “Structured Approach”

• Refine and Define the business problem into a Project Charter

to display critical aspects of an improvement project

• Make initial financial impact estimate

OSSS LSS Black Belt v9.0 - Define Phase 75

75
Q.2 Creating a High-level Process Map

76
SIPOC

77
 SIPOC

SIPOC:
• A tool to identify all relevant elements of a process
• Helps to understand a complex process better
• Graphic display of steps, events and operations that constitute a
process

S – Suppliers
I – Inputs
P – Process
O – Outputs
C – Customers

78
 SIPOC
Suppliers
– People who provide input to the process
Inputs
– Information, material etc., goes into the process from some other group
of people (supplier)
Process
– Process is a series of activities that takes an input, adds value to it and
produces an output for a customer
Outputs
– Output of a process creating a product or service that meets a customer
need
Customer
– Users of the output

79
 Information Flow & Measures
Thinking
Flow
Requirements Requirements

S I P O C

Suppliers Inputs Process Outputs Customers

Input Measures Process Measures Output Measures

Measures that are Internal

to your Process. They
Output measures are
Include Quality and
The Key Quality and measures used to
Delivery Measures
Delivery Requirements determine how well
Important to your Internal
Placed on your Suppliers. customer needs and
Customers as well as
requirements are met.
waste and cycle time
measures.

80
SIPOC: Uses

• To know who supplies input to the process

• To know what are the inputs to the process

• To know the step by step flow of process

• To know the outputs of process

• To know the customer of a process

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 Steps to create SIPOC

1. Attaining a full understanding of all the steps of a process. This is done

by looking at process from customer’s point of view.
2. Clearly define the process start and end boundaries
3. Brainstorm list of all process steps. Go on the floor, walk through the
process and interview people working on the process as needed.
4. Recorded process steps using a sticky-note method. In this method
each step in the process is recorded on a sticky-note and built in front of
the individual completing the work.
5. Discuss, review & modify process step sequence to agree on “As Is”
process map.
6. Add suppliers, inputs, outputs, customers
7. Add Input, Process, & Output measures

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 SIPOC: Format

Supplier Inputs Process Output Customer

A X1 Y1 Alpha

B X2 Y2 Beta

C X3 Y3 Gamma

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 SIPOC

1. Draw the SIPOC for your process

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Thank you!!!
QUESTIONS
AND
DISCUSSIONS

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