TUM School of Management

Production and Supply Chain Management

Prof Martin Grunow Technische Universität München

SIPOC

Prof. Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott 1
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Learning Objectives
• Understand what a business process is and explain the benefits of a
process view of an organization.
• Understand the relevance and importance of a SIPOC diagram in a process
improvement project.
• Create an overview of all the relevant elements in a process improvement
project using the SIPOC diagram.

Holly Ott 2
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

What is a Business Process?

Input Process Output

Holly Ott 3
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Business Processes in Operations

The volume production of goods or services in a sequence of activities
performed by a set of specialized resources.

Input Process Output

Assemble Paint

Not just manufacturing: Services too!

Holly Ott 4
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Advantages of the Process View

§ View of activities in an organization as cross-functional flows, focussing
on the value-added activities for the customer.
§ Applicable to any type of organization: production, service
§ Flows can be applied at all levels of an organization.
§ Allows definition of clear performance metrics that reflect the value to the
customers.
§ Managing the processes, rather than individual activities, allows end-to-
end process improvement.

Holly Ott 5
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Supplier Input Process Output Customer

SIPOC
S I P O C
Supplier Input Process Output Customer

Assemble Paint

A SIPOC diagram is a tool that lists the components

and/or activities that occur in a process.
Holly Ott 6
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Why use SIPOC?

§ High-level picture of value-added steps in a process.
§ Describes the process to bring a common understanding to the team of the
project scope and what is involved in each part of the process.
§ Supports initial discussion of customer expectations and what in the
process influences the Critical-to-Quality characteristics.

S I P O C
Supplier Input Process Output Customer

Holly Ott 7
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

SIPOC Example: Office Chair

Raw Finished
Material Chairs

Base Upholstery Assembly

Holly Ott 8
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Suppliers

S I P O C
Supplier Input Process Output Customer

roller
supplier,
cushions
supplier,
hardware
store, frame
assembly
process

Holly Ott 9
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Inputs

S I P O C
Supplier Input Process Output Customer

roller rollers,
supplier, cushions,
cushions stuffing,
supplier, screws and
hardware bolts, chair
store, frame frame
assembly
process

Holly Ott 10
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Process

S I P O C
Supplier Input Process Output Customer

roller rollers,
supplier, cushions, Base
cushions stuffing,
supplier, screws and
hardware bolts, chair
Upholstery
store, frame frame
assembly
process
Assembly

Holly Ott 11
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Outputs

S I P O C
Supplier Input Process Output Customer

roller rollers, office

supplier, cushions, Base
chair
cushions stuffing,
supplier, screws and
hardware bolts, chair
Upholstery
store, frame frame
assembly
process
Assembly

Holly Ott 12
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Customers

S I P O C
Supplier Input Process Output Customer

roller rollers, office

supplier, cushions, Base
chair
cushions stuffing,
supplier, screws and
hardware bolts, chair
Upholstery
store, frame frame
assembly
process
Assembly

Holly Ott 13
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

SIPOC: Dog Wash Service

S I P O C
Supplier Input Process Output Customer

dog owner, dog, Get dog in bath Clean dog

pet supply shampoo,
store brush
Wash dog

Dry dog

Brush

Holly Ott 14
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

SIPOC: Candle Production Used with permission from Kopschitz Kerzen

S I P O C
Supplier Input Process Output Customer

paraffin paraffin, Pulverize paraffin colored

supplier, stearin, candles
wick (treated wick
on site), dye (treated),
blocks dye (block),
Mold Candles
(prepared on packing
site), packing material
supplier Dip in dye

Pack

Holly Ott 15
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

SIPOC

Prof. Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott 16