Key Points

• SIPOC diagrams can be used in any industry.
• They excel in manufacturing, especially for complex processes.
• Effective use of a SIPOC diagram relies on a balance to deliver information effectively.

What are some real-life SIPOC applications in the field of manufacturing? While Lean Six Sigma tools and methodologies can be applied to any industry, they truly excel when pointed toward something like manufacturing. When you get right down to it, manufacturing is one of the most complex undertakings a business can undergo.

What that in mind, we’re going to talk a bit about how the SIPOC diagram works, and how it applies in real-world scenarios where you’re looking to get deliverables out and in your customer’s hands in a timely fashion.

What Is a SIPOC Diagram?

A SIPOC diagram is a high-level overview visualization of the key components of any process. It can be used to create and design new processes or optimize and improve existing processes. If you’re looking for real-life SIPOC usage, it shines in either of these capacities.

It gets its name from the components it depicts: Supplier, Input, Process, Output, and Customer. It doesn’t show the interlocking parts of these elements but can help to identify exactly what is needed to solve issues in your production workflow.

While you can utilize these diagrams for any sort of business, they excel in a manufacturing capacity, as you’ll see.

How It Helps in Manufacturing

So, you know what they are, but how do they help in manufacturing? Real-life SIPOC usage is going to lean on a few elements. One of the major benefits we can highlight is the identification of your customers and suppliers. Often, these suppliers can serve as stakeholders for your processes.

Given the structure of a SIPOC diagram, these are the first and last elements identified in your visualization. Further, you’re giving a top-level view of your inputs and outputs, clarifying exactly what is going on with your processes.

However, where a SIPOC diagram excels is in fostering an environment centered around clear and effective communication. Since this is a simplified overview of a given process, everyone can be on board. Think of it like a report at the end of a remediation cycle, it needs to be understood by everyone in the organization. If you’re alienating your workers and management with nomenclature and jargon, you’re losing the thread.

Automobile Manufacturing

When it comes to manufacturing, few sectors are as complex as automobile manufacturing. Cars are complex things, with many components coming together to make for an effective deliverable. As such, it pays to make sure things are working as intended.

Look at a manufacturer that processes their materials, like Hyundai. Hyundai is unique among many auto manufacturers in processing its steel and other alloys for the construction of its automobiles. As such, consider that we’re building a real-life SIPOC diagram for the production of a Hyundai Santa Fe.

Suppliers

To produce a Santa Fe, who would be your primary supplier? You’re looking at the likes of your raw material providers. Since we process our materials, we need to source things like iron, steel, aluminum, and other materials used in the process of manufacturing your standard automobile. 

Inputs

Now, you’ve identified your primary supplier. However, when constructing our real-life SIPOC diagram, you’ll need to consider the inputs next. You’ll be looking at things like electrical components, sheets of processed steel, aluminum bars, fabric, rubber, and other materials that are used in the process of manufacturing your automobile.

Process

A car isn’t much good when it’s just a heap of raw materials. As such, the process in your real-life SIPOC diagram is going to be the actual assembly of your automobile. You’re going to be sanding bodies, molding metal to your frame and body specifications, and fitting parts and components to the vehicle itself.

Outputs

So, what is the result of your assembly process? You’re going to have a newly constructed Hyundai Santa Fe. Identifying the outputs in any process is simply looking at what your deliverables are. In this case, it is going to be the car. These are fully assembled and ready to ship out.

Customers

Finally, your primary customers in this real-life SIPOC diagram are going to be dealerships and end consumers, depending on regulations. With that, your diagram is constructed and ready for automobile manufacturing.

Laptops

Computers are big business, especially when considering how just about everyone needs one these days. However, much like our previous example centering around automobiles, there is quite a bit that goes into the development of a computer. So, for our real-life SIPOC example centering around computers, why not consider the Apple MacBook Pro?

Suppliers

Unlike our previous example, just about every computer manufacturer is going to outsource parts and components. The days of building your semiconductors and processors are long over. This might complicate things logistically, but you’re primary suppliers are going to be component manufacturers who are making things like your screen panels, microchips, and rechargeable batteries.

Inputs

Now, that you’ve identified your suppliers, it’s time to mark your inputs. Inputs in this case are going to be processor chips, screen panels, and all the other individual components that are assembled into a computer. Assembling a computer isn’t quite as complex as an automobile, but it is still an undertaking.

Process

This should be obvious by now, but the process for your MacBook Pro is going to be the assembly of the computer itself. All the components are fitted onto motherboards, and memory and storage are slotted into their respective places. Screens are fitted to cases and so forth.

Outputs

Your final output should be an assembled MacBook Pro that is ready to use. All of the individual pieces come together to make a working laptop, ready for the end user to get to work upon unboxing and perhaps giving it a bit of a charge.

Customer

Your primary customers in this real-life SIPOC diagram are going to be places like electronic stores and other retailers. Apple offers direct sales as well, so you’ll want to consider regular consumers as well. Additionally, you might consider department stores and other retailers to include in your customer column.

Clothes

Rounding out our selection of real-life SIPOC diagrams is a clothing manufacturer. Clothing is a hot commodity, especially when you consider the likes of Shein and ZARA in the marketplace today. With that in mind, we’re going to look at ZARA more closely, especially considering they are one of the few clothing manufacturers that we know are utilizing Lean methodology in the development of its products.

Suppliers

Clothing is not quite as involved as building a computer or a car, but that’s beside the point in our real-life SIPOC examples. When making clothes, you’ll be looking at suppliers of things like fabrics and other materials. You’ve also got to consider internal or external design teams that design and help make the clothes in the first place.

Inputs

Your inputs for clothing should be rather self-explanatory, but you’re considering fabric, zippers, buttons, and other fasteners. Anything that goes into making a particular garment is going to be a top consideration when looking at your inputs.

Process

The process of your real-life SIPOC diagram for ZARA is going to center around the assembly of the garment of your choice. This will include things like sewing, cutting, pressing, fitting, and so forth. Any part of your manufacturing process that goes into the assembly of the garment should fit in here.

Outputs

As you might guess, the output of your given process is going to be a finished garment. There isn’t much to say for this portion of your SIPOC diagram. While there are plenty of raw materials that it takes to get to this point, this is your deliverable ready to be delivered to your customers.

Customer

As you might imagine, the end goal for your garments is shipping them to your customers. ZARA also deals with the likes of retailers, so you’ll want to consider those when filling in this column.

Does SIPOC Help With Manufacturing?

Now, we’ve walked through three rather comprehensive real-life SIPOC examples. So, does this tool aid in manufacturing? I would certainly say so, at least when you consider how complex some of these processes are at first glance.

Having a high-level view of the elements of a given process isn’t serving so much as a roadmap for success. However, do consider that these are documents you’ll be submitting to the likes of leadership positions in your organization.

As such, this helps to nail the first time. Given that you want to foster clear communication while keeping the various elements of your process in mind, it pays to get the right balance between detail and simplicity.

What Makes a Successful SIPOC Diagram?

At the end of the day, knowing how to generate a solid SIPOC diagram is worth its weight in gold. However, this can be daunting at first glance, especially when you consider the needs and intended audience of this visual tool.

I mentioned a balance between detail and simplifying the overall view. This is crucial for making a useful and helpful SIPOC diagram. If you’re new to it, you’ll want to generate a few as a means of practicing.

At the end of the day, having a document that fosters clear communication while aiding in process improvement is going to save time in the long run. Also, keep in mind these aren’t immutable visual tools. Sometimes, when you’re going through something like root cause analysis or process improvement, you might have to draw up an entirely new SIPOC diagram.

Other Useful Tools and Concepts

We’ve harped on and on about SIPOC diagrams today, but what about other tools of the trade? Artificial intelligence is changing the landscape of the business world. As such, you might be interested to see how AI can be used throughout your DMAIC projects. Our guide on the subject is a comprehensive view of this exciting new technology.

Additionally, you might want to consider learning how to use a fishbone diagram. Root cause analysis can be a pain in the neck, but using a tool like this can help to drill down to potential causes for your current issues in a matter of minutes.

Conclusion

Real-life SIPOC usage is all over the place when you consider the many industries that have adopted the Lean Six Sigma methodology. When you get right down to it, having an open and easy means of communicating ideas while visualizing your processes is an endlessly useful tool. Further, the applications of these diagrams are rather versatile allowing for new or existing processes to benefit from their usage.