1. Creating new business processes
MLC Annual Conference
8/3/17

2. Objectives of this session:
Utilize the SIPOC tool to
Understand a business process
Scope the process improvement project
Diagnose current business processes
Create new business processes
Gain practice facilitating a SIPOC tool exercise

3. What is a sipoc? A tool that provides a high level view of a process
Supplier
Inputs
Process
Outputs
Customer
What is a sipoc?
A tool that provides a high level view of a process
Can be utilized to:
Scope a process improvement effort—provides clear understanding of primary purpose and elements of a process
Diagnose issues with an existing process
Define a new process

5. Diagnosing an existing process
On drawing a SIPOC diagram, you’ll be able to tell at a glance:
whom your project will affect (stakeholders),
which outputs are non-value adding,
which steps are redundant
where supplier performance is unsatisfactory.

6. Other considerations Stakeholder analysis Voice of the customer
Critical to quality elements
Process metrics

7. Key insights - Preparation
Stakeholder analysis helps identify stakeholders with potential influence and impact on a project – those to Keep satisfied, Monitor, Keep informed or engage closely & influence actively
Voices help clarify project goals. The the types of voices include:
VOC – Voice of the Customer
VOB – Voice of the Business
VOP – Voice of the Process
VOE – Voice of Employees
VOR - Voice of Reason
Critical to Quality, or CTQ, is an attribute of a product or process that is literally critical to achieving customer quality expectations or more. CTQs have a direct & significant impact on actual or perceived quality
SIPOC is a high-level representation of the end-to-end (upstream and downstream) activities of the process
5 minutes.

8. Analyze stakeholder influence & impact
High
Keep satisfied
Engage closely & influence actively
Monitor (Minimum effort)
Keep informed
Influence
(Power)
3 minutes
Who are the key stakeholders and how will they influence this project.
Make a map of who those are. Identify them and their potential impact to your project.
Use this to come up with a plan to increase engagement.
Low
Impact
(Involvement)
Low
High
Balance influence and potential impact on project

9. Some types of process metrics
Efficiency
Cost
Cycle time
Wait time
Processing time
% value added time
Resource per unit of output
Scrap
Waste
Quality & Effectiveness
Customer satisfaction
Quality
Price
Consistency
Defects
Market share
Nonconformance cost
Adaptability
Time in market
Time to market
Time/cost to change
Work force capability
Job satisfaction
Time for special requests
Product variability

10. A whole process approach = IGOE
Process activities being analyzed
Outputs
Inputs
Suppliers
Customers
Enablers: people, technology, facilities
Guides: Reference info, rules, methods
Trigger Events

11. Guides Management Processes (source) Strategies and Governance
Process Owner
Initiating events
Budget
Policy & rules
Business Rules
Measures
Compliance
Forms
Information & Knowledge
Training
Learning
Industry Knowledge
Work instructions

12. Supporting Infrastructure
enablers
Human capital (Roles)
Employees
Customers
Suppliers
Enabling Technology
Systems
Data
Mechanisms
Templates
Models
Supporting Infrastructure
Facilities
Technical platforms
Support Processes (source)

13. Holistic business change
Process Change
= Alignment
Organization/Roles
- Human Change
- Training
Systems
- IT
- Communications
Infrastructure
- PP&E

14. How to create a sipoc….
Begin with the process. Define beginning and ending
Map the process in 4 to 5 high level steps.
Identify the outputs of the process
Identify the customers that receive process outputs
Identify the inputs required for proper process function.
Identify the suppliers of the required process inputs.
Identify relevant employees, support systems, and facilities
Identify relevant guides and constraints
Discuss with stakeholders for verification

15. 7 steps to create a SIPOC Input Output Supplier Customer Process S I P
Identify suppliers of inputs
Identify process inputs
Identify customers or users of outputs
Step A (START)
Identify process outputs. Same process may have multiple outputs
Step B
Step C
Add process steps between start and end processes
Step D
Identify start and end points of the process
Step E
3 minutes.
Step F
Step 7 (END)
Determine metrics that is or should be measured at input, process and output points.

16. Facilitating a sipoc exercise
Select a Small Team – Since SIPOC’s are high-level documents, they can usually be made with a small team of supervisors or managers who understand the overall process at a high level.
Show an Example – At the beginning of the meeting, show a completed SIPOC example to help convey the desired outcome of the meeting.
Sticky Notes – Use large sticky-notes and make the SIPOC on a blank wall or whiteboard.  This allows for quick repositioning of the SIPOC elements without erasing and re-writing them.   Another option is to use a templates on a computer with a projector screen.
Follow the Sequence

17. Trigger or Starting Point
Process or Function Name:
Date:
Scope:
Notes:
Suppliers
Inputs
Processes
Outputs
Customers
Trigger or Starting Point
Ending Point

18. Lets try it! Making Coffee
Group is sitting at tables. Hopefully there are enough for 6 tables. Each table has stickies and markers. We have large section of white paper posted up front.
We define the 3-4 steps for the process up as a group
Then each table takes one of the SIPOC elements: 1) Suppliers; 2) inputs; 3) outputs; 4) customers; 5) Guides; 6) enablers
The table brainstorms stickies for 10 or 15 minutes then one person comes up to the front and posts them for each team
We debrief as a large group and also talk about process metrics and critical to quality factors. If we have extra groups we could assign this also,

19. Coffee making example SIPOC
Supplier
Input
Process
Output
Customer
Joe’s Cafe
Kettle
Water
Boil water
Mug of hot coffee
Me/You
Dad/Mom
Employees
Drivers
Other drop-in customers
Mug
Coffee
Add coffee to mug
Sugar
Milk
Add sugar & milk to mug
Add boiling water to mug
5 minutes.
Spoon
Stir coffee with spoon
Deliver to Client

20. SIPOc for new processes
For new processes, the SIPOC format is reversed to start with the customer:  
Customers, Outputs, Processes, Inputs, Suppliers.  
The advantages:
It begins with the customer
Once the customers are identified, the team can ask what outputs the customers are looking for, without making any assumptions.
The resulting processes are then defined to deliver those outputs.
Once the processes are defined, required inputs and suppliers are easy to determine.

21. Lets try it! Recruit and hire employees
In this facilitation each team tries the SIPOC for creating a brand new process.. We will post white paper and provide stickies/markers for each table to work. We may provide some case inputs like VOC, stakeholder analysis data for a case example to help facilitate efficiency with time..
We may try to take turns as a facilitator at each table.
At the end each team debriefs the new process.
This exercise will take 45 minutes to one hour

22. Case study: Strat plan at energizer
The intent is to provide a real life case example. This is a placeholder. I may bring some more current work from AE to review.
Intent is to take 5-10 minutes max to show the possibilities.

23. Thank you!!!!

24. appendix

25. Anatomy of a process L1 Process L2 Sub-Process L3 Procedure L4 Task L5
Work Instruction