UNDERSTANDING SIPOC FRAMEWORK FOR BUSINESS EVALUATION (Blog 3 of 4)
Blog 3: Leveraging SIPOC to Identify Process Improvements
One of the primary benefits of using the SIPOC framework is its ability to identify areas where there are gaps or variations in processes. In this blog, we’ll delve into the practical side of SIPOC and discuss how to use the information gathered from your SIPOC diagram to pinpoint bottlenecks, inefficiencies, and opportunities for enhancement in your processes. We’ll explore techniques and methodologies that can be applied in conjunction with SIPOC to drive positive changes in your business.
Understanding who is handling and how business information is communicated and how it ties into the workflow can be challenging, especially in areas where there are numerous variables and communication hand-offs. This is where the SIPOC diagram helps teams to zero in on these areas to address and improve the quality and effectiveness of the information and processes.
We utilize specific symbols to identify this information to clearly illustrate where and when information and work has deviated from one controlled process to another and also when someone must make a choice on which next process path or step to proceed.
These symbols likely will identify gaps, bottlenecks, inconstancies and inefficiencies, often due to a lack of understanding of the variables and/or formalized procedures to manage these within the overall process structure.
Looking back at our example of PB&J, did you ask or identify your customers type of bread, peanut butter or jelly preferences? What happens, when there is a request to accommodate something that has not been attempted before? Creating a process structure that identifies these potential variables and manages them can alleviate bottlenecks and inefficiencies based on predefined processes.
Information due to hand-offs from one person or department to another is an area that must be designed and developed. It is often overlooked because businesses evolve into a lot of the communication types; whether that be verbal, hand written, emailed, slacked, texted etc..
Logistical process are just as complicated; hand-off, roller systems, carts, forklifts, etc. Often times, material is able to be handled with many different methods, is the next process step able to accommodate all of these methods for accepting the material?
These two different types of issues, information and material handling, can viewed through a SIPOC diagram similarly. Sometimes information and material can be intertwined as both are usually necessary to facilitate work. Both issues simply move work along within a process.
Businesses need to develop consistent processes in which information and material are transferred. The variations in the hand-offs have been amplified due to technology. Does your process mandate consistency or does it exacerbate issues through inefficient updates to information and material handling that are not synchronized throughout the SIPOC?
THE WRAP-UP
Variation creates unique challenges for scaling companies. By diagramming out your processes, you can identify areas for improvement as well communicate how the information and work flow between people and processes coexists. Ultimately this assists businesses to begin to understand the linkages between steps and the importance of understanding their SIPOC and in an attempt to control the work and anticipate needs in order to begin delighting their customers.