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SIPOC Model

Sipoc

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Ahmed Shaaban
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17 views

SIPOC Model

Sipoc

Uploaded by

Ahmed Shaaban
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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S I P O C MODEL

 The SIPOC model is a simple and helpful tool used in business to


understand and improve processes.
 SIPOC stands for Suppliers, Inputs, Process, Outputs, and Customers.
It helps you break down and visualize how things work.

@5S BalaMurugan
 The people or places that provide the
SUPPLIERS things you need to start the process.

 The materials, information, or resources


that you get from the suppliers.
INPUTS  Inputs are what you use to begin the
process.

@5S BalaMurugan  The series of steps you take to transform


PROCESS the inputs into something valuable.
 It's like following a recipe to cook a meal.

 The results of your process – what you've


OUTPUTS created or produced.
 It could be a product or a service.
@5S BalaMurugan
 The people who receive and use the
outputs.
CUSTOMERS  They're the ones who benefit from what
you've made.

Using the SIPOC model helps you see the big picture of a process and
identify areas where you can make improvements. It's like a roadmap that
enables you to navigate and improve processes effectively.

Follow @5S BalaMurugan on LinkedIn for regular TQM, Lean, Quality & Safety-related content
@5S Balamurugan
Case Study: Streamlining Order Processing using SIPOC Model
Background: Company Jmart is a medium-sized e-commerce retailer that sells a wide range of consumer
electronics and accessories online. As the company has experienced significant growth in recent years, their order
processing system has become increasingly complex and inefficient.
This has led to delays in order fulfillment, customer dissatisfaction, and increased operational costs. In order to
address these challenges, the company decided to implement the SIPOC model (Supplier, Input, Process, Output,
Customer) to identify and improve key aspects of their order processing.

SIPOC Model Implementation: @5S BalaMurugan


1. Supplier: In this context, the supplier represents the sources that provide inputs to the order processing
system. These include suppliers of products, suppliers of order information, and suppliers of shipping
services.

2. Inputs: The inputs to the order processing system are critical for the entire process. They include:
 Customer orders received through the company's website.
 Order details such as product type, quantity, and shipping address.
 Payment information and billing details.
 Inventory availability and location.
 Shipping method chosen by the customer.

3. Process: The order processing process involves several steps that need to be streamlined.
The process includes:
 Order validation: Checking the order details for accuracy, inventory availability, and payment
verification.
 Order fulfillment: Picking products from the warehouse, packing them securely, and generating
shipping labels.
 Shipping: Handing over packages to the chosen shipping carrier and providing tracking information.
 Order updates: Communicating order status and tracking information to customers through email
notifications.
 Payment processing: Verifying payment information and processing payments securely.

4. Outputs: The outputs of the order processing system are the key results generated by the process.
These include:
 Processed orders with accurate details.
 Securely packed products ready for shipping.
 Shipping labels and tracking numbers.
 Customer notifications about order status.
 Updated inventory records.
 Processed payments and receipts.

5. Customers: Customers are the ultimate recipients of the company's products and services. Their satisfaction is
crucial for business success. Key customer expectations include:
 Timely order delivery.
 Accurate order fulfillment.
 Clear and timely communication about order status.
 Secure payment processing. @5S BalaMurugan
Outcome and Benefits: By implementing the SIPOC model, Company Jmart gained a deep understanding of their
order processing system, pinpointing bottlenecks and inefficiencies. This led to targeted enhancements including
automated order validation, streamlined packing, real-time shipping updates, and upgraded payment processing.
These changes yielded faster order processing, reduced errors, improved customer satisfaction, and lowered
operational costs. The SIPOC model served as a roadmap, guiding improvements and optimizing the order
processing system.
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