According to a definition given by Joseph Moses Juran on 1999, a business process is the locigal organization of people, materials, energy, equipment and information into work activities designed to produce a required end result (product or service).
Efforts to improve local process components are replaced by systematic methods to understand, control and improve overall business result. These methods have evolved to address specific business objectives.
The SIPOC diagram is the Six Sigma “work horse tool” and is the foundation technique for Lean Six Sigma improvement.
SUPPLIER: the person or the organization which provides resources to the process (info, materials, service)
INPUT: the info, the materials, the service provided
PROCESS: the set of action steps which is transforming the input into output adding customer value
OUTPUT: the result of the process (product or service)
CUSTOMER: the person, the process, the organization that receives the output
The SIPOC model is widely used in Lean Six Sigma helping to better figure out the business from an overall process perspective.
Among its major benefits:
1. To display cross functional activities in simple diagrams
2. To provide a framework applicable to all processes of any size
3. To keep the big picture of the business prospective
4. To provide methods for adding details when needed
5. The use of the SIPOC model largely enhances monitoring, controlling, understanding and improving business processes.
