Defining & Scoping Improvement Projects

SIPOC

An earlier post referenced one of our founder Bill Conway’s favorite quotes, “The most important business decision people make every day, is deciding what to work on.”

This pearl of wisdom applies to all forms of work, and is certainly critically important when it comes to initiating an improvement project. Various tools have been developed to help people better define improvement initiatives, one of which is SIPOC, an acronym formed in the early days of TQM and one that continues to be used today in Six Sigma, lean manufacturing, and business process management..

SIPOC enables people to effectively define the process, problem, and project early on to ensure they are, in fact, working on the right things. The acronym stands for:

Suppliers
Inputs
Process
Outputs
Customers

Some organizations always start with the SIPOC to get the team on the same page so they can answer six important questions:

  • What is the process?
  • Its purpose (why are we doing this)?
  • Who owns the process (surprisingly sometimes not obvious/known)?
  • Who are the customers/suppliers?
  • Who is the primary customer?
  • What do they get out of the process or provide for the process?

Once the questions above have been answered people can focus on the high level process flow and the process measures for each step by answering five more questions:

  • What’s the ideal?
  • Is the data available?
  • Are we already measuring it?
  • What is the goal?
  • What is the impact?

Once the team members have a shared high-level understanding of the process using the SIPOC, and have gathered the data that enables them to measure the gap between the current situation and the ideal, they can create a good problem statement, objective, scope, and timetable.

These together are key components of a Project Charter, the ‘North Star’ of a project that helps keep the project moving forward to successful completion.