Process Walk & SIPOC

• Define• Kaizen Facilitation

Objectives• Understand the process as a “system”• Describe the concept of an entity and how it relates to process• Understand the iterative nature of process mapping• Provide some helpful hints for mapping• Learn about the SIPOC format • Review SIPOC mapping examples

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A Process is really a “System”• What is a Process?• A system of actions, having a beginning and an end,

that are directed towards achieving an outcome• A simple model of a process illustrated below:

• The process changes the inputs to produce an output(s)

ProcessInputs Outputs

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Processes are made of ElementsBelow is a list of major elements of a process system:

When the system fails, it is usually the result of one or more of these elements

• Purpose• Entities• Tasks or Activities• Sequence or Flow• Materials• Resources• Decisions• Queues• Arrivals• Departures

• Duration• Feedback• Communication• Information• Schedules

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Processes Exist to Fulfill Needs• Questions to be Answered About Needs• What are the needs which are addressed by this process?• Who or what created those needs?• Is this a need of the Customer or of the Business?• What constitutes successful “fulfillment”?• How do I know if my process is working right?• If you can’t define the purpose, why are you doing it?

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Process Entity• Something flows through your process• Entities are the “something’s” that are processed• They can be broadly classified: (usually one)• Human i.e. - Employees, Customers, Patients …• Inanimate object i.e. - Documents, Parts, Units …• Abstract i.e. - E-mails, Telephone calls, Orders …

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Example: Process “Entity”What is the “entity” in a Coffee Shop?• When customer arrives, they have a need, a need for a cup of coffee• That need is translated into an order• It is this order that actually flows through the business process and

carries the need• This customer order may be a physical document or verbal order• Often the order may change in form as it moves through the process

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Example: Process “Entity”Coffee Shop example (continued …)• As the order moves through the process, each activity adds a degree of

fulfillment to that order• At the end of the process, the fulfilled order is delivered!• To the customer, the output of the process is a perfect cup of coffee• To the process manager, the output of the process is a successfully completed

order (associated consumed labor, material, sales receipt/ transaction ticket…)

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Exercise: Process “Entity”• Purpose: To gauge your understanding of the concept of “entity”

• Exercise: • Take a few minutes to think about your project and the process elements

related to it• Identify the entity in each of the processes within your project• Describe how the entity changes from activity to activity within the process

• Debrief:• Be able to describe the entity and classify its “type”

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General Purpose of Mapping• Everything we do is a process… some processes are straightforward…

other processes can be chaotic• Process Mapping • Allows people to illustrate what happens in a process• Helps define scope of a project• Is an excellent visual aide for identifying the “hidden process” or waste within

a process• Identifies all the potential inputs that may affect the output• Identifies the decision points that may impact a transactional process

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Mapping will EvolveDefine / Measure• “Documentation” Flowchart – based on process documents• What the business thinks it’s doing

TIP: Detail of the maps increase as new information is uncovered

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Mapping Will EvolveMeasure / Analyze• “Current State” – the way things really work• Often called the “As-Is” Map

• Data is gathered through interviews, group meetings, direct observation (TIP: walk the process backwards)

Improve / Control• “Future State” – the team’s planned improvements• Often called “To-Be” Map

• In reality, these are the same maps, just growing and changing throughout stages of the project

Utilize ‘SOLAR’ technique to Garner the Facts

• Interview those who work in the process to document the steps

S - Enter conversation at a Social levelO - Explain the Objective of documenting the processL - Listen to what they have to sayA - Advise and AskR - Record

• Validate the data• Verify information with several sources• Allows any oversights to be corrected

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Reality of Process Mapping• Few Processes Work the Way We Think They Do• Three “Actual” Rules• Go to the Actual place where the process is performed• Talk to the Actual people involved in the process and get the real facts• Observe and chart the Actual process

• Understand the process through facts and data!

NOTE: Purpose of process mapping is to identify waste, not to develop perfect process maps

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Mapping Tips• Walk the process backwards• Always map with a team• Interrogate the process by watching under different conditions

repeatedly• You must watch the process as it happens to observe and obtain the

detail you need• Rarely does one person have all the process knowledge

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SIPOC Diagram – High Level Mapping• Mapping your process via a SIPOC format is:• The first step in understanding your process• The starting point from where you will begin to create your process maps• Keeping the flow diagram on a 50,000 foot level:

• Gives an overall view of the process• Can show the scope of potential project• Identifies key players• Demonstrates process and customer requirements

• A great communication tool throughout the project

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SIPOC Stands For• Suppliers –Who provides Inputs• Inputs –What goes into the Process• Process –How the Process is performed• Outputs –What comes out of the Process• Customers –Who receives Outputs

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Suppliers Inputs Process Outputs Customers

CustomersReturned product

Request for credit

Customer returns product; requests credit

Receiving initiates credit

process

Cust. Service and Tech

Service evaluate request

Accounting approves and registers credit

Customer service

processes credit and closes files

Credited amount on customer’s

account

Accurate computer records

Customers

Cust. Service

Tech Service

Accounting

SIPOC Analysis for Credit Voucher Process

High-level Flow Diagram – SIPOC Example “Entity” Flow

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High-level Flow Diagram – SIPOC Example

“Entity” Flow

SIPOC Analysis for Rail Service Process

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Steps for Developing a SIPOC Map1) Name the Process

- Use verbs, nouns (i.e. – Issue Credit Voucher)

2) Determine starting and stopping points- What are the triggers that initiate the process?

3) Start with the process steps (the middle column) and work outward. How does the process operate? • Use verbs• List 4 to 7 high level steps (you will dig down later)• List process tasks sequentially

- Example: Customer returns product, requests credit

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Steps for Developing a SIPOC Map4) Indicate Outputs (What is it the process does?) • List outputs from the whole process (What is produced?)• Information• Focus on the whole process – not individual steps

• Use nouns• If applicable, consider outputs for both internal and

external customers• Example: billing process

• External customer outputs – invoice• Internal customer outputs – A/R / transaction

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Steps for Developing a SIPOC Map5) List Customers (Whom does the process affect?)• Any person or organization that receives an

Output from the process• Internal Customers

• Co-workers that receive outputs • Same or different departments

• External Customers• They typically pay for the product or service

• You must often consider both types

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Steps for Developing a SIPOC Map6) Determine Inputs (What is needed to deliver results?)• Things that go into the process

• Physical objects• Information• Factors that influence the process

• Use nouns• If applicable, consider inputs from both internal and

external Customers• Example: Invoicing process

• External Customer inputs – a purchase• Internal Customer inputs – pricing information

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Steps for Developing a SIPOC Map7) List Suppliers• Any person or organization that provides an input to

our process• Internal Suppliers

• Co-workers that provide inputs to your process• Same or different departments• Consider system inputs

• External Suppliers• Vendors• Customers providing inputs for a transaction

• You must often consider both types

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S I P O C

Suppliers Inputs Process Outputs Customers

High-level Flowchart (Vertical Format Example)

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Mapping Tips• Consider using post-it notes as the process steps and post on wall to

get your ideas across• If your map does not have enough space to list all the information,

use numbered reference sheets as attachments• Maintain your process maps and data and update them as necessary,

use them as reference during your project

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Review• Provide helpful hints for high-level mapping• Explore reasons for process mapping• Learn about SIPOC format • Review SIPOC mapping examples

Tip: Always by hand

Write it down

Walk it! (backwards)

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Exercise: Create a SIPOC Map• Use class example or one of your processes, practice developing a

SIPOC with your team• Materials: Flip Chart, Post-It notes• Exercise:• Select vertical format/method of SIPOC charting• List any requirements, if known

• Debrief: Be ready to present your SIPOC map• Time: 20 minutes