SIPOC diagram: What it is & how to create one fast

Before you can improve a business process or run a business process analysis, you need to understand it. And often the best way to understand a process is to draw it out. That's where SIPOC diagrams come in. While business processes can be complex, SIPOC diagrams are a simple way to visualize how each process component fits together.

In this article, you'll learn what a SIPOC diagram is, when to use one, and how to create your own in seven steps. Whether you're leading a Six Sigma project or simply want to improve how your team works, a SIPOC diagram can help you gain clarity and alignment.

What is a SIPOC diagram?

A SIPOC diagram is a visual tool that maps five key elements of any business process: suppliers, inputs, process steps, outputs, and customers. Teams use SIPOC diagrams to gain a high-level understanding of how work flows and who is involved at each stage. This makes them especially useful for improving processes that affect customer experience.

SIPOC diagrams aren't meant to provide granular detail. Instead, they give stakeholders a high-level process map to help them make decisions and brainstorm improvement ideas. SIPOC is one tool in business process management (BPM) that focuses on investigating, improving, and implementing better business processes.

What are the elements of SIPOC?

The acronym SIPOC stands for these five components:

1. Suppliers: The input sources for the process

2. Inputs: The resources you need for the process to function

3. Process: The high-level steps of the process

4. Outputs: The results of the process

5. Customers: The people who receive outputs or benefit from the process

SIPOC diagram vs. workflow diagram

Workflow diagrams provide a graphic map of a business process or project. A SIPOC diagram is a type of workflow diagram that focuses on who creates and receives materials or data throughout a business process.

Some workflow diagrams map out each process step chronologically. However, a SIPOC diagram doesn't map out dependencies (i.e., tasks that need to be completed before others). Instead, it visualizes who creates process materials, how those materials feed into the process, and who receives process outputs.

What is a SIPOC diagram used for?

SIPOC diagrams are often used in lean project management as part of the Six Sigma process improvement methodology. Six Sigma aims to minimize defects and inconsistencies, making it ideal for manufacturing or customer-facing processes where tools like value stream mapping also apply.

A core component of lean Six Sigma is the DMAIC process:

• Define: Identify the problem and project goals (this is where SIPOC diagrams are used)

• Measure: Collect data on current performance

• Analyze: Identify root causes of issues

• Improve: Implement solutions

• Control: Sustain the improvements over time

But even if you're not leading a Six Sigma project or using lean project management, a SIPOC diagram can still be useful. It can help you:

Explain a business process

Since a SIPOC diagram provides a high-level overview without specific details, it's useful for audiences unfamiliar with the business process. It's a great way to introduce new employees to a process or communicate key details that have a direct effect.

Keep team members aligned

SIPOC diagrams are simple to create, so you can draw one up as the starting point for your process improvement brainstorm. This helps frame your problem-solving discussion and ensures everyone is on the same page.

Clarify parts of a process

When you create a SIPOC diagram with your team, you're prompted to identify key information like supplier contacts, project specifications, and target customers. Creating a SIPOC diagram helps you understand processes and improve them.

Creating a SIPOC diagram with your team can help answer the following questions:

• How can we make this process easier?

• Are we delivering a quality product to our customers?

• Can we improve the way we manage our suppliers?

• Are our suppliers delivering what we need?

• Do we know the personas of our customers and what demographics they fall into?

• Are there any inefficiencies we can improve when creating our product?

Remember that a SIPOC diagram is just one tool in your process management toolbox. Before you dive into process improvement, choose a project management tool that lets you assign clear owners and deadlines, view dependencies, and communicate with your team in one central location. With Asana, you can even build a SIPOC diagram as a Kanban board, then share and update your diagram in real time.

Benefits of using a SIPOC diagram

SIPOC diagrams offer several advantages for teams looking to understand and improve their processes. Here are the key benefits:

• Provides a shared understanding: When everyone sees the same high-level view, it's easier to align on what the process involves and clarify roles and responsibilities.

• Identifies gaps and redundancies: By mapping suppliers, inputs, outputs, and customers, you can spot missing steps and areas of duplication.

• Supports faster onboarding: New team members can quickly grasp how a process works without getting lost in granular details.

• Focuses improvement efforts: Before diving into changes, a SIPOC diagram helps you pinpoint exactly where to focus your energy.

• Improves cross-functional collaboration: Teams across departments can see how their work connects, reducing silos and improving communication.

How to create a SIPOC diagram in 7 steps

Using the SIPOC model is simple, but it's best practice not to follow the acronym in the order it appears. We recommend starting with the "process" section as that's often the easiest place to begin. For that reason, teams sometimes call this tool a COPIS diagram instead.

Here's how to create a SIPOC diagram:

1. Choose a process

Select the process you want to visualize. This can be a new process you're implementing or an existing one you want to optimize. A SIPOC diagram helps you:

• Understand how the process currently works

• Brainstorm ideas for improvement

• Give stakeholders a clear overview for decision-making

For example, imagine you want to improve the shipping and delivery of your product. A SIPOC diagram can help you identify inefficiencies, ensure you're managing suppliers well, and determine whether you're delivering a quality product to customers.

2. Define the process: P

It's often easiest to start with the "P" section and define your process first. Break the process down into 4–5 high-level steps, each with a clear action. You can organize these steps into a flowchart if needed.

To continue our product shipping example, the process can be broken down into the following steps:

1. Customer checks out

2. Invoice sent to warehouse

3. Warehouse team prepares shipment

4. Distribution company picks up shipment

5. Distribution company carries shipment to destination

If your process has many steps, group smaller steps together under broader categories. For example, "Invoice sent to warehouse" can represent all the details of how information moves from your e-commerce platform to shipping. Remember: the goal is a high-level overview, not a detailed map.

3. List the outputs: O

Identify the outputs of the process. This helps you understand what you get from the resources you invest and what customers actually receive.

Outputs can include:

• Materials or products

• Services

• Information or data

Ideally, your outputs should align with customer requirements.

In the product shipping SIPOC example above, the outcomes are:

• Customers get the product within a certain time frame

• Your company receives money for the product

4. Identify the customers: C

Customers are the people who receive the outputs or benefit from the process. Keep in mind that customers don't have to be external; they can also include co-workers and internal stakeholders.

For example, if you're preparing your company's annual retreat, your customers would be the team members attending the event.

For the shipping example, you could list the following customers: online shoppers (who receive the product), and your company (which receives money for the product).

5. List the inputs: I

Inputs are the resources you need for the process to function properly. Similar to outputs, these can include materials, products, services, or information. Listing inputs helps you understand resource requirements and whether you're getting what you need from suppliers.

For your product shipping process, this could include customer shipping and payment information, online payment services, packaging services, packaging materials, warehouse space, and delivery trucks.

6. Identify suppliers: S

Suppliers are where you get the inputs for the process. This step helps you understand how many suppliers you're working with and whether you're managing them efficiently.

In our product shipping example, that could include the following:

• Customers: Provide shipping and payment information

• Warehouse team members: Offer packaging services

• Packaging manufacturer: Create packaging materials

• Warehouse leasing company: Provide warehouse space

• Delivery services: Provide delivery trucks

7. Share your diagram

A SIPOC diagram is meant to be shared. It's most valuable when your team and stakeholders can easily access it to understand how a process works.

One of the best ways to share information is with a project management tool, because it lets you organize project information and tasks in one central place. Instead of sending a dozen separate emails, you can share a single version of your diagram with each stakeholder and communicate on one thread.

SIPOC diagram example

To see how a SIPOC diagram works in practice, let's look at an example of a customer support process. This diagram shows how a support ticket progresses from initial request to resolution.

This example shows how a SIPOC diagram captures the essential elements without overwhelming detail. The support team can use this to identify bottlenecks or clarify handoffs between teams.

Visualize your processes and collaborate with clarity

SIPOC diagrams are a useful template for continuous improvement and any process optimization initiative.

They're simple to make, easy to share, and help decision-makers understand business processes at a high level. Creating one with your team can clarify how each piece fits together and where you can streamline.

Ready to visualize your processes and improve collaboration? Get started with Asana to build SIPOC diagrams your whole team can access and update in real time.

Frequently asked questions about SIPOC diagrams