Lean Assets & Tools Module 1

(SIPOC and Process Observation Methods)

Lean, the way we work

2012 IBM Corporation

SIPOC

Lean, the way we work

2012 IBM Corporation

Definition of SIPOC

What: Its one of the first tools we use in Lean Deployment.

Description:
Defines the scope of work for a teams process improvement activities.

Identifies at a high level the potential gaps (deficiencies) between what a process expects from its
suppliers and what customers expect from the process.

It also identifies feedback and feed-forward loops between customers, suppliers, and the process, so
naturally it jump-starts the team to begin thinking in terms of cause and effect.

SIPOC: A mnemonic device that helps teams process map. SIPOC stands for
S - The Supplier(s) to a process
I - The Input(s) provided by suppliers to a process
P - The high-level Process steps within the overall project, normally five to seven steps at this
level of mapping
O - The Output(s) of the process
C - The Customer(s) of the process

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Benefits and WHY of SIPOC

WHY?

When we start a process management, it is crucial for us to have an overview

of the process.

SIPOC provides a natural and structured way to discuss a process and get a
consensus on what is involved before drawing process maps.

It helps everyone currently involved to understand the SIPOC.

Helps us identify gaps such as:

Inputs we DONT NEED but receive
Outputs the customer DONT WANT, but receive anyway
Process steps that are completed, but add no value

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How to Use this Tool

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How to Use this Tool

Lets identify each of the components for the whole process and fill in your chart.

Process: Usually you start with process step first. It is a high-level process map with no more than 7
steps. It should define the activities of how you convert your inputs to outputs. Make sure the team
approves with the representation of the process. Use a Verb + Noun format for the process steps. Such
as "Add Source" or "Deliver the Goods".
What are the triggers that initiate and end the process?

Outputs: For a process that produces a product, the primary output is obvious to identify. Outputs of the
process don't just include the product, they can also include paperwork, approvals, data, and just about
anything else you can think of that results from your process. If you have a lot of outputs, focus on the
critical ones.
What is the result of this process?

Customers: These are the recipients of each output of your process. Every output should have at least
one customer. Better to match the customers to the outputs.
Whom does this process affect / benefit?

Inputs: Determine what you need to produce the outputs. Inputs can include materials, people,
machines, IT systems, information, or anything else that is necessary for the process to run. Brainstorm
and capture the crucial ones under the Inputs column.
What is needed to execute this process and deliver the output?

Suppliers: Identify who supply your inputs. Document the suppliers of each input under the Suppliers
column. It should visually depicts which suppliers provide a particular input.
What is needed to execute this process and deliver the output?

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SIPOC Template

Start: End:
Supplier Input Process Output Customer
Sub
process 1
Sub
process 2
Sub
process 3
Sub
process 4
Sub
process 5
Sub
process 6
Sub
process 7

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Some key questions to fill in your SIPOC

What is the start and the end of the value stream?

What is in and out of scope of the value stream?

What are the main process steps?

What are the inputs and outputs?

Who is/are the customer(s) and supplier(s) for each sub process?

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SIPOC Incident Management
Supplier Input Process Output Customer
IBM Daksh Notification via Email Receiving Incident Number IBM AMS Team
The Ticket
IBM AMS Team Text Msg For sev1 &
Sev2
Client/ End User
Through Maximo Tool
Through Phone call
IBM AMS Team Incident # Initial Tckt Accepted IBM AMS Team
Analysis
Description of the incident Returned to Helpdesk Daksh Team
Assigned to other group
IBM AMS Team Ticket Accepted Assign Ticket Ticket Assigned IBM AMS Team
IBM AMS Team Assigned Ticket Final Analysis Seeking more info from Client
customer IBM AMS Team
Ticket details
IBM Infra Team
Seeking info from Infra
team
Seeking info from other
team
Details about solution
Client Details about solution Resolve Send Mail to Customer Client
IBM AMS Team
IBM Infra Team
BCBS Team Email From BCBS Team Confirm With Ticket Resolved BM AMS team
Customer
Ticket reopen IBM Daksh
IBM AMS team Ticket Resolved Closing Ticket closed Client/ End User
IBM Daksh

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SIPOC Application development
Supplier Input Process Output Customer

Customer (IT) Customer calls, mails, Requirement SR document IBM development team
chats, FRM sessions Gathering Lead

IBM development team SR document Designing Application Design - IBM development team
lead Document (ADD)
- Customer

IBM Development Team Design (Application Design Approved ADD IBM development team
Design Document), Approval
Customer
Customer calls, mails

- IBM development team Approved ADD Coding Source Code, defects - IBM development team
- Customer - Customer

- IBM development team Source Code, defects Unit testing Test cases and results, IBM development team
defects
-Customer

- IBM development team Source Code, UAT data UAT Test cases and results, - IBM development team
provided by Customer, Approved source code,
-Customer - Customer
Test cases, defects defects, Approved UAT

- IBM development team Approved source code, Deploy Project go-live. Customer (IT)
implementation plan
- Customer

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SIPOC Testing

Supplier Input Process Output Customer

1) Rough Estimations
2) Schedule
Customer Input through
Customer Feasibility Study 3) Impact Analysis doc IBM Testing
BRD Document
4) Lead Identified
5) Updated BRD
BRD DTP
IBM testing Impact Analysis doc Revised Estimations
Customer & IBM
Team Architectural overview Test Design Resource Allocations
Test Build Team
Customer Compliance Matrix Review of Impact Analysis
ITA Solution overview doc
CC Inputs
Customer Impact Analysis
Test cases Customer -
IBM Test Design Compliance matrix Test Build
MOM IBM Build team
ITA solution Overviews
Approved BRD

Test cases
CC Inputs
IBM Test Team Impact Analysis SAT/SIT Test results, Defects Customer
Compliance matrix
ITA solution Overviews
Approved BRD
Customer
Fixed defects/CAT
CAT Defects CAT Support Customer
result/CAT sign off

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Process Observation Methods

Lean, the way we work

2012 IBM Corporation

Stand in a Circle
Aims to help managers understand and "see" waste.
Inefficiencies abound quite often before our very eyes, and, this
exercise helps us identify and rectify them.
80% of the exercise is intended to build awareness and rewire
your brain to see many small problems, whereas 20% of the
exercise is purposed towards implementing initial improvements.

How to do this?
Sample procedure:
Choose a spot in your work environment.
For 30 minutes, stand and observe -- silently.
The key is to practice what the Japanese call kizuki; the ability
to notice.
Write down anything you notice that results in waste: energy,
time, a safety concern and etc.
Your task is to find 30 things - that's one every minute including
writing time!
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Stand in a Circle

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16
8
7
6
5
4
3
2
1
Observation
Stand in a circle sample template

Transport

Inventory

Movement

Waiting & Delays

Overproduction

Over processing

Defects

Space

Time

Energy
Costing me

Money
2012 IBM Corporation
Process Observation:
Process Observation: It is a way of confirming exactly what is happening during any particular process.
The most popular way to observe a process is to go to the gemba or do a Process walk..This is literally walking the process.
This involves following the flow of information through the process - walking to each person or department and asking them to
take us through their work.
GEMBA is a Japanese
3 Key principles of Gemba walk term meaning "the real
place.
Go See Japanese detectives call the crime
Ask Questions scene gemba, and Japanese TV
Respect for people reporters may refer to themselves as
reporting from gemba.

In business, gemba refers to the place

Why do a Process Gemba Walk? where value is created; in manufacturing
the gemba is the factory floor.
Build Profound Knowledge of the Current State of the Process
In order to improve a process it is important to understand what the current process really is, versus what we think it is.

Understand the Whole Process Versus Just Pieces of the Process

For Co-workers that share a process to see what their upstream or downstream co-workers do.
Imagine how much redundancy and re-work exists in processes because workers never get an opportunity to see the whole process.

Help Employees See Waste in the Process

One of the biggest challenges in process improvement is when employees dont see waste and therefore feel no need to eliminate it.
Some employees work for years dealing with waste or unnecessary steps in a process but they are desensitized to it. They dont see it.
If workers dont see waste how can they eliminate it? Process Walks help employees strengthen their ability to see waste. Identify
redundancies and bottlenecks.

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How to do the Process walk?
Process Walkers follow the path of the request /ticket/product aka thing moving through the process. This is generally
an eye-opening experience because Process Walkers see the end-to-end view of the whole process rather than the usual
siloed view from where they sit in the process.

Define the purpose and the scope

Identify the participants
Briefing of participants (Listen more than talk, no judgements, seek to understand)
Prepare for
the Walk

Walk and Ask What? Why? (Why is there backtracking? Why is there rework? Or 5
Whys and not the 5 Whos)
Observe and understand the current state
Go See Identify obstacles that hinder the process

What was learned, did questions build self esteem of process workers?
Did Process Walker remain humble?
Did walker seek to understand where management support systems are dis-aligned?
Debriefing Plan for the Improvement Items based on the Process Walk.

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Process Observation Sample Template

Example of Time Observation form:

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Process Observation Sample Template

Example of Time Observation form:

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Process Walks watch outs:
#1: Not Doing a Process Walk
1. Most administrative processes are invisible!
Just look across the office. All we see are
people in cubicles. Do you see a process? No.
How can workers improve a process if they
cant see it?
2. A Process Walk is always a prerequisite to
creating a detailed map.

#2: Poor Planning

1. Not involving the right people Process owner
and who is working on the process.
Their involvement in improving the process is
crucial as they will help in the problem solving
and accept the recommended or agreed
changes.

2. Trying to divide and conquer breaking up the team and having them observe different parts of the process
simultaneously

Efficient? Yes, but terribly ineffective. People need to see the process together. This creates a shared understanding
about the current state of the process, the opportunities and discoveries

3. Not informing the right people early enough.

On the spot question, What do you do on your work? A mandatory orientation session prior to the Process Walk so
participants/ employees are well prepared.

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Process Walk watch outs:
#3: Not Enforcing the Ground Rules
Ground Rules insure that everyone understands how to behave while conducting a Process Walk. Most of the ground rules
listed below aims to encourage a safe, blame-free environment to promote learning and process focus.

Here are some typical Ground Rules for Process Walks:

1. Its about the process, not the people
2. Be respectful of all parties involved
3. Be a humble student of the process
4. Be empathetic; Process workers are the biggest victims of poor process design
5. Stay engaged and seek to learn
6. Rank has no privilege
7. Finger-pointing has no place
8. Do not correct interviewees during the walk

Process Walks go side-ways because the lead doesnt enforce ground rules. Process Walks
that become gotcha opportunities where interviewees dont feel safe or supervisors publicly
shame workers can create a downward spiral of fear and blame. Workers are often VICTIMS
of poorly designed processes but take the blame.

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Thank you

2012 IBM Corporation