ISO 9001:2000

Certified
Next Steps?

Where do we go from here?
How can we...
Align everyone to the corporate goals?
Provide a clear statement of our objectives,measures
and performance expectations?
Contribute as individuals daily to the company
objectives and success?

ANSWER?
Key Performance Indicators.
What Gets Measured Gets Done!
Key Performance Indicators
will:
Provide performance measurements for all
core processes.
Add value for our customers and the
company.
Support company objectives.
Provide performance goals for each
department.
Be owned, maintained, reviewed and acted
on by each department.
Provide balanced performance measures.
Establishing KPIs
Using a SIPOC Diagram

SIPOC Diagram?
A SIPOC diagram is a Six Sigma tool used to
identify relevant elements of a process.

It is similar to Process Mapping, but provides
additional detail.

The SIPOC tool is particularly useful in identifying:
Suppliers of the Inputs for the process?
The process output requirements.
The internal and external customers of the
process.
The requirements of the internal and external
customers?
Step 1 -Flow Chart
Purchasing gets
bids from
Approved
Suppliers
Engineering or
Quality reviews
and approves PO
Purchasing
Department
receives quote
request from
Customer Service
Purchasing
Selects
supplier
Purchasing
Obtains
work order and
creates PO
Purchasing
sends PO to
the supplier
Start by Flow Charting the process.
From the 30,000 ft level
Only 5 or 6 steps are needed

Example: Placing a Purchase Order
Step 2 - SIPOC
Use a flip chart with headings (S-I-P-O-C)
written on it, or.
Use post-it notes posted to a wall.
Create an area that will allow the team to
post additions to the SIPOC diagram.
Supplier Process Input Output Customer
Step 3-Breakdown the Process
Identify the Suppliers of the Inputs of the
Process.
Identify the Inputs required for the Process to
function properly.
List the name of the core process.
Identify the Outputs of the Process.
Identify the Customers that will receive the
Outputs of this Process.
Discuss with Facilitator, Team Leader and other
involved stakeholders for accuracy.
Step 4 - Add information to the
SIPOC Diagram
Supplier Process Input Output Customer
Customer Service
Work Order Information
Sheet
Purchase Requisition
Drawing/ Description
Quantity
Need Date
Supplier
Procuring needed
parts and or materials
to support production.
Production
Stock Room
Customer Service
A Purchase Order
placed with an
Approved Supplier
Example: Placing a Purchase Order
Step 5 - Add KPI Information
Process Owner
Key Performance Indicator
Source of Data
Measurement Method
Established Goal
KPI
Turn around time
for Purchase
Orders to
suppliers
Measurement
method
Plotted line Chart
for Average time to
place an order
Plotted weekly
Process Owner
(A. Evans)
Purchasing
Department
Source of Data
Date of request on
Work order
information sheet
and date of PO
approval
Established Goal
48 Hours to get
supplier quote and
place an order.
Example: Placing a Purchase Order
Completed SIPOC Diagram
with KPI Information
KPI
Turn around time
for Purchase
Orders to
suppliers
Measurement
method
Plotted line Chart
for Average time to
place an order
Plotted weekly
Process Owner
(A. Evans)
Purchasing
Department
Source of Data
Date of request on
Work order
information sheet
and date of PO
approval
Established Goal
48 Hours to get
supplier quote and
place an order.
Purchasing gets
bids from
Approved
Suppliers
Engineering or
Quality reviews
and approves PO
Purchasing
Department
receives quote
request from
Customer Service
Purchasing
Selects
supplier
Purchasing
Obtains
work order and
creates PO
Purchasing
sends PO to
the supplier
Supplier Process Input Output Customer
Customer Service
Work Order Information
Sheet
Purchase Requisition
Drawing/ Description
Quantity
Need Date
Supplier
Procuring needed
parts and or materials
to support production.
Production
Stock Room
Customer Service
A Purchase Order
placed with an
Approved Supplier
Action and Follow-up
After the process has been broken down and the elements
identified using SIPOC. The KPI's can be monitored and
acted upon using the model shown below.

Supplier Process Input Output Customer
Develop Key
Process Indicators
Take Action
for
Improvement
Measure Key
Process Indicators
(Review KPIs)
Quality
Improvement
Meetings
NOTE: Actions may be
taken on the Inputs and /
or the process.
Controlling the inputs and
the process is key in
ensuring an acceptable
output
Connection to
Company Objectives
On Time
Delivery
Increase
Internal and
External
Quality
Reduce
Rework
Reduce time to release a Shop Order?
Reduce Shop Throughput Time?
Reduce time to place a purchase order
Reduce time to release shipping documentation?
Reduce outgoing defect rates /Final Inspection?
Reduce Scrap?
Improve Supplier Quality?
Reduce defect rate?
Faster
Service

Higher
Quality

Lower
Costs

Reduce
Waste
Reduce Costs due to Shop Order Errors
Reduce Non Value Added Process Steps?
Reduce Material Usage?
Reduce Rework Costs?
Reduce time to create a CAD Drawing
Company goals
Individual
Key Performance Indicators
Customer Benefits