Understanding the SIPOC diagram is the first step to use it correctly. Most businesses generally start the SIPOC diagram with the ‘Process’ for which it is being created. In simple words, a process is any set of activities that takes inputs from the suppliers and converts them into outputs for the customers. The ‘Outputs’ are derived from the products or services, like manufactured products, computer files, reports, etc.
The ‘Customers’ are the end-consumer of the process outputs. The customer can either be an individual, another process, employee, or even another organization. The ‘Inputs’ are the items that the business process needs for creating the outputs. This could be raw materials, signed documents, emails, etc. Finally, the ‘Supplier’ is the one that provides the inputs for the process.