Exercise 04: SIPOC/Project Charter

 Option 1:
 Assuming your current project, complete the following:
 SIPOC Diagram
 Problem Statement

 Option 2:
 Read the following ‘Employee Hiring Case Study’ and review the
related process data
 Working in a small team,
 First, create a SIPOC Diagram
 Note: Use same process steps provided in the table
 Then, create a Problem Statement (for a Project Charter)
 Given the available information, what do you think is the main issue
they should be solving and make sure it is in your problem statement

1
 SIPOC Diagram/Project Charter Exercise
Employee Hiring Case Study
(see next slide for process steps)

New Position Issue a Hiring Approval

Requisition (By DM)
Legend:
DM = Departmental Manager
HRIS = Human Resource
information system database
HRM = HR Manager
HRA = HR Assistant
HAN = Hiring Approval Notice
ERP = Enterprise Resource Planning
Notice (HAN)
Process Description
 Department Manager (DM) issues a requisition form for
a new position into the HRIS
 HRM reviews the requisition with the DM using their
standard review guidelines and the job is then posted
within their HRIS system and shared externally
 Candidates may submit applications during an “open”
period which is limited to one month, at which time
candidate applications are checked and validated by
HRA per company standard applicant review guidelines.
 DM and HRM then review candidate applications and
identify “Qualified Candidates”.
 Qualified candidates are then notified by email and
requested to schedule an interview over the following
two weeks.
 Once the interviews are completed, the best candidate
is selected and an offer is created by the HRM and the
HRA. The candidate must reply within 10 business days.
 Upon acceptance, a Hiring Approval Notice (HAN) is
created by the HRA using company ERP software.
2
 Case Study Data
 Suppose you obtain the following information from the last six months:
 Time to create a hiring notice has increased, on average, by 10 days over prior 6 months
 Company goal is to fill a position within 30 days (Current Average is ~40 days)
 Acceptance rate is currently at 55%, which is below company target level of 75%
 Hiring process is over budget by 15% (believed due to additional effort needed for rework
in several process steps and extra time to fill positions due to lower acceptance rates)
 Additional Information by Process Step include: (Note: Use these steps in SIPOC)
Proces  Current 
Responsible  Rework %                  
ID Process Step (Task) Staff Involved Time  Lead Time 
(Lead) (Process Step)
(hours) (days)
10 Create Requisition DM DM 0.5 1 0%
20 Review and Post Requisition HRM HRM 4 3‐5 10%
30 Validate Candidates by Phone HRA HRA 4 5‐7 20%
~50% of Paper Submittals 
40 Review Candidate Applications DM DM & HRM 3 5 Require Follow Up w/ 
Candidate
50 Interview Candidates DM DM & HRM 2 14 0%
60 Select Candidate DM DM & HRM 2 1 0%
70 Create Offer HRM HRM & HRA 1 1 20%
75 Wait for Candidate Candidate N/A (Candidate) N/A 7
80 Create HAN HRA HRA 0.5 1 5%
17 38‐42
hours days 3
 SIPOC Diagram – Hiring Process
(Add S, I, O, and C)
Suppliers Inputs Process Outputs Customers

Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Step 7: Step 8: Final:

Create  Review &  Validate  Review  Interview  Select  Create  Wait for  Create 

Requisition Post  Candidates Candidate  Candidates Candidate Offer Candidate HAN
Requisition Applications

(Or, Use Vertical Process Map Format) 4

 Reference: SIPOC Diagrams
Suppliers Inputs Process Outputs Customers

 Appraisers  Type of Loan  Complete &  Mortgage

 Insurance  Interest Rates Accurate Customers
Companies  # Processors  Process Time  External
 Title  Loan Officer < 30 days  Underwriters
Companies Experience  Loan Fees  Lending
 Lender Institutions
Guidelines  Regulatory
Agencies

Prepare
Process Underwrite Clear Close
(Setup)
Loan Loan Conditions Loan
Loan

 Suppliers  Customers
 Providers of inputs to a process
Process  Customers that receive physical
(e.g., people, companies, dept.) outputs, information, service
Steps/activities which
 Inputs/Requirements transform inputs  Outputs/Requirements
 Physical Inputs (raw materials,
 Products or Services Delivered
 May include requirements for customer information)
 May include KPI/metric and
process inputs to outputs
requirements
 Documents (e.g., Lead Time < 30 days)
 Policies/Guidelines (e.g., (may show horizontal or vertical)
standard work procedures) 5
 Reference: Problem Statement
An effective problem statement provides a description of the “Pain” being
addressed and summarizes the improvement opportunity

Key Questions addressed are:

 What is the problem?

 When did the problem start?

 Extent of the problem (who is impacted)?

 Impact or consequence of the problem (in $$ if possible)