Agile Business Analysis Practice Exam 2025 - Free Agile Business Analysis Practice Questions and Study Guide

A SIPOC diagram is a high-level process mapping tool used within process improvement initiatives, such as those guided by Six Sigma and Lean methodologies. The acronym SIPOC stands for Suppliers, Inputs, Process, Outputs, and Customers, and it serves to outline the essential components of a business process.

The diagram effectively documents the flow of a process from start to finish, making it an invaluable tool for understanding business processes. It illustrates who provides the inputs (Suppliers), what resources are needed (Inputs), the steps involved in transforming those inputs (Process), the resulting products or services (Outputs), and who receives those outputs (Customers). This structured approach helps teams identify areas for improvement and ensures a shared understanding of the process among stakeholders.

The other options do not capture the primary focus of a SIPOC diagram. Financial forecasts are concerned with monetary projections, user interactions relate to the engagement between users and systems or products, and project deliverables focus on the tangible or intangible outputs of a project. None of these elements directly align with the comprehensive documentation of business processes that a SIPOC diagram provides.