Topic Direct Observation DMAIC LCI Ireland COP Monthly

Topic : “Direct Observation / DMAIC” LCI Ireland COP Monthly m GMT p 0 Webinar ce @ 3. 0 n e mm Date : 29 th March 2017 Presenters : Gerry Walsh (Mercury) and Brendan Malone a n i b e W s i h o c l l i w r T Introduction & Closing by : Eleanor Parker (LCI Leadership Group Representative) LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Topic : “Direct Observation / DMAIC” LCI Ireland COP Monthly Webinar Date : 29 th March 2017 Presenters : Gerry Walsh (Mercury) and Brendan Malone Introduction & Closing by : Eleanor Parker (LCI Leadership Group Representative) LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Direct Observation A lean construction tool Gerry Walsh – Mercury Brendan Malone - DPS LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Introduction: • How did we get here? • Why bother? • How? – with Pros and Cons. • Results. • Summary. LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Our Journey Training Continuous Reinforcement Means & Methods Customer Demand & Competition BIM Modelling Prefabrication Delivery To Site Hoist Into Place Manoeuvring Installation Final Adjustments LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Which is better? LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

How much of your trade labour time is value added? LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Lean Construction Tools • Visible Waste - Good: • • Waste Walks. 5 S. Last Planner System. Single point lessons. • Invisible Waste – To great: • DMAIC. • Value Stream Mapping. • Direct Observation. LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

² Project 1: 9 -10% ² Project 2: 14% ² Project 3: 14% Not Value Added ² Average across 1100 projects in USA < 20% At 35% you would get 3 X the output. LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Define: We are not achieving the optimum value added output. Measure: Direct Observation – Gather real data. LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

What is Direct Observation (DO) Defined as : Direct Observation (DO) is a method of collecting evaluative information in which an observer watches a subject in the natural environment without altering that environment. DO is a structured method for evaluating a process (not an individual) with a view to delivering an improved process Many forms of DO exist but in our case we use Overt, Structured Direct Observations which return Standardised, Quantitative information about the observation subject. DO reliably defines the Current Reality, identifies areas for improvement and enables measurement of subsequent improvements. LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Hints and Tips: • #1 Priority is explaining the purpose of the DO to the Crew. • What we are doing, how we will do it, what data we are collecting, how we will use that data. • DO specifically aims to observe the Process, NOT the Individual, live by this! • Use this direct engagement as an opportunity to educate both the observer and those being observed LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Hints and Tips: • What/when to observe? • What to document? • Discuss • Categorise • LISTEN! • Identify waste, rework • Recommend simple Improvements • Always state the obvious! LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Analyse: Pick the highest pareto items and work out why they are happening. [Moving]. Improve: Work out and implement your improvements. [Reduce movement projects] LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Control: Update your SOPs and/or Specs. Check your results. VA in general has improved by 85 -100% LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Summary: ² You are not as efficient as you think you are. ² Direct Observation is a very useful tool in your lean armory. Use it with care. More for the company that is already open to lean ideas. ² 35 -40% VA is world class. It is achievable, and it will help you increase your business. LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Providing Materials After this Webinar A copy of the presentation materials and a link to the webinar recording will be sent to all attendees. LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Direct Observation / DMAIC Q&A LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

LCI Ireland Co. P, Construction Client Forum, Construction Academia Forum • More Information • https: //www. linkedin. com/groups/4332330 • https: //twitter. com/lci_ireland • https: //www. facebook. com/Lean-Construction-Ireland-LCI-880633708714425/ Our newly re-launched website: • http: //leanconstructionireland. ie LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )

Please join us for our next webinar: Webinar # 9 26 th April 2017 Theme : Lessons from the US National Housing Quality Award by Denis Leonard – GRAHAM Construction Registration details will be sent out to our mailing list next month – if you have not registered for our mailing list you can here: http: //leanconstructionireland. ie/join-lean-construction-ireland/ LCI Ireland Leadership Group LCI Construction Client Forum ( CCF ) LCI Construction Academia Forum ( CAF )