reducing variation in order to achieve success

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Gilbane Building Company | September 2018 1 Confidential and proprietary information. IMPORTANT NOTICE: This document contains confidential information proprietary to Gilbane Building Company, including but not limited to trade secrets and/or copyrighted material. Any unauthorized disclosure, duplication, or use – in whole or in part – of such confidential information for any purpose is strictly prohibited. All rights reserved by Gilbane Building Company. Reducing Variation in order to Achieve Success IMPORTANT NOTICE: This document contains confidential information proprietary to Gilbane Building Company, including but not limited to trade secrets and/or copyrighted material. Any unauthorized disclosure, duplication, or use – in whole or in part – of such confidential information for any purpose is strictly prohibited. All rights reserved by Gilbane Building Company.

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Page 1: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 1Confidential and proprietary information.

IMPORTANT NOTICE: This document contains confidential information proprietary to Gilbane Building Company, including but not

limited to trade secrets and/or copyrighted material. Any unauthorized disclosure, duplication, or use – in whole or in part – of

such confidential information for any purpose is strictly prohibited. All rights reserved by Gilbane Building Company.

Reducing Variation in order

to Achieve Success

IMPORTANT NOTICE: This document contains confidential information proprietary to Gilbane Building Company, including but not

limited to trade secrets and/or copyrighted material. Any unauthorized disclosure, duplication, or use – in whole or in part – of

such confidential information for any purpose is strictly prohibited. All rights reserved by Gilbane Building Company.

Page 2: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 2Confidential and proprietary information.

Rhonia Moreau

> Lean Practice

Specialist

Karrie Kratz

> Operations

Manager

Meet Your Presenters

Page 3: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 3Confidential and proprietary information.

Gilbane at a Glance

1873ESTABLISHED

2,700+EMPLOYEES

$5 billionANNUAL REVENUE

Page 4: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 4Confidential and proprietary information.

What is Variation?

• Risk

• Uncertainty

• Deviation

• Unpredictable

The more variation = the more errors and the more waste

Page 5: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 5Confidential and proprietary information.

What is Variation?

NOT ACCURATE ACCURATE

PRECISE

NOT PRECISE

Page 6: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 6Confidential and proprietary information.

What is Variation?

Two Types of Variation

Special Cause

Variation

Natural occurrences

Random Cause

Predictable

Cannot be eliminated

Outside of the norm

New and unanticipated

problems

Unpredictable

Directly caused by

something special

Common Cause

Variation

Page 7: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 7Confidential and proprietary information.

What does variation look like?

Traffic Circle Video

Page 8: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 8Confidential and proprietary information.

Activity #1

The Parade of Trades® Simulation

Developed by Lean Construction Institute (LCI)

Page 9: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 9Confidential and proprietary information.

Activity #1

• Dice moves clockwise

• Chips move counter clock wise

• If you have no chips, skip your

role and pass the dice

• The amount on the dice

equals the number of chips

you pass to your right

• Record on your sheet your

progress with each role

Developed by Lean Construction Institute (LCI)

Page 10: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 10Confidential and proprietary information.

Why Reduce?

Variation can lead to a number of different effects:

Page 11: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 11Confidential and proprietary information.

How?

So what can we do… ?

• Communicate milestones

visually

• Break larger sequences of

work into consistent hand offs

• Review and DOCUMENT

successes and failures

• Standardize where ever

possible

Page 12: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 12Confidential and proprietary information.

How?

So what can we do… ?

This is where you "Measure

twice, cut once“

And set goals and make

them visual

This is where you complete

consistent handoffs of work

This is where you review and

document best practices and

lessons learned

This is where you standardize

Page 13: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 13Confidential and proprietary information.

Activity #2

Standardizing Your Work – Pig Exercise

Page 14: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 14Confidential and proprietary information.

Activity #2

Standard Work

A set method that uses the best combination of people, materials and equipment for

conducting work processes safely at consistently high quality and the lowest possible

cost

• It is the best-yet-identified, least-waste way of conducting the work.

• It is an excellent communication and understanding tool.

• It allows employees & supervisors to improve.

• Typically includes explicit: Content; Sequence; Timing; Output

Page 15: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 15Confidential and proprietary information.

Activity #2

Everyone needs a piece of paper

A drawing instrument (pen, pencil, etc.)

Put your name on the paper

You have 90 seconds

NOW – Draw a pig!

Let’s Conduct A Standard Work Exercise

Page 16: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 16Confidential and proprietary information.

Activity #2

What does the customer think of the pigs?

Do they meet customer needs?

Was the process > Effective (good, consistent quality)?

> Efficient?

> Flexible?

> Stable?

> Controllable?

> If you all worked on one piece of the pig would things have fit together?

How did you feel about your work?> Could it be improved?

> How?

Let’s try with “standard work”. You will all have standard “paper” and standard “instructions/procedures”.

Page 17: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 17Confidential and proprietary information.

1. Draw a letter M at the top left intersection. Bottom center of M touches intersection.

2. Draw a letter W at the bottom left intersection. Top center of W touches intersection.

3. Draw a letter W at the bottom right intersection. Top center of W touches intersection.

4. Draw an arc from the letter M to the top right intersection.

5. Draw another arc from the top right intersection to the bottom right W.

6. Draw an arc between the two bottom W’s.

7. Draw the letter O in the center left box.

8. Draw an arc from the letter M to the tangent of the circle.

9. Draw an arc from the left W to the tangent of the circle.

10. Draw an arc for the eye. Half way between M and circle.

11. Draw an arc for the mouth. Half way between W and circle. Must be a happy pig!!

12. Draw the cursive letter e near the top of arc on the right.

13. And finally draw two dots in the middle of the circle for the pigs nose.

NOW HANG & DISCUSS PIGS

STANDARD WORK TO DRAW THE PIG.

PLEASE FOLLOW ALONG AS INSTRUCTED

Activity #2

Activity #2Activity #2 Activity #2

Page 18: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 18Confidential and proprietary information.

Activity #2

Do they meet customer needs?

Was the process > Effective (good, consistent quality)?

> Efficient?

> Flexible?

> Stable?

> Controllable

How did you feel about your work?> Could it be improved?

> How?

Now let’s try with VISUAL “standard work”. Once again, you will all have standard “paper” and standard “instructions”

Was that better?

Page 19: Reducing Variation in order to Achieve Success

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1. Draw a letter M at the top left intersection.

Bottom center of M touches the intersection.

2. Draw the letter W at the

bottom left intersection.

Top center of W touches

the intersection.

3. Draw the letter W at the bottom right intersection. Top center of W touches the intersection.

4. Draw an arc from the letter M to the top right intersection.

5. Draw another arc from the top right intersection to the bottom right W.

6. Draw an arc between the two bottom W’s.

7. Draw the letter O in the center left box.

8. Draw an arc from the letter M to the tangent of the circle.

9. Draw an arc from the left W to the tangent of the circle.

10. Draw an arc for the eye. Halfway between M and circle.

11. Draw an arc for the mouth. Half way between W and circle.

12. Draw the cursive letter “e” near the top of arc on the right.

13. Finally, draw two dots in the middle of the circle

Page 20: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 20Confidential and proprietary information.

What does standard work give us?

• A foundation for improvement

• A way to understand capacity

• A way to know when problems are occurring

• A way to reduce variation

• A way to see waste

• A way to build-in quality, safety, productivity

• A way to share learning – everyone understands the “tribal

knowledge”

• A way for employees to create the best way to work

Page 21: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 21Confidential and proprietary information.

Defining Success

What do we want… results that are repeatable!

Page 22: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 22Confidential and proprietary information.

Wrap up

The challenge…

• Create space in your project

planning for including goal

setting and visualization of

success

• Do not consider a project

complete until you and your

team have done a deep dive

on successes and failures

• Brainstorm with your team on

what and how you can

standardize work

Page 23: Reducing Variation in order to Achieve Success

Gilbane Building Company | September 2018 23Confidential and proprietary information.

QUESTIONS & HOPEFULLY SOME ANSWERS

Thank you for having us and drive safely!