Standing in a circle is an activity where a person observes a process by standing in a location taking notes of opportunities to remove muda (waste).
The discipline behind this exercise is based on being in the center of the action and taking notes as you see them. Each line item on the worksheet has several criteria to the right depicting each of the major wastes. The form also has categories as to where the material takes place. Some examples of the categories involve a section for the 8 wastes, then followed with locations such as facility, environment etc. This part is debatable in my opinion but depends on the use of the data afterwards. This is not really a gemba, or a line-side event. The interaction can be more removed if desired. Use the Freudian “free style” writing. That is, just start taking notes, and evaluate the notes later.
The key is to actually get out into the action and be observant. It is amazing what you will see when you just stop look around. Try it. Here is a sample form which I updated to fit the main problem solving items (man, method, machine, environment, material). Stand in the Circle