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The Toyota Template The Plan For Just in Time and Culture Change Beyond Lean Tools First Edition Ledbetter No Waiting Time

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My Japanese trainers at Toyota could masterfully take a complex sub-
ject and explain it and teach it so wonderfully simple. It didn’t make
it any easier, but it made it possible for me to now do. Ledbetter has
done just that with The Toyota Template. He lays out the entire, and
complex, Toyota Production System (TPS) in a basic and understand-
able manner that will make it possible for you to do also. His perspec-
tive and focus on “Just in Time” material availability and “Flow-Pull
and Leveling” are missing components in many failed lean attempts.
And his connection and integration to the “Respect for People” culture
side of the Toyota Way makes this a “must read” for any “continuous
learner” of Lean.

Mike Hoseus
Former Toyota Executive and Co-author of Shingo Award
Winning book, Toyota Culture.

Through his personal experiences, Phil clearly and succinctly explains


how to implement a Lean strategy based on TPS principles and practices.
It is essential for every company embarking on their Lean journey to
understand that Lean is based on The Toyota Template and is not just a
collection of tools. This is a must-read book for all lean practitioners and
executives of Lean companies.

Nick Katko
BMA, Inc., Author The Lean CFO.

Drawing on his extensive experience, Phil Ledbetter shares his insights


into the foundational principles of the Toyota Production System. This
book will give you a deeper understanding of what has made Toyota suc-
cessful and a practical application that you can use to develop your own
transformation.

Jim Garrick
manager, Global Operational Excellence & Process Improvement,
Southeast Regional Director – AME, Shingo Prize Examiner.

In The Toyota Template, Phil Ledbetter details his first-hand experi-


ences and shares the knowledge of the creators of the Toyota Production
System. From these, he forges a template that will work in any enterprise,
any system, any p­ rocess. The Toyota Template is Just-In-Time for the com-
pany starting, struggling, or seeking to achieve the results of the vaunted
Toyota Production System.

Michael Lewis
Director of Operations, ThyssenKrupp Elevator;
TMMK Team Member 1989–2001.
The Toyota Template
The Plan for Just-in-Time and Culture
Change Beyond Lean Tools

By
Phil Ledbetter
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742

© 2018 by Phil Ledbetter

CRC Press is an imprint of Taylor & Francis Group, an Informa business

No claim to original U.S. Government works

Printed on acid-free paper

International Standard Book Number-13: 978-1-138-57871-5 (Hardback)

This book contains information obtained from authentic and highly regarded sources. Reasonable efforts
have been made to publish reliable data and information, but the author and publisher cannot assume
responsibility for the validity of all materials or the consequences of their use. The authors and publishers
have attempted to trace the copyright holders of all material reproduced in this publication and apologize
to copyright holders if permission to publish in this form has not been obtained. If any copyright material
has not been acknowledged please write and let us know so we may rectify in any future reprint.

Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, trans-
mitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter
invented, including photocopying, microfilming, and recording, or in any information storage or retrieval
system, without written permission from the publishers.

For permission to photocopy or use material electronically from this work, please access www.copyright.
com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood
Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and
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CCC, a separate system of payment has been arranged.

Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are
used only for identification and explanation without intent to infringe.

Library of Congress Cataloging‑in‑Publication Data

Names: Ledbetter, Phil, author.


Title: The Toyota template : the plan for just-in-time and culture change
beyond lean tools / Phil Ledbetter.
Description: Boca Raton : Taylor & Francis, 2018. | Includes index.
Identifiers: LCCN 2017040742 | ISBN 9781138578715 (hardback : alk. paper)
Subjects: LCSH: Just-in-time systems. | Production control. | Corporate
culture. | Toyota Jidåosha Kåogyåo Kabushiki Kaisha.
Classification: LCC TS157.4 .L434 2018 | DDC 658.5--dc23
LC record available at https://lccn.loc.gov/2017040742

Visit the Taylor & Francis Web site at


http://www.taylorandfrancis.com

and the CRC Press Web site at


http://www.crcpress.com
My book is dedicated to my mama, Louise. In appreciation

for the witness her life has been for her children Phillip,

Sherrie, and Melanie. Love you, mama!


Contents
Preface.....................................................................................................xi
Author.................................................................................................. xiii

Chapter 1 The Problem: Distance from Toyota.................................. 1


Endnote...........................................................................................3

Chapter 2 The Predicament: Perplexing Failure................................ 5


Endnotes.......................................................................................11

Chapter 3 The Position: Plant First................................................... 13


Endnotes.......................................................................................14

Chapter 4 The Purpose: Will and Skill............................................. 15


Endnotes.......................................................................................19

Chapter 5 The Plan: Hoshin Kanri.................................................... 21


KPI Rules......................................................................................23
Measuring Overall Progress..................................................24

Chapter 6 The Property: Waste Elimination.................................... 27


OHNO’S 7 Wastes...................................................................... 28
Overproduction...................................................................... 28
Waiting.....................................................................................29
Transportation........................................................................29
Over-Processing..................................................................... 30
Excessive Inventory............................................................... 30
Unnecessary Motion..............................................................31
Defects......................................................................................31
5S....................................................................................................31
Endnotes...................................................................................... 34

vii
viii • Contents

Chapter 7 The Practice: Standard Work........................................... 35


Total Productive Maintenance (TPM) and Machine
Back-Up: Tension in the Line.....................................................37
Teamwork: The Multi-Skilled Employee..................................39
Endnotes...................................................................................... 42

Chapter 8 The Patois: 8-Step Problem-Solving................................ 45


Endnotes...................................................................................... 56

Chapter 9 The Pattern: Flow, Pull, and Heijunka............................ 57


Continuous Flow: Alignment of Processes in the Order
of Value Added.............................................................................58
Pull: Paces and Prioritizes Production, and Promotes
Problem-Solving......................................................................... 60
Kanban: Metering Flow..............................................................67
Heijunka: Production Smoothing............................................ 68
Single-Minute Exchange of Dies (SMED): Set-Up Time
Reduction .....................................................................................72
Endnotes.......................................................................................75

Chapter 10 The Program: Jidoka, Quality at the Source................... 77


Endnotes.......................................................................................79

Chapter 11 The Path: The Toyota Template........................................ 81


When Should the Template Be Implemented?........................82
In What Order Should the Template Be Implemented?.........82
Endnotes...................................................................................... 86

Chapter 12 The Proof: TPS Results..................................................... 87


Environment................................................................................89
Endnotes.......................................................................................92

Chapter 13 The Perceptions: Mental Images...................................... 93


Endnotes.......................................................................................94
Contents • ix

Chapter 14 The Post Script: Personal Matters.................................... 95

Index....................................................................................................... 97
Preface
Much has been written about Toyota over the last 30 years. Not only because
they make great cars but also due to interest in the Toyota Production
System. The Toyota Template is no different in that regard. It’s about the
critical concepts and methods that Taiichi Ohno implemented in develop-
ing the Toyota Production System. Where it is different is in the parallels
it draws between Toyota’s pre-Toyota Production System condition and
companies today that are attempting to become more efficient or “lean.”
In view of efficiency, or “leanness,” many organizations are in the same
position as Toyota was prior to implementing what was once called the
“Ohno System.” This system was developed over many years through prob-
lem-solving and trial and error. The building of the Toyota Production
System, with the goal of eliminating waste, evolved as problems were
encountered and solutions put in place. A wonderful byproduct of these
years of work was the growth of a problem-solving culture throughout
Toyota that is unique in the business world.
Today, the Toyota Production System is well established. Though it is
constantly improving, the historical picture is visible. The question many
have tried to answer for their own companies is “How can they achieve
world-class efficiency?” The Toyota Template answers this question. It
explains the critically important elements of the Toyota Production
System, analyzes the sequence of implementation as the system developed,
and puts these elements in a logical order of implementation based on his-
tory and current knowledge. Additionally, it addresses the effect of each
element on the culture.
There are really two reasons for writing this book. The first is due to
my personal observations of the failure of most attempts to develop lean
systems. Much of this is because the reason for the success of the Toyota
Production System has been ignored. It’s been said:

Many good companies have respect for individuals, and practice kaizen
and other TPS tools … But what is important is having all the elements
together as a system. It must be practiced every day in a very consistent
manner, not in spurts.1

xi
xii • Preface

The elements have not been put “together as a system” and “practiced
every day in a very consistent manner.” Most attempts have been focused
on bits and pieces of the elements, or the tools.
The second reason is more personal. I have become concerned that
because successful lean implementations are so rare, this reflects poorly on
the Toyota Production System. Having worked in management at Toyota
for 15 years, I feel a certain responsibility to prove that their production
system is, as Ohno said, “a concept in management that will work for any
type of business.”2
The resources I used to write this book came from my personal experi-
ence of learning about, and managing in, the Toyota Production System
at Toyota Motor Manufacturing Kentucky in Georgetown, Kentucky.
Every day was a learning experience. I’ve often said that my experience
at Toyota was more valuable to me than my college degree. In addition
to my own experience, I leaned primarily on the writings of Mr. Ohno
and a handful of others who were present during the development of the
Toyota Production System. In fact, the book is sprinkled with quotes from
Mr. Ohno in support of directional validity of the Toyota Template.
Finally, as you read this book, do so with your own business in mind.
Try to imagine how the Toyota Template could be implemented at your
workplace to achieve efficiency and a problem-solving culture.
With passion,
Phil Ledbetter

ENDNOTES
1. Liker, Jeffrey K. 2004. The Toyota Way, 14 Management Principles from the World’s
Greatest Manufacturer, p. 27. New York, NY: McGraw-Hill.
2. Ohno, Taiichi. 1988. Toyota Production System: Beyond Large-Scale Production, p.
9. New York, NY: Productivity Press.
Author
Phil Ledbetter is a passionate advocate of the Toyota
Production System and the many benefits it can pro-
vide for business. He worked as a leader in manage-
ment with Toyota Motor Manufacturing Kentucky for
16 years. As group leader, he learned, practiced, and
taught the many elements of the Toyota Production
System. He was certified as a kaizen leader, enabling
him to teach other members of the management
team problem-solving. In his time at Toyota, he was
immersed in all aspects of Toyota Production System.
Phil is an accomplished teacher and conference speaker, having devel-
oped classes for and taught hundreds of employees on all aspects of the
Toyota Production System. Since leaving Toyota, Phil has been instrumen-
tal in the implementation of various Toyota methods in several ­different
industries.
Phil is a graduate of the University of Kentucky. He’s the father of a son
and daughter, and the proud “Poppy” of five grandchildren. He resides in
the Nashville, Tennessee area.

xiii
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