Deeper into TPS – how people link the system.

As with any company, large or small, employees are the companies biggest asset and the Toyota Production System relies on them to link the components that together make the system work.

Employees are grouped according to specialization and year of entry. Through teaching relationships and a formal mentoring program Toyota creates vertical relationships cutting across conventional “entry level-mid career-senior” hierarchies.

I get that this is contrary to what I stated in a previous piece, where solving big issues puts a premium on crossing conventional boundaries to provide solutions. This has led to a culture with of horizontal links between organisations. People in power train are expected to know who to talk to in supplier management.

This has led to a complex web of informal and semi-formal social networks where “everyone knows everyone”. These links extend across functional and geographical boundaries. Toyota sponsors numerous employee organisations and clubs based on hobbies, sports and other interests that are designed enhance these social networks.

Communication across the multiple languages, time zones and cultures is another aspect that Toyota has put significant effort into.

The company insists internal communication is kept simple with little jargon and very straightforward language

For example when making a presentation the background summary, action plan and the outcome is expected to be on a single sheet of paper or slide. Groups are taught to think in simple terms that anyone across the company can understand.

It is a combination of standardization (both language and content) and relationship building that allows a company with a global footprint be so efficient in problem solving. Toyota puts a lot of effort, some of which it’s very difficult to measure any return on investment.