ABSTRACT
One of the best ways to illustrate the complexity of the Toyota Production System (TPS) as it relates to the law of requisite variety is through the concept of production leveling. The technical system of production leveling relates to sales, design, and production engineering activities. The classic response to increased uncertainty for variety is to move a system’s structure from mechanistic to organic or from an undifferentiated structure to a differentiated structure. The longer a system is in an abnormal mode, the greater the likelihood the system will have to generate more alternatives. Increasing the complexity of the regulator is one approach used by a system theorist to have control over a system’s surroundings. The law of requisite variety is useful because it describes the ability of TPS to regulate all of the organization’s management systems. The reflection process in hoshin encourages managers to engage in problem solving to understand the factors that led to an unstable and unsuccessful system.
