The OMCD Organizational Engine Model
Build a dedicated division that drives continuous improvement across the company
The OMCD (Operations Management Consulting Division) model is Toyota's organizational approach to deploying TPS across the entire enterprise. Rather than relying on individual champions or external consultants, Toyota created a dedicated internal division whose sole purpose is to develop TPS capability throughout the company and its supply chain.
OMCD functions as a rocket booster for the organization. Using the book's analogy, the company has five core functions (Sales, Technology, Production, Procurement, Finance) and three auxiliary functions (General, Personnel, Planning). OMCD acts as the propulsion system that accelerates all of these functions by embedding TPS thinking throughout the organization.
The division's primary output is not process improvement but people development. OMCD develops TPS General Managers who become the carriers of TPS knowledge and practice throughout the organization. These General Managers both instruct and practice TPS, ensuring that knowledge is always grounded in real application rather than becoming abstract theory.
- Continuous improvement requires a dedicated organizational function, not just individual initiative
- The primary output of the improvement function is developed people, not improved processes
- TPS General Managers must both instruct and practice; teaching without doing breeds empty theory
- The improvement function serves all other company functions through cross-functional education and guidance
- On-the-job training in the gemba is the primary development method, not classroom education
- Secure Executive CommitmentThe decision to create a dedicated improvement organization must come from the top. The CEO must understand that this is a long-term investment in organizational capability, not a cost center to be justified by short-term ROI. Budget, staffing, and authority must be formally established.WarningWithout genuine executive commitment, a dedicated improvement division will be defunded at the first budget crunch.
- Staff with Experienced PractitionersPopulate the division with people who have genuine TPS experience from the gemba, not with theoreticians or career staff managers. These should be your best people who have demonstrated both technical TPS skills and the ability to develop others.Pro tipIt is better to start small with two or three genuinely capable people than to staff up with many who lack real TPS depth.
- Define the Mission as People DevelopmentMake it clear that the division's primary mission is developing TPS General Managers across the organization, not delivering improvement projects. Projects are the vehicle for development, not the end goal. Measure the division by the number of capable TPS practitioners it produces.
- Establish Jishuken Programs at Multiple LevelsCreate internal Jishuken activities in your own factories, supplier Jishuken with key partners, and cross-company learning forums. Each of these becomes a development platform where TPS General Managers grow their capabilities through real practice.Pro tipStart with internal Jishuken before attempting supplier development. You must be credible practitioners before you can guide others.
- Embed in All Company FunctionsOver time, extend the improvement division's influence beyond manufacturing to all company functions including sales, technology, procurement, and finance. TPS thinking applies to any process with waste, which is every process.Pro tipNon-manufacturing functions often resist TPS because they believe it is a factory concept. Start with small wins that demonstrate relevance to knowledge work.
The book's Sensei explains Toyota's organizational structure as a rocket, with five core functions forming the body and three auxiliary functions as support structures. OMCD is depicted as the propulsion system that drives the entire rocket forward by embedding TPS thinking across all functions.
OMCD was established within Toyota as a unique organizational structure that did not exist in other companies. The book's Sensei explains its function using the analogy of a company as a rocket, where OMCD provides the thrust that enables the entire organization to reach higher levels of performance.
The division emerged from the recognition that TPS deployment cannot be a side job. Without a dedicated organizational function responsible for developing TPS capability, improvement efforts remain fragmented, inconsistent, and dependent on individual enthusiasm rather than systematic development.