The importance of communication in Business

How Can Communication Affect the Flow of Work in an Organization

The Importance of Communication

Communication within an organization is critical for work flow.  Poor communication causes confusion, and chaos. When there is great communication, things run smoothly and efficiently.  There are many instances where effective communication can make or break the flow of work. I have provided a basic flowchart for communication in a production environment as this is the best representation I can think of. Please see below for said flow chart.

As you can see above, if either one of these chains of communication breaks, it will stop the flow of production in its tracks.  If you suppose that each group of workers has 48 hours to communicate to the next group in order to adhere to the goals of the company and the lean manufacturing capabilities it advertises, then state that there are snags in one or more of these lines of communication, this would prevent the company from providing the lean manufacturing it has promised to its customers, which in turn will result in loss of customers, loss of profit, and if the problem is never resolved, loss of the company in general. 

I live in a city that has several different manufacturers providing jobs for thousands.  One of these happens to be Toyota.  They are known worldwide for their excellent production capabilities.  What isn’t known too well about Toyota is the extreme importance they place on proper and effective communication.  There are thousands who work within the Toyota plant and every one of them knows the expectations and knows that even the slightest miscommunication can be devastating to the production lines.  Imagine you are part of the welding team that ensures the frame is welded properly, and you don’t communicate that you are running low on the rods used to weld with. You end up running out, and now you have to stop production.  Now, production being halted for as little as five minutes at Toyota costs them roughly three hundred thousand dollars according to a team of management I know there.  Imagine this happens twice a week on three production lines.  A simple task such as communicating low inventory, costs millions of dollars a year.  This is why proper and effective communication is key to work flow.  It can literally cost millions to a company when poor communication takes place.

To communicate effectively is easy.  One, be transparent with every department.  Two, ensure they are in full understanding of what you are attempting to communicate.  Three, ensure they reciprocate the communication.  And last, be sure you understand fully what they are trying to communicate.

Communication is a two way street.  All involved need to properly communicate everything needed to everyone else involved.  Otherwise, we are all just talking to a wall and that gets us nowhere.