Our system is relatively simple - at least it is when you get it working! It's similar to blossomsmine's system.
The sole tip is to keep on top of washing, drying and ironing. We have only one family laundry basket. I do at least one wash a day, and I try never to have more than one wash load left in the dirty basket. Quite often it's empty until everyone deposits that day's clothes in. Most washes are dark, I usually do 2 white washes a week on specific days, so sorting is easy, I just grab a loads-worth of that colour from the basket.
Once washed, it all goes either outside on the line or inside on an airer. Every day, in the afternoon or the evening, I iron everything that is dry - in dry weather that will probably be stuff washed that morning, in the wet weather it will be the previous day's stuff that has been airing. In that scenario, what I do is time the washing to finish just before I'm going to do the ironing, then I take the now-dry stuff off the airer and put the wet stuff there where it will dry in time for the next day's ironing session.
As I iron or fold, I put everything straight into piles for each family member, including undies. Remember, if you're doing this on a daily basis you haven't got piles and piles of socks to pair up, you've only got your one or possibly 2 loads to sort. Then each family member has to take their own things upstairs and put them away - my 3 are all old enough to do this themselves, obviously we would do it for them when they were young.
This works brilliantly but it took a while to get it going, our house used to be full of washing in all the various stages of the cycle. We took a conscious decision to catch up and spent a couple of weeks really getting on top of it and now just make sure things get done on a daily basis.