CASE STUDY ON DABBAWALA SYSTEM OF MUMBAI

A c a s e s t u d y o n d a b b a w a l a s s y s t e m P a g e | 1

DEPARTMENT OF BUSINESS AND INDUSTRIAL

MANAGEMENT

TERM ASSIGNMENT 2014-15

PRODUCTION AND OPERATIONS MANAGEMENT

FYMBA- SEM-II

SECTION-A

TOPIC: A CASE STUDY ON DABBAWALA SYSTEM OF MUMBAI

BY,

09: PRAKHAR BHUSHAN

16: CHAWLA DIVYA

22: GANDHI SANI

23: GANDHI VIRAL

SUBMITTED ON -15th APRIL,201

SUBMITTED TO – DR. HITESH SOLANKI


DABBAWALAS CASE STUDY

(A case about logistics)

What are the main learning of the case?

The dabbawalas carry tiffin for the employees which contains two main committees of the

contractors who run the business from the case we can learn why the tiffin carrying service

has been successful in Mumbai.

Following are learning of case

• Understanding the logistical system that can survive due to the culture in various places.

• How can human resource management used in this field?

• Flat hierarchy of the dabbawalas and how well they deliver the services.

• How the food is delivered and what are the other things involved in tis service.

History and Introduction to Dabbawala

What is NMTBSA? (Nutan Mumbai Tiffin Box Suppliers Association)

History :

Started in 1890

Charitable trust Registered in 1956

Avg. Literacy Rate 8thGrade Schooling

Total area coverage 60 Kms to 70Kms

Employee Strength 5000

Number of Tiffin's 2,00,000Tiffin Boxes

Daily Transactions 4, 00,000 transactions every day.

Time taken 3hrs

One basket weight 75-80 kilograms


Working of NMTBSA

Error Rate : 1 in 16 million transactions

Six Sigma performance (99.999999)

Technological Backup : Nil.

Cost of service -Rs. 300/month ($ 6.00/month)

Standard price for all (Weight, Distance, Space)

Rs. 36 Cr. Turnover approx. [6000*12*5000=360000000 i.e Rs. 36 crore p.a.]

“No strike” record as each one a share holder

Earnings -5000 to 6000 p.m.

Diwali bonus: one month’s from customers.

What team and inter-team processes are reflected in the operation of the

dabbawala system?

The essence of this whole system is the trust that is there between the employees and the

contractors

There are two commitees:

o The Mandal committee

o The Trust committee

It is mostly flat hierarchy

5000 workers called carriers

800 supervisors

11 members in the mandal committee

In total there are 5800 members in this system

The inter team process is between the carriers and the delivery address:

Carrier will pick up tiffin at 10 am labels the essentials about where it is to be reaches

Special carriers are those who take up area wise service


All the tiffins are taken to the railway station where another carrier arranges them and

puts them on a 2.5 m long wooden cart carrying up to 40 tiffins at a time

After that he ascends the train and reaches specific destinations where another carrier

collects them at different places

This carrier who picks up the tiffin will deliver it to the office of the customer

The tiffinns are collected later and the same chain is repeated backwards

So diagrammatically ….

churchgate 16

point of agrregation of tiffions

point A Point B

Home 1 Home 2 Home 3

Point c

Grant Road

( 1-12)

lower parel

5

1

2

1 2 3 etc are zones for

distribution and from that

point, every offices are

served


Explanation How dabbawala’s work? (Supply Chain Of Dabbaawala’)

Phase 1

10:34-11:20 am (Andheri Station)

This time period is actually the journey time. The dabbawalas load the wooden crates

filled with tiffins onto the luggage or goods compartment in the train. Generally, they

choose to occupy the last compartment of the train.

Phase 2

11:20 –12:30 pm(Church Gate Station)

At this stage, the unloading takes place at the destination station

Re-arrangement of tiffins takes place as per the destination are and destination building .

In particular areas with high density of customers (NarimanPt.,Fort , CST), a special crate

is dedicated to the area. This crate carries 150 tiffins and is driven by 3-4 dabbawalas!

Phase 3

Return Journey

1:15 –2:00 pm( At All Destination Stations)

Here on begins the collection process where the dabbawalas have to pick up the tiffins

from the offices where they had delivered almost an hour ago.

Phase 4

2:00 –2:30 pm (At Destination Station)

The dabbawalla’s meet for the segregation as per the destination suburb.

Phase 5

2:48 –3:30 pm

The return journey by train where the group finally meets up after the day’s routine of

dispatching and collecting from various destination offices


Usually, since it is more of a pleasant journey compared to the earlier part of the day,

the dabbawal as lighten up the moment with merry making, joking around and singing.

Phase 6

3:30 –4:00 pm ( The Origin Station)

This is the stage where the final sorting and dispatch takes place. The group meets up at

origin station and they finally sort out the tiffins as per the origin area.

Coding done by dabbawala’s

Lunch boxes are usually marked in several ways:

1. abbreviations for collection points

2. colour code for starting station,

3. Number for destination station and

4. markings for handling dabbawala at destination, building and floor. The dabbawalas have

started to embrace technology, and now allow for delivery requests through SMS. A colour-

coding system identifies the destination and recipient.

For Example:

VLP: Vile Parle (suburb in Mumbai),

9EX12: Code for Dabbawalas at Destination

EX: Express Towers (building name),

12: Floor no. E: Code for Dabbawala at residential station,

3: Code for destination Station eg. Churchgate Station (Nariman Point).

ORGANISATIONAL STRUCTURE & WORKING STYLE:

The Nutan Mumbai Tiffin Box Suppliers' Charity Trust had a very flat structure with only

three levels, the Governing Council, the Mukada ms and the Dabbawalas. From the

Governing Council, a president, a vice president, a general secretary, a treasure & directors

were elected. The Governing Council held meetings once a month which were attended by

the Mukadams (Supervisers) and Dabbawalas. At these meetings, the Dabbawalas discussed


their problems and explored possible solutions. The problems could be with the police,

Municipal Corporation, customers, etc. They also adjudicated disputes among Dabbawalas

using their own system. The Trust collected Rs.15 from each Dabbawala every month to

maintain a welfare fund.

Organisational Structure

From the above Introduction and details we can have following

discussions:

1. SWOT analysis

STRENGTHS:

100% Achievements in-

o Teamwork, discipline, honesty

president

vice president

general secretary

treasurer

directors

directors ( 9)

mukadams

members (5000)


o Time management

o Ownership & Pride in work

o Customer satisfaction

o Low operational cost, process consistency

o Service delivery of six sigma

o Service commitment (No strike since inception)

o Satisfaction of team member (due to low attrition)

o Full proof delivery model through colour coding

o Financial independence.

o Just in time approach

0 % dependence upon-

o Fuel in last mile service delivery

o Technology related process complexities

o Investment

o Documentation

WEAKNESS:

Highly dependent on Mumbai local trains

Limited fund flow of the association limits the governing body to implement welfare

schemes

Limited Access to Education, limit diversification of members to other business jobs

OPPORTUNITY:

Tie up with caterers to serve variety of meals i.e. diet food, Chinese/continental food,

food for fasting

Opportunity on the expansion of services on the routes of Mumbai metro & BRTS

Generating revenue by promotion of other brands

Expanding networks in other cities

Booking of service through internet & SMS (Recently started – needs to be popularized)

THREAT:

Threats from fast food joints & small restaurants


Flexi – timing \ work from home culture

Food courts at mall \ mega structures

Catering services offering tiffin services

Paper food vouchers & smart cards i.e. food plus by HDFC

COMPETITORS:

o The major competitors of Mumbai dabbawala are Magic-o-meal, Food plus by

HDFC, Fast Food chains, restaurants, road-side vendors, Udipi chain, food box

etc.

o Competition is different here no manufacturing, only distribution.

2. What factors made Dabbawala system successful

A. SIX SIGMA PERFORMANCE: In 1998, Forbes Global magazine conducted a quality assurance

study on the Dabbawalas' operations and gave it a Six Sigma efficiency rating of 99.999999;

the Dabbawalas made one error in six million transactions. 6- Sigma refers to a quality

improvement and business strategy concept started by Motorola in the United States in

1987. In statistical terms, 6-Sigma is the abbreviated form of 6 standard deviations from the

mean, which mathematically translates to about 3.4 defects per million.

B. Uninterrupted services: The service is almost always uninterrupted, even on the days of

severe weather such as monsoons. The local dabbawalas and population know each other

well and often form bonds of trust. Dabbawalas are generally well accustomed to the local

areas they cater to, and use shortcuts and other low profile routes to deliver their goods on

time. Since 1890, when the dabbawalas formally came into existence, none of them had

ever gone on strike until 2011 when the members decided to head towards Azad Maidan to

support Anna Hazare in his campaign against corruption.

C. No over-reliance on technology. Sure, the dabbawalas are now using Web technology and

SMS for orders, but for the most part this is a fairly low-tech operation. It relies on trains

and barefoot men. No computer chips. No social networks. Just guys busting their humps

and a reliable train service. The lesson for organizations? Don’t expect technology to solve

your issues — usually the issue has more to do with process, execution and expectations

than it does bits and bytes.


D. Create an integrated performance chain. In other words, the dabbawala system keeps its

eye on the sum — not the individual parts. When you boil it down to simple terms, a

performance chain is really just a system of moving pieces. Focus too much on those

individual pieces and you get hung up in the details and, as a result, are less efficient.

Concentrate on the entire system and flow of products and information and you have a

much better chance of success.

E. Acute visibility. The beauty of the dabbawala-based system is that all of the dabbawalas

understand exactly what is happening and when — to the minute. If certain deadlines and

hand-offs are missed, people don’t eat. It’s as simple as that. Make sure everyone within

your chain understands what he or she needs to do, where they need to be and what needs

to happen for the chain to be successful.

F. Keep it simple. Real simple. One of the key lessons any organization can learn from the

dabbawalas is the simplicity with which this system works. The dabbawalas are intimately

aware of what their customers value (food delivered on time, every day). And, just as

importantly, they don’t try to do anything other than that. They don’t overcomplicate

things. They don’t add extraneous value. They simply understand what their customers

want, and they focus 100 percent of their time and energy on meeting that need.

G. Low cost delivery

o Rs. 150 -200

H. Delivery reliability

o Entrepreneurs, not employees

o No strikes

o Flat structure

o Referrals from friends and relatives

o No dilution of service culture

I. Decentralization

J. Appropriate coding system

K. Perceived equality

o Effort different, same remuneration


o Equal remuneration to all.

L. Suburban Railway Network- Food line of the city

o It leads to transport economies.

M. Other factors:

o Zero % fuel

o Zero % investment

o Zero % modern technology

o Zero % Disputes

o 99.9999% performance

o 100 % Customer Satisfaction

CONCLUSION:

In this highly technologically advanced time ‘dabbawalas’ are working absolutely without

technology. They have an excellent supply chain, despite the fact that they don’t even know

what it means. Most of the people working with them are semi-literate but still they read the

tiffin code correctly and deliver it. Their attitude of competitive collaboration is equally unusual,

particularly in India. Their excellent sense of deep commitment, sense of work ethics and

unparalleled time management system are best in place.


Bibliography

1. https://www.google.co.in/search?q=success+factors+for+dabbawala&oq=success+facto

rs+for+dabbawala&aqs=chrome..69i57.12830j0j7&sourceid=chrome&es_sm=122&ie=U

TF-8#q=success+factors+for+dabbawala+

2. http://www.hbs.edu/faculty/Pages/item.aspx?num=38410

3. http://www.articles.economictimes.indiatimes.com › Collections › Mumbai

https://www.google.co.in/search?q=success+factors+for+dabbawala&oq=success+factors+for+dabbawala&aqs=chrome..69i57.12830j0j7&sourceid=chrome&es_sm=122&ie=UTF-8#q=success+factors+for+dabbawala



http://www.hbs.edu/faculty/Pages/item.aspx?num=38410

CASE STUDY ON DABBAWALA SYSTEM OF MUMBAI

Leadership & Management

Transcript of CASE STUDY ON DABBAWALA SYSTEM OF MUMBAI