HISTORY
CHAPTER1
INTRODUCTION
Logistics management activities typically include inbound and
outbound transportation management, fleet management, warehousing,
materials handling, order fulfillment, logistics network design,
inventory management, supply/demand planning, and management of
third party logistics services providers. To varying degrees, the
logistics function also includes sourcing and procurement,
production planning and scheduling, packaging and assembly, and
customer service. It is involved in all levels of planning and
execution--strategic, operational and tactical. Logistics
management is an integrating function, which coordinates and
optimizes all logistics activities, as well as integrates logistics
activities with other functions including marketing, sales
manufacturing, finance, and information technology. Logistics is
concerned with getting the products and services where they are
needed when they are desired. It is difficult to accomplish any
marketing or manufacturing without logistical support. It involves
the integration of information, transportation, inventory,
warehousing, material handling and packaging.
The operating responsibility of logistics is the geographical
repositioning of raw materials, work in process, and finished
inventories where required at the lowest cost possible. All the
activities involved in moving an item- from the place where its raw
materials are located, to the place where it was made or grown, to
the place where it is used or consumed- can be described under the
broad terms as logistics or distribution people variety of
logistics careers are responsible for getting the right products to
the right places at the right time in good condition and at a
reasonable cost. The act of supervising or managing this far-
reaching activity is generally known as logistics management and
the people who work in this industry are generally referred to as
logistics managers or distribution managers.
Within the firm the challenge is to co-ordinate individual job
expertise into an integrated competency focused on servicing
customers. In most situations the desired scope of such
co-ordination transcends the individual enterprise, reaching out to
include customers as well as material and service suppliers. In a
strategic sense the senior logistics officer leads a boundary
spanning initiative to facilitate effective supply chain
relationships. The excitement of contemporary logistic is found in
making the combine result of internal and external integration one
of the core competencies of an enterprise. Throughout the history
of mankind wars have been won and lost through logistical strengths
and capabilities or the lack of them. Even though the generals of
the past have understood the critical role of logistics it is only
in the recent past that the big organizations have realized its
role in the achievement of competitive advantage.
A PROJECT REPORT ON
ABOUT THE TITLE
The present study is title as Logistics Management A Case
Study.
OBJECTIVES OF THE STUDY
To study the history of logistic management.
To study how it implement in practical life.
To study how logistic management is useful in case of Dabbawala
management.
To know the success of Dabbawala management with reference to
logistic management.
SCOPE OF THE STUDY
The project basically revolves around logistic management with
reference to Dabbawala and how the Dabbawala implemented this
system and use to their best knowledge to reach the point of
success.
LIMITATIONS OF THE STUDY
This project is limited to the Dabbawala Management. In this
project Dabbawalas only related to the Logistics.
DATA AND METHODOLY
Primary Data:
A questionnaire was prepared for getting the view of president
of Dabbawalas management about their work which is most related to
the logistics.
Secondary Data:
Secondary data was collected from Reference Books and various
websites
CHAPTER LAYOUT:
Chapter 1
This chapter gives introduction to the topic
Chapter 2
This chapter gives activities involved in logistics
management.
Chapter 3
This chapter gives introduction to Dabbawala Management.
Chapter 4
This chapter gives how Dabbawala implement six sigma in their
work.
Chapter 5
This chapter gives final conclusion.
CHAPTER 2THE EVOLUTIONEvery major war has been learning for
industries. Second World War was disastrous but has taught many
things to the mankind. However, the industries have gained.
Pre-1950 was the dormant years. All the places the monopolistic
conditions were prevailing, Low quality products were selling at
high cost. Customer was not having demanding character.
World War II developed military logistics. Concept of getting
required material immediately at needful place was the need of the
hour. It gave an important massage to the industries.
1950 to 1970 were the years of development for the industries.
In this logistics included total cost concept which represent
transportation costs for inventory & other costs.
1970 to present year were the Take off years for the subject of
logistics. Here there was shift from cost control to revenue
generation in the world competition. In the competitive situation
number of companies realized that they are loosing in the business
even though their products and reputation was good. The unknown
factor of logistics management was a cause of concern.
DEFINITION OF LOGISTICS MANAGEMENT
Logistics Management is defined by the Council of Logistics
Management (CLM) as:-
the process of planning, implementing and controlling the
efficient, effective flow and storage of goods, services and
related information from point of origin to point of consumption
for the purpose of conforming to customer requirements.
Business Definition:-
Logistics is defined as a business- planning framework for the
management of material, service information and capital flows. It
includes the increasingly complex information. Communication and
control systems required in todays business environment.
The Formal Definition:-
The process of systematically identifying, defining, designing,
developing, producing, acquiring, delivering, installing and
upgrading logistics support capability requirement through the
acquisition process for Air Force systems, subsystems and
equipments.
IMPORTANCE OF LOGISTICS MANAGEMENT
Without selling and or buying there can be no trade and
business. Buying and or selling takes place only when goods are
physically moved into and or away from the market. Take away
logistical support and trade will collapse.In conventional
management environment, various activities of logistics work in
isolation under different management functions.
Each pocket trying to sub optimizes its objectives at the cost
of overall organizational objectives.
Operations produce large quantities at minimum production costs
ignoring demand leading to doom inventories.
Logistics functions of management bring all such functions under
one umbrella pulling down inter department barriers.
One could study about logistics matters simply because the
subject is interesting & essential. Such study would likely
make one more knowledgeable & interesting. However, there are
far more practical reasons for spending some time learning about
this subject.
Most service firms, institutions and government agencies as well
as all business firms, need the aid of logistician to some degree.
It has been the case that the demand for people in the various
activity areas of logistics has exceeded the supply of trained
personnel. The shortage is especially acute at the managerial
level. The typical pattern, out of necessity, has been to acquire
such people outside the logistics organization who have had no
formal training in the area.
Even at the career entry level, there are many opportunities. It
is estimated that 87% of the countrys largest companies plan to
hire college graduates with degrees in transportation and/ or
logistics by 1981.
Future economic conditions will make logistics an even more
attractive field. It is not expected that the domestic economic
will grow at the rate it has in the past, because the birth rate is
slowly and the availability of prime quality resources seems to be
reaching a limit. Because of this, company will turn to competing
for market share. As a recent article in Business Week point out,
no business firm or service organization can operate without
carrying out logistical activities to some degree. Therefore,
anyone seeking to move up the managerial ladder will want some
understanding of logistical problems and how to deal with them.
OBJECTIVES OF LOGISTICS MANAGEMENT
Basic objectives of logistics are to provide customer
satisfaction with the product/ services availability, customer
satisfaction is to providing the required product at required place
of required time.
To understands the needs and the requirements of the customers.
Apart from the point of view of the product design, it is more
essential to understand the time, the place, atmosphere in which
the customer needs.
In competitive environment, it is difficult to predict changes,
suppliers, customers, partners, competitors are changing there
position and they may join hands to stay in the business.
The need of any business is now to provide the materials cutting
all the borders of the nations. Now it is global village. The
growth of any company cannot be done just by confining to one
country.
From all the parts of the company their has to real time of
information available to all the people concerned for doing any
job. Keeping right data and decisions to every person is an
important in logistics management.
The need to reduce inventory cost companies has discovered that
their ability to manage the entire supply chain from raw materials
to delivery of the finished products or services to the customer is
a source of competitive advantage.
REASONS FOR LOGISTICS TO EXISTLogistics management from this
total system is the means whereby the needs of customers are
satisfied through the coordination of the materials and information
flows that extend from the market place through the firm and its
operations and beyond that the supplies.
For Example, for many years marketing and manufacturing have
been as largely separate activities within the organization. At
best they have coexisted at worst there has been open warfare.
Manufacturing priorities and objectives have typically been focused
on operating efficiency achieved through long production runs,
other hand marketing has sought to achieve competitive advantage
through variety, high service levels and frequent product
changes.
In todays more turbulent environment, there is no longer any
possibility of manufacturing and marketing acting independently of
each other.
It is now generally accepted that the need to understand and
meet customers requirements is a prerequisite for survival. At the
same time in the search for improved cost competitiveness,
manufacturing management has been subject of massive renaissance.
The last decade has seen the rapid introduction of flexible
manufacturing systems of new approaches to inventory based on
Materials Requirements Planning (MRP) and Just In Time (JIT)
methods a sustained emphasis on quality.
Equally there has been growing recognition of the critical role
that procurement plays in creating and sustaining competitive
advantage as part of an integrated logistics process.
In this scheme of things, logistics is therefore essentially an
integrative concept that seeks to develop a system wide view of the
firm. It is fundamentally a planning concept that seeks to create a
framework through which the needs of the manufacturing strategy and
plan which in turn links into a strategy and plan for
procurement.
NEW DIRECTION FOR LOGISTICS The business reaching a state of
maturing started strategy use of logistics.
Involving channel partnership, inter organizational logistics
alliances, more direct interface with suppliers and customers.
Logistics as a competitive weapon to secure and maintain
customer loyalty by providing more responsive and flexible
service.
Professional discipline
Specialized skills knowledge
Cost, globalization and time trends
THE LOGISTICS MISSION
The logistical mission of an enterprise is to develop a system
that meets objectives at the lowest possible dollar expenditure.
The logistical system is primarily concerned with support of
manufacturing and marketing operations. At the policy level, the
critical question is to determine the desired level of performance
and determine the associated cost of logistical operations. The
challenge is to establish a balance between performance and cost
that will result in attainment of the logistical objectives of the
enterprise. This logistical policy provides managerial mandate for
system design.
A well design logistical effort must have the capacity to
control operational variances and to minimize inventory commitments
across the entire system. Total cost expenditure is directly
impacted by achieving maximum possible transportation
consolidation. In addition to cost containment, the objectives of
quality control and life cycle support are integral to the
logistical mission.
ACTIVITIES INVOLVED IN LOGISTICS MANAGEMENT 1) Order
processing
2) Inventory management
3) Materials planning
4) Warehousing
5) Transportation
Provide a targeted level of customer service at the least cost
maximize profits, not the sales. So the company must compare the
benefits of providing higher levels of service with the costs. Some
companies may offer less service and charge less but others may
offer more services than its competitors and charge higher prices
to cover their cost.
1) Order processing :-
Orders can be submitted in many ways; by mail, telephone,
through sales people, or via computer. Order processing systems
prepare invoices and order information. The warehouse receives
instructions to pack and ship the ordered items. And bills send
out.
2) Inventory management :-
Inventory decision involved
when to order and
how much to order
In deciding when to order, the company must think of the risks
of running out of stock and costs of carrying too much. In deciding
how much to order, the company must think of order processing costs
and inventory carrying cost.
3) Materials planning :-
Easy to think about output side. In put side is just as
important, especially with perishable food products. Every company
stores in goods while they wait to be sold.
4) Warehousing :-
The company must decide on_
How many and
What types of warehouses it needs and
Where they will be located
The company might own private warehouses or rent space in public
warehouses or both.Owning a private warehouse; bring more control
ties up capital is less flexible if locations change.
On other hand, public warehouses; charge for rented space
provide additional services for inspecting, packaging, shipping and
invoicing goods but at a cost offer wide choice of locations. Basic
types of warehouses_ Storage warehouses
Distribution warehouses
Storage warehouses store goods for moderate to long periods,
distribution centers are designed to move goods rather then just
store them. They are large and automated warehouses designed to
receive goods from suppliers, take orders and deliver goods to
customers. 5) Transportation :-The choice of transportation
carriers affects_ The pricing of products
Delivery performance
Condition of the goods when they arrive
all affect customer satisfaction.
In choosing a transportation mode, shippers consider five
criteria _ speed door to door delivery time
Meeting schedule on time
Ability to handle various products
Number of geographic points served
Cost per ton kilometer.SUPPLY CHAIN MANAGEMENT DEFINITION
The supply chain management (SCM) profession has continued to
change and evolve to fit the needs of the growing global supply
chain. With the supply chain covering a broad range of disciplines,
the definition of what is a supply chain can be unclear. Often
times SCM can be confused with the term logistics management. CSCMP
and the board of directors, comprised of industry experts, created
official definitions for the following terms.
Supply chain management encompasses the planning and management
of all activities involved in sourcing and procurement, conversion,
and all logistics management activities. Importantly, it also
includes coordination and collaboration with channel partners,
which can be suppliers, intermediaries, third party service
providers, and customers. In essence, supply chain management
integrates supply and demand management within and across
companies.
Supply Chain Management Boundaries and Relationships
Supply chain management is an integrating function with primary
responsibility for linking major business functions and business
processes within and across companies into a cohesive and
high-performing business model. It includes all of the logistics
management activities noted above, as well as manufacturing
operations, and it drives coordination of processes and activities
with and across marketing, sales, product design, finance, and
information technology
HISTORY
MUMBAI the city of dreams and ambitions. The city of explorers
and wildcatters. The city that had always been on fast track. Here
success happens purely on merit. The British develop the basic
infrastructure of roads, railways and buildings for Bombay. At that
time, the prime business centers were Fort and Ballard pier areas.
These were the houses of banks, government departments, insurance
houses, shipping companies and the other industrial head offices.
Soon, the residential colonies moved away from fort and hence, lot
of Paris Christians and Europeans started finding it difficulty to
go home from lunch from work. Carrying lunch boxes was not always
preferred routine for them since they did not like having cold
meals.
The Dabbawalas service began informally in Mumbai. According to
Raghunath Medge; In the 1980s, a Paris banker working in Ballard
Pier employed a young man who came down Pune to fetch his lunch
everyday. Business picked up through referrals and soon our pioneer
Dabba- carrying entrepreneur had to call for helping hands from his
village. This reinforcement led to the unleashing of an army that
even today, in the 21st century, serves millions of Mumbai with the
same spirit and competence.
Such was the origin of dabbawalas. This Tiffin carrier guy picks
up the lunch box in the morning and delivers it on time to the
place of work, wherever in Mumbai that is, and delivers it back to
the residence at a very economical price. However trivial the task
may sound nevertheless, it is of vital importance since havoc is
caused if the client has to skip his home cooked food, or worse,
carry the Tiffin in the ever so crowded Mumbai local trains and
that too during the rush hour.
Approximately 5000 dabbawalas across Mumbai coordinate each
other for picking up and delivering the Tiffins for over 1,75,000
Mumbai ties everyday in a 3 hour period, through 60 kms of public
transport. In fact, the modes of transport simply includes the
local trains, bicycles and handcarts. Of course it is rare that
Tiffin may miss being on the owners lunch tables at the lunch
hour.
The history of the Dabbawalas lunch delivery service dates back
to the 1890s during the British Raj. At that time people from
various communities migrated to Mumbai for work. As there were no
canteens or fast food centers then, if working people did not bring
lunch from home, they had to go hungry and invariably, lunch would
not be ready when they left home for work.
Besides different communities had different taste and
preferences, which could only be satisfied by a home, cooked meal.
Recognizing the need, Mahadeo Havaji Bacche (Mahadeo), a migrant
from North Maharashtra, started the lunch delivery service.
For his enterprise, Mahadeo recruited youth from villages
neighboring Mumbai, who were involved in agricultural work. They
were willing to come, as the income they got from agriculture was
not enough to support their large families, and they had no
education or skills to get work in the city.
The service started with about 100 dabbawalas and cost the
client Rs.2 a month. Gradually the number of dabbawalas increased
and the service continued even the founder was no more.
In the 1950s, the dabbawalas were delivering 2,00,000 lunches a
day. The dabbawalas became organized after 1954 when the Nutan
Mumbai Tiffin Box Suppliers Charity Trust was established. The
trust had offices in various parts of the city such as Grant Road,
Dadar, Chembur, Ghatkopar and Mumabi.
WHO IS DABBAWALA?
Descendants of soldiers of the legendary Maharashrian warrior-
king Shivaji, dabbawalas belongs to the Malva caste, and arrive in
Mumbai grom places like Rajgurunagar, Akola, Ambegaon, Junnar and
Maashi. They believe in employing people from our own community. So
whenever there is a vacancy, eiders recommend a relative from their
village.
Farming earns a pittance, compelling us to move to the city. And
the Tiffin service is a business of repute since we are not working
under anyone. Its their own business, they are partners, and it
confers a higher status in society.
The proud owner of a BA (Hons) degree, Raghinath Medge,
president of MTBSA, is a rare graduate. He wanted to be a Chartered
Accountant but couldnt complete the course because of the family
problems. Of his three children, his daughter is a graduate working
at ICICI, one son is a dabbawala and the younger son is still
studying.
Apart from commitment and dedication, each dabbawala, like any
businessman, has to bring some capital with him. The minimum
investment is two bicycles (approximately Rs.4,000), a wooden crate
for the Tiffins (Rs.500), at least one cotton kurta- pyjama
(Rs.600), and Rs.20 for the trademark Gandhi topi.
DABBAWALA METHODOLOGY AND RULES
Error is horror, in the event of the dabbawala meeting with an
accident in route, alternative arrangement are made to deliver the
lunch boxes. For Example, in a group of 30 dabbawalas catering to
an area, five people act as redundant members; it is these members
who take on responsibility of delivering the dabbas in case of any
untoward happenings . The dabbawales must be extremely disciplined.
Consuming alcohol while on duty attracts a fine of Rs.1,000.
Unwarranted absenteeism is not tolerated and is treated with a
Similar fine. Every dabbawala gets weekly off, usually on
Sunday.
The Gandhi cap serves as a potent symbol of identification in
the crowded railway stations. Not wearing a cap attracts a fine of
Rs.25.
In fact, Richard Branson, the maverick businessman who is never
shy to promote him and virgin brand, donned a Gandhi topi and dhoti
(the dabbawalas signature dress code ), during the lunch of virgins
inaugural flights to Mumbai.
There are no specific selection criteria like age, sex or
religion; however, I have never seen a female dabbawala. The
antecedents of the candidates are thoroughly verified and a new
employee is taken into the fold for six- months probation.
After that period, the employment is regularized with a salary
of Rs.5, 000 a month.
It is interesting a note there is no retirement age, and any
person can work till he is fit enough to carry on the tasks
required of him.LOGISTICAL DISTRIBUTION NETWORK
The dabbawala mean distribution network was characterized by a
combination offer baton relay system in which dabbas were handed of
between dabbawalas at various point in the delivery process and the
hut and spokes system in which the storing of dabbas was done at
specific railway location form where individual spokes branched out
for distribution. There was no local historical model on which this
distribution network was design. All design decision was driven by
the singular purpose of delivering as dabba in time for the
customers. This delivery process remained unchanged since their
inception even though the environment of service is changed. For
example, the delivery system does not rely on the computers.
The only change in the dabbawalas delivery model was the fine-
turning of the coding system in 1996. the number of customers using
the delivery services had continued to grow and without some form
of common identification that all the dabbawalas could follow. The
sorting process at the hub was likely to become overly time
consuming.
STARTING POINT - 8.30 TO 10.34 AM
The day for the dabbawala starts at 8.30 am, with collection of
dabbas at various houses. People usually leave the dabbas outside
the door for them. In case they are late the dabbawalas have to
urge them to hurry up, else if it gets late they have to leave the
client. Because if they keep waiting for this one Tiffin they might
not be able to reach to the station on time.
The dabbawala is forced to do so because he is bound by the
train time. The departing train time is very crucial and he must
consider the time required for the sorting process. Their may on
the other hand, be further delay caused by other customers too. It
is extremely difficult, yet crucial to ensure that the entire pick
of all Tiffin takes place as per schedule. The scheduling as the
include cushion time for uncertainties such as these without which
the whole system will be disrupted. The dabbawala picks up the
Tiffin from his lot fob houses in Santacruze and meets the other
group member at the designated spot at the station. This particular
group of 10 dabbawalas takes the 10.34 am Churchgate local time
everyday. Therefore the dabbawala have to make sure that they reach
the platform for the sorting process at least by 10.15 am. In order
to ensure smooth flow of their networking throughput there daily
routine, this period in the morning that includes picking up the
Tiffins and meeting at the designated spot on the station is most
crucial part of the system. One bit delay in this aspect will
disrupt the whole system. And will lead to a chaotic situation.
Therefore the dabbawalas have to collect the Tiffins at time and
reach the station with enough time left for the sorting to take
place before train arrives.
SORTING PROCESS - 10.15 TO 10.34 AM
The critical phase of the system is sorting. Sorting of all the
Tiffins according to their destination station and arranging them
into wooden crates taken 20-25 mins. The aim of the process is to
segregate the Tiffins and differentiate them as per the
destination. Sorting makes them it easier to identify each group of
Tiffins and less time consuming for respective dabbawalas. Sorting
makes the entire process error free. The process is similar to that
of the post office where letters are segregated according to their
destination. Since each Tiffin exchanges many hands each of the
lids of the Tiffin is marked with the color code indicating the
originating station, destination and building with the floor
number. The secrete behind the efficient working of the systems and
thats why the network is information rich.
This is a unique feature, as it requires no documentation and
record keeping. There is no communication between the two groups,
but just coordinating among them because the whole blue print is
pre-decided by the dabbawalas themselves.
The Mukadam plays a key role here to ensure smooth working and
coordination, his responsibility is to know all the Tiffins his
group carrier. The responsibility of the Mukadm is to extend that
he has to know all the Tiffins that his group carries. Therefore he
must be able to recognize these Tiffins even if the codes on them
are barely visible. Also if any member of the group absent from his
duty for particular day for some reason. Then it is the
responsibility of the Mukadam to ensure that all the dabbas that
the absentees are responsible for are duly picked up and deliver
back on time. Hence we see that the Mukadam plays a critical role
in this stage for sorting and allocating jobs.
The dabbas are collected and sorted out and sent to their
destination based on the numerical and alphabetical code. Every
station has a numerical code and each place has an alphabetical
code. These codes have been developed over a year and began with
simple color threads. An employees deliver the dabbas collected
individually from houses at the railway station nearest to houses.
At the station the destination are sorted out, based on the codes.
And taken by trains to respective stations.
JOURNEY IN TRAIN 10.34 TO 11.20 AM
During this time the dabbawalas load the wooden crates on
tiffins in to the goods and luggage compartment of the trains.
Generally they try to occupy the last compartments as this helps
them to avoid the rush at the platforms and it easy to be located
and continently situated once the train arrives at the platform.
Mostly the commuters dont get this compartment as they are already
filled crates and there is not enough room. This is common
understanding among daily commuters and dabbawalas. in any case the
platform is filled with people. And dabbawala has to unload the
crates on the platform. They start a series of loud comments
warning everyone to make way for crates unloading. The unloading of
this particular group takes place at Dadar, Lower Parel, Grant Road
and Churchgate.
The allocation of manpowerat each station depends on the number
of Tiffins that have to be delivered in a particular area.
SORTING WHEN REACHING - 11.20 TO 12.30 PM
At this stage the unloading takes place at Churchgate and our
destination station. Dabbawalas have to be dispatched accordingly
and the dabbas are to be delivered in large quantities at times to
areas like Nariman Point, RBI, and Stock Exchange. Now within that
area, if one location like Mittal Tower has a huge number of
Tiffins to be delivered then its area of number or location number
remains the same and the dabbas get differentiated based on its
color. To sum up the delivery process at the destination center,
each dabbawala looks for specific code written on the right side
top of the Tiffin.
The dabbawalas concentrate only on the dabbas that he has to
deliver. He may not have in some cases, picked up his Tiffin from
the originating stations; he has been allotted these dabbas only at
Churchgate. This kind of specification makes the entire system
efficient and error free.
The unique feature of system is that bigger buildings with large
office densities. Like in Nariman Point and stock exchange building
itself. An elevator is especially reserved for dubbawalas during
lunch time. Usually these elevators have a special elevator
reserved for themselves onto which others cannot board. In some
cases they also leave Tiffin in the canteen that is common to the
whole building and hence the respective owners can simply pick up
there.
In other case like Mittal Chambers the dabbawalas leaves the
Tiffins outside the respective offices. The peons come and give
them to the respective client thats why even the peons are good to
recognized Tiffins. So these ways the dabbawalas save a lot of time
in this delivery process.
Then dabbawala takes break for their own lunch, which is usually
there Tiffin kept along with others. Different groups have there
lunch at different locations. It is generally on the footpath or on
the benches on road side.
The break is for 45-60 mins. Till then customers finish having
there lunch and keep there dabbas outside the office to get
collected.
COLLECTION PROCESS 1.15 TO 2.00 PM
Here on begins the collection process where the dabbawala have
to pick up the Tiffin from the office where they have delivered
almost hour ago. The dabbawalas are the same in this case. The one
who delivers it to the office will be the same one to collect it.
Most of the time the dabbawala will collect the dabbas from all the
officers situated on the same floor will leave them in the
corridor. Then he goes and collect all the dabbas from various
floors and gets them at the base level. Finally he loads them on
the crates.
This is the actually the only risky point in the entire network
system. This is because there is risky of theft when the dabbawala
leaves the Tiffin outside the corridor. The solution to this to
have another dabbawala securing the dabbas. While the other one
goes and collect the remaining. This is related to a personal
experience and hence the mention of this situation is critical in
analyzing the mechanism of the system. By complains and suggestions
from customers the dabbawalas can actually bring the improvement
such as the one mention. A dabbawalas who can secure Tiffin can
greatly help in reducing theft.
RETURN JOURNEY 2.00 TO 2.30 PM
After the collection is over the dabbawalas need the remaining
members designated spot and the first assortment on the first
return journey takes place. The group members meet with their
remaining crates and the segregation as per the designation suburbs
take place. The group departs for the station and all groups meet
there for a common sorting process. The crates are arranged in a
line and each dabbawalas picks up the Tiffins that belongs to his
group at a designation center. This is not the final sorting and
therefore. The individual members of the designating group have to
just identify the boxes and put them into crates.
One important thing is to note is that a particular dabbawala
need not operate in the same group throughout the day. He will, in
most cases operate with two different groups one at the origination
station and one at the designation station. The coordination is
equally important in either group. And there is total unity among
them.
After sorting the various crates they departs in their
respective trains which again are pre-decided and again its a part
of there daily routine. This part of journey is more relaxed and
they are not under the pressure of the timely delivery as in the
morning. They lighten up the moment by joking around and singing,
which ease their stress and develop the strong bond in the
group.
TRAIN JOURNEY 2.48 TO 3.30 PM
This again is return journey by train where the group finally
meets after the days routine after dispatching and collecting from
various offices. The group members from Marine Lines, Grant Road
and Dadar board and designated compartment and finally they arrive
at origin station.
Usually since it is more of a pleasant journey compared to the
earlier part of the day, the dabbawalas lighten up the moment by
merry making, joking and singing. Dabbawalas have created
impression on the passengers for being hardworking, dedicated and
joyous people.
FINAL JOURNEY OF THE DAY 3.30 TO 4.00 PM
This is the stage where final sorting and dispatching of the day
takes place. The group meets up at the station and finally sort
outs the Tiffins as per designated area. This is the easiest
process because of the limited quantity of Tiffins that gets off
the train with them. It is simpler to understand which Tiffin
belongs to whom. The delivery process takes roughly 30-45 mins
depending on the distance that the dabbawala will have to
cover.
Thus the entire system end with the delivery of the Tiffin back
to the customers origin point. The customer is satisfied with the
timely delivery of home food and getting Tiffins back to their
origin.
There is still one important and unique aspect to this system
and that is individual dabba. This dabbawala doesnt operate in any
group. He picks up the dabba himself in the morning travels to
various destinations to deliver and collect the Tiffins back to
send to the origin. A real example of this kind of dabbawala can be
cited here. This type of dabbawala travels from Ghatkoper to Cuffe
Parade and back everyday. It is simply unbelievable that a person
can work and travel so much everyday and can still maintain
punctuality.
He operates on an 8.00am to 8.00pm shift. But he does not have
an option of taking up the train to at any point because there are
always Tiffins at various points and at various suburbs routes.
This method of individual dabbawala is preferably for those who are
ready to put in more hard work just to earn a bit of that extra
income.
CHAPTER 4
IMPLEMENTATION OF LOGISTICS BY DABBAWALAIn the dabbawalas
elegant logistics system, using 25 kms of public transport, 10 kms
of footwork and involving multiple transfer points, mistakes rarely
happen. According to a Forbes 1998 article, one mistake for every
eight million deliveries is the norm. For one, the system limits
the routing and sorting to a few central points. Secondly a simple
color code determines not only packet routing but packet
prioritizing as lunches transfer from train to bicycle to foot.
The entire system depend on team work and meticulous timing.
Tiffins are collected from homes between 7.00 am and 9.00 am, and
taken to the nearest railway station. At various intermediary
stations, they are hauled onto a platforms and sorted out to
area-wise distribution, so that single Tiffin could change hands
three to four times in the course of its daily journey.
At Mumbais downtown stations, the last link in the chain, a
final relay on dabbawalas fan out to the Tiffins destined bellies.
Lunch hour over, the whole process moves into reverse and the
Tiffins return to suburban homes by 6.00 pm., 200 Tiffins are
collected by 9.00 am, reach the station and sorted according to
their destinations by 10.00 am when the Dabbawala Special train
arrives.
The railway provides sorting areas on platforms as well as
special compartments on trains traveling south between 10.00 am and
11.30 am.
During the journey, these 80 dabbawalas regroup according to the
number of Tiffins to be delivered in a particular area, and not
according to the groups they actually belong to. If 150 Tiffins are
to be delivered in the Grant Road station area, then four people
are assigned to that station, keeping in mind one person can carry
no more than 35-40 Tiffins.
During the earlier sorting process each dabbawala would have
concentrated on locating only those Tiffins under his charge
wherever they come from, and this specialization makes the entire
system efficient and error free. Typically it takes about ten to
fifteen minutes to search, assemble and arrange 40 Tiffins onto a
crate, and by 12.30 pm they are delivered to offices.In a way,
MTBSAs system is like the internet. The internet relies on a
concept called packet switching. In packet switch networks, voices
or data files are sliced into tiny sachets, each with its own coded
address which directs its routing.
These packets are then ferried in bursts, independent of other
packets and possibly taking different routes, across the country or
the world, and re-assembled at their destination. Packet switching
maximizes network density, but there is a downside: your packets
intermingle with other packets and if the network is overburdened,
packets can collide with others, even get misdirected or lost in
cyberspace, and almost certainly not arrive on time.
To better understand the complex sorting process; lets take an
example. At Vile Parle station, there are four groups of dabbawala,
each has twenty members and each member services 40 customers. That
makes 3,200 Tiffins in all. These 3,200 Tiffins have to be
collected by 9.00 am, reached the station and sorted according to
their destinations by 10.00 am when the Dabbawala Special train
arrives.
THE CODING SYSTEM:
VLP:- Vile Parle9E12:- code for Dabbawala at destination
9:- number of dabbawala who picks it up at destination
E:- express towers (bldg. name)
12:- floor no.
E:- code for dabbawala at residential station
3:- code for destination station (E.g. Nariman point)SIX SIGMA
AND DABBAWALASix Sigma can be used to create a brand business
process from ground up. Six Sigma strives from perfection. It
allows only 3.4 defects per million opportunities for each product
or services transaction. Six Sigma relies heavily on statistical
techniques to reduce defects and measure quality.
Six sigma experts (Green Belts and Black Belts) evaluate a
business process and determine ways to improve upon the existing
process. Six sigma incorporates the basic principles and techniques
used in Business, Statistics and Engineering. These three form the
core elements of six sigma. Six sigma improves the process
performance, decreases variation and maintain consistent quality of
the process output. This leads to defect reduction and improvement
in profits, product quality and customer satisfaction.
Six sigma focuses on improving quality (i.e. reduce waste) by
helping organizations produce products and services better, faster
and cheaper. Six Sigma focuses mainly on defects prevention, cycle
time reduction and cost savings. Unlike mindless cost cutting
programs, which reduce value and quality, Six Sigma identifies and
eliminates costs, which provide no value to customer and the
production process. To understand the concept of Six Sigma one must
understand the concept of normal curve.
DABBAWALAS WORK AS PER SIX SIGMA
Human sigma is a measure that focuses on reducing variances in
key employee and customer outcomes by improving an organizations
human performance and moving it towards excellence.
Six Sigma is quality improvement programmer that links output
quality to financial performance provides tangible measures to help
focus the organization and outlines processing for managing
improvement. It calls for a quality level of 3.4 DPM (defects per
million) and many Indian companies including TVS Lucas have
benefited from application of the six sigma concept.Most
interestingly, the humble dabbawala who delivers the Mumbaikar his
home cooked lunch at his office on time, come rain or shine has
achieved the coveted six sigma level of performance.
Interestingly this quality metric (measure) has now been
extended to the human side of business an area that hitherto has
never been quite so accurately measurable and its called Human
Sigma. Curt Coffman, the global practice leader for Workplace and
Customer Management for the Gallup Organization is credited with
this phrase.
Human Sigma is a measure that focuses on reducing variance in a
key employee and customer outcomes by improving organizations human
performance and moving it towards excellence. Simply put, the human
sigma approach shows how to manage and maximize the human
difference. The concept was born out of an extensive research study
by the Gallup Organization involving more than 80,000 managers in
more than 400 companies the largest study of its kind ever
undertaken. The study revealed directs link between the engagement
levels of employees and customers and bottom line performance of
the firm.
DABBAWALA: MUMBAIS BEST MANAGED BUSINESS
Prince Charles is not the first person to show an interest in
the Dabbawala of Mumbai. In fact, the first time they actually shot
to international fame was when his compatriots at the BBC did a
documentary on them way back in the late 70s.
But it was in the 1990s, when management lexicon became a part
of daily life, that the interest in Dabbawalahs, now synonymous
with Mumbais blaringly fast life, grew. Today, they are feted
regularly and invited to lecture students of business management.
Corporate chiefs applaud them; management gurus use them as a
model. Raghunath Medge, president, Nutan Mumbai Tiffin Box
Suppliers Charity Trust, who met Prince Charles on Tuesday, will be
in Lucknow in January to address the students of the prestigious
Indian Institute of Management. And, in between, some management
students will be spending time with him.
DABBAWALA ECONOMIC ANALYSIS
Everyone who works within this system is treated as an equal.
Regardless of a dabbawalas function, everyone gets paid about
2-4,000 rupees per month (around 25-50 British pounds).
More than 1, 75,000-2, 00,000 lunches get moved everyday by an
estimated 4,500-5,000 dabbawalas, all with an extremely small
nominal fee and with utmost punctuality. According to a recent
survey, there is only one mistake in every 6,00,000 deliveries. The
American business magazine Forbes gave a six sigma performance
rating for the precision of dabbawalas.
The BBC has produced the documentary on Dabbawalas, and Prince
Charles, during his visit to India, visited them (he had to fit in
with their schedule, since their timing was too precise to permit
any flexibility). Owing to the tremendous publicity. Some of the
dabbawalas were invited to give guest lectures in top business
schools in India, which is very usual. Most remarkable, the success
of the dabbawala trade has involved no modern technology. The main
reason for their popularity could be the Indian peoples aversion to
fast food outlets and their love of homemade food.
MUMBAIS DABBAWALAS: EFFICIENCY IN SUPPLY CHAIN
Battling the traffic and crowds of Mumbai city everyday,
unfailingly delivering about 2 lakh lunch boxes to office-goers and
school children, and returning the empty boxes to where they come
from, is what the dabbawalas do for a living. The 5000 workforce is
largely illiterate or semi- literate. Whats more, they have been
doing this consistently for the last 115 years without using any
IT.
The network operates on a meticulously planned and precise
manner using a zoning system approach, that consist of several
teams each team supervised by a Mukadam. The citys network for
local trains is used in the delivery process, as also bicycles and
carts, besides the physical ferrying of large wooden crates of
dabbas weghing 65-70 kg on the heads of the dabbawalas. For his
efforts, the dabbawala, who is also a shareholder in the
Association, earns an average of Rs.5000/- per month. Currently,
the Association has begun inviting dabba booking through SMS, and
has even launched a website in order to keep up with the changing
times, though it still aims to keep operational costs low as that
has been its USP.
The Associations representatives spoke about the recognition
that their organization was currently receiving from all quarters,
especially after Prince Charles visit to the Mumbai Churchgate
Station to interact with them, and also after their six sigma
certification. Talekar made humorous reference to the
Thumbs Up status of the workforce a reference to their
illiteracy and also to the inconsequence of certifications to the
dabbawala who would rather get on with his job of delivering his
dabba to the satisfaction of his customer. Medge, for his part,
said that for the dabbawala, the customer was a greater king than
any other royal representative.
What came across was the sincere belief of the dabbawalas in
their role as Annadatas or providers of food. Their motivation
stems from the desire to ensure that no individual subscribing to
their service would go hungry on any working day. Though their
logistics and delivery processes can be interpreted as akin to the
hub and spoke system, one even Just- In- Time and Network
Management, one certainly cannot find an equivalent in management
parlance to their motivational tools. CHAPTER 5
ANALYSISUNIQUENESS OF DABBAWALAS
At the simplest, the dabbawala deliver home cooked meals to
individuals at their workplaces and return empty Tiffin boxes to
homes and, in some cases, caterers. For this, they charge Rs.300 to
350 that $6-7. a month.
The workforce of the Tiffin box suppliers trust, the cooperative
that runs the system, is 5,000. Each Tiffin box contains two or
three containers, often carrying traditional Indian fare- rice,
curry, chapattis, and vegetables. Housewives even send notes to
their hubbies in these boxes.
Each tray can hold up to 40 boxes. These trays then travel in
local trains down to various stations. At each station, there is
another set of dabbawalahs who quickly take the dabbas meant for
other stations.
A Mumbai local halts at a station for about 20 seconds or less
and thus, the dabbawala have to work with precision and speed.
During rush hour, its a nightmare. Ask anyone who has done time on
Mumbai locals. At each station, the boxes are once more sorted for
localities and offices and taken there by handcarts or sometimes
carried by individuals. They carry up to 35 kg for distances of a
couple of kilometers. The boxes are placed in the offices reception
area by 12.30 pm and are picked up from the same spot by the
deliverer a couple of hours later. The whole process then starts
again in the reverse. The boxes are picked up from the offices,
taken to the nearest station and sorted for their journey home.
Forbes magazine gave this service its highest quality rating of
sigma 6, which means that per million transactions, there is just
an error of one.
On an average, a dabbawalah can make about Rs.3,000 to 5,000.
the trust provides several services to its members, including
schools for the children and health care in emergencies.
Mumbais geography makes it unique; it is a longish city where
residences are in the north and offices in the south, so it makes
our work simple. They tried a similar service in Delhi a few tears
ago and it didnt work out; Delhi being a circular city, the
logistics were difficult.
Today, the service delivers not just homemade food but also
picks up food from caterers and deliver them to offices. But Medge
said that foods from caterers are still a small segment of the
total operation.
DISADVANTAGES OF THIS SYSTEM
The dabbawalas entire scheduling and system will be disrupted if
any customer cause a delay in giving a dabba to him.
And secondly if the dabbawala falls ill or take leave due to any
reason there wont be anyone to substitute his place and therefore
no back up. The customers will be frustrated and will switch over
to another dabbawala if he has a habit of remaining absent. That
would be the great loss to the dabbawala and hence his health also
needs to maintain. Even more that any other dabbawala who are
working in groups. This is rather difficult considering the
rigorous working and long hours required.
As it is apparent enough, there is hardly any contact with the
clients and the dabbawala during each day. The dabbawala meet his
client in the office only on the 1st day of delivery to verify and
to show the spot where the Tiffin is to be delivered.
The system has been honored to such perfection that many
dabbawalas carry out the operation with the help of just one code,
which is absolutely reserved. This system is specifically for city
like Mumbai. Such daily exercise can run successfully only in city
like Mumbai because of the following reasons:
Plentiful commuters who goes to office daily. Presence of
efficient and widespread railway network.
Large distance between residence and workplace.
An efficient and simple information system like coding used by
dabbawalas.
IMPORTANCE OF DABBAWALAS They have 5,000 people on their payroll
to ensure the prompt delivery of lunch boxes within Mumbai; these
delivery boys travel by local trains and use bicycles or walk to
reach every nook and corner of Mumbai. The lunch boxes are
delivered exactly at 12.30 pm. Later, the empty boxes are collected
and taken back to the homes, catering services or hotels before
5.00 pm.
On an average, every Tiffin box changes hands four times and
travels 60-70 kilometers in its journey to reach its eventual
destination.
Each box is differentiated and sorted along the route on the
basis of marking on the lid, which give an indication of the source
as well as the destination address.SUGGESTIONS: Logistics is very
important aspect of dabbawalas. The error free system can be taken
as blue print and be implemented in many systems.
Six sigma acts as very important aspect of shipment.
RECOMMENDATION:
Literacy rate has to be increased among Dabbawalas in order to
help them over come all problems.
Dabbawala can implement this model in different countries.
Training has to be given to Dabbawalas in order to make them
compete globally.
Need for global recognition.
Development of infrastructure for supporting initiative taken by
Dabbawala.CONCLUSION The supply chain management systems used by
the Mumbai Dabbawalas. They have global applause and are featured
as case studies in B school books.
Apart from career- giving tips, they also give life changing
tips on honesty, commitment, stress management, humility,
discipline, and HR and Time Management.
The process begins early in the morning. Cooked food is picked
up from houses and caterers by Dabbawala and taken to the nearest
railway station. There, the different Tiffin boxes are sorted out
for specific destination stations and loaded on to large,
rectangular trays accordingly. The service runs every working
day.
As long as the dabbawala service is there, Mumbaikars alone in
the world would have the option of eating homemade food in offices
without bother of having to carry a cumbersome lunch box.
Logistics is the new mantra for building competitive advantage,
the world over. Mumbais dabbawalas developed their homegrown
version long before the was coined
ZONES FOR DESTINATION
OFFICES
LUNCHING TO
CARRIERS AT
DISTRIBUTION BY
1
7
6
5
4
3
2
(14)
PAREL
LOWER
10)
-
(1
GATE
CHURCH
GRANT
ROAD (12)
COLLECTION FROM HOME
E
D
C
B
A
& SORTING
AGGREGATION
POINT OF
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