Mumbai dabbawalla

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MUMBAI DABBAWALLASUPPLY CHAIN MANAGEMENT

PRESENTED TO-PROF. B.V.N. SACHENDRA

PRESENTED BY-DR. APURVADR. SHAILESHDR. RAJENDRAMS. PRIYADARSHINIDR. SATYAMDR. SUDIPTA(PT)

ADMINISTRATIVE STAFF COLLEGE OF INDIA, HYDERABAD

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INTRODUCTION• A “dabba,” in local Indian parlance, is a lunch box or tiffin

with home cooked food; the person who delivers it is called the “dabbawala.”

• The dabbawalas deliver warm lunches from the homes of customers, and the women who work in those households usually decide what is being served.

• Traditionally the process has been conducted via personal networks, but today dabbawalas have websites in place to facilitate the process.

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• A total of 5000 dabbawalas move almost 200,000 lunches everyday, an activity that has been carried on with utmost precision and punctuality for over a decade now.

• The organization has become symbolic of Mumbai’s culture, and the dabbawalas themselves have structured their own narrative as an indigenous brand that thrives on little technology and basic infrastructure.

• Donning Gandhi caps and regularly getting together for cultural ceremonies, the dabbawalas both draw upon and contribute to the cultural fabric of Mumbai.

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Nutan Mumbai Tiffin Box Suppliers Association

• History : Started in 1890• Charitable trust : Registered in 1956• Avg. Literacy Rate : 8th Grade Schooling• Employee Strength : 4500- 5000• Number of Tiffin's : 2,00,000 Tiffin Boxes

i.e. 4,00,000 transactions every day.

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ORGANIZATION STRUCTURE

Vice President

Mukaddam

President

General Secretary

Treasurer

Directors(9)

Members(5000)

13 members

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HUMAN RESOURCE PRACTICES

• The Governing Council (also called as Panch Committee) holds meetings on the 15th day of every month.

• Activities- Keep record of payments.Settle disputes.Search new customers.Train new dabbawallas.

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DESCIPLINES & MARKETING STRATEGY

• No Alcohol Drinking during business hours• Wearing White Cap during business hours• Carry Identity Cards

MARKETING STRATEGY-• Marketing pamphlets in the “Dabba”

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CODING SYSTEM

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FLOW LOGIC

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MEAL DISTRIBUTION NETWORK

• Combination of Baton Relay system and Hub and spoke model.

• Decisions driven by single process of delivering a dabba on time.

• Each Dabbawala personally responsible for 30-35 dabbas in a day.

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TIMELINE

8:30 -9:30 am• This is the time when dabbawallas collect tiffins from home

9:30 -9:40 am• This is when sorting of dabbastake place according to hub,

outside the station.

10:20 -11:05 am• Sorting is done according to destination and carteges are

loaded into trains

11:45 – 12.10 pm• Unloading takes place at the destination station • Re-arrangement of tiffins takes place as per the

destinationarea and destination building

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12.10 – 12.30 pm• In particular areas with high density of customers, a special crate is dedicated to the area. This crate carries 150 tiffins and is driven by 3-4 dabbawalas!

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REVERSE LOGISTICS

1:30 – 2:00 pm• Collection process begins where the dabbawalas have to pick up the tiffins from the offices.

2:00 – 2:30 pm• The group members meet for the segregation as per the destination suburb.

2:50 – 3:30 pm• Journey in train.3:30 – 5:30 pm• Final sorting, dispatch, delivery.

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MAJOR FEATURES OF SUPPLY CHAIN

• Zero % fuel • Zero % investment • Zero % modern technology • Zero % Disputes • 99.9999% performance • 100 % Customer Satisfaction• Food is taken from home or mess and is delivered at

office.

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PORTER’S FIVE FORCE MODEL

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MUMBAI DABBAWALLAS & SIX SIGMA

• Six Sigma is a methodology to manage process variations that cause defects and to systematically work toward managing variation to eliminate defects.

• The objective of Six Sigma is to deliver high performance, reliability, and value to the end customer.

• It is a methodology to reduce defect levels below 3.4 defects per million opportunities (DPMO).

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• Six Sigma’s goal is to eliminate defects from any process, product, or service.

• In this process of supplying Dabba, a unique distribution system has been created.

• This system works so well that Forbes magazine has conferred upon them a six sigma quality rating putting it into the league of corporate like GE & Motorola.

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STATISTICS WHICH DEFINES SIX SIGMA

• Error Rate: 1 in 16 million transactions • Six Sigma performance (99.999999) • Technological Backup: Nil. • Cost of service – Approx. Rs. 300 to 500 /month • Although Six sigma rating implies that they have an error rate of 3.4 errors per million transactions, the fact is that Dabbawala have error rate of 1-2 errors per 6 million transactions . Accuracy rating is 99.999999. More than Six Sigma.

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SUCCESS FACTORS• Typically Rs. 300 to 500 per month.• Increased once in 2 yrs.

Low cost delivery

• worked 6 days a week.• No boss-subordinate relationship.• Lived and worked in clans.

Delivery reliability

• work in groups and maintain exclusivity in terms of revenue and expenditure.

• took responsibility of the group.

Perceived equality

• great help in logistics.Suburban railway network

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THREATS

• Closure of several textile mills in 1980.

• started delivery of meals to schoolchildren.

Shrinking customer base and customer

loyalty

• ready-to-eat packaged foods.

Lifestyle changes

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WHAT THEY LACKS

• IT system. • Improvement in the education standard.

THE QUESTION WE HAVE-• How to increase living standard of dabbawala’s by using IT?

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APPLYING IT

• Advantages-As dabbawala is using sms’s and web services, the organization can install software in HINDI fonts or their vernacular languages fonts for easy accessibility.

E-codes/bar codes can be used instead of color codes.

Presentations and lectures should be given to all the workers to understand the English language.

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• Disadvantages-Costly to implement.Workers are not well educated to understand it properly.

As orders increases the workforce also will increase, so the cost reduction cannot be done.

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HOW CAN THEY INCREASE MARKET SHARE

• They can use pamphlets and advertising in papers so that they can cover more market share. Also they can use telemarketing services.

• Proper pricing should be done according to distance and food.

• Should open new outlets in other cities.• E- services and sms services produce ample of opportunity for business expansion.

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THEIR ACHIEVEMENTS• World record in Best Time Management • with Six Sigma rating.

• Name in “GUINESS BOOK of World Records”.

• Registered with Ripley's “ believe it or not”.

• Participated in “Deal Ya No Deal Contest” by Sony Entertainment Television

• Invited for marriage of Hon. Prince Charles of England on 9th April, 2005

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CONCLUSION • Management learning's-Utmost dependence on human capitalHonesty and integrityDiscipline and time managementPride towards workRecruitment policies and manpower managementComplete contentmentMusical medicationSustained success will lead to fame

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ADDITIONAL READING

The Best Way To Innovation? - An Important Lesson from India

http://www.forbes.com/sites/karlmoore/2011/05/24/the-best-way-to-innovation-an-important-lesson-from-india/

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ROLE PLAYEDMEMBERS ROLES PLAYED

APURVA ANALYSIS

RAJENDRA ANALYSIS

SHAILESH DATA ASSEMBLED

PRIYADARSHINI DATA ASSEMBLED

SUDIPTA PPT COMPILING & DESIGNING

SATYAM PRESENTATION MADE

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ADMINISTRATIVE STAFF COLLEGE OF INDIA, HYDERABAD