case study on the operations of dabbawalla

Case Study On Dabbawala

Presented by: Arpita BanerjeeChetan GohilMayur PatelMrunalini Negi

INTRODUCTION:

• Mumbai Dabbawala - carrying and delivering freshly made food from home in lunch boxes to office workers.

• Dabba- “box". • 125 years old and growth 5-10% annually (NY Times-

2007).• Highly specialized trade.• Three point formula:

– Discipline.– Code of conduct.– Hard work.

Achievements:

• Information Rich yet Zero Documentation.• Many documentaries and case study made on them.• Received ISO certification.• Honored by many dignitaries.• Guinness Book World record in Best Time

Management• Registered with Ripley’s ‘Believe It or Not’• Six Sigma implementation – 99.999999% success

rate or one error in six million transaction

Success Factors:

• Low cost delivery

• Delivery reliability

• Decentralization

• Perceived equality

• Suburban railway network

Economic Analysis:

• Everyone gets paid about four to six thousand rupees per month.

• More than 175,000 or 200,000 lunches get moved every day by an estimated 4,500 to 5,000 dabbawala.

• Only one mistake in every 6,000,000 deliveries.• The New York Times reported in 2007 that the 125

year old dabbawala industry continues to grow at a rate of 5-10% per year.

• The cost of delivery is about Rs 500-700 per month.

SWOT ANALYSIS

Strengths: -Wide range publicity. -Operational cost is low.-Customer satisfaction.-Just in time concept.

Weakness:-High dependability on-local trains.-Funds for the association.-Limited Access to Education.

Opportunities:-Expansion of the routes through the metros and BRTS.-Generating revenue by promotion of other brands.-Diversification.-Expanding network to other cities.

Threats:-Indirect competition is being faced from caterers like maharaja community.-Indirect threats from fast foods and hotels-Change in timings.-Company transport.-Ticket restaurant.

PROCESS OF OPERATIONS:

DW1

DW2

DW3 Residential Area 3

Residential Area 2

Residential Area 1

Vile Parle Railway Station

Collection of Dabbawallas according to

Residential Area

Borivli

Churchgate

Kurla

Sorting by codes

DW - Churchgate

Churchgate

DW - Borivli

DW - Kurla

Fountain

Fort

Nariman PointDW1

Nariman Point

DW2

Fort

DW3

Fountain

Sorting by codes

H1

H2

H3

Standard Operating Procedure

DW1

DW1

DW1

DW - Fountain

DW - Fort

DW – Nariman Point

Churchgate Railway Station

Dadar Railway Station

Nariman Point

Fort

Fountain

Sorting by codes

Residential Area 3

Residential Area 2

Residential Area 1

Vile Parle Railway Station

Bandra Railway Station

Borivli Kurla

Collection fromareas

H1H2 H3

Reverse Network Channel

• 10:30 -11:15 am(Andheri Stn.)• 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.

• 11:15 a.m. – 12:15 p.m.

(Church Gate Station)

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

• Re-arrangement of tiffins takes place as per the destination area and destination building

• In particular areas

with high density of

customers (Nariman

Pt.,Fort , CST), a

special crate is

dedicated to the area.

This crate carries 150

tiffins and is driven by

3-4 dabbawalas!

• 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.

RETURN JOURNEY

Low Cost But Reliable – and Always on Time

• 2:00 – 2:30 pm (At Destination Station)The dabbawalla’s meet for the segregation as per the destination suburb.

Churchgate Station

• 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 dabbawalas lighten up the moment with merry making, joking around and singing.

• 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

MAJOR FEATURES OF SCM:

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

delivered at office.

Why it is successful???

• Decentralization• Low operation cost• Low Attrition Rate• Minimum Capital Investment• No overdependence on Technology• Faster Decision Making• Extras For Fault Tolerance• Customer satisfaction --- “Not Raja, But the Maharaja”

Coding System:

Initial Coding System used colored threads to mark 7 Islands

Then Utilized thrown away cotton waste from tailors

Now using color markers:

E :: Code for Dabbawala Street at residential stationVLP :: Residential Station Ville Parle3 :: Code for Destination station.E.G :: Church gate9 :: Code for Dabbawala at Destination.Ex :: Express towers ( Building name)12 :: Floor no. in the building.

• Let us now look at an example of these codes on the tiffins to better understand the system and what it all denotes:

6 Sigma:

• In 1998, Forbes Global magazine conducted a quality assurance study on the Dabbawala’s operations

• Gave Rating of 99.999999

• Dabbawala’s made one error in six million transactions.

• Stood High along with MNC’s like Motorola, GE etc…

• Dabbawala’s got ISO 9001- 2000 for Excellence in service

BEYOND 6 SIGMA:Access Of Home Made Lunch In Time 365 Days a Year To almost 2 Lacs Busy Working Professionals. • Most influenced meal distribution system • Working for last 118 years without even a single off. • Six Sigma Certified. • 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.

• Most ingenious meal distribution system.

HR principles to follow:• Flat organization• No hire and fire rule• Community based Recruitment • Sharing common beliefs, values, ethics• Following of strict dress code• Loyalty & trust is their monopoly• Training provided to the new joiners• Owner + Employee is the designation of each• Quarterly Meetings to discuss issues

Porter's five forces theory at work:

Management learning's:• Utmost Dependence on Human Capital• Honesty & Integrity• Discipline & Time Management• Pride towards work• Keep operational costs as low as possible.• Know the implication of failure.• Complete Contentment of the customers.• Abandon bad customers• Sustained success will lead to fame.

Recent Technologies:

• Online booking in the website www.mydabbawalla.com.

• Ordering through the sms.• Taking the customers feedback in through the

online poll.

Recommendations:• E-codes/bar codes can be used instead of

color codes.• Can form many depot's in the city so that

delivery becomes more quicker.• Can expand their markets to many other

cities in India.• Diversification.• Tie up with caters to serve variety of

meals.

Conclusion:• Examples of efficient management

such as time management and supply chain management.

• No strikes.• Work effectively even in adverse

situations such as floods.