Mumbai dabbawala management


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Principles of management course presentation of bits pilani hyderabad campus by Jatin Chuglani , Ankit sinha , Vinayak Garkoti and Darshan Kishore

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Mumbai dabbawala management

  1. 1. Principles of ManagementMumbai DabbawalasA case study<br />By <br />VinayakGarkoti 2009A4PS355H<br />AnkitSinha 2009A5PS905H<br />Jatin Chuglani 2009A7PS003H<br />DarshanKishore 2009A7PS011H<br />05-03-2011<br />1<br />
  2. 2. Mumbai<br />Dabbawaalas<br />05-03-2011<br />2<br />
  3. 3. Introduction<br /> Who are dabbawalas ?<br />“Dabba” (or box or tiffin) wala<br />Meaning the carriers of the tiffin<br /> box<br />Job is to carry home made food to the office workers<br />Mission : “To serve their costumers on time.”<br />05-03-2011<br />3<br />
  4. 4. Introduction<br /> Why dabbawalas ?<br />In most metros, the only food choices for an office worker are the restaurants or fast food joints.<br />In India , We love home food and love our home cook lunch.<br />Dabbawalas come to rescue in the situation !<br />05-03-2011<br />4<br />
  5. 5. ORGANISATION :<br /> The Nutan Mumbai Tiffin Box Suppliers Trust(NMTBST)<br /> PAST :<br />Started in 1880.<br />Mahadeo Havaji Bachche started with about 100 men.<br />Unified the Dabbawalas.<br />Started for the British people.<br />05-03-2011<br />5<br />
  6. 6. ORGANISATION :<br /> PRESENT:<br /><ul><li>Employees / Partners : 5000
  7. 7. Number of Tiffin boxes per day : 2,00,000
  8. 8. Number of transactions : 4,00,000
  9. 9. Time : 180 Minutes
  10. 10. Six Sigma performances : 99.999999
  11. 11. Cost of service : 200 INR (@ 5 $ a month)
  12. 12. Total turnover : 500000000 INR
  13. 13. Industrial growth 5-10% each year.</li></ul>05-03-2011<br />6<br />
  14. 14. Tiffin Box Suppliers Association<br />Organizational structure<br />The Code<br />Operations<br />War Against time <br />05-03-2011<br />7<br />Executive Committee<br />(5 Members)<br />Team of 20-25 headed by group leader<br />Individual dabbawalla workload:<br />Collect from home -35 Tiffins Delivery at Office -35 Tiffins<br />Return empty tiffins to home<br />
  15. 15. Organizational Structure<br /> 13 members<br />05-03-2011<br />8<br />President<br />Vice President<br />General Secretary<br />Treasurers<br />Directors (9)<br />Mukaddam<br />Members (5000)<br />
  16. 16. Coding System<br /> VLP : Vile Parle(Mumbai)<br /> 9EX12 : Code for Dabbawalas<br /> at destinations.<br /> EX : Express Towers<br /> (building name)<br /> 12 : Floor No.<br /> E : Code for Dabbawalas<br /> at residential station.<br /> 3 : Code for destination <br /> station eg. churchgate<br />05-03-2011<br />9<br />
  17. 17. 05-03-2011<br />10<br />
  18. 18. Flow Logic<br /> Zones for destination<br />Collection from home <br />Distribution to offices<br />05-03-2011<br />11<br />Point of aggregation and sorting<br />Grant Road<br />(12)<br />1<br />2<br />E<br />A<br />3<br />Churchgate<br />(1-10)<br />D<br />B<br />4<br />C<br />5<br />Lower Parel<br />(14)<br />6<br />
  19. 19. DABBAWALA SCHEDULE<br />05-03-2011<br />12<br />
  20. 20. Journey time(10.30AM-11.30AM)<br />The dabbawalas load the wooden crates filled with<br />tiffinsonto the luggage or goods compartment in<br /> the train. <br />05-03-2011<br />13<br /><ul><li>12 coach train
  21. 21. 4,000 commuters
  22. 22. 8,000 disputes</li></ul>But no excuses, <br />Duty first<br />
  23. 23. Destination Station (11.30AM-12.10PM)<br /> Unloading takes place at the <br /> destination station<br />Re-arrangement of tiffins takes<br /> place as per the destination area<br />and destination building <br />05-03-2011<br />14<br />
  24. 24. RETURN JOURNEY:<br />1:15 – 2:00 pm ( At All Destination Stations)<br />Begins the collection process where the dabbawalas pick up the tiffins from the offices.<br />2:00 – 2:30 pm (At Destination Station)<br /> The dabbawallas meet for the segregation at<br /> the destination suburb.<br />05-03-2011<br />15<br />
  25. 25. Final Sorting and Dispatch<br />Return journey by train after <br /> dispatching and collecting from <br /> various destination offices. <br />The group meets up at origin<br /> station and they finally sort <br /> out the tiffins as per the origin<br /> area.<br />05-03-2011<br />16<br />
  26. 26. Management lessons from the Dabbawalas<br /> Keep operational costs to a minimum:<br /><ul><li>Use cycles, hand carts, local trains – all low cost.
  27. 27. No big office to maintain.
  28. 28. No I-T budget and no miscellaneous costs.
  29. 29. No ad budget – word of mouth publicity!
  30. 30. Very nominal monthly service cost – Rs.200/-</li></ul>05-03-2011<br />17<br />
  31. 31. Keep capital investment bare minimum :<br /><ul><li>Hard work, honesty, promptness and time management are the only investments.
  32. 32. Low cost offices.
  33. 33. Cheap hand carts.
  34. 34. Cycles – easy to maintain.
  35. 35. Use of public space for sorting.</li></ul>05-03-2011<br />18<br />
  36. 36. Just serve your customer – nothing else!!<br /><ul><li>Always deliver food on time – even during heavy rains.
  37. 37. Always on time – even without using a watch!!
  38. 38. Don’t try to impress or bother customers with unsolicited offers.
  39. 39. Bothering customers with offers may force them to discontinue even existing services.</li></ul>05-03-2011<br />19<br />
  40. 40. Never deviate from your core competency :<br /><ul><li>Only business of delivering home made food to clients.
  41. 41. Efforts to sell other products through dabbawala system failed.
  42. 42. Be “Master of one trade rather than jack of all.”
  43. 43. Develop products and services around core competency, if required.</li></ul>05-03-2011<br />20<br />
  44. 44. Commitment matters – qualification<br /> doesn't!!<br /><ul><li>85% of dabbawalas are illiterate.
  45. 45. Max. level of literacy – 8th standard failed.
  46. 46. Still able to offer world class service, as they are committed to offer food to customer on time.
  47. 47. “If commitment is there, qualification can be built.”</li></ul>05-03-2011<br />21<br />
  48. 48. Know the implications of failure:<br /><ul><li>If food is not delivered on time, it angers customers and work will suffer.
  49. 49. May cause problems between customer and his wife.
  50. 50. A vegetarian gets a non-veg dabba – BIG Problem!!
  51. 51. “Knowing the implications of failure makes you more responsible and serious towards your work.”</li></ul>05-03-2011<br />22<br />
  52. 52. Build your services around existing<br /> infrastructure:<br /><ul><li>Use reliable, fast, efficient and cheap local train services.
  53. 53. Many food companies in Mumbai use their own infrastructure – tough to maintain and costly as well.
  54. 54. “Building new infrastructure increases the cost of service.”</li></ul>05-03-2011<br />23<br />
  55. 55. Abandon bad customers:<br /><ul><li>When dabbawala knocks the door, the dabba should be ready.
  56. 56. If its not for three consecutive days, then the service is stopped as it affects the services to other customers.
  57. 57. “Bad customers affect the operation and profitability from existing customers.”</li></ul>05-03-2011<br />24<br />
  58. 58. Penalize employees for non compliance:<br /><ul><li>Dabbawalasare penalized for not wearing Gandhi Topi, not pre-informing about leave and misbehaving with customers.
  59. 59. After a few warnings, if dabbawala doesn’t improve, he is expelled from the system.
  60. 60. Discipline is the main reason for their success.
  61. 61. “Rules are meant to be followed, not broken!!”</li></ul>05-03-2011<br />25<br />
  62. 62. Do not transfer your employees too often:<br /><ul><li>Most of the Employees have experience of more than 30 years.
  63. 63. They fully understand the needs of their customers.
  64. 64. Thus customers trust them.</li></ul>05-03-2011<br />26<br />
  65. 65. SWOT Analysis<br /> Strengths:<br />Simplicity with innovative service<br />Coordination ,team spirit and time management.<br />Low operation cost.<br />Customer satisfaction.<br /> Weaknesses :<br />High Dependability on local trains.<br />Low funds for the association<br />Limited access to education.<br />Caste-based.<br />05-03-2011<br />27<br />
  66. 66. SWOT Analysis<br /> Opportunities :<br />Wide scale publicity.<br />Low Operational cost.<br />Catering.<br /> Threats :<br />Direct competition from other caterers.<br />Indirect competition from fast food joints and hotels.<br />Company canteens<br />05-03-2011<br />28<br />
  67. 67. Some Achievements<br />World record in best time management.<br />Name in “GUINESS BOOK of World Records”.<br />Registered with Ripley's “ believe it or not”.<br />Six Sigma rating by Forbes.<br />05-03-2011<br />29<br />
  68. 68. Awards and Felicitation<br />Invitations for conferences from <br />IIML, <br />IIMA, <br />Dr. Reddy’s Lab Foundation Hyderabad,<br /> SCMHRD Nasik,<br />BITS- Pilani<br />Also, Included in a subject in Graduate School of Journalism University of California, Berkeley. <br />05-03-2011<br />30<br />
  69. 69. Documentaries <br />Television<br /> BBC ,<br /> MTV,<br /> ZEE TV,<br /> AAJ TAK, <br />TV TODAY,<br /> SAHARA SAMAY,<br /> STAR TV,<br /> CNBC TV 18, <br />CNN,<br />TV TOKYO,<br /> NDTV.<br />05-03-2011<br />31<br /> Radio <br />German radio network<br />Radio mirchi<br />Radio mid day<br />Fm-gold<br />BBC radio<br />
  70. 70. VIP visits<br /><ul><li>England King Prince Charles met dabbawalas on 4th Nov, 2003.
  71. 71. Was told to come to church gate station to meet dabbawalas, so that the delivery of dabbas to clients is not affected.
  72. 72. Virgin group chairman, Richard Branson, travelled with dabbawalas and delivered dabba to his own employee.</li></ul>05-03-2011<br />32<br />
  73. 73. 05-03-2011<br />33<br /> Letter from Prince Charles Richard Branson with Mumbai Dabbbawalas<br />
  74. 74. Conclusion<br />The concept of dabbawalas comes in one of the biggest and busiest cities of the world.<br />Dabbawalas are a great example of efficient service.<br />great at time management even during floods (A practice seldom seen in Indian context)<br />05-03-2011<br />34<br />
  75. 75. Conclusion<br />Shown that illiterate and semiliterate people can also provide efficient services.<br />Hard work and sincerity are the main factors in their success according to them.<br />05-03-2011<br />35<br />
  76. 76. Interesting Facts<br />Error data varies from source to source , but roughly, 1 in 6 million transactions.<br />No C.A to manage finances and other functions.<br />All dabbawalas are shareholders in company.<br />No strike ever.<br />05-03-2011<br />36<br />
  77. 77. “We don’t understand Six Sigma. We are a bunch of illiterates. But we do know our prime responsibility – customer satisfaction. And to achieve that, we can put in hard work like no one else,” <br /> President NMTBSA RaghunathMedge<br />05-03-2011<br />37<br />
  78. 78. Bibliography<br /><br /><br /><br /><br />The Hindu newspaper archives<br />05-03-2011<br />38<br />
  79. 79. THANK YOU<br />