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The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
The Dabbawallas
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The Dabbawallas

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Strategic Insights into the operations of the Dabbawallas of Mumbai

Strategic Insights into the operations of the Dabbawallas of Mumbai

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  • overview of a 100 old, non tech, --lunch box courier system run in enormously busy city of Mumbai by very simple and yet incredibly efficient system
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  • pls let me download this ppt
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  • could you please e-mail a copy of the presentation to me! aniketlila.1995@gmail.com ! Thank you. :)
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  • HI pl. e-mail a ppt copy of the presentation to captainsekar@kinetixengineering.com. Would like to use it as one of my management tools.
    Thanks and best regards.
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  • Hi,

    Please let me know how to get a copy of this ppt. my email ID is 'marsri@gmail.com'

    Thank you,

    sriram
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  • 1. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 The Dabbawallas of Mumbai Amit Rangnekar NMIMS PhD 2004
  • 2. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Quotes • “People study business books and then practice. We practiced first and have now become case studies” R Medge President • “ It’s a model of managerial & organisational simplicity” CK Prahalad
  • 3. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Belief- WORK IS WORSHIP Credo- We deliver come what may, the customer shall never go hungry Tiffin crate weight: 75-80 kgs.
  • 4. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Efficiency • Zero % fuel • Zero % investment • Zero % modern technology • Zero % Disputes • 100 % Customer Satisfaction • Average education levels- 8th Standard • 50% illiterates
  • 5. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Operations • Employee Strength: 5000 • Number of Tiffin's: 200,000 Tiffins = 400,000 transactions every day = 400,000*25 days*12 months= 120,000,000 (120 million or 12 crore transactions per year) • Time taken: 8 hrs, wartime is 3 hours • Success rate: 100% • Delivery: On time, every time
  • 6. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Results • Error Rate : 1 in 16 million transactions • Six Sigma performance (99.999999) • Technological Backup : Nil. • Cost of service - Rs. 280-330/ month ($6-8 £3-4, €5-6 per month) • Standard price for all (Weight, Distance, Space) • “No strike” for 115 years, a record, as each one is a share holder
  • 7. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 The Need • Late 19th century • Work driven migrations to Mumbai • No families • No canteens / fastfoods • Early work hours, no time to prepare food • Different communities, different tastes • Satisfied only by home cooked food
  • 8. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 The Seed • Mahadev Bache, identified the need gap and pioneered lunch delivery in Mumbai • Recruited youth from his native village • Youth with insufficient agri-incomes to feed large families • Youth with no skills or education
  • 9. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 The Rising • Operations began in 1890 • 20 dabbawallas • Expand to 100 dabbawallas • Charged Rs 2 / month, target mill workers • Most Dabbawallas from Western Maharashtra
  • 10. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 The Boom • 1950s & 1960s • Industrial boom • Proliferation of offices in South Mumbai • Preference for home food • 200,000 Dabbas delivered per day
  • 11. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Getting Organised • Nutan Mumbai Tiffin Box Suppliers Charity Association (now Trust) formed in 1954 • Offices at Grant Road, Dadar, Chembur, Ghatkopar, Mulund, Andheri • Western Harbour & Central Lines covered
  • 12. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 1970s • Boom time • Dabbas in 3 shifts in many mill areas • But • Bank nationalisation changed working hours • Rail strike ensured disruption in services
  • 13. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 1980s • Textile Mills start closing • Majority of the mill workers, the biggest segment, stops availing the service • Daily business slips to 150,000 dabbas
  • 14. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 1990s + • Gain clients who yearn home cooked food, shun outside food • School tiffins surge • Daily business again reaches 200,000 dabbas But, • Offices start moving to the suburbs • Industries start moving outside Mumbai • Most mills closed
  • 15. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006
  • 16. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Key players • One group has 20-25 dabbawallas • Each dabbawalla picks up 30-35 dabbas, travels between 2-10 km by bus / cycle / on foot to deliver • 1970s &1980s, 40-45 dabbas were picked up but plastic tiffins being wider, occupy more space • Each group led by a Mukadam, who controls and coordinates the activities • Group areas not demarcated, 3-4 groups operate in the same area • Seamless co-ordination of activities of collection, distribution and delivery through relays • Each change is called a ‘badli’
  • 17. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 ORGANISATIONAL STRUCTURE PRESIDENT VICE PRESIDENT GENERAL SECRETARY TREASURER DIRECTORS ( 9 ) MUKADAM (800) MEMBERS ( 5000 ) 13 Decision Makers Key duties- Conflict resolution, administration, welfare
  • 18. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 30% 60% 10%
  • 19. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Wartime: Emergency measures being taken to ensure delivery
  • 20. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Prime-time
  • 21. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006
  • 22. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006
  • 23. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 12 coach train, 4,000 commuters 8,000 disputes, But no excuses, Duty first 12 coach train, 4,000 commuters, 8,000 disputes, no excuses, duty first Sorting at Churchgate Origin station Destination station
  • 24. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Sorting • Sorted by destination • 30-35 dabbas packed in wooden crates • Crates loaded in packed train luggage compartments • Building wise / lane wise sorting at destination stations
  • 25. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Distribution • 70% deliveries at CST & Churchgate • Frantic activity at noon • Sprint / cycle to deliver • High volume areas like Nariman Point, Fort , CST have dedicated crates, carrying 150 tiffins, pushed by 3-4 elderly dabbawallas
  • 26. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Reverse in top gear • 2pm to 6pm • Collect the empty dabbas • Assembling and sorting • Delivered back to where they came from by evening
  • 27. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 • The return journey is more pleasant due to a lighter load and the dabbawallas indulge in fellowship, light hearted banter and catch up with their accounts
  • 28. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 What’s Unique • Different dabbawallas pick up, sort and deliver • Co-ordination is seamless • The person who delivers does not know the origin address and vice-versa • Nowhere on the dabba is the owner’s name or address put, but there are no delivery errors • Errors do not occur due to mistakes by the dabbawallas, but due to pilferage in trains or sorting areas • No ‘Parking’ issues although such a huge load is processed
  • 29. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006
  • 30. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Binding Agents • All are stakeholders • Many are relations • Similar customs and traditions • Faith in Lord Vithoba of Pandharpur • “We cannot deliver only if the trains in Mumbai do not run, but in that case, no one can reach office either” Gangaram Talekar- General Secretary
  • 31. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Code of conduct • Rs 25- Not carrying ID card • Rs 25- Not wearing white cap • Rs 100- Smoking on duty • Rs 500- Drinking on duty • Rs 1000- Leave without intimation, sacked if repeated in 2-3 instances
  • 32. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Financials • A dabbawalla makes Rs 5500-6000 ($125, £60, €100) per month • Incidentals- Railway pass + crate costs+ luggage pass + incidentals Rs 500 ($11, £6, €9) per month • Rs 400 go to the parent association • Net monthly earnings range from Rs 4500- 5000 ($100, £50, €75)
  • 33. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Adaptations / Innovations • Express delivery system (pick up at 11am) • SMS a dabba • www.mydabbwallas.com (under construction) • Tie-up with a group of housewives to cook & supply home- cooked food • Tie up with Dr Vijaya Venkat, who supplies food based on medical ailments of the patient, after examining them
  • 34. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 CSR • Each dabbawalla donates Rs 15 per month • The trust has set up 4 dharamshalas, schools and temples at their native place • Help during medical emergencies • Family members of dabbawallas who die / are incapacitated while in service are absorbed into the system / compensated
  • 35. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Strategic Issues • Expansion into Navi Mumbai / Panvel • Model duplication across other cities • Franchising in other cities • Backward integration into catering • Forward integration into couriers • Networking through surrogate homes for single persons • Foray into Call centers /BPO/ ITES / Retail with dual delivery shifts
  • 36. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Challenges • Offices- Shift to central / suburban/ Navi Mumbai • Proliferation of Local eateries, tendency to eat out • Inhouse cafes / canteens/ lunch coupons • Second generation dabbawallas residing in Mumbai , not joining the profession • Morning tiffins difficult as working women increase • Attrition rates high • Average age of the dabbawallas is 52 years
  • 37. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Key drivers • Committed workforce • Stakeholders faith • Teamwork • Operational flexibility
  • 38. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Sustainable Advantage • Mumbai’s efficient rail network • Simplicity and scalability of operations • Employees as shareholders • Economy pricing deters corporates
  • 39. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Opportunities • Demand for home cooked / fresh food would rise due to increased awareness • Offices shifting to areas connected by rail- BKC, Lower Parel, Navi Mumbai, Panvel, Western suburbs • Retail / Call centers/ ITES / BPO • Increasing petrol prices • Metro rail in the offing
  • 40. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006
  • 41. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Opportunities, Challenges & Options
  • 42. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 Are the dabbawallas going to be extinct? “How can it be ? Sure, some clients may move away, but children will continue to go to school and people to offices. As long as people feel the desire for home cooked food, the dabbawallas would always deliver” • R Medge, President
  • 43. Amit Rangnekar, NMIMS-PhD-2004 Copenhagen, Sep2006 With their most famous student

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