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Mumbai Dabbawalas
They are called..
       Shivaji Maharaj’s soldiers – “Deccan Mavle”
                    The Annadatta’s
                    The Dabbawalla’s




          Their Principles..
           ü Shakti aur bhakti
           ü Work is Worship
ü Manav seva me bhagwan seva milti hai
           ü Union is strength
  ü I trust man only coz I trust in god
Nutan Mumbai Tiffin Box Suppliers Association

• History             : Started in 1890
• Charitable trust     : Registered in 1956
• Avg. Literacy Rate : 8th Grade Schooling
• Employee Strength : 5000
• Number of Tiffin's : 2,00,000 Tiffin Boxes
  i.e 4,00,000 transactions every day
• Time taken             : 3 hrs
• Total area coverage : 60 Kms to 70 Kms
Success Factors

• Low cost delivery

• Delivery reliability

• Decentralization

• Perceived equality

• Suburban railway network
• Design – on information flow, product exchanges and
  developing long lasting relationships

• Result – loyal team of dabbawala and a assured customer
  base

• Leader – Madhu Bache had a strong influence

• Strategy – is same since 125 years – To develop
  localized organization and groups to have location
  advantage cause of familiarity with the area

• Network – Networking system is like internets network on
  a system
HR Practices they follow



• Flatorganization
• 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 5 Force Model

            • Competition: Its difficult to replicate their
            supply chain network
            • New entrants: Fast food joints as well as
            office canteens. However, since neither of
            these serve home food, the dabbawallas'
            core offering remains unchallenged.
            • Bargaining power of buyers: Delivery
            rates are so nominal (about Rs 300 per
            month) that one simply wouldn't bargain
            any further.
            • Bargaining power of sellers: minimum
            infrastructure and practically no technology
            is used, hence they are not
            dependent on suppliers.
            • Threat of a new substitute product or
            service: No substitutes to home cooked
            food in Indian scenario, hence threat to the
            dabbawalla service is not an issue at least in
            the foreseeable future.
SWOT Analysis
Strengths:

§ Simplicity in organization with Innovative service
§ Coordination, team spirit, & time management
§ Low operation cost
§ Customer satisfaction
§ Low Attrition Rate

Weaknesses:

§ High dependability on
  local trains
§ Funds for the association
§ Limited Access to Education
Opportunities

§ Wide range publicity
§ Operational cost is low
§ Catering

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
Management Principles Derived..

• Team work
• Time management
• Innovation
• Customer relationship
  management
• 6 Sigma
• Logistics And Supply chain
  management
Their Achievements

• Documentaries made by :
BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY, SAHARA SAMAY, STAR TV,
CNBC TV 18, CNN, SONY TV, TV TOKYO, NDTV.

• CASE STUDY made by :
ICFAI Press Hyderabad & Bangalore
Richard Ivey School of Business – Canada
Also, Included in a subject in Graduate School of Journalism University of California,
Berkeley

• Invitations from :
CII for conference held in Bangalore, IIML, IIMA, CII Cochin, CII Delhi, Dr. Reddy’s
Lab Foundation Hyderabad, SCMHRD Pune, SCMHRD Nasik, Sadahana – Pune,
Rotary Club – Bangalore, NIQR at Chennai

•Radio:
German Radio Network, Radio Mirchi, Radio Mid-day, FM – Gold, BBC Radio, Radio
City
Others:

§ 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
Six Sigma definition
          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 was
          originally defined as a metric for measuring defects and
          improving quality, and a methodology to reduce defect
          levels below 3.4 defects per million opportunities (DPMO).
          Six Sigma works to minimize the difference between
          what your customers need, and the product or service
          you deliver
Sigma (the lower-case Greek letter σ) is used to represent the standard deviation
(a measure of variation) of a statistical population. The term "six sigma process," comes from
the notion that if one has six standard deviations between the mean of a process and the
nearest specification limit, there will be practically no items that fail to meet the specifications
What is 6 σ quality?
 Six Sigma’s goal is the near
 elimination of defects from any process,
 product, or service.
 The numerical goal is 3.467 defects
 per million opportunities.
 It is observed that sometimes, close
 to 1/3 of the work done consisted of
 redoing what had already been done.
Beyond six sigma




  Amazing supply chain management
Forbes magazine reorganization
 In this process of supplying Dabba, a
 unique distribution system has been
 created
 They are generating employment to more
 than 5000 uneducated people.
 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
Beyond 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
 About $6 - $7 / month only
 Standard price for all (Weight, Distance, Space)
 Rs. 36 Cr. Turnover approx.
 [6000*12*5000=360000000 i.e. Rs. 36 crore p.a.]
 Earnings -5000 to 6000 p.m.

 Zero % fuel                 Zero % investment
 Zero % modern technology Zero % Disputes
 100 % Customer Satisfaction
DISCIPLINE
No Alcohol Drinking during business
hours
Wearing White Cap during business
hours
Carry Identity Cards
Beyond Six 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 yrs 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.
WHEN THEY CAN DO IT WITHOUT IT


 WHY WE CAN NOT DO BETTER WITH IT?
 We have IT, we have ERP, we are all highly
 educated….we should produce better results
 then ‘uneducated Dabbawala’
 SIX SIGMA IS A MUST FOR EVERY
 PROGRESSIVE ORGANIZATION
 Use ERP / MIS to measure the defects and
 improve quality
SIMPLE CODES ON THE TIFFIN
SUPPLY CHAIN
COCA-COLA TIES UP WITH
DABBAWALLAS

BEVERAGES MAJOR, COCA-
COLA INDIA, WILL USE THE
MIGHT OF MUMBAI
DABBAWALLAS TO LURE
CUSTOMERS TO SAMPLE ITS
ORANGE JUICE DRINK
MINUTE MAID PULPY
ORANGE
  MR. VENKATESH KINI, VP,    RS.500 CRORE PACKAGED
                                  JUICE MARKET
  MARKETING                 COCA-COLA IS COMPETING
                                 WITH PEPSICO’S
                                   TROPICANA
                            AND DABUR’S FOODS’ REAL
Thank You

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Mumbai dubbawalas - six sigma

  • 2. They are called.. Shivaji Maharaj’s soldiers – “Deccan Mavle” The Annadatta’s The Dabbawalla’s Their Principles.. ü Shakti aur bhakti ü Work is Worship ü Manav seva me bhagwan seva milti hai ü Union is strength ü I trust man only coz I trust in god
  • 3. Nutan Mumbai Tiffin Box Suppliers Association • History : Started in 1890 • Charitable trust : Registered in 1956 • Avg. Literacy Rate : 8th Grade Schooling • Employee Strength : 5000 • Number of Tiffin's : 2,00,000 Tiffin Boxes i.e 4,00,000 transactions every day • Time taken : 3 hrs • Total area coverage : 60 Kms to 70 Kms
  • 4. Success Factors • Low cost delivery • Delivery reliability • Decentralization • Perceived equality • Suburban railway network
  • 5. • Design – on information flow, product exchanges and developing long lasting relationships • Result – loyal team of dabbawala and a assured customer base • Leader – Madhu Bache had a strong influence • Strategy – is same since 125 years – To develop localized organization and groups to have location advantage cause of familiarity with the area • Network – Networking system is like internets network on a system
  • 6. HR Practices they follow • Flatorganization • 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
  • 7. Porter’s 5 Force Model • Competition: Its difficult to replicate their supply chain network • New entrants: Fast food joints as well as office canteens. However, since neither of these serve home food, the dabbawallas' core offering remains unchallenged. • Bargaining power of buyers: Delivery rates are so nominal (about Rs 300 per month) that one simply wouldn't bargain any further. • Bargaining power of sellers: minimum infrastructure and practically no technology is used, hence they are not dependent on suppliers. • Threat of a new substitute product or service: No substitutes to home cooked food in Indian scenario, hence threat to the dabbawalla service is not an issue at least in the foreseeable future.
  • 8. SWOT Analysis Strengths: § Simplicity in organization with Innovative service § Coordination, team spirit, & time management § Low operation cost § Customer satisfaction § Low Attrition Rate Weaknesses: § High dependability on local trains § Funds for the association § Limited Access to Education
  • 9. Opportunities § Wide range publicity § Operational cost is low § Catering 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
  • 10. Management Principles Derived.. • Team work • Time management • Innovation • Customer relationship management • 6 Sigma • Logistics And Supply chain management
  • 11. Their Achievements • Documentaries made by : BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY, SAHARA SAMAY, STAR TV, CNBC TV 18, CNN, SONY TV, TV TOKYO, NDTV. • CASE STUDY made by : ICFAI Press Hyderabad & Bangalore Richard Ivey School of Business – Canada Also, Included in a subject in Graduate School of Journalism University of California, Berkeley • Invitations from : CII for conference held in Bangalore, IIML, IIMA, CII Cochin, CII Delhi, Dr. Reddy’s Lab Foundation Hyderabad, SCMHRD Pune, SCMHRD Nasik, Sadahana – Pune, Rotary Club – Bangalore, NIQR at Chennai •Radio: German Radio Network, Radio Mirchi, Radio Mid-day, FM – Gold, BBC Radio, Radio City
  • 12. Others: § 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
  • 13. Six Sigma definition 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 was originally defined as a metric for measuring defects and improving quality, and a methodology to reduce defect levels below 3.4 defects per million opportunities (DPMO). Six Sigma works to minimize the difference between what your customers need, and the product or service you deliver Sigma (the lower-case Greek letter σ) is used to represent the standard deviation (a measure of variation) of a statistical population. The term "six sigma process," comes from the notion that if one has six standard deviations between the mean of a process and the nearest specification limit, there will be practically no items that fail to meet the specifications
  • 14. What is 6 σ quality? Six Sigma’s goal is the near elimination of defects from any process, product, or service. The numerical goal is 3.467 defects per million opportunities. It is observed that sometimes, close to 1/3 of the work done consisted of redoing what had already been done.
  • 15. Beyond six sigma Amazing supply chain management
  • 16. Forbes magazine reorganization In this process of supplying Dabba, a unique distribution system has been created They are generating employment to more than 5000 uneducated people. 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
  • 17. Beyond 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 About $6 - $7 / month only Standard price for all (Weight, Distance, Space) Rs. 36 Cr. Turnover approx. [6000*12*5000=360000000 i.e. Rs. 36 crore p.a.] Earnings -5000 to 6000 p.m. Zero % fuel Zero % investment Zero % modern technology Zero % Disputes 100 % Customer Satisfaction
  • 18. DISCIPLINE No Alcohol Drinking during business hours Wearing White Cap during business hours Carry Identity Cards
  • 19. Beyond Six 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 yrs 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.
  • 20. WHEN THEY CAN DO IT WITHOUT IT WHY WE CAN NOT DO BETTER WITH IT? We have IT, we have ERP, we are all highly educated….we should produce better results then ‘uneducated Dabbawala’ SIX SIGMA IS A MUST FOR EVERY PROGRESSIVE ORGANIZATION Use ERP / MIS to measure the defects and improve quality
  • 21. SIMPLE CODES ON THE TIFFIN
  • 23. COCA-COLA TIES UP WITH DABBAWALLAS BEVERAGES MAJOR, COCA- COLA INDIA, WILL USE THE MIGHT OF MUMBAI DABBAWALLAS TO LURE CUSTOMERS TO SAMPLE ITS ORANGE JUICE DRINK MINUTE MAID PULPY ORANGE MR. VENKATESH KINI, VP, RS.500 CRORE PACKAGED JUICE MARKET MARKETING COCA-COLA IS COMPETING WITH PEPSICO’S TROPICANA AND DABUR’S FOODS’ REAL