2/24/2013 1ADMINISTRATIVE STAFF COLLEGE OF INDIA, HYDERABAD MUMBAI DABBAWALLA SUPPLY CHAIN MANAGEMENT PRESENTED BY- PRESENTED TO- DR. APURVA PROF. B.V.N. SACHENDRA DR. SHAILESH DR. RAJENDRA MS. PRIYADARSHINI DR. SATYAM DR. SUDIPTA(PT)
2/24/2013 2INTRODUCTION• 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.
2/24/2013 3• 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.
2/24/2013 4 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 Tiffins : 2,00,000 Tiffin Boxesi.e. 4,00,000 transactions every day.
2/24/2013 5ORGANIZATION STRUCTURE President Vice President General Secretary 13 members Treasurer Directors(9) Mukaddam Members(5000)
2/24/2013 6HUMAN 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.
2/24/2013 7DESCIPLINES & MARKETINGSTRATEGY• No Alcohol Drinking during business hours• Wearing White Cap during business hours• Carry Identity CardsMARKETING STRATEGY-• Marketing pamphlets in the “Dabba”
2/24/2013 10MEAL 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.
2/24/2013 11TIMELINE8:30 -9:30 am• This is the time when dabbawallas collect tiffins from home9:30 -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 trains11:45 – 12.10 pm• Unloading takes place at the destination station• Re-arrangement of tiffins takes place as per the destinationarea and destination building
2/24/2013 1212.10 – 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!
2/24/2013 13REVERSE LOGISTICS1:30 – 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.
2/24/2013 14MAJOR 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.
2/24/2013 16MUMBAI 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).
2/24/2013 17• 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.
2/24/2013 18STATISTICS WHICH DEFINES SIXSIGMA• 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.
2/24/2013 19SUCCESS FACTORS Low cost • Typically Rs. 300 to 500 per month. delivery • Increased once in 2 yrs. • worked 6 days a week. Delivery • No boss-subordinate relationship. reliability • Lived and worked in clans. • work in groups and maintain exclusivity Perceived in terms of revenue and expenditure. equality • took responsibility of the group. Suburban • great help in logistics.railway network
2/24/2013 20THREATS Shrinking • Closure of several textile customer base mills in 1980. and customer • started delivery of meals to loyalty schoolchildren. Lifestyle • ready-to-eat packaged changes foods.
2/24/2013 21WHAT THEY LACKS• IT system.• Improvement in the education standard.THE QUESTION WE HAVE-• How to increase living standard of dabbawala’s by using IT?
2/24/2013 22APPLYING 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.
2/24/2013 23• 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.
2/24/2013 24HOW CAN THEY INCREASE MARKETSHARE• 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.
2/24/2013 25THEIR ACHIEVEMENTS• World record in Best Time Management• with Six Sigma rating.• Name in “GUINESS BOOK of World Records”.• Registered with Ripleys “ 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
2/24/2013 26CONCLUSION• Management learnings-Utmost dependence on human capitalHonesty and integrityDiscipline and time managementPride towards workRecruitment policies and manpower managementComplete contentmentMusical medicationSustained success will lead to fame
2/24/2013 27ADDITIONAL READINGThe Best Way To Innovation? - An Important Lessonfrom India http://www.forbes.com/sites/karlmoore/2011/05/24/the-best-way- to-innovation-an-important-lesson-from-india/
2/24/2013 28ROLE PLAYEDMEMBERS ROLES PLAYEDAPURVA ANALYSISRAJENDRA ANALYSISSHAILESH DATA ASSEMBLEDPRIYADARSHINI DATA ASSEMBLEDSUDIPTA PPT COMPILING & DESIGNINGSATYAM PRESENTATION MADE
2/24/2013 29 ADMINISTRATIVE STAFF COLLEGE OF INDIA, HYDERABAD