The Mumbai Dabbawala system efficiently delivers tiffins to around 200,000 people daily with a workforce of about 5,000 employees, achieving a Six Sigma accuracy rate of nearly one mistake in 16 million deliveries. The management principles emphasize low operational costs, minimal technological dependence, and strong customer focus, treating consumers as 'maharajas'. The organization operates democratically, ensuring profits are equally shared within groups, while relying on existing infrastructure for transportation, making it a model of effective management and organizational efficiency.

1. #E25
Subject:-
Principle of Management
Topic:-
‘Dabbawala In Mumbai’
Guided by-Vivek Saurav

2. Almost covers 60-70 km range around
Mumbai with total strength of almost
5000 employees caring tiffin of almost
200,000 Mumbaikar i.e. 400,000
Transaction Daily. The Management
Of Dabbawalas has won 6 sigma
i.e. almost 1 mistake in 16 million tiffin
deliveries
Dabbawala

5. Six Sigma is a disciplined, data-driven approach
and methodology for eliminating defects.
• Focus on the customer.
• Identify and understand how the work gets done
(the value stream).
• Manage, improve and smooth the process flow.
• Remove Non-Value-Added steps and waste.
• Manage by fact and reduce variation.
• Involve and equip the people in the process.
• Undertake improvement activity in a systematic
way.

6. 2. Levels of Management-
1.President
2.Vice President
3.General Secretary
4.Treasures
5.Directors (9 member) (middle level management)
6.Mukadam (Head of group of Dabbawala)
7.Dabbawalas(5000 workers)

10. Planning
The main aim is to deliver tiffin on time

11. Organizing and staffing
After considering the plan of
Delivering tiffin from home to
Office, The second function
Organizing comes into function
The required resources like
Different colors to mark on tiffin
Cycle, railway pass, hand cart
Addresses of offices. All these
Activity comes under organizing
The recruitment of staff at each
Station is considered and
the capacity of individual and
No. of tiffin is considered while
performing the staffing function

12. Directing
After performing the
Dabbawalas The function
of directing is considered
The main function, the
proper
Function Of recruited staff
to conduct the Activity is
an important activity,
The specialty of Dabbawala
of Zero mistake is an
outcome of Good directing

14. 1. Keep Operational costs as low as possible
.Dabbawala use cycle, hand cart, local train- all low cost.
.No Big Office to maintain.
.No IT budget and no miscellaneous expenses.
.No Ad budget- word of mouth publicity.
.Average monthly service cost Rs.550.
2. Keep Capital investment bare minimum.
.Only investment is the hard work, honesty, promptness and time
management.
. Low cost offices.
. Very cheap hand cart.
. Easy to maintain cycles- Fuel is free air (God given Fuel)

15. 3. Customer is not the RAJA — But Maharaja
. England King Prince Charles met Dabbawala on 4tt Nov 2003.
. He was told to come to church gate station to meet Dabbawalas.
. So that the delivery of Dabbas to clients is not affected.
. He spent around 20 minutes with Dabbawala.
. Virgin Group chairman, Richard Branson, traveled with Dabbawala and
delivered Dabba to his own employee.

16. 5. Do not be over Dependent on Technology
. For 116 years, Dabbawalas did not touch technology- yet got
six sigma and ISO.
.Today mobile phone are mostly used to communicate-only incoming
.Website and SMS are used to get more and more Customers
. But logistics is still manual.
6. Co-operation inside- Competition Outside.
. There are 2-3 Dabbawala group in each segment.
. Dabbawala collection is group wise but transport is shared with other
group.
Competition is only up to collection.
. Profit is shared equally within each group after deducting expenses.
. World’s most democratic organization.

17. 7. Know the implication of Failure
. If food is not delivered on time then customer will be angry and work will
Suffer,
‘Problem with Boss and wife.
‘If vegetarian gets non vegetarian Dabba, then Big problem.
. Knowing the implication of failure makes you more responsible and serious
Towards your work.
8. Build your services around existing Infrastructure.
‘Dabbawala use reliable, fast efficient and cheap existing local train for
Transportation.
. Many food companies in Mumbai use their own infrastructure which is tough to
Maintain and costly as well.
. 3 sigma, out of six sigma that Dabbawala got, should be given to local trains
System.
. Building new infrastructure increase cost to server.

19. Thus, the working of Mumbai Dabbawala is a perfect example of
how the management should work in the organization. It shows how
the worker at lower level work for the efficiency of organization. It
is perfect scenario where the work of Lower Level is appreciable and
with the minimum cost the organization works efficiently. Thus the
working of Mumbai Dabbawalas is awesome. The SWOT analysis of
organization shows us that the strength and opportunity of Mumbai
Dabbawalas is much more than that of threat and weakness. The
principles followed by upper level has helped them to minimize the
operational cost and maximize the working using minimum capital, The
upper level management has made their Dabbawalas to focus on the
consumer satisfaction, which is an important factor they treat their
consumer as maharaja which is an appreciable part of the Dabbawala,
One of the decision of the core team was to focus on the delivering
mechanism and do not focus on various activities.