Dabawala Marketing Management Project

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Dabawala Marketing Management Project

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Dabawala Marketing Management Project

  1. 1. A PROJECT OF MARKETING MANAGEMENT ON “DABBAWALA”(Nutan Mumbai Tiffin Box Suppliers Association)
  2. 2. [MARKETING MANAGEMET ] Dabbawala Service Excellence PRESENTED TO: SIR JAHANGIR SADDIQ PRESENTED BY: Mr Muhammad Tayyab 111405 Mr Ali Yazdani 113511 Mr Waleed Tayyab 102507 Mr Farooq Haider 103119 Mr Abid Nadeem 111509Institute of Management Science (Pak-AIMS) Page 2
  3. 3. [MARKETING MANAGEMET ] Dabbawala Service Excellence ACKNOWLEDGEMENT We would like to pay our praises and humblest thanks to AL-MIGHTY ALLAH, the most Merciful and Beneficiate of all, who bestowed us with theability to complete this project. It gives us immense pleasure and honor to extend our thanks to our kind & cooperative. Sir Jahangir Sadiq from Faculty of Institute of Management Sciences, Lahore for his valuable advices and suggestions throughout our semester, in order to perform well & up to mark.. Finally, we pay regards of gratitude to our parents, as they and their prayers for Our success are always been a pillar of strength for us in our life. PREFACE Quality without creativity is meaningless. As changes grow ever moreunpredictable creativity is rapidly becoming recognized a core management skill. Today‟s business environment demands that manager‟s posses a wide range of knowledge skills and competencies, as well as sound understanding of management process and function. Managers need to be able to make best use of their time, talent and of other people to work with and through others to achieve corporate objectives. They also need to demonstrate their ability not merely to solve problems, but to transform them and design ways through them.This report concerns needs and changing needs and their satisfaction level, which are the important function in every organization.Institute of Management Science (Pak-AIMS) Page 3
  4. 4. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceTable of ContentsINTRODUCTION .................................................................................................................................. 7 THE GREAT DABBAWALA: ........................................................................................................ 9We, the Dabbawala never go on strike. ..................................................................................................... 14SOME BASIC INFORMATION ABOUT DABBAWALS ....................................................... 16Some Achievements ...................................................................................................................... 18ATTITUDE & APPROACH ............................................................................................................. 18 DISCIPLINES .................................................................................................................................. 18 Code of conduct ....................................................................................................................... 19DABBAWALA AS MARKETING RESOURCE......................................................................... 19 THE ORGANISATION STRUCTURE OF THE OFFICIAL ASSOCIATION FORMED IS AS FOLLOWS:................................................................................................... 20DUTIES & RESPONSIBILITY ...................................................................................................... 22 PRESEDENT .................................................................................................................................... 22 GENERAL SECRETARY ............................................................................................................. 22 MUKADAM ....................................................................................................................................... 22 MEMBERS ........................................................................................................................................ 22CORE VALUES ................................................................................................................................... 22HUMAN RESOURCE POLICIES OF THE ASSOCIATION ................................................ 23DISCIPLINE ......................................................................................................................................... 25HR PRACTICES OF THE ASSOCIATION ............................................................................... 25 FLAT ORGANIZATION: .............................................................................................................. 25 NO HIRE & FIRE RULE: ............................................................................................................. 25 COMMUNITY BASED RECRITMENT: .................................................................................. 25 SHARING COMMON BELIEFS, VALUES & ETHICS: ................................................... 26 FOLLOWING OF STRICT DRESS CODES: ......................................................................... 26 LOYALTY & TRUST IS THEIR MONOPOLY: ................................................................... 26 TRAINING PROVIDED TO NEW EMPLOYEES: ............................................................... 26Institute of Management Science (Pak-AIMS) Page 4
  5. 5. [MARKETING MANAGEMET ] Dabbawala Service Excellence OWNER + EMPLOYEE ARE THE DESIGNATION OF ALL:......................................... 26 QUARTERLY MEETING TO DISCUSS ISSUES: .............................................................. 27MANAGEMENT PRINCIPLES OF THE DABBAWALA ....................................................... 27 TEAM WORK:.................................................................................................................................. 27 TIME MANAGEMENT:................................................................................................................. 27 INNOVATION: ................................................................................................................................ 27 CUSTOMER RELATIONSHIP MANAGEMENT: ................................................................ 28 SIX SIGMA: ...................................................................................................................................... 28 HRM System of NMTBSA: ........................................................................................................ 28 LOGISTICS & SUPPLY CHAIN MANAGEMENT: ............................................................ 28 THE SYSTEM OF SERVICE NETWORK HOW THEY OPERATE .............................. 29Leaving Home for the work: ...................................................................................................... 30DABBAWALAS UNIQUE SUPPLY CHAIN MODEL ........................................................... 31 Supply Chain Management ..................................................................................................... 31 Coding System .............................................................................................................................. 34LEAVES ................................................................................................................................................. 36 Weekly Leave: ............................................................................................................................... 36 Festival Leave:.............................................................................................................................. 36 THE GROWTH ................................................................................................................................ 37PRODUCT ELEMENT OF DABBAWALA ................................................................................. 38 Place .................................................................................................................................................. 38 Time .................................................................................................................................................... 39 PromotionandEducation........................................................................................................... 39 Price ................................................................................................................................................... 40 OTHER PHYSICAL PRODUCTS: ............................................................................................ 40 PHYSICALENVIRONMENT: ..................................................................................................... 40 Environment: .............................................................................................................................. 41 PROCESS.......................................................................................................................................... 41 RETURN JOURNEY ..................................................................................................................... 42SWOT ANALYSIS OF (NMTBSA) DABBAWAL: ................................................................... 42 STRENGTH ...................................................................................................................................... 42Institute of Management Science (Pak-AIMS) Page 5
  6. 6. [MARKETING MANAGEMET ] Dabbawala Service Excellence WEAKNESS ..................................................................................................................................... 42 OPPORTUNITY .............................................................................................................................. 43 THREAT ............................................................................................................................................ 43 Reliability ....................................................................................................................................... 43 Basic Service .................................................................................................................................. 43 Service design................................................................................................................................ 43 Recovery ........................................................................................................................................ 43 Fair Play ......................................................................................................................................... 43 Teamwork ..................................................................................................................................... 43 Employee Research ....................................................................................................................... 43 Servant Leadership ........................................................................................................................ 43Conclusion .......................................................................................................................................... 44FOUNDER OF NMTBSA (NUTAN MUMBAI TIFFIN BOXSUPPLIER AND ASSOCIATION)Mr. Dhondiba Medge (1923-1980) - the father of Mr. Raghunath Medge(president of NMTBSA), framed Human Resource Policy of Nutan MumbaiTiffin Box Suppliers Association. Mr. Dhondiba Medge was educated only to 4th standard. He framed rules &regulations of the Dabbawalas. He was very stair & disciplined kind of person.Who was believes on "Time Is Money."THE ORGANISATION STRUCTUREThe Dabbawala have two different aspects as considered with the mode actualoperations & mode of organizations formed by the Dabbawalas. To guide & manage the entire operation procedure.Institute of Management Science (Pak-AIMS) Page 6
  7. 7. [MARKETING MANAGEMET ] Dabbawala Service Excellence Acquisition of any new customers & training a new person assigned to the particular customer.INTRODUCTIONDabbawalas the carriers of Tiffin boxes daily deliver lunch boxes to lacks ofoffice goers in city Mumbai. The practice 119 years old in spite of complexitiesthis Dabbawalas goes in to the delivery has been appreciated worldwide amongthem being BBC, MTV, CIIT, PRINCE CHARLES & BRITAINCHAIRPERSON OF VIRGIN AIRLINE COMPANY & OTHER TOPMANAGEMENT COMPANIES & SCHOOLES. It is believed that system ifapplied to other cities like Kolkata, Delhi, Chennai, Bangalore, Hyderabad etc.will impact a major positive change the lunch delivery system. The system runsefficiently & is in prestigious position with achievement of SIX SIGMARATING.Institute of Management Science (Pak-AIMS) Page 7
  8. 8. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceDabbawalas fascinating for instance the Berkeley University in California teachesthe logistic system of Dabbawalas as a case study in one of their businessmanagement programs and many Indian business schools and industryassociations have the Dabbawala logistics system in their case-study agenda. In1998 two Dutch filmmakers, Jascha De Wilde and Chris Relleke, made adocumentary called "Dabbawalas, Mumbais unique lunch service" and in 2001,the Christian Science Monitor, the Boston-based newspaper, covered theDabbawala in an article called "Fastest Food: Its Big Mac vs. BombaysDabbawala." The British Broadcasting Corporation and the AustralianBroadcasting Corporation have done features on the delivery system as well,while Prince Charles was so impressed with their service that he had even inviteda few Dabbawalas to his marriage with Camilla Parker in London. Yet theseDabbawalas have remained poor. "Nowhere in the world would you find a lunchdelivery service that costs as little as $9 a month," says Talekar. The charges forthis complex delivery system have remained dirt-cheap ever since its inceptionand still the maximum rate that a Dabbawala charges (depending on the distancecarried) is about $11 a month. Which is why technology is needed to improvetheir lives, says Tripathy. "No doubt a major driver for establishing a Web-basedInstitute of Management Science (Pak-AIMS) Page 8
  9. 9. [MARKETING MANAGEMET ] Dabbawala Service Excellenceand mobile phone ordering system was the need for a central ordering facilitywhere one can call for a Dabbawalas service by just hitting the Web site orthrough an SMS” says Tripathy, "but the other equally important driving forcewas to expand business." Until recently business has come just through word-of-mouth or from contacts made in local railway stations. "But ever since weintroduced the SMS-based ordering service we have been getting about 15 neworders every day," said Tripathy. The Web site (www.mydabbawala.com) has alsoenabled the association to solicit donations and sell merchandise, the proceeds ofwhich go towards creation of a social security fund to pay for the Dabbawalas lifeand medical insurances. "The use of IT would not stop there," says Tripathy, "wewould be stretching its use soon to enable the Dabbawalas to add additional linesof business." According to him the next plan is to gear the Dabbawalas with theability to sell groceries and other daily necessities, the orders of which could betaken through their mobile phones.THE GREAT DABBAWALA:My time in Mumbai was brief but full. The city itself seems to be about asdifferent as could be from, Delhi. Clean, full of sky scrapers, bustling, and largelyfriendly. Through a contact of a contact I was able to spend some time learningabout one of the stranger aspects of Mumbai life – the Dabbawala.The term “Dabbawala” means something close to “boxman.” The Dabbawala arean entire caste of people whose job is to transport home cooked lunches to theirlocations at peoples‟ places of work. There are 5000, largely illiterate, Dabbawalawho use a complex system of symbols and home-grown business sense to move260,000 lunches each day. The system is near flawless (one research paper put itas one screw up in 16 million successful deliveries) and has been going for over acentury. Almost all of these men hail from a small village a couple of hoursoutside of Mumbai and because of the small town nature of things, almost all areInstitute of Management Science (Pak-AIMS) Page 9
  10. 10. [MARKETING MANAGEMET ] Dabbawala Service Excellencesomehow related. The unique shape of the city and cheap train network make itaffordable for this system to work here and only here. And while it‟s amazing towatch these men scurry about doing their job, what I was interested in is how thisamazingly Indian concept has held on as long as it has. While fast food isbooming as the only option for office workers in virtually every megacity in theworld, in Mumbai it is the norm to have a fresh home cooked meal every day.The system works a bit like this (and while I use gendered terms here the systemis becoming less so, again in an interesting way). Man leaves in the morning to goto work at six to accommodate for the two hour commuter train to work. He wantslunch, so his wife would have to get up at four to cook it and send it with him.Instead, in rushes the Dabbawala, making it so that she can send off the lunch ateleven to get to the office at one, giving her an extra five hours of sleep. Yousubscribe to the service on a monthly basis – man on a bike comes by your houseto pick up your tiffin (a stainless steel box or canister which everyone uses to eatout of), he hands it off to the next fellow at the train station, who hands it off tosomeone at the next train, to a sorter, to another bike, to the office. A couple ofhours later the Dabbawala picks up the Tiffin and the whole process happensagain in reverse. The average Tiffin goes through the hands of five or six peoplein each direction. It has no writing on it besides a few grease paint marks of x‟s,o‟s, and squares. Depending on how far away you live from the office, you canget deliveries for between 400 and 500 rupees a month (three to ten USD).Now, while this used to be all men receiving and women cooking, it has expandedlots over the past couple of decades. Now about a quarter of the office workersreceiving lunches are women. They deliver to schools. If you want to deliver toyour husband, children, brothers, sisters, and cousins, you can send Tiffin‟s to allof them. If you have no one at home to cook for you the Dabbawala have foundhomemakers who will be willing to cook extra meals on a subscription basis soInstitute of Management Science (Pak-AIMS) Page 10
  11. 11. [MARKETING MANAGEMET ] Dabbawala Service Excellencethat strangers can also have a home cooked meal and the home cooks can get alittle bit of extra cash.I am not the first or last person to marvel at this system. The whole organizationorganized itself (stemming from a demand during the British rule for homecooked meals that were British for British workers, then moving to Indianswanting their own food too) and incorporated during the 1960s. The three headsof the organization are former runners themselves and now give talks at majorbusiness colleges around the world on a system of organization and efficiencywhich came naturally to them.Moving away from the marvel that it does work, it‟s amazing to think about whypeople want it to work. In a city which is renowned for its hustle and bustle it‟samazing to think that something as little as a home cooked meal would get thismuch love and care – but it‟s a sign of how people are making attempts to adapt tothis way of life while maintaining connections to their roots.Institute of Management Science (Pak-AIMS) Page 11
  12. 12. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceDelivery process of DabbawalaInstitute of Management Science (Pak-AIMS) Page 12
  13. 13. [MARKETING MANAGEMET ] Dabbawala Service Excellence TOP 10 REASONS TO USE DABBAWALA Homemade food is best for health and because health is wealth. Outside junk foods may take your life and makes you sick.Homemade food keeps your doctors bill down and there are fewer absences from office due to poor health. In fact bad food is the reason #1 of all the diseases. Homemade food is cheaper. When you use Dabbawalas services to deliver your home cooked food to your office you are actually saving your hard earned pennies. The delivery charge of Rs 400 - 500 per month is very nominal and reasonable. It‟s simple math‟s. Do you not love your mother or wife and like to eat food made by her? Even if there is no one at home to cook food for you, Dabbawala can deliver you good quality home like lunch through many restaurants. We have quality restaurants all over Mumbai where cheap and best quality food is prepared which is delivered at your office or home through Dabbawala Channel.Institute of Management Science (Pak-AIMS) Page 13
  14. 14. [MARKETING MANAGEMET ] Dabbawala Service Excellence Safety - The Local train of Mumbai are always much crowed and it is very tough to take even small luggage during peak times. There are instances where the persons hand got hurt or broken and ones Belongings destroyed while traveling during peak time. People leave from their home at about 8 - 9 PM which is peak time and it‟s not possible to carry Tiffin during this time and Even the food is not ready by this time. By using our services you are getting hot food safely deliver in your office. Dabbawala give reliable services and their performance and accuracy match six sigma standards. You must be sure that your home cooked food reaches in time. We, the Dabbawala never go on strike.Institute of Management Science (Pak-AIMS) Page 14
  15. 15. [MARKETING MANAGEMET ] Dabbawala Service Excellence By taking our services you are proving direct employment to 5000+ Dabbawala and many of their dependent families. You are actually helping us. Dabbawala are an icon in their own sense and famous world over for their efficiency and by taking our services you are being part of Indias image building. Dabbawala are from the remote villages of Maharashtra and mostly uneducated. They regularly organize bhajan and kirtans and spread the essence of Marathi culture, good will and oneness of India. Being a part of Dabbawala, you are actually nurturing Marathi cultureInstitute of Management Science (Pak-AIMS) Page 15
  16. 16. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceSOME BASIC INFORMATION ABOUTDABBAWALSHistory : Started in 1890Charitable trust : Registered in 1956Employee Strength : 5000Avg. Literacy Rate : 8th Grade SchoolingTotal area coverage : 60 Kms to 70 KmsNumber of Tiffin’s : 2, 00,000 Tiffin Boxes400,000 transactions every day (including return)I.e. 400,000*25 days*12 months= 120,000,000(120 million or 12 crore transactions per year)Time taken: 8 to 9 HoursMorning 3 Hours Wartime(9 A.M. to 12 P.M. for the Collection and Delivery)Institute of Management Science (Pak-AIMS) Page 16
  17. 17. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceWORKING OF DABBAWALAError Rate: 1 in 16 million transactionsSix Sigma performances (99.999999)Technological Backup: Nil.Cost of service: Rs. 400/- to 500/- month($7-9 £4-5, €6-7 per month)Standard price for all (Weight, Distance, Space)Earnings: Rs. 6000/- to 7000/- per month.($130, £70, €110) per month.Turnover per Annum (Approx). Rs. 72 to 80 CrDiwali Bonus: One month‟s extra payment“No Strike” record since 1890.“No Police / Court Case” since 1890.Institute of Management Science (Pak-AIMS) Page 17
  18. 18. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceSome AchievementsATTITUDE & APPROACH“People study business books and then practice. We practiced first and have nowbecome case studies” Raghunath Medge (President)“It‟s a model of managerial & organizational simplicity” C. K. PralhadDISCIPLINES • No Alcohol Drinking / Smoking during business hours. • Wearing White Cap during business hours. • Carry Identity Cards. • No Leave without Prior Notice.Institute of Management Science (Pak-AIMS) Page 18
  19. 19. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceCode of conduct • Rs 500- Drinking on duty • Rs 100- Smoking on duty • Rs 25- Not wearing white cap • Rs 25- Not carrying ID card • Rs 1000- Leave without intimation, sacked if repeated in 2-3 instancesDABBAWALA AS MARKETING RESOURCE • Marketing pamphlets with the “Dabba”. Sticker, Tag and Sample Piece of Goods with “DabbaInstitute of Management Science (Pak-AIMS) Page 19
  20. 20. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceTHE ORGANISATION STRUCTURE OF THE OFFICIALASSOCIATION FORMED IS AS FOLLOWS: EXECUTIVE COMMITTEE PRESIDENT MR. RAGHUNATH D. MEDGEVICE GENERAL TRASURER DIRECTORSPRESIDENT SECRETARY MR. DAMODAR (9)MR. SAMBHAJI MR. GANGARAM PINGALEG. MEDGE L. TALEKAR GROUP (120) MUKADAM MUKADAM 1 M Dabbawala-1 Dabbawala-n Dabbawla-1 Dabbawala-nInstitute of Management Science (Pak-AIMS) Page 20
  21. 21. [MARKETING MANAGEMET ] Dabbawala Service Excellence ORGANISATIONAL STRUCTURE PRESIDENT VICE PRESIDENT GENERAL SECRETARY 13 MEMBERS TREASURER DIRECTORS ( 9 ) MUKADAMS (800) MEMBERS ( 5000 )21
  22. 22. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceDUTIES & RESPONSIBILITYPRESEDENT Taking monthly meeting Checking accounts of the association Solving the problems among the membersGENERAL SECRETARY Drafting the various types of letters Collecting the trust feesMUKADAM Supervising the functioning of the members in his group.MEMBERS To deliver Tiffin Boxes to the customers & carry Tiffin Boxes back to their home respectively.CORE VALUES Work is Worship Serving people is Serving God Annadan is Mahadan Time is Money Unity is Power 22
  23. 23. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceHUMAN RESOURCE POLICIES OF THEASSOCIATION The Nutan Mumbai Tiffin Box Suppliers Association is registeredinstitution. Though it is so, it does not function as a commercial institution e.g.courier company. The organization is formed by the members. To avoid any disputes &give each member pride, the employee-employer relationship is avoided. Eachmember is a shareholder in the association. He gets his monthly salary fromeach of his customers directly. All the members in a group gather on a particular date of each monthmostly at a nearest local office of the organization or the trust (NUTANMUMBAI TIFFIN BOX SUPPLIERS CHARITABLE TRUST). all themembers collect their salary together, cut down for overheads & travelexpenses. Also each member contributes amount of rupees 10;/- towards for thecharity purposes.E.g. there is the group of 15 DabbawalasThey carry 30 dabbas eachThey get Rs. 150/- customerSo calculation goes like this:15×150×30 = 675000/-So. Gross earning of this group is Rs. 67500/- Now from this amount, a collective amount of Rs. 4000/- approximatelyis deducted comprising expenses for railways pass, expenses for parking the 23
  24. 24. [MARKETING MANAGEMET ] Dabbawala Service Excellencecarts & cycles & overheads the remaining amount is divided equally into allmembers of the group. So, suppose now after deductions, group has left with 63500/-; it will bedivided equally among all the members, thus each member getting Rs. 4230/-each. This salary may not be sufficient compared to the cost of living inMumbai also may of have their families back in villages to send money to. Tocope up, with this problem, few of the Dabbawala have started doing some sidebusiness for extra income. Some of them after returning home in evening driveauto-rickshaws or early in morning before going on work distribute newspaperor milk. The association once a month calls a meeting of all the members. In thismeeting. It tries to solve the internal problems of the members. Such problem & solutions solved till now have laid a kind of unwrittenrules & regulations for the members of the organization to follow in certaincases.1. In the case of loss of Tiffin Box of the Dabbawala, if he is found guilty, then the customer is refunded the appropriate amount for the loss.2. Each member is supposed to operate in his allocated area only & not interfere with any of his fellow colleagues, work area. In fact normally no Dabbawala does this too!3. In case if the customer is not pleased with dabbawala provided to him for service, both of them cannot co-ordinate well with each other then the organization can shift that dabbawala to some other area & replace other dabbawala in his area. 24
  25. 25. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceDISCIPLINE Wearing White cap during working hours. Reporting to duty on time. Behave properly & respect the customers Carry identity cardsHR PRACTICES OF THE ASSOCIATIONFLAT ORGANIZATION: The president, Vice president, General Secretary, Treasurer & 9 no. of Directors formed 13 members of board under which Mukadam & other Dabbawalas work. So due to such Flat kind of organization structure decisions are taken on the spot. Even the president & other higher categories members also work.NO HIRE & FIRE RULE: Everyone is shareholder of the association. Whatever profits they can equally distributed within itself. It is democratic type of organization HR Practices.COMMUNITY BASED RECRITMENT: Those who have capacity to job they can apply for the Dabbawala post. There is no any kind of basis happens related to recruitment process. 25
  26. 26. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceSHARING COMMON BELIEFS, VALUES & ETHICS: All the Dabbawalas are from poor background, the aim of the organization is mutual benefit to all members so they follow certain values, belief & ethics to run business effectively.FOLLOWING OF STRICT DRESS CODES: All Dabbawalas must wear white cap which is called as Gandhian cap on duty. Also wear white sadara & pyjama (shirts & pants). All Dabbawals must carry their Identity card on duty. All these rules are bninding on all cadres of the Dabbawala.LOYALTY & TRUST IS THEIR MONOPOLY: All Dabbawalas are loyal & hard working in nature. They follow their norms & promise which they made their customers.TRAINING PROVIDED TO NEW EMPLOYEES: After recruitment they provide complete process training to new joiner under the observation of Mukadam or any senior member. When they feel that new employees are capable to work, that time training will completed.OWNER + EMPLOYEE ARE THE DESIGNATION OF ALL: Everyone is the shareholder of the Association. All disciplinary rules & other ethics follow by all members. So there is no any employee & employer relationship between each other. All are owners of the business. 26
  27. 27. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceQUARTERLY MEETING TO DISCUSS ISSUES: Every quarter all Dabbawalas meet & discuss issues related to service, salary & future goal. They discuss balance sheet & distribute profits among them. If any critical issue arises that time they cal immediate meeting. Also conduct daily meeting to handle day to day problem. All Dabbwalas can participate in meeting & can contribute his suggestion.MANAGEMENT PRINCIPLES OF THEDABBAWALATEAM WORK: Working with team is the strength of the Dabbawals. Also Team work is the key aspect of their inner self satisfaction (proved by research). One Tiffin box goes from many hands of the Dabbawals & finally reaches at exact destination which shows success of their Team Work.TIME MANAGEMENT: They deliver Tiffin boxes before 12 pm at customers office. There duty starts from morning 8 am. Same time there is always lots of rush at railway station, & traffic on the road, in such kind of critical situation they able to deliver lunch boxes on time. They got Six Sigma because of their Time management & no. defects in deliveries.INNOVATION: Dabbawala promote innovation. They started coding system to Tiffin box for easy identification, which are one of the examples of their innovation strategy. They believe on continuous improvement by way of innovation. 27
  28. 28. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceCUSTOMER RELATIONSHIP MANAGEMENT: 100% customer satisfaction is the success of their system. They achieved this level because of maintaining good relationship with customers. They believe on “Service to Customer Is Service to God”.SIX SIGMA: They have got the prestigious achievement of SIX SIGMA RATING because of their percentage of correctness which is just perfect up to 99.999995 i.e. six decimals or more than that. Not many of the topmost companies are even near to it. This is simply incredible!HRM System of NMTBSA: They achieved six sigma in following aspects. Simplified coding system High conformity to the system Buffer in the lead time Confirmed by the limits of the human capabilitiesLOGISTICS & SUPPLY CHAIN MANAGEMENT: By using their own logistic methods they deliver lacks of tiffin boxes through many dabawalas hand: but the final goal is to reach tiffin box before 12 pm. At customer‟s office everyday they achieve their goal. 28
  29. 29. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceTHE SYSTEM OF SERVICE NETWORK HOW THEYOPERATE The dabbawalas are the whole & soul of the entire system of these operations. For these dabbawalas to be able to provide prompt & efficient service, it is very much important & necessary to be always on time. So you will not see any Dabbawala moving ahead road taking his own sweet time! They are always in hurry pushing through the crowd carefully to deliver lunches on time for lacks of mumbaiities The entire system involves carefully planned, organized & implemented activities around the hour timings, but they do it with excellent associated teamwork. We now take look in the routine course of action Dabbawalas i.e. from the time they leave their home in the morning till the time they deliver the tiffin box back to the customers‟ home in the evening. This cycle of operations of delivery takes them nearly 8 hrs a day very similar to the office timings, as these takes time normally from 9 a.m. to 5 p.m. the day starts around 8.00-8.30 am in the morning. 29
  30. 30. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceLeaving Home for the work: The Dabbawalas leave there homes in the morning between 7.50 am to 8.30 am depending upon from which areas they have to pick up tiffin boxes. The Dabbawalas reaches the customers homes according to the timing fixed between two of them. The day in home then hands over the prepared & packed tiffin box to the Dabbawala. Collecting 30-35 tiffin boxes (from area specified to him) is the responsibility of each Dabbawala, but there were we can see that number of Dabbas picked up is also dependent upon the age of the Dabbawalas. Where young person picks even 40 Tiffin‟s each, an elder person might pick 30! Also collecting tiffin is not an easy task. Because, Dabbawalas have to pick up tiffin boxes from various distant location in his area. These locations may be far from each other located on higher floors of the building where sometimes elevator may not be available. These tiffin boxes are then taken to the nearest local station by vehicle. Usually a bicycle or in long wooden creates carried on the head! E.g. If a Dabbawala a collecting Tiffin boxes from area of Ghatkopar then he will carry them to Ghatkopar or Vikhroli railway station whichever is nearer from his area of collecting Tiffins 30
  31. 31. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceDABBAWALAS UNIQUE SUPPLY CHAIN MODELMillions in Mumbai commute everyday to earn a living. Banks, colleges,hospitals, government offices, private offices, factories and ports are all spreadacross different parts of the city. In a country where hot and freshly cookedhome food is the most preferred for consumption, carrying of lunch boxes is abig burden for the working populace. However, this problem is unheard of inthis metro city thanks to the presence of the 100 year old organization of“Dabbawalas”.he Dabbawala community has about 5000 people working with them. TheseDabbawalas deliver lunch boxes for about 2 lakh people at their work places ontime. The work doesn‟t end here. They also carry the empty lunch boxes back tothe homes of the customers. The unbelievable part is they make only onemistake in sixteen million transactions and have been consistently good at it forall the time of their operations. This credibility earned them a six sigmadesignation by the Forbes magazine and ISO 9001 accreditation. The threemain reasons for their success are as follows.Supply Chain ManagementSurprisingly there is no use of Information systems or technology for theirSupply chain side. A rigorous level of practice over the years has led to theunwritten steps to follow for accurate supply chain management and timeprecision. There are about 40000 transactions (delivery and return) of lunchboxes taking place daily. The figure below shows their Supply chain model.Dabbawalas use cycles or go by foot to every household. The waiting time tocollect a lunch box is maximum 2 minutes. Every Dabbawala has to assemble athis/her reported collection point at sharp 9. 30 am From these collection pointsthey assemble at the nearest railway station which is the Aggregation point. Thenext mode of transport is the trains where the carriers containing lunch boxes 31
  32. 32. [MARKETING MANAGEMET ] Dabbawala Service Excellenceare transported to the destination railway stations. From every Destinationstation the dabbas are carried over carts, cycles and carriers to the destinationzones which are given a specific numberFrom these zones, the lunch boxes are carried to the offices or workplaceswhich reach by lunchtimeFrom here the reverse process of delivering the empty lunch boxes back tohomes starts(All through the above process, there is no slack at any point of time)Traffic Jams, pedestrians, delays in train and signals do not stop the functioning.The trademark white cap wore by these Dabbawalas are known to everyoneincluding the police who don‟t interfere in their process 32
  33. 33. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceCoding System VLP : Vile Parle (suburb in Mumbai) 9EX12 : Code for Dabbawalas at Destination EX : Express Towers (building name) 12 : Floor no. E : Code for Dabbawala at residential station 3 : Code for destination Station eg. Churchgate D’souza Station (Nariman Point)33
  34. 34. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceCoding SystemCoding System is meticulously followed in order to avoid any mistakesinvolving interchange of lunch boxes, that is, wrong Tiffin box reaching thecustomer.As given in the above Diagram, the Coding system can be explained as follows:BVI: Borivali, a suburb in Mumbai. This denotes the residential station9 RC 14: Code for Dabbawalas at destination. This user code is different foreach customerRC: Raheja Chambers, name of a building or office14: Floor NumberE: Code for Dabbawala at Destination station. For example, E is a code forNariman Point, Church gateJain: Name/Surname of the customer 34
  35. 35. [MARKETING MANAGEMET ] Dabbawala Service Excellence35
  36. 36. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceLEAVESNMTBSA has segregated annual leave on two typesWeekly Leave:All Dabbawala gets weekly leave on every Sunday.Festival Leave: All Dabbawallas are devotees of lord Shiv shankaras & vitthalas soNMTBASA only sanctioned leaves for those festivals which are celebrated fortheir God. Mahashivaratri (Festival of Shiv Shankaras) Aashadhi Ekadashi (Festival of Lord vitthalas) Kartiki Ecakashi (Festival of Lord Vitthalas) Chaitra Pournima (New Year of Marathi People) Diwali (2 days) (Festival of Lights) 36
  37. 37. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceTHE GROWTH YEAR NUMBER OF DABBAWALAS NUMBER OF CUSTOMERS 1900 58 1445 1905 75 1965 1910 142 4120 1915 204 6504 1920 321 9675 1925 407 12140 1930 695 22865 1935 1024 43230 1940 1206 4340 1945 1715 64240 1950 2106 82000 1955 2552 105120 1960 3216 140000 1965 4406 198100 1970 4605 176040 1975 4904 215000 1980 5551 27507 1985 5524 190645 1990 5102 130860 1995 5180 142260 2000 5164 16670 2005 5142 175040 2006 5150 175060 2007 5200 187080 2008 5220 190900 2009 5300 200000 37
  38. 38. [MARKETING MANAGEMET ] Dabbawala Service ExcellencePRODUCT ELEMENT OF DABBAWALA The product Element here is basically a service they provide to the office goers by delivering their Tiffin box or more commonly called as „Dabba‟ in the city of Mumbai. There are other ancillary physical products such as Tiffin Box, Gandhi Cap, and Video CD on Dabbawala, Dabbawala Mug, and Dabbawala T-shirt. These products are sold by the trust to earn more money and to work for the welfare of their members.Place The Mumbai dabbawallas journey start from Andheri station. At this place they put all the dabbas collected from different places of houses. They load the wooden crates filledwith tiffins onto the luggage or goods compartment in the train. Generally they choose to occupy the last compartment of the train. After that they unloading all the dabbas on the Church Gate Station which is there destination place . They re-arrange the tiffins as per the destination area and destination building. In particular areas with high density of customers such as Nariman point, Fort, Cost a special crate is dedicated to the area. This crate carries 150 tiffins and is driven by 3-4 dabbawallas. After that return journey start at all destination stations. Here begins the collection process where they have to collect tiffins from different offices where they have delivered an hour ago. Then they segregate the dabbas at destination stations. Finally they again reach to there origin place (Andheri station) where the final sorting and dispatching takes places according to their origin area. 38
  39. 39. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceTime The journey of Mumbai dabbawallas start in morning at 9:34-10:30. They collect the dabbas from different places between 10:34 to 11:20. They travel in the local train and choose the last compartment. After that between 11:20 to 12:30 they unload all the dabbas and re- arrange according to their destination area and destination building. Then the collection process starts between 1:15 to 2:00. They pick up all the dabbas where they had delivered an hour ago. Now the g r o u p m e m b e r s s t a r t s e g r e g a t i n g t h e d a b b a s a c c o r d i n g t o d e s t i n a t i o n between 2:00 to 2:30. Between 2:48 to 3:30 the return journey by train takes place after routine of dispatching and collecting. Since it is more of pleasant journey compared to earlier part of the day, they lighten up their moment with merry making, joking around and singing. Finally the stage between 3:30 to 4:00 where the final sorting and dispatch of dabbas takes place as per their origin area.PromotionandEducation Dabbawala‟s are in Tiffin distribution field since last 125 years hence they don‟t need any promotional tool for their business. Though they are used by other business units as promotional tool for their business units Orders through SMS and online is accepted by the organization and they have come up with a site named mydabbawala.com As reliance power is making best use of them. If you receive dabba it is very possible that you will get IPO application along with it. Maharashtra government has roped them in to spread of AIDS awareness. Film industry is using them to promote their films. Example at time of movie tashan release they were used and the response to it was very good. World record in best time management with Six Sigma rating. Name in “GUINESS BOOK of World Records”. Registered with Ripleys “believe it or not”. World record in best time management. Participated in “Deal Ya No Deal Contest” by Sony Entertainment Television 39
  40. 40. [MARKETING MANAGEMET ] Dabbawala Service ExcellencePrice The Cost of Service per person is Rs250/month it is Standard price for all (Weight, Distance and Space). The Dabbawalas Turnover is Approx Rs 50cr.Total Earning of 20 people is Rs125000. Earning per person varies from Rs5000 to 6000/month. Maintenance Cost is Rs 35000 per year. Tiffin Luggage Basket pass is Rs 180 per person. Maintenance Cost of cycles is Rs300 that is for 2cycles per month .Maintenance of wooden boxes is Rs100 per person .If any Police robbery of Tiffin is Rs500 yearly. An organizational fee is Rs 15 per head and Puja held per station Rs50 per head. They get Diwali bonus one month‟s from customers.OTHER PHYSICAL PRODUCTS: Dabba (Tiffin box) is Rs.200/- Gandhi cap is Rs 50/- Video CD is Rs.200/- Dabbawala Mug is Rs.300/- Dabbawala T-shirt Rs 400/-PHYSICALENVIRONMENT: Mumbai is the financial hub of the country. It is the most populous city in India and the second most populous in the world, with approximately 20 million inhabitants. It generates a big part of income generated in India. The climate of Mumbai is humid between March and October, and rains lash the Mumbai from June to September. Mumbai is facing high problem during the rainy season. They are mainly facing the problem of floods from last three to four years. But still Dabbawala are working their work continuously. So we can say that they have to do hard work to survive in the Physical 40
  41. 41. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceEnvironment: Providing service in highly populated city. Have to travel 60-70 kms in a route. Have to travel by walking, cycle, carts and even by Local trains. Have to travel from one place to another in hot summers. Have to face the lot of crowd for the fulfillment of service. Even they have to provide service in high rains. The person who serves Tiffin to the customer is well known about the physical environment of that area and because of that Dabbawalas are able to serve in every season so this helps a lot to Dabbawalas in achieving Six Sigma.PROCESS This is the process that is being followed by the dabbawalas to carry on their job eefficiently and with precision. 10:34-11:20 am This time period is actually the journey time. The dabbawalas load the wooden crates filled with tiffins onto the luggage or goods compartment in the train. Generally, they choose to occupy the last compartment of the train. 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! 1:15 – 2:00 pm Here on begins the collection process where the dabbawalas have to pick up the tiffins from the offices where they had delivered almost an hour ago. 41
  42. 42. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceRETURN JOURNEY 2:00 – 2:30 pm The group members meet for the segregation as per the destination suburb. 2:48 – 3:30 pm The return journey by train where the group finally meets up after the day‟s routine of dispatching and collecting from various destination offices usually, since it is more of a pleasant journey compared to the earlier part of the day, the dabbawalas lighten up the moment with joking around and singing.SWOT ANALYSIS OF (NMTBSA) DABBAWAL:STRENGTH  Low operational cost  Customer satisfaction  Low attrition rate  Flat organization  Team spirit & team managementWEAKNESS  Limited access to education  Funds for the association  No social security to members 42
  43. 43. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceOPPORTUNITY  Operational cost is low  Wide range publicityTHREAT  Job satisfaction level of new generations  Competition  Canteen facility provided by corporate firm.What is service?A service is any act of performance one party can offer to another party that is essentialintangible and does not result in the ownership of anything. Its production may or may not betied to a physical product.Service Quality Reliability Basic Service Service design Recovery Fair Play Teamwork Employee Research Servant LeadershipReliabilityDabbawala is very reliable service for their for their customers they have a record of on timedelivery with minimum errors.Basic ServiceDabbawala delivers the promised basic service to their customers, keep customer informed,and be determined to deliver value to customer. 43
  44. 44. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceService Design:Dabbawals have developed a holistic design of their marketing services.RecoveryDabbawala have hired extra personal for recovery.If any Tiffin box gets misplaced the recovery process starts quickly and they try to deliver therecovered Tiffin on time.Fair PlayDabbawala make special effort to fair and make special effort to be fair to customer andemployeesTeam WorkDabbawala who rang in age from 18-65, tend to remain for their entire working lives. As theresult member of team care deeply for one another.Employee ResearchDabbawala continuously try to identify service problems and solve those problems promptly.Servant Leadership Dabbawala have excellent service system design use information effectively and have strongcorporate style cultureConclusion Managing more than 5000Dabawalas daily is really increased! Sowhat kind of Human resource policy theyhave adopted & how do they implementedit, was the objective behind these report.Which are satisfactory completed, & I gotsome key formulas, principles of theireffective Human resource management system from this project work. 44
  45. 45. [MARKETING MANAGEMET ] Dabbawala Service Excellence The lacks of office goers, 5000 Dabbawalas & risky job schedules, allthese kind of problems they are able to handle only due to their efficient Humanresource management system. Mr. Dhondiba Medge formed Human ResourcePolicy for Nutan Mumbai Tiffin Box Suppliers Association. He set core valuesfor the Association, these improved their system. The key feature of their Human Resource Management is Flatorganizational structure. These are able to maintain no communication barriersfrom top level to lower level. All Dabbawalas are employer of the association,there has no any employee-employer relation. This thing is them motivationalfactor behind their job satisfaction. Effective delegation of authority helps themto do work effectively. From top level to lower level Dabbawalas know theirwork & their target which helps to effective job specification. They have implemented Human Resource Policy in their organization,these contains strict disciplinary rules of employment, dress code & effectivetraining & development facility to newjoiners. They follow management principlesin their organization such as Team work,Time management, Innovation, Customerrelationship management & six sigma.Because of these they called as"Management Guru". Human resource policy, Manpower planning. Training & Development,Disciplinary Code of conduct & their Corporate Social Responsibility activityare the key result areas of their Human Resource Management system. Their daily earning is not sufficient to fulfill their basic needs butwhatever they earn out of from it some amount they spend in FSR activities. 45
  46. 46. [MARKETING MANAGEMET ] Dabbawala Service ExcellenceWe are the part of society which provides many resources to us, so it is ourprime duty to give back to society-these CSR principle they follow. The organization has gained a lot of appreciation from foreign countriesbut it still in some ways or other not fully appreciated by its own countrymen.Organization can do a lot to perform better but it needs support & wordappreciation firm its own countrymen. It so, it will even leave back the topworld running entrepreneurs & give India a place of pride on the world map.The Dabbawalas organization is a standoutexample of efficient Logistics and SupplyChain Management. Corporate and studentsshould make note of their functioning in orderto understand their unique structure andprocess. Today the Dabbawalas havewelcomed the use of internet technologyonly for increasing their customer base and nothing more. Many fast foodchains and hotels in the city will always be competing with the Dabbawalas buttheir hope of failure of Dabbawalas system may never materialize. ___________________________ 46

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