THE CULT OFTHE DABBAWALAS
It was the time when English were
ruling INDIA
New government offices, post offices,
bridges ,etc were being built
No MacDonald or Pizza Hut
A Parsi banker employed a person to
bring home-made food to site of
work
His colleagues too liked the idea and
started with it
Evolved into the present Dabbawala
system.
(Nutan Mumbai Tiffin Box Suppliers Association)
History : Started in 1880
Charitable trust : Registered in 1956
Avg. Literacy Rate : 8th Grade Schooling
Total area coverage: 60 Kms to 70 Kms
Employee Strength : 5000
4,00,000 transactions every day
Time taken :3 hrs
SOME HIGHLIGHTSSOME HIGHLIGHTS Error rate : 1 in 16 million transaction
Six sigma performance
Technological backup : nil
Cost of service: Rs.250 – 300 pm
Approx annual turnover: Rs30cr
Earnings:4000-5000/month/dabbawala
Diwali bonus: one month salary by customer
No retirement age.
Service on through all hurdles
0 % Fuel
0 % Modern Technology
0 % Investment
0 % Disputes
99.999999 % Performance
100 % Satisfaction
Dabbawalas operate in group of 25–30, headed by a group leader
In one segment there are more than one groups.
A flat organization
Instant decisions are taken.
Everyone is a shareholder
Even the president and the other high ups also work
The color coded on Dabbas can be read in the following pattern:
Pick up dabba from residence and bring it to a central location.
Journey in local train
Unloading and sorting at destination station
Dabbawalas have their food
Collection of empty dabba and sorting at destination station
Return journey
Sorting and delivery of empty dabba at residential station
THE GENERAL THE GENERAL ROUTINEROUTINE
Fine (Rs. 25) – Not carrying ID card.
Fine (Rs. 25) – Not wearing white cap
Fine (Rs. 100) – Smoking on duty
Fine (Rs. 500) – Drinking on duty
Fine (Rs. 1000) – Leave without intimation,
sacked if repeated in 2-3 instances.
CODE CODE OF CONDUCTOF CONDUCT
Different dabbawalas 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 persons
name or address specifically mentioned,
but there is no error.
Errors don’t occur due to mistakes but due
to train delays.
No ‘parking’ issues though such a huge
load is processed.
WHAT’S UNIQUEWHAT’S UNIQUE
STRENGHTS
Customer satisfaction
Coordination, team
spirit, & time
management
Simplicity in
organization with
Innovative service Low Attrition Rate Low operation cost
WEAKNESSES
High dependability on
local trains
Funds for the
association
Limited Access to
Education
OPPORTUNITIES
Wide range publicity
Operational cost is low
Catering
Improving rail network
BPO employees
Increasing petrol prices
THREATS
Indirect competition is
being faced from caterers
like maharaja community
Indirect threats from fast
foods and hotels
Change in timings
Increase in number of
working women – no tiffins
Attrition rates are high.
Average age of the
dabbawala is 52 years.
Flat organization
No hire and fire rule
Community based Recruitment
Sharing common beliefs, values, ethics
The ‘bottom-up’ management approach.
Training provided to the new joinees.
Loyalty & trust is their monopoly
Owner + Employee is the designation of each.
Quarterly Meetings to discuss issues
Interdependence
Equal profit sharing
Team work and inter dependence
Efficient utilization of resources
No dependence on technology if not absolutely necessary
Heterarchy Keep operational costs
as low as possible.
Logistical efficiency Responsible autonomy Always maintain operational
flexibility. Keep Extras for FAULT
TOLERANCE. PUT THE CONSUMER AHEAD
OF EVERYTHING.
Dabbawala system is like the Internet. The Internet
relies on a concept called packet switching.
Voice or data files are sliced into tiny sachets, each
with its own coded address which directs its routing.
These packets are then ferried in bursts, independent
of other packets and possibly taking
different routes, across the country or
the world, and re-assembled at their
destination.
Mobiles are now used (mostly incoming) Their website (www.mydabbawala.com) Order through email Booking delivery through SMS. Express delivery system (pick up at 11 am) 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 patients, after examining them.
World record in best time management.
Name in “GUINESS BOOK of World Records”.
Registered with Ripley's “believe it or not”.
People study business books and then practice. We practiced first and have now become case studies – R. Megde (President)
“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)
It’s a model of managerial and organisational simplicity – C. K. Prahalad
That’s to tell that Perfect Business Models
are not necessarily taught in B-Schools!
By Balu B. (We School, Mumbai)