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)