Dabbawala's Management Practices
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The dabbawalas are a lunch delivery system in Mumbai, known for their efficiency and six sigma performance, delivering 200,000 to 400,000 lunchboxes daily with a minimal operational cost. Their unique organizational structure and commitment to customer satisfaction have led to a near-zero error rate despite high turnover challenges. They emphasize low costs, fast decision-making, and employee ownership, serving only their core competency of food delivery while also engaging in community support activities.
Dabbawala's Management Practices
- 1. The dabbawalas constitute a lunchbox delivery and return system that delivers hot lunches from homes and restaurants to people at work in India, especially in Mumbai. Interesting Facts – • Six sigma performance • Color Coding for identifying lunchboxes • Their organization skills were topic of research and studies • Huge fan following around the world • Reference in literature • Guinness Book of World Records • Corporate sharks needed their help for marketing • Own way of performing CSR
- 2. Rise and Rise of Dabbawallas The Seed – Mahadev Bache, identified the need and started lunch delivery system in Mumbai. The Rising – Operations began from 1890 The Boom – 1950s and 1960s, industrial boom. 200000 Dabbas delivered per day. Getting Organized – Nutan Mumbai Tiffin Box Supliers Charity Association (now Trust) formed in 1954. Current Status – 2,00,000 – 4,00,000 tiffin boxes are transferred everyday. Total area cover is 60kms with 5000 employee strength.
- 3. A Day In Life of Dabbawalas
- 4. Organizational Structure • A flat organisation • Operate in a group of 25-30 headed by a group leader Mukadam • In one segment, there are more than one group • Instant decision is taken, depending on the situation • Everyone is a shareholder • Even the president and other high ups also work • Mini governments are formed to meet and resolve the differences.
- 5. Major Features of Supply Chain • Zero Fuel • Zero Modern Technology • 99.99 Percent Customer Satisfaction • Green Organization • Technology Backup Is Nil • Cost Of Service Is Minimal I.E Rs.350-rs.500 Per Month
- 6. What’s Unique • Different dabbawalas pick up, sort and deliver • Co-ordination is seamless • The person who delivers does not know the origin address and vice-versa • Owner’s address and name are not put on the dabba, but there are no delivery error • Errors do not occur due to mistakes by the dabbawalas but due to pilferage in trains or sorting areas • No parking issues although such a huge load is processed
- 7. • CSR Activities Donations, setting up of schools and temples, help during medical emergencies • Challenges High attrition rates, second generation not finding the profession appealing, in- house canteens etc
- 8. Management Lessons 1. Keep operational cost as low as possible – • Use cycles. handcrat, local trains • No fancy offices • Word of mouth publicity 2. Just Serve your customer – • Nothing else matter • On time delivery, even during extreme weather conditions.
- 9. 3.Flat organization fast decision-making– • Everyone is a shareholder • Instant decisions are taken on the spot without any formalities. 4. Keep Extras for fault tolerance – • For every 20 Dabbawala there is one extra. • Extra will do the work, if someone is absent.
- 10. 5.Never deviate from core competency – • They are only in business of delivering home made food. • If required, develop other services around core competency. 6. Keep employees emotionally united – • Dabbawalas have same tradition, language and social status. • They meet regularly to sort out issues and differences. • This helps them to stay connected.
- 11. 7. Make your employee shareholder – • This helps them to take them ownership of the work. • Salary should be linked to the performance of company. 8. Customer is the only King Prince Charles incident
- 12. ThankYou