DIVISION C GROUP 1

SVKMs NMIMS University

School of Business Management

MBA (First Year) Trimester III, Session 2016-2017

Mumbai Dabbawalas
Operations Management

Submitted to: Submitted by:

Dr. Ashu Sharma

Name Roll
No.
Pavan Agrawal C004
Gautam Chhabra C016
Kena Kothari C
Ninad Kirodian C032
Akshay Kumar C035
Abhishek Mall C039
Manan Shah C053
 Table of Contents

Sr. No. Topic Page no

1 Introduction 3
2 Profile 4
3 Standard Operating Procedure 5
4 Supply Chain Management 7
5 Total Quality Management 14
7 Management Practices 15
8 Success factors 16
9 Conclusion 18
10 References 19

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 Introduction

A dabbawala (one who carries the box), is a person in the city of Mumbai whose
job is to carry and deliver freshly made food from the homes in Mumbai to office
workers, students, and boxes back to the source. They are also a charitable
organization that was registered in 1956 and their area of operations is the city of
Mumbai entirely. All of the individuals who work as dabbawalas, come from the
same community, Khor Maratha and the same rural area: a few villages near
Pune, Maharashtra. They belong to families of small farmers of this region and
still participate to work in the fields during the harvest season in India

The Bombay Dabbawalas operations is widely known as an outstanding example

of excellence in logistics. It is one of the standard examples in six sigma
implementation in India. The aim of this project is to present a detailed report on
the operations of the Bombay Dabbawalas operations from a management point-
of-view. It is a locally developed model which has been entirely conceived,
developed and perfected by a group of individuals who have very little education.
The whole operation is operated by a group of approximately 5000 individuals in
the form of a co-operative. Every day, these individuals deliver approximately
1,50,000 lunchboxes to offices all around Mumbai picked up from home and
delivered with almost pin-point accuracy.

The Bombay Dabbawalas representatives have often delivered seminars at major

academic institutions in order for management students to understand the
relevance and importance of six sigma in the Indian context. It has been widely
documented by major business press publications such as Forbes, Harvard
Business Review, etc and has also been the topic of case studies from major
academic institutions such as Harvard Business School and Indian Institute of
Management, Ahmedabad.

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 Profile
Mumbai Dabbawalas, meaning lunch box delivery men, provide a highly-
specialized service of delivering around 260,000 lunchboxes through 5,000
dabbawallas. They operate in the Indian city of Mumbai. The delivery of a tiffin
may sound simple but is actually a highly-specialized trade that has evolved in its
current form over a century and has become integral to Mumbais culture.

Dabbawallas is a home-grown model, conceived, developed and perfected by a

group of individuals who have very little or no formal education in the area of
Logistics.

They have 2 committees in the organization,

1) Operational Committee
2) Charitable Trust

Both the committees have the same management hierarchy i.e. General Secretary-
---- Treasurer --- Director, and have 5000 members including 635 supervisors
who supervise the daily operations.

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 Standard Operating Procedure

The organization collects, transports and distributes lunch boxes to its customers
across Mumbai everyday for 25 working days in a month.

The fundamental unit in this system is the dabbawala. There are approximately
5000 of them in the organization. Each of them is assigned a set of approximately
30 customers in a specific geographic area. Each of the dabbawalas visit each of
these customers in the morning on a pre-assigned route and picks up the lunch
boxes at their homes and subsequently, brings it to the nearest railway station.
The visit to these homes in the morning is usually between 8:30 to 9:00am in the
morning. Their primary means of transportation of collecting these boxes is by
the bicycle or by walking. The household which has enlisted the service is
expected to prepare and ready the lunchbox by the time the dabbawala arrives at
their home. If for some reason, the lunchbox isnt ready, the dabbawala will move
on to the next household. Since time is a major constraint on the service, this
practice is followed.

Usually, there are 8 dabbawalas in one team. Furthermore, 8 teams form one
group. There are 120 groups in the organization responsible for the delivery.
These groups are entirely responsible for the operations within the organization.
The teams are responsible for executing the operations.

At the railway station, a team of dabbawalas sort the lunchboxes according to the
destination. The process is executed in the form of a codification system. The
codification system codifies the origin of the lunchbox, the collection team
member, the destination, the delivery team member, the location building
identification and floor number.

Based on this system, they are sorted for a origin to hub transfer using the Mumbai
rail network. At the destination, the destination delivery group re-sorts the
lunchboxes based on destination. Subsequently, the assigned delivery team
member takes the lunchboxes in his specified geographical area and leaves the
lunch boxes at the appropriate delivery location.

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The lunchboxes arrive at the destination railway station by 11:30am
approximately and the delivery is completed before 1:00pm, just before the
scheduled lunch time at the office locations.

Once lunch has been taken, the customers leave the lunchboxes at the locations
they picked it from and the assigned delivery person collects these empty boxes
and takes them to the nearby railway station. The reverse of the operation
mentioned above takes place and the lunchboxes are delivered to the respective
homes by evening. Once this is completed, the operation of the dabbawalas is
over.

The whole operation is time-sensitive and extra care must be taken so that the
lunchboxes are delivered in pristine condition by the end of it. Since the Mumbai
rail network is the most congested network in the world, the lunchboxes are
loaded in carts in the train so as to protect them from harm.

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 Supply Chain Management

The Mumbai Dabbawallas operation is widely recognized as an outstanding

example of excellence in Logistics. It is often quoted as a standard example of
six sigma implementations in the Indian context. Also, Dabbawallas is
recognized as an outstanding example of excellence in service delivery. In this
section, we study in detail the nature and content of this system, critically
examine its salient features.
The dabbawalla meal distribution network was characterized by a combination
offer baton relay system in which tiffin were handed of between dabbawallas
at various points in the delivery process and a hub and spokes system in
which the sorting of tiffin was done at specific railway locations form where
individual spokes branched out for distribution. There was no local historical
model on which this distribution network was designed. All design decisions
were driven by the singular purpose of delivering as a tiffin in time for the
customers lunch. The delivery processes had largely remained unchanged since
their inception even though the environments of service delivery are changed.
4500 dabbawallas across Mumbai coordinate with each other for picking up
and delivering the tiffin for over 1,75,000 mumbaites every day in a 3-hour
period, through 60 kms of public transport. In fact, the modes of transport
simply include the local trains, bicycles and hand carts.

Below is the Birds eye view of the whole process from start to the End.

Fig 1.0: Distribution Process Breakdown

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The step by step process adapted by the organization members is shown below.

Suitable
At a
packing for
destination
placing in the Distribution
station, the
tiffin on of the tiffins
tiffins are
dabbawalas' to the final
sorted based
standard destination
on delivery
cylindrical
address
container

Another
After lunch,
dabbawala
Designated dabbawalas
then picks
dabbawala collect the
up the load
picks up the tiffin from
for a
container the
designated
workdesks
station

containers
The process is
All the tiffins are sorted
now reversed
collected are and loaded
till each dabba
brought to a on
is brought back
consolidatio rectangular
to the specific
n point carrier
starting points
frames

Fig 1.1: Process Flow Chart for the Collection and Delivery of the tiffin

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Transportation and gathering:
The dabbawalas are spread over the entire city and hence, all three lines of
the local train are utilized by them, Western, Central and Harbour Lines.
The main stations include Dombivili, Andheri, Dadar, Kurla, Grant Road,
Churchgate and C.S.T. these are also the major sorting areas for the
dabbawallas.
Each station may have approximately 4-8 groups depending on the density
of population and demand. E.G. there can be 15-20 groups at Churchgate
and just 5-6 groups at stations like Khar and Vile Parle.
The various modes of transport that are used by the dabbawallas in their
whole network will mainly include trains, bicycles, handcarts and of course,
on foot,
Time is the principle factor in this system. If there is any delay of even a few
minutes, the train will be missed by the dabbawallas and the system will be
disrupted because of him. Hence, planning for contingency is also very
important on part of the dabbawalla. Punctuality is therefore of prime
Importance. Rarely has it been that the Tiffin doesn't reach the owner's desk
at lunchtime.
The city's geographical pattern helps. Most of Mumbai's Office-goers live in
the suburbs and work downtown and there arc local trains connecting two,
points - which form hubs for hub-and-spoke sub-networks. Each Tiffin is at
least handled by 4-5 different dabbawallas in the entire process

Coding:
They follow a 'Multi Level Coding' system to eliminate any error in daily
delivery.
Each 'Dabba' -the Tiffin box in marked with a code which is something like,
VLP 9EX12 E3 in a circular fashion.

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The code consists of all the below information.
The code is allotted to each dabbawalla in a group that picks up the Tiffin
form a particular area or suburb.
The code of the origin station, which is usually one of the suburbs on
western, central or harbour lines.
The code for destination, which is Churchgate, CST or any other
commercial area.
The code of the dabbawalla in the destination area who handles the Tiffin
there
The code for the location or office building in the destination area
The floor or the room in that building

The coding is typically done in the manner shown below:

Fig 1.2: Coding done on the tiffin box

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We can now separate each element that is written on the Tiffin cover or top for
understanding what it means. Let us follow the pattern anti-clockwise:-
Source: VP
VP The first thing on the Tiffin is the code for the originating station. This is the
station from where the dabbawalla picks up the Tiffin in the morning. In this case,
VP denotes Vile Parle. The area under this station will include Juhu and also
J.V.P.D scheme since this is the only station, which is nearest. Even if the
dabbawalla goes to the most interior parts like in Juhu, it will not be mentioned in
the coding simply because the dabbawallas are just concerned about the respective
railway stations.

Dabbawala ID: E3
E This is the code for the dabbawalla who is picking up the Tiffin from its origin
or home. In this case, the dabbawalla with the code of E will be a part of the group
distinguished by the colour code RED. In many instances, the code will be the
initial of the name of the dabbawalla. This is one of the elements that can be
changed during the course of time if the dabbawalla for that particular customer
changes.
3 This is the code for the destination area. This may not necessarily be restricted
to astation only. For instance, the Churchgate is allotted number codes from 1-10.
Number 11 is allotted to marine lines, 12 to Charni road and so on. In this example,
the number 3 is allotted to the area between flora fountain and cross Maidan area.
Other prime locations would include Nariman Point, stock exchange, Ballard pier,
RBI etc.

Destination: 9 VS 12
9 This is the code number for the dabbawalla who delivers the Tiffin to the
destination office from Churchgate station. This is the dabbawalla who is
responsible for delivering it to the respective office and picking it up after the lunch
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hours. He is a part of another group from the one he worked with at the originating
station. Thus, in most cases, each dabbawalla will be a part of more than one group
for sure, one at the origin and one at the destination.

VS - This code denotes the exact location or more likely, the buildings initial in
the area that falls under Churchgate station. In this case, it is VSNL building. VS
being the initial
for the building is unique and therefore, creates no confusion whatsoever for the
dabbawallas. Office buildings around southern Mumbai are very popular and
hence, easy to comprehend when given in codes. Other examples would be M for
Mittal Towers,R for RBI, MC for Maker Chambers and so on.

12 finally, the last code among the three codes that form the right side of the top
of the dabba is the floor on the building (VSNL) or the room number in case of
buildings with large number of rooms on each floor. Such an example would be
Stock Exchange, RBI and BMC etc. Let us take a second example with different
locations so we can exactly figure out how to comprehend the coding system.

Salient Features:
The model uses Integration of Logistics and the Supply-Chain practices.
Logistics is the time-related positioning of resource, or the strategic management
of the total supply-chain. The supply-chain is a sequence of events intended to
satisfy a customer It can include procurement, manufacture, distribution, and waste
disposal, together with associated transport, storage and information technology.

Appropriate Network Structure:

The logistics network of Dabbawallas is a combination of milkman route, hub-
hub transfer, and hub and spoke distribution. There is perfect symmetry in the
reverse logistics operation.
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Transportation:
Transportation requirements can be accomplished in 3 basic ways as follows
Private fleet of equipment.
Arranging a contract with specialist.
Common carriage.
These three forms of transportation are typically referred to as private contract and
common carriage. From the logistical viewpoint, three factors fundamental to
transportation performance are cost, speed and consistency.

Flexible Infrastructure:
The back bone of Dabbawallas is the higher frequency of sub-urban train services.
There is a train service virtually every minute. The entire operational area of
Dabbawallas is serviced by the well-developed rail-way infrastructure. Further,
the train services are inexpensively priced. Product Storage:

Customer Co-operation:
The members of the co-operative do not wait for lunch boxes, if they are not ready
when they arrive for collection at residences. The household understands the need
to be punctual to support i.e. functioning of Dabbawallas and extend appropriate
co-operation.

Codification system:
The codification system is the core to material flow and its tracking in the system.
It is home grown, ad hoc but serves adequately the purpose for which it is designed.
It is a combination of alphabets, symbols and colour. It is unique to Dabbawallas.
The codification is a combination of systems approach and personalized
information available to members. It is specific to the extent required.

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 Total Quality Management

Total Quality Management is a management approach to long-term success

through customer satisfaction. In this approach, all the members in an
organization participate in improving processes, products, services and the
culture in which they work.

In the approach taken by the Mumbai dabbawalas, customer satisfaction is

paramount over all others. Even if the public infrastructure is delayed, the tiffins
cannot be late in their delivery. The organization knows that if tiffins are late,
there could be consequences of it which will result in wastage of money in
buying lunch externally. The people of Mumbai have a saying that, our lunch
can go wrong but not the Mumbai dabbawalas. Organisations spend a lot on
achieving six sigma ratings but the Mumbai dabbawalas do not know what that
is but still have achieved that rating because they value customer satisfaction
over all other parameters. Since the organization is divided into groups which is
further divided into teams, the team leader is usually the one responsible for
ensuring that timely delivery of all the lunchboxes in his team takes place.
There is complete responsibility and even though the team leader does not earn
anything extra for his job, he still feels proud and responsible enough to do the
job properly. What is even more remarkable is that technology is not involved
in anyway in the process.

Some of the key facts of the process are:

1. Error rate: 1 in 16 million transactions
2. Six Sigma performance(success rate of 99.999999%)
3. Zero technology backup
4. Low cost of service(Rs. 300 per month)
5. Standard price for all irrespective of weight, distance, space
6. Zero strike record
7. Zero fuel, zero investment, zero disputes

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 Management Practices

This section deals with some of the management practices that the Bombay
Dabbawalas organization practices. Some of them have been noted below.
1. Compensation: Every member in the organization receives equal pay for
all the work they do. Be it, the group leader, or the team leader since the
organization is a co-operative.
2. Structure: The organization is a co-operative meant to symbolize
quality. The structure they possess is easily scalable based on volume. It
ensures there is attention to detail at the team level and also at the group
level. Since all members are equally responsible in the organization, the
revenue generation is well integrated in the structure. The scale and scope
economics are also easily managed. The present structure is an effective
way of delivering centralized planning and decentralized execution of
services.
3. Codification System: The system ensures accurate traceability of lunch
boxes in the system. It is inexpensive, yet an ingenious way of tracking
developed by the organization. It gives a snapshot of all major as well as
minor details pertaining to the destination as well as origination of the
lunchbox.
4. HR Practices: The organization is built on the pride of work they
provide to their customers. The members consider their job to be quite
important and hence this provides a source of pride for them. The
members also belong to a single ethnic group. There is also a well-
developed apprenticeship program in the company.
5. Leisure: After delivery of the lunch boxes, the members break away for
their leisure time. There is also a one week forced holiday policy in place
in order for the members to visit their families in their villages.
6. Redundancy: The team members can be expected to substitute for their
fellow colleagues at any time. They possess slack capacity which helps
them fulfill this condition. Every member in a team can substitute for
their team members. They are expected to learn and know the routes
assigned to each team member which helps in this task.

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 Success Factors

The Bombay Dabbawalas are known for their negligible number of errors in the
operations and have been recognized as a six sigma operation. Some of the factors
that contribute to such a performance have been listed below:
1. Codification system: It is the most important aspect of the operation and
ensures that the lunchbox at the origin railway station is correctly delivered
to the location it is meant to be sent to. One mistake in this system and
there will be errors in the system which is unacceptable to the customer.
2. Appropriate structure: The network of the operation is a combination of
milkman route, hub-hub transfer and hub and spoke distribution which
ensures near-perfect service. There is also symmetry in the reverse logistics
operation.
3. Process time: The total time required from collection of the lunchbox to
the delivery of it is about 3 hours. The total travel time is nearly 1:30hours.
The breakdown of this is such, travel time to and from the station is 30mins,
sorting takes approximately 30mins and final dispatch takes 30 mins.
However, the time available for the delivery is 4hours which leaves a lot
of leeway for the organization to complete the delivery within the
stipulated time.
4. Transport: The Mumbai rail network is the backbone of the operations of
the dabbawalas and the lunchboxes are transported using it. This keeps the
cost of the service low and affordable to consumers. Lower price brings
about volume economics. Depending on the need, the manpower can be
dynamic and there can be more members to handle large volume of
deliveries coming in.
5. Customer co-operation. The dabbawalas do not wait for the lunchboxes, if
they are not ready at the homes when they arrive for collection. The need
to be punctual is understood by the households and followed for the
betterment of the operation. Similarly, the customers pick up and drop the
lunchboxes at the specified location at the destination which ensures proper
scheduling of the operation.
6. Redundancy: Each route is specified to an allocated team member. This
route is pre-assigned and is usually known to the other members of the
team as well. This helps in substitution of the member in the event of a
contingency.
7. Topography: Mumbai is topographically linear. The origination is
distributed over a large area in the north of the city and the destination is

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condensed into a small area in the south of the city. Hence there is low
volume spread in the origination and high volume spread in the destination.

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 Conclusion

In conclusion, there are a lot of admirable aspects of the whole organization and
operation which makes it unique. First and foremost, it is an inexpensive service
which makes it affordable to the consumers in the city of Mumbai. Secondly, it
is completely member-driven as the organization is a co-operative where every
member is equally responsible for the operations. Since the operations are
member-driven, there is greater harmony amongst the members as well.
Another factor which makes them unique is that they cater to only a specific
service, delivery of lunchboxes which ensures that competition is nil in this
segment. Also, the organization does not use any advanced technological tool or
system to supplement its operations which makes it unique amongst all
operations where it is the only such system in the world which has managed to
do so and with such accuracy. It has also perfected its system over a long period
of time in order to handle large volume economics. The operations are scalable
and flexible enough to handle unforeseen changes in the daily operations.

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 References

1. http://www.iimahd.ernet.in/publications/data/2005-09-
01ravichandran.pdf
2. http://healthmarketinnovations.org/sites/default/files/Dabbawalas%2
0of%20Mumbai.pdf
3. http://mumbaidabbawala.in
4. https://blog.consultclub-iima.com/2013/11/24/mumbai-dabbawalas-
business-and-beyond-2/
5. https://www.ft.com/content/f3b3cbca-362c-11e5-b05b-b01debd57852
6. http://www.dualnoise.com/2015/03/mumbai-dabbawalas-
operational.html
7. https://www.isixsigma.com/community/blogs/4-reasons-dabbawala-
supply-chain-succeeds-while-corporate-giants-struggle/
8. http://www.mbaskool.com/business-articles/operations/2891-
dabbawalas-unique-supply-chain-model.html
9. http://tmimtjournal.org/pdf/poceddings/track3/track3_paper1.pdf

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