Dabbawala Case
Q1) How does the dabbawala organization achieve its high service performance ? what is its secret of success?
Ans:
* Usage of Technology. The dabbawalas use the technology called Web technology and SMS for orders. Since most of the places they serve are near to railway station so they travel by trains and barefoot men. They neither use any computer to track records nor social networks to market their services. * Performance chain are Integrated. The dabbawala system keeps its eye on and Focus too much on those individual pieces where they obstruct the details and, as a result, are less efficient. Concentrate on the entire system and flow of products and information and you have a much better chance of success. * More accurate and Reliable. The features of dabbawala-based system is that all of the dabbawalas understand exactly what is happening and when — to the minute. If certain deadlines and hand-offs are missed, people don’t eat. It’s as simple as that. Make sure everyone within your chain understands what he or she needs to do, where they need to be and what needs to happen for the chain to be successful. * Simple and Honorable . One of the key lessons any organization can learn from the dabbawalas is the simplicity with which this system works. The dabbawalas are intimately aware of what their customers value (food delivered on time, every day). And, just as importantly, they don’t try to do anything other than that. They don’t overcomplicate things. They don’t add extraneous value. They simply understand what their customers want, and they focus 100 percent of their time and energy on meeting that need. Q2) Do you agree with Raghunath Medge the president of the Nutan Mumbai Tiffin Box Suppliers Charity Trust ,assessment of the future of the dabbawala ?
Ans. Yes, The for the same is
1) In Mumbai, it is now not uncommon to find people eating out most times due to their hectic work patterns and lifestyles. Most of the people like eating at the outside restaurant and deny of having dabba .But at the same time people who are age of more than 50 they prefer home -made food and also people who wants to be health conscious they too prefer home- made food . This class of people will remain, and as long as this category of people will remain, business is going to thrive.
2) Gone are the days when the Indian wife would stand by the threshold of her home, waiting to feed her hungry husband when he returns from work. For this type of situation they provide food made by the wife's of dabbawala's and are directly delivered to clients who live alone or both wife or husband both are working.
3) Twenty years back they insisted on the dabbas. Today they don't insist on a particular type of dabbas. You can give any dabba as long as on top of it he can put his codes. If he is not able to put his codes, he wants a cloth bag or something to cover it, the same bag u keep on top of which he writes his codes. This changes are made because customers today want more sophisticated-looking boxes.
4) They will not face shortage in manpower because as long as people in villages are there who don't have work. All of them, the village people, aspire to come to Mumbai and this gives them a path for coming to Mumbai.
5) On their website, one can submit queries, subscribe to the delivery service, or even request to spend a day with them, as did Chairman of the Virgin Group, Richard Branson, to understand how they work.

Q3. Is dabbawala mill distribution network an example of world class service? If yes why hasn’t their model being successfully replicated elsewhere. If not what chances to the business model require to achieve world class status.
Ans:-
Yes, the dabbawala mill distribution networks an example of world class service.
Effective Lunchbox Colouring System:- The Dabbawalas utilize a coloring system to differentiate lunchboxes. Most of the Dabbawalas are illiterate and do not use technology. The company developed a system which aligns its food delivery service with its employees’ skill sets. The system allows for quick identification, packaging, on boarding and distribution to customers. According to The Economist, lunchboxes are delivered to the right address 99.9999 percent of the time. Effective systems are critical to high quality, cost-effective service. The Dabbawalas’ delivery systems are designed to be reliable and flexible, and are capable of meeting fluctuations in demand.
Flat Organizational Structure and Incentives:- The flat organizational structure of the Dabbawalas reduces overhead costs and empowers frontline employees. Pay is based on team results and is shared equally among employees. This incentivizes all team members to work efficiently to achieve optimal results. The Dabbawalas have also right-sized their workforce in an effort to reduce costs, and maximize the efficiency of operations. Performance evaluations and feedback are given at regular intervals, which align employee actions with the overall goals of the organization. The recruitment process for new employees is standardized, which helps to onboard the optimal candidates.
Cost-Effective Transportation:- Utilizing trains, bicycles and hand carts substantially reduces operating costs for the Dabbawalas. Trucks, cars and other automobiles require large initial investments, maintenance and gasoline. Automobiles also require insurance and depreciate at regular intervals. The Dabbawalas’ transportation systems are cost-effective and timely. These cost savings are ultimately passed to customers in the form of low monthly service fees. The delivery methods utilized are sustainable and are not as harmful to the environment as automobiles. Plus employees are active, which contributes to better health and morale.
Low Transaction Error Rate:- The Dabbawalas operate with a high degree of accuracy, and are said to be Six-Sigma compliant. According to the American Society for Quality, “Six-Sigma quality means no more than 3.4 defects per million opportunities.” The Dabbawalas have less than one error per million transactions. This means the Dabbawalas operate with a phenomenal level of accuracy rarely achieved by other businesses. Accuracy is important not only for customer satisfaction, but also for corporate profitability. The costs of rework, internal failures and other defects drive operating costs. Statistical accuracy of processes and systems is a sign of quality and sustainability.
Dabbawala model can’t be implemented everywhere because of following facts:-
1. Local train is not available everywhere
2. Population is high in Mumbai as against other cities and hence customers are more
3. Workers will not be ready to work easily
4. People who do not belong to Marathi culture will feel difficult to work
5. Profit margins will be lower
Q4) A consultant wants to move the dabbawala system in 21st century and proposes several changes .How should Raghunath Medge respond ?
Ans. Raghunath should focus on small experiments first and after the success of these experiment they should immediately implemented into the system .Because the main reason for the success of the Dabbawalas was due to its simplicity. For the dabbawalas, having the right process in place means more than simply implementing efficient work flows. It also entails just about everything in the organization, including the way information is managed, the use of built-in buffers, and a strict adherence to standards. Simple codes. To convey information, the dabbawalas rely on a system of very basic symbols. The lid of a dabba has three key markings on it. (See the exhibit “Cracking the Dabba Code.”) The first is a large, bold number in the center, which indicates the neighborhood where the dabba must be delivered. The second is a group of characters on the edge of the lid: a number for the dabbawala who will make the delivery, an alphabetical code (two or three letters) for the office building, and a number indicating the floor. The third—a combination of color and shape, and in some instances, a motif—indicates the station of origin. Customers supply small bags for carrying their dabbas, and the variation in the bags’ shapes and colors helps workers remember which dabba belongs to which customer.
Q5) What are the economics of dabbawala mill distribution network? What is the business model? Is this business model scalable?
Ans:-
Economics of dabbawala mill distribution network:-
Each dabbawala, regardless of role, is paid about eight thousand rupees per month. In 2005, Harvard Business Review found its reliability to be that of a six sigma standard. Better source needed. This implies that the dabbawalas make less than one mistake in every six million deliveries. Between 175,000 and 200,000 lunch boxes are moved by 4,500 to 5,000 dabbawalas, all with an extremely small nominal fee and with utmost punctuality.
The BBC has produced a documentary on dabbawalas and Prince Charles visited them during his visit to India; he had to fit in with their schedule, since their timing was too precise to permit any flexibility. Charles also invited them to his wedding with Camilla Parker Bowles in London on 9 April 2005. Owing to the tremendous publicity, some of the dabbawalas were invited to give guest lecturers in some of the top business schools of India, which is very unusual. Most remarkably in the eyes of many Westerners, the success of the dabbawala trade has involved no advanced technology, except for trains (and as mentioned above, SMS services for booking). The New York Times reported in 2007 that the 125-year-old dabbawala industry continues to grow at a rate of 5–10% per year.
Business model followed by dabbawala:- 5,000 Dabbawalas work daily to deliver home-cooked food to more than 400,000 customers in Mumbai. The food is delivered in cylindrical lunchboxes to customers working in offices or schools. The Dabbawalas utilize local trains, bicycles and hand carts to deliver food to customers. The organizational structure of the company is flat and includes a governing body, team supervisors and deliverymen. Each employee is an equal shareholder in the organization, and receives an equal share of the profits. The company is also Six-Sigma compliant. The service costs less than $10 a month for customers. Strong teamwork and strict time management are integral parts of the Dabbawalas’ success. They work in a twin process that combines competitive collaboration between team members with a high level of technical efficiency in logistics management. After the customer leaves for work, his or her lunch is packed into tiffin provided by the dabbawala. A colour-coded notation on the handle identifies its owner and destination. Once the dabbawala has picked up the tiffin, he moves fast using a combination of bicycles, trains and sometimes on his feet. “If it weren’t for the timely working of the Mumbai local trains we would have stopped functioning ages ago.” Lunch boxes are collected from homes between 7.00 am and 9.00 am, and taken to the nearest railway station. At various intermediary stations, they are hauled onto platforms and sorted out for area-wise distribution, so that single tiffin could change hands three to four times in the course of its daily journey. Mumbai's Downtown stations, the last link in the chain, a final relay of dabbawalas fan out to the tiffins' destined bellies. Lunch hour over, the whole process moves into reverse and the tiffins return to suburban homes by 6.00 pm. This business model of dabbawala is scalable as they can measure the timely delivery and mistakes in their delivery.