Dabbawallas_Mumbai by dandanhuanghuang

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									   A dabbawala (Delivery Boy), is a person in the Mumbai whose
    job is to carry and deliver freshly made food from home in
    lunch boxes to office workers.
   Indian Culture: Hot home cooked meals a necessity
    6500 workers making 200,000 deliveries a day
   Every Tiffin box changes hands four times
   Travel required: 60-70 kilometres
    Cost ~ $6/month
   Illiterate people ( Average schooling: 8th Grade)
                    Mumbai (#1 in 2010) Atlanta Factor
Population                  13,830,884 537958 26
Area (sq km)                       603.4 343 1.8
Density (ppl/sq km)             22,922 1,552 15
                    Figures
# Tiffins                               200,000
# transactions                          400,000
#tiffins/employee                            40
# employees                               5,000
Monthly Salary per employee (Rs)            6000
Monthly Salary per employee ($)              380
Revenue per tiffin (Rs)                     500
Revenue per tiffin ($)                        32
     Investment Required by each dabbawalla
2 bicycles                                4,000
1 wooden crate                               500
1 uniform                                    620
Total investment (Rs)                     5,120
Total investment ($)                         341
               (Capital Investment)
Total Employee investment ($)        $1,706,667
   PPP = The value of all final goods and services produced within a
    nation in a given year divided by the average (or mid-year)
    population for the same year
   By taking PPP per capita: we consider relative cost of living and the
    inflation rates of the countries, rather than using just exchange
    rates which may distort the real differences in income (Source: IMF
    2009)
   Exchange Rate gives us: $1 = INR 44.5
   Thus Rs 300/- = $7 as per exchange rates
   However by Purchasing power parity (PPP): $1 = INR 15
   Thus Rs 300/- = $20 (estimated)
   Cost to customer: Rs 300 - Rs 500 per month ($20-
    $30) pm
                 Dabbawallas                                 UPS
Weight per tiffin (kg)                         2   4.4 lb
Total distance travelled per tiffin lot(km)   35 21.74 miles
Lot (of 40) weight (kg)                       80 176 lb
                                                 6.286 #packages of 28lb each
Monthly train pass ($)                        19    30 rate per package ($)
Max possible delivery cost ($)                19 188.6 Total delivery cost ($)
DABBAWALLAS OUTSIDE A RAILWAY
STATION
 What is NMTBSA?
(Nutan Mumbai Tiffin Box Suppliers Association)
   History             : Started in 1880
   Charitable trust      : Registered in 1956
   Avg. Literacy Rate : 8th Grade Schooling
   Total area coverage : 60 Kms
   Employee Strength : 5000
   Number of Tiffin's : 2,00,000 Tiffin Boxes
    i.e 4,00,000 transactions every day.
   Time taken         : 3 hrs
   Error Rate : 1 in 16 million transactions
   Six Sigma performance (99.999999)
   Technology Used : Nil.
   Cost of service - Rs. 300/month ($ 6.00/month)
   Standard price for all (Weight, Distance, Space)
   Rs. 50 Cr. Turnover approx.
    Earnings - Rs. 5000 to 7000 /month.
    ORGANISATIONAL STRUCTURE
                                     Executive Committee
• Three levels of Hierarchy              (5 members)
• Incentive structure is Group
  Based
  - Penalty & Reward         for   Teams of 20-25 headed by a
                                         group leader
  whole group
• Weekly off
• Strict dress code
• Earn Rs. 5000 – 7000/month         Individual Dabbawalla
                                      workload = 30 tiffins
   Hold the world record in best time management.
    Six Sigma certified.
   ISO 2000 certified
   Name in “GUINESS BOOK of World Records”.
   Registered with Ripley's “ believe it or not”.
   Invited to Harvard, MIT and London Business School
   Honored by Prince Charles and Richard Branson
Delivery system runs 24 hrs a day,7 days a week and 52
  weeks a year.
Logistical competency is achieved by coordinating the
  following:
 Network Design
       - Use of Consolidation and Sortation
 Information
 Transportation
 Inventory
       - Pooling of shared resource: Hand-carts and Bicycles
 Storage
How do they do it…?
 Supply chain network based on public transportation –
  Mumbai local train network and Bicycles/walking.
 Gandhi cap serves as a potent symbol of identification in
  the crowded railway stations.
 Raw human efficiency
 No modern technology.
 In a group of 30 dabbawallas serving an area, 5 people act
  as proxy members to combat variability.
Following the Dabbawallah
 Use of Pooled /
Shared Resources
    CODING
   Let us now look at an example of these codes on the
    tiffins to better understand the system and what it all
    denotes:
Meaning of the CODE

Residential Code
VLP : Vile Parle
E : Code for
Dabbawallas at
Residential station.

Destination Code
9E12

3 : Code for Destination station
     (E.g.. Nariman Point)
9 : Destination Zone
E : Name of Building
12 : Floor No.
9:00 -10:40 am
 This is the time when dabbawallas collect tiffins from home

10:40 -11:20 am
 This is when sorting of dabbas take place according     to destination,
  outside the station.
 Dabbawalas load the wooden crates filled with tiffins onto the luggage
  compartment in the train.
11:20 – 12.30 pm
 Unloading takes place at the destination station

 Re-arrangement of tiffins takes place as per the destination area and
  destination building
12.30 – 1.00 pm
 In particular areas with high density of customers, a special crate is
  dedicated to the area. This crate carries 150 tiffins and is driven by 3-4
  dabbawalas!
1:30 – 2:00 pm
 Collection process begins where the
  dabbawalas have to pick up the tiffins
  from the offices.
2:00 – 2:30 pm
 The group members meet for the
  segregation as per the destination
  suburb.
2:50 – 3:30 pm
 Journey in train.
 Merry making, singing and light
  atmosphere
3:30 – 5:30 pm
 Final sorting, dispatch, delivery.
SWOT Analysis
 Strengths:


   Simplicity in organization with Innovative service
   Coordination, team spirit, & time management
   Low operation cost
   Customer satisfaction
   Low Attrition Rate

   Weaknesses:

    High dependability on
    local trains
    Funds for the association
    Limited Access to Education
   Opportunities

   Wide range publicity
   Operational cost is low
   Catering

   Threats

   Indirect competition is being faced from caterers like maharaja community
   Indirect threats from fast foods and hotels
   Change in timings
   Company transport
   Ticket restaurant
These are as follows:

                         Threat of new entrants
                         Current competition
                         Bargaining power of
                              buyers
                        Bargaining power of sellers
                        Threat of a new substitute
                              product or service
   Use of public transport for service
   Low to No dependency on
    Automation for Quality
   Efficient reverse logistics
   The concept of Multi-level coding
   Time Management
   Power of team work
   Service before self as Prince Charles
    found out !!
THANK YOU

								
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