Dabbawala MAnagement Case Study

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CHAPTER1 INTRODUCTION

Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning Logistics and execution--strategic, is an operational and tactical. which management integrating function,

coordinates and optimi es all logistics activities, as well as integrates logistics activities with other functions including marketing, technology. sales manufacturing, finance, and information

Logistics is concerned with getting the products and services where they are needed when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling and packaging.

The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where re!uired at the lowest cost possible. "ll the
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activities involved in moving an item- from the place where its raw materials are located, to the place where it was made or grown, to the place where it is used or consumed- can be described under the broad terms as #logistics$ or #distribution$ people variety of logistics careers are responsible for getting the right products to the right places at the right time in good condition and at a reasonable cost. The act of supervising or managing this farreaching activity is generally known as #logistics management$ and the people who work in this industry are generally referred to as #logistics managers$ or #distribution managers$.

%ithin the firm the challenge is to co-ordinate individual &ob expertise into an integrated competency focused on servicing customers. In most situations the desired scope of such co-ordination transcends the individual enterprise, reaching out to include customers as well as material and service suppliers. In a strategic sense the senior logistics officer leads a boundary spanning initiative to facilitate effective supply chain relationships. The excitement of contemporary logistic is found in making the combine result of internal and external integration one of the core competencies of an enterprise. Throughout the history of mankind wars have been won and lost through logistical strengths and capabilities or the lack of them. 'ven though the generals of the past have understood the critical role of logistics it is only in the recent past that the big organi ations have reali ed its role in the achievement of competitive advantage.

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A PROJECT REPORT ON

ABOUT THE TITLE The present study is title as #Logistics (anagement ) " *ase +tudy$. OBJECTIVES OF THE STUDY • To study the history of logistic management. • To study how it implement in practical life. • To study how logistic management is useful in case of ,abbawala management. • To know the success of ,abbawala management with reference to logistic management.

SCOPE OF THE STUDY The pro&ect basically revolves around logistic management with reference to ,abbawala and how the ,abbawala implemented this system and use to their best knowledge to reach the point of success.

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LIMITATIONS OF THE STUDY This pro&ect is limited to the ,abbawala (anagement. In this pro&ect ,abbawalas only related to the Logistics. DATA AND METHODOLY Primary Data: " !uestionnaire was prepared for getting the view of president of ,abbawalas management about their work which is most related to the logistics. Sec !"ary Data: +econdary data was collected from -eference .ooks and various websites

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CHAPTER LAYOUT: *hapter / This chapter gives introduction to the topic *hapter 0 This chapter gives activities involved in logistics management. *hapter 1 This chapter gives introduction to ,abbawala (anagement. *hapter 2 This chapter gives how ,abbawala implement six sigma in their work. *hapter 3 This chapter gives final conclusion.

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CHAPTER 2 THE EVOLUTION
'very ma&or war has been learning for industries. +econd %orld %ar was disastrous but has taught many things to the mankind. 4owever, the industries have gained.

5re-/637 was the dormant years. "ll the places the monopolistic conditions were prevailing, Low !uality products were selling at high cost. *ustomer was not having demanding character.

%orld %ar II developed military logistics. *oncept of getting #re!uired material immediately at needful place$ was the need of the hour. It gave an important massage to the industries.

/637 to /687 were the years of development for the industries. In this logistics included #total cost concept$ which represent transportation costs for inventory 9 other costs.

/687 to present year were the Take off years for the sub&ect of logistics. 4ere there was shift from cost control to revenue generation in the world competition. In the competitive situation number of companies reali ed that they are loosing in the business even though their products and reputation was good. The unknown factor of logistics management was a cause of concern.
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DEFINITION OF LO#ISTICS MANA#EMENT

Logistics (anagement is defined by the *ouncil of Logistics (anagement :*L(; as<#the process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption for the purpose of conforming to customer re!uirements.$

B$%i!e%% De&i!iti !:'

Logistics is defined as a business- planning framework for the management of material, service information and capital flows. It includes the increasingly complex information. *ommunication and control systems re!uired in today=s business environment.

T(e F rma) De&i!iti !:'

#The process of systematically identifying, defining, designing, developing, producing, ac!uiring, delivering, installing and upgrading logistics support capability re!uirement through the ac!uisition process for "ir >orce systems, subsystems and e!uipments.

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IMPORTANCE OF LO#ISTICS MANA#EMENT

%ithout selling and or buying there can be no trade and business. .uying and or selling takes place only when goods are physically moved into and or away from the market. Take away logistical support and trade will collapse.

In conventional management environment, various activities of logistics work in isolation under different management functions.

'ach pocket trying to sub optimi es its ob&ectives at the cost of overall organi ational ob&ectives.

?perations produce large !uantities at minimum production costs ignoring demand leading to doom inventories.

Logistics functions of management bring all such functions under one umbrella pulling down inter department barriers.

?ne could study about logistics matters simply because the sub&ect is interesting 9 essential. +uch study would likely make one more knowledgeable 9 interesting. 4owever, there are far

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more practical reasons for spending some time learning about this sub&ect.

(ost service firms, institutions and government agencies as well as all business firms, need the aid of logistician to some degree. It has been the case that the demand for people in the various activity areas of logistics has exceeded the supply of trained personnel. The shortage is especially acute at the managerial level. The typical pattern, out of necessity, has been to ac!uire such people outside the logistics organi ation who have had no formal training in the area.

'ven at the career entry level, there are many opportunities. It is estimated that @8A of the country=s largest companies plan to hire college graduates with degrees in transportation and/ or logistics by /6@/.

>uture economic conditions will make logistics an even more attractive field. It is not expected that the domestic economic will grow at the rate it has in the past, because the birth rate is slowly and the availability of prime !uality resources seems to be reaching a limit. .ecause of this, company will turn to competing for market share. "s a recent article in .usiness %eek point out, no business firm or service organi ation can operate without carrying out logistical activities to some degree. Therefore, anyone seeking to move up the managerial ladder will want some understanding of logistical problems and how to deal with them.

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OBJECTIVES OF LO#ISTICS MANA#EMENT

• .asic ob&ectives of logistics are to provide customer satisfaction with the product/ services availability, customer satisfaction is to providing the re!uired product at re!uired place of re!uired time. • To understands the needs and the re!uirements of the customers. "part from the point of view of the product design, it is more essential to understand the time, the place, atmosphere in which the customer needs.

• In competitive environment, it is difficult to predict changes, suppliers, customers, partners, competitors are changing there position and they may &oin hands to stay in the business.

• The need of any business is now to provide the materials cutting all the borders of the nations. Bow it is global village. The growth of any company cannot be done &ust by confining to one country.

• >rom all the parts of the company their has to real time of information available to all the people concerned for doing any
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&ob. Ceeping right data and decisions to every person is an important in logistics management.

• The need to reduce inventory cost companies has discovered that their ability to manage the entire supply chain from raw materials to delivery of the finished products or services to the customer is a source of competitive advantage.

REASONS FOR LO#ISTICS TO E*IST

Logistics management from this total system is the means whereby the needs of customers are satisfied through the coordination of the materials and information flows that extend from the market place through the firm and its operations and beyond that the supplies.

>or 'xample, for many years marketing and manufacturing have been as largely separate activities within the organi ation. "t best they have coexisted at worst there has been open warfare. (anufacturing priorities and ob&ectives have typically been focused on operating efficiency achieved through long production runs, other hand marketing has sought to achieve competitive

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advantage through variety, high service levels and fre!uent product changes.

In today=s more turbulent environment, there is no longer any possibility of manufacturing and marketing acting independently of each other.

It is now generally accepted that the need to understand and meet customer=s re!uirements is a prere!uisite for survival. "t the same time in the search for improved cost competitiveness, of massive manufacturing management has been sub&ect

renaissance. The last decade has seen the rapid introduction of flexible manufacturing systems of new approaches to inventory based on (aterials -e!uirements 5lanning :(-5; and Dust In Time :DIT; methods a sustained emphasis on !uality.

'!ually there has been growing recognition of the critical role that procurement plays in creating and sustaining competitive advantage as part of an integrated logistics process.

In this scheme of things, logistics is therefore essentially an integrative concept that seeks to develop a system wide view of the firm. It is fundamentally a planning concept that seeks to create a framework through which the needs of the manufacturing strategy and plan which in turn links into a strategy and plan for procurement.

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NE+ DIRECTION FOR LO#ISTICS

The business reaching a state of maturing started strategy use of logistics.

Involving

channel

partnership,

inter

organi ational

logistics

alliances, more direct interface with suppliers and customers.

Logistics as a competitive weapon to secure and maintain customer loyalty by providing more responsive and flexible service. • 5rofessional discipline • +peciali ed skills knowledge • *ost, globali ation and time trends

THE LO#ISTICS MISSION

The logistical mission of an enterprise is to develop a system that meets ob&ectives at the lowest possible dollar expenditure. The

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logistical

system

is

primarily

concerned

with

support

of

manufacturing and marketing operations. "t the policy level, the critical !uestion is to determine the desired level of performance and determine the associated cost of logistical operations. The challenge is to establish a balance between performance and cost that will result in attainment of the logistical ob&ectives of the enterprise. This logistical policy provides managerial mandate for system design. " well design logistical effort must have the capacity to control operational variances and to minimi e inventory commitments across the entire system. Total cost expenditure is directly impacted by achieving maximum possible transportation consolidation. In addition to cost containment, the ob&ectives of !uality control and life cycle support are integral to the logistical mission.

ACTIVITIES INVOLVED IN LO#ISTICS MANA#EMENT /; ?rder processing 0; Inventory management 1; (aterials planning

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2; %arehousing 3; Transportation

5rovide a targeted level of customer service at the least cost maximi e profits, not the sales. +o the company must compare the benefits of providing higher levels of service with the costs. +ome companies may offer less service and charge less but others may offer more services than its competitors and charge higher prices to cover their cost.

1, Or"er -r ce%%i!. :' ?rders can be submitted in many waysE by mail, telephone, through sales people, or via computer. ?rder processing systems prepare invoices and order information. The warehouse receives instructions to pack and ship the ordered items. "nd bills send out.

/, I!0e!t ry ma!a.eme!t :' Inventory decision involved ) • when to order and • how much to order In deciding when to order, the company must think of the risks of running out of stock and costs of carrying too much. In deciding how much to order, the company must think of order processing costs and inventory carrying cost.

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1, Materia)% -)a!!i!. :' 'asy to think about output side. In put side is &ust as important, especially with perishable food products. 'very company stores in goods while they wait to be sold.

2, +are( $%i!. :' The company must decide onF • 4ow many and • %hat types of warehouses it needs and • %here they will be located

The company might own private warehouses or rent space in public warehouses or both. ?wning a private warehouseE bring more control ties up capital is less flexible if locations change. ?n other hand, public warehousesE charge for rented space provide additional services for inspecting, packaging, shipping and invoicing goods but at a cost offer wide choice of locations. .asic types of warehousesF • +torage warehouses • ,istribution warehouses +torage warehouses store goods for moderate to long periods, distribution centers are designed to move goods rather then &ust store them. They are large and automated

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warehouses designed to receive goods from suppliers, take orders and deliver goods to customers.

3, Tra!%- rtati ! :' The choice of transportation carrier=s affectsF • The pricing of products • ,elivery performance • *ondition of the goods when they arrive all affect customer satisfaction.

In choosing a transportation mode, shippers consider five criteria F • speed ) door to door delivery time • (eeting schedule on time • "bility to handle various products • Bumber of geographic points served • *ost per ton kilometer.

SUPPLY CHAIN MANA#EMENT DEFINITION

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The supply chain management :+*(; profession has continued to change and evolve to fit the needs of the growing global supply chain. %ith the supply chain covering a broad range of disciplines, the definition of what is a supply chain can be unclear. ?ften times +*( can be confused with the term logistics management. *+*(5 and the board of directors, comprised of industry experts, created official definitions for the following terms.

+upply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies.

S$--)y C(ai! Ma!a.eme!t 4 B $!"arie% a!" Re)ati !%(i-% +upply chain management is an integrating function with primary responsibility for linking ma&or business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance, and information technology

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HISTORY (G(."I the city of dreams and ambitions. The city of explorers and wildcatters. The city that had always been on fast track. 4ere success happens purely on merit. The .ritish develop the basic infrastructure of roads, railways and buildings for .ombay. "t that time, the prime business centers were >ort and .allard pier areas. These were the houses of banks, government departments, insurance houses, shipping companies and the other industrial head offices. +oon, the residential colonies moved away from fort and hence, lot of 5aris *hristians and 'uropeans started finding it difficulty to go home from lunch from work. *arrying lunch boxes was not always preferred routine for them since they did not like having cold meals.
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The ,abbawalas service began informally in (umbai. "ccording to -aghunath (edgeE In the /6@7s, a 5aris banker working in .allard 5ier employed a young man who came down 5une to fetch his lunch everyday. .usiness picked up through referrals and soon our pioneer ,abba- carrying entrepreneur had to call for helping hands from his village. This reinforcement led to the unleashing of an army that even today, in the 0/ st century, serves millions of (umbai with the same spirit and competence. +uch was the origin of dabbawalas. This Tiffin carrier guy picks up the lunch box in the morning and delivers it on time to the place of work, wherever in (umbai that is, and delivers it back to the residence at a very economical price. 4owever trivial the task may sound nevertheless, it is of vital importance since havoc is caused if the client has to skip his home cooked food, or worse, carry the Tiffin in the ever so crowded (umbai local trains and that too during the rush hour. "pproximately 3777 dabbawalas across (umbai coordinate each other for picking up and delivering the Tiffin=s for over /,83,777 (umbai ties everyday in a 1 hour period, through H7 kms of public transport. In fact, the modes of transport simply includes the local trains, bicycles and handcarts. ?f course it is rare that Tiffin may miss being on the owner=s lunch tables at the lunch hour. The history of the ,abbawalas= lunch delivery service dates back to the /@67s during the .ritish -a&. "t that time people from various communities migrated to (umbai for work. "s there were
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no canteens or fast food centers then, if working people did not bring lunch from home, they had to go hungry and invariably, lunch would not be ready when they left home for work. .esides different communities had different taste and preferences, which could only be satisfied by a home, cooked meal. -ecogni ing the need, (ahadeo 4ava&i .acche :(ahadeo;, a migrant from Borth (aharashtra, started the lunch delivery service. >or his enterprise, (ahadeo recruited youth from villages neighboring (umbai, who were involved in agricultural work. They were willing to come, as the income they got from agriculture was not enough to support their large families, and they had no education or skills to get work in the city. The service started with about /77 dabbawalas and cost the client -s.0 a month. Iradually the number of dabbawalas increased and the service continued even the founder was no more. In the /637s, the dabbawalas were delivering 0,77,777 lunches a day. The dabbawala=s became organi ed after /632 when the Butan (umbai Tiffin .ox +uppliers *harity Trust was established. The trust had offices in various parts of the city such as Irant -oad, ,adar, *hembur, Ihatkopar and (umabi.

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+HO IS DABBA+ALA5 ,escendants of soldiers of the legendary (aharashrian warriorking +hiva&i, dabbawalas belongs to the (alva caste, and arrive in (umbai grom places like -a&gurunagar, "kola, "mbegaon, Dunnar and (aashi. They believe in employing people from our own community. +o whenever there is a vacancy, eiders recommend a relative from their village. >arming earns a pittance, compelling us to move to the city. "nd the Tiffin service is a business of repute since we are not working under anyone. It=s their own business, they are partners, and it confers a higher status in society. The proud owner of a ." :4ons; degree, -aghinath (edge, president of (T.+", is a rare graduate. 4e wanted to be a *hartered "ccountant but couldn=t complete the course because of the family problems. ?f his three children, his daughter is a graduate working at I*I*I, one son is a dabbawala and the younger son is still studying. "part from commitment and dedication, each dabbawala, like any businessman, has to bring some capital with him. The minimum investment is two bicycles :approximately -s.2,777;, a wooden

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crate for the Tiffin=s :-s.377;, at least one cotton kurta- py&ama :-s.H77;, and -s.07 for the trademark Iandhi topi.

DABBA+ALA METHODOLO#Y AND RULES

• $'rror is horror,$ in the event of the dabbawala meeting with an accident in route, alternative arrangement are made to deliver the lunch boxes. • >or 'xample, in a group of 17 dabbawalas catering to an area, five people act as redundant membersE it is these members who take on responsibility of delivering the dabbas in case of any untoward happenings . • The dabbawales must be extremely disciplined. *onsuming alcohol while on duty attracts a fine of -s./,777. Gnwarranted absenteeism is not tolerated and is treated with a +imilar fine. 'very dabbawala gets weekly off, usually on +unday.

• The Iandhi cap serves as a potent symbol of identification in the crowded railway stations. Bot wearing a cap attracts a fine of -s.03.

• In fact, -ichard .ranson, the maverick businessman who is never shy to promote him and virgin brand, donned a Iandhi
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topi and dhoti :the dabbawalas signature dress code ;, during the lunch of virgin=s inaugural flights to (umbai.

• There are no specific selection criteria like age, sex or religionE however, I have never seen a female dabbawala. The antecedents of the candidates are thoroughly verified and a new employee is taken into the fold for six- month=s probation.

• "fter that period, the employment is regulari ed with a salary of -s.3, 777 a month.

• It is interesting a note there is no retirement age, and any person can work till he is fit enough to carry on the tasks re!uired of him.

LO#ISTICAL DISTRIBUTION NET+OR6 The dabbawala mean distribution network was characteri ed by a combination offer #baton relay system$ in which dabba=s were handed of between dabbawalas at various point in the delivery process and the #hut and spokes$ system in which the storing of dabbas was done at specific railway location form where individual spokes branched out for distribution. There was no local historical

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model on which this distribution network was design. "ll design decision was driven by the singular purpose of delivering as dabba in time for the customers. This delivery process remained unchanged since their inception even though the environment of service is changed. >or example, the delivery system does not rely on the computers. The only change in the dabbawalas delivery model was the fineturning of the coding system in /66H. the number of customers using the delivery services had continued to grow and without some form of common identification that all the dabbawalas could follow. The sorting process at the hub was likely to become overly time consuming. STARTIN# POINT ' 7819 TO 19812 AM The day for the dabbawala starts at @.17 am, with collection of dabbas at various houses. 5eople usually leave the dabbas outside the door for them. In case they are late the dabbawalas have to urge them to hurry up, else if it gets late they have to leave the client. .ecause if they keep waiting for this one Tiffin they might not be able to reach to the station on time. The dabbawala is forced to do so because he is bound by the train time. The departing train time is very crucial and he must consider the time re!uired for the sorting process. Their may on the other hand, be further delay caused by other customers too. It is extremely difficult, yet crucial to ensure that the entire pick of all Tiffin takes place as per schedule. The scheduling as the include
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cushion time for uncertainties such as these without which the whole system will be disrupted. The dabbawala picks up the Tiffin from his lot fob houses in +antacru e and meets the other group member at the designated spot at the station. This particular group of /7 dabbawalas takes the /7.12 am *hurchgate local time everyday. Therefore the dabbawala have to make sure that they reach the platform for the sorting process at least by /7./3 am. In order to ensure smooth flow of their networking throughput there daily routine, this period in the morning that includes picking up the Tiffin=s and meeting at the designated spot on the station is most crucial part of the system. ?ne bit delay in this aspect will disrupt the whole system. "nd will lead to a chaotic situation. Therefore the dabbawala=s have to collect the Tiffin=s at time and reach the station with enough time left for the sorting to take place before train arrives.

SORTIN# PROCESS ' 19813 TO 19812 AM The critical phase of the system is sorting. +orting of all the Tiffin=s according to their destination station and arranging them into wooden crates taken 07-03 mins. The aim of the process is to segregate the Tiffin=s and differentiate them as per the destination. +orting makes them it easier to identify each group of Tiffin=s and less time consuming for respective dabbawalas. +orting makes the entire process error free. The process is similar to that of the post office where letters are segregated according to their destination.
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+ince each Tiffin exchanges many hands each of the lids of the Tiffin is marked with the color code indicating the originating station, destination and building with the floor number. The secrete behind the efficient working of the systems and that=s why the network is information rich. This is a uni!ue feature, as it re!uires no documentation and record keeping. There is no communication between the two groups, but &ust coordinating among them because the whole blue print is pre-decided by the dabbawala=s themselves. The (ukadam plays a key role here to ensure smooth working and coordination, his responsibility is to know all the Tiffin=s his group carrier. The responsibility of the (ukadm is to extend that he has to know all the Tiffin=s that his group carries. Therefore he must be able to recogni e these Tiffin=s even if the codes on them are barely visible. "lso if any member of the group absent from his duty for particular day for some reason. Then it is the responsibility of the (ukadam to ensure that all the dabbas that the absentees are responsible for are duly picked up and deliver back on time. 4ence we see that the (ukadam plays a critical role in this stage for sorting and allocating &obs. The dabbas are collected and sorted out and sent to their destination based on the numerical and alphabetical code. 'very station has a numerical code and each place has an alphabetical code. These codes have been developed over a year and began with simple color threads. "n employee=s deliver the dabba=s collected individually from houses at the railway station nearest to
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houses. "t the station the destination are sorted out, based on the codes. "nd taken by trains to respective stations.

JOURNEY IN TRAIN 19812 TO 118/9 AM ,uring this time the dabbawala=s load the wooden crates on tiffins in to the goods and luggage compartment of the trains. Ienerally they try to occupy the last compartments as this helps them to avoid the rush at the platforms and it easy to be located and continently situated once the train arrives at the platform. (ostly the commuters don=t get this compartment as they are already filled crates and there is not enough room. This is common understanding among daily commuters and dabbawala=s. in any case the platform is filled with people. "nd dabbawala has to unload the crates on the platform. They start a series of loud comments warning everyone to make way for crates unloading. The unloading of this particular group takes place at ,adar, Lower 5arel, Irant -oad and *hurchgate. The allocation of manpowerat each station depends on the number of Tiffin=s that have to be delivered in a particular area.

SORTIN# +HEN REACHIN# ' 118/9 TO 1/819 PM

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"t this stage the unloading takes place at *hurchgate and our destination station. ,abbawala=s have to be dispatched accordingly and the dabba=s are to be delivered in large !uantities at times to areas like Bariman 5oint, -.I, and +tock 'xchange. Bow within that area, if one location like (ittal Tower has a huge number of Tiffin=s to be delivered then its area of number or location number remains the same and the dabbas get differentiated based on its color. To sum up the delivery process at the destination center, each dabbawala looks for specific code written on the right side top of the Tiffin. The dabbawalas concentrate only on the dabbas that he has to deliver. 4e may not have in some cases, picked up his Tiffin from the originating stationsE he has been allotted these dabbas only at *hurchgate. This kind of specification makes the entire system efficient and error free. The uni!ue feature of system is that bigger buildings with large office densities. Like in Bariman 5oint and stock exchange building itself. "n elevator is especially reserved for dubbawala=s during lunch time. Gsually these elevators have a special elevator reserved for themselves onto which others cannot board. In some cases they also leave Tiffin in the canteen that is common to the whole building and hence the respective owners can simply pick up there. In other case like (ittal *hambers the dabbawalas leaves the Tiffin=s outside the respective offices. The peons come and give them to the respective client that=s why even the peons are good to
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recogni ed Tiffin=s. +o these ways the dabbawalas save a lot of time in this delivery process. Then dabbawala takes break for their own lunch, which is usually there Tiffin kept along with others. ,ifferent groups have there lunch at different locations. It is generally on the footpath or on the benches on road side. The break is for 23-H7 mins. Till then customers finish having there lunch and keep there dabbas outside the office to get collected.

COLLECTION PROCESS 1813 TO /899 PM 4ere on begins the collection process where the dabbawala have to pick up the Tiffin from the office where they have delivered almost hour ago. The dabbawala=s are the same in this case. The one who delivers it to the office will be the same one to collect it. (ost of the time the dabbawala will collect the dabba=s from all the officers situated on the same floor will leave them in the corridor. Then he goes and collect all the dabba=s from various floors and gets them at the base level. >inally he loads them on the crates. This is the actually the only risky point in the entire network system. This is because there is risky of theft when the dabbawala leaves the Tiffin outside the corridor. The solution to this to have another dabbawala securing the dabba=s. %hile the other one
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goes and collect the remaining. This is related to a personal experience and hence the mention of this situation is critical in analy ing the mechanism of the system. .y complains and suggestions from customers the dabbawalas can actually bring the improvement such as the one mention. " dabbawalas who can secure Tiffin can greatly help in reducing theft.

RETURN JOURNEY /899 TO /819 PM "fter the collection is over the dabbawalas need the remaining members designated spot and the first assortment on the first return &ourney takes place. The group members= meet with their remaining crates and the segregation as per the designation suburbs take place. The group departs for the station and all groups meet there for a common sorting process. The crates are arranged in a line and each dabbawalas picks up the Tiffin=s that belongs to his group at a designation center. This is not the final sorting and therefore. The individual members of the designating group have to &ust identify the boxes and put them into crates. ?ne important thing is to note is that a particular dabbawala need not operate in the same group throughout the day. 4e will, in most cases operate with two different groups one at the origination station and one at the designation station. The coordination is e!ually important in either group. "nd there is total unity among them.

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"fter sorting the various crates they departs in their respective trains which again are pre-decided and again it=s a part of there daily routine. This part of &ourney is more relaxed and they are not under the pressure of the timely delivery as in the morning. They lighten up the moment by &oking around and singing, which ease their stress and develop the strong bond in the group.

TRAIN JOURNEY /827 TO 1819 PM This again is return &ourney by train where the group finally meets after the day=s routine after dispatching and collecting from various offices. The group members from (arine Lines, Irant -oad and ,adar board and designated compartment and finally they arrive at origin station. Gsually since it is more of a pleasant &ourney compared to the earlier part of the day, the dabbawalas lighten up the moment by merry making, &oking and singing. ,abbawalas have created impression on the passengers for being hardworking, dedicated and &oyous people.

FINAL JOURNEY OF THE DAY 1819 TO 2899 PM This is the stage where final sorting and dispatching of the day takes place. The group meets up at the station and finally sort outs the Tiffin=s as per designated area. This is the easiest process
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because of the limited !uantity of Tiffin=s that gets off the train with them. It is simpler to understand which Tiffin belongs to whom. The delivery process takes roughly 17-23 mins depending on the distance that the dabbawala will have to cover. Thus the entire system end with the delivery of the Tiffin back to the customer=s origin point. The customer is satisfied with the timely delivery of home food and getting Tiffin=s back to their origin. There is still one important and uni!ue aspect to this system and that is individual dabba. This dabbawala doesn=t operate in any group. 4e picks up the dabba himself in the morning travels to various destinations to deliver and collect the Tiffin=s back to send to the origin. " real example of this kind of dabbawala can be cited here. This type of dabbawala travels from Ihatkoper to *uffe 5arade and back everyday. It is simply unbelievable that a person can work and travel so much everyday and can still maintain punctuality. 4e operates on an @.77am to @.77pm shift. .ut he does not have an option of taking up the train to at any point because there are always Tiffin=s at various points and at various suburbs routes. This method of individual dabbawala is preferably for those who are ready to put in more hard work &ust to earn a bit of that extra income.

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=ONES FOR DESTINATION

1 #RANT ROAD :1/, 5?IBT ?> "II-'I"TI?B 9 +?-TIBI CHURCH #ATE :1'19, LO+ER PAREL :12, B C D DISTRIBUTION BY CARRIERS AT LUNCHIN# TO OFFICES COLLECTION FROM HOME E / 1 2 3 ; <

A

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CHAPTER 2 IMPLEMENTATION OF LO#ISTICS BY DABBA+ALA In the dabbawalas= elegant logistics system, using 03 kms of public transport, /7 kms of footwork and involving multiple transfer points, mistakes rarely happen. "ccording to a >orbes /66@ article, one mistake for every eight million deliveries is the norm. >or one, the system limits the routing and sorting to a few central points. +econdly a simple color code determines not only packet routing but packet prioriti ing as lunches transfer from train to bicycle to foot. The entire system depend on team work and meticulous timing. Tiffin=s are collected from homes between 8.77 am and 6.77 am, and taken to the nearest railway station. "t various intermediary stations, they are hauled onto a platforms and sorted out to areawise distribution, so that single Tiffin could change hands three to four times in the course of its daily &ourney. "t (umbai=s downtown stations, the last link in the chain, a final relay on dabbawalas fan out to the Tiffin=s destined bellies. Lunch hour over, the whole process moves into reverse and the Tiffin=s return to suburban homes by H.77 pm., 077 Tiffin=s are collected by 6.77 am, reach the station and sorted according to their destinations by /7.77 am when the J,abbawala +pecial= train arrives.

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The railway provides sorting areas on platforms as well as special compartments on trains traveling south between /7.77 am and //.17 am. ,uring the &ourney, these @7 dabbawalas regroup according to the number of Tiffin=s to be delivered in a particular area, and not according to the groups they actually belong to. If /37 Tiffin=s are to be delivered in the Irant -oad station area, then four people are assigned to that station, keeping in mind one person can carry no more than 13-27 Tiffin=s. ,uring the earlier sorting process each dabbawala would have concentrated on locating only those Tiffin=s under his charge wherever they come from, and this speciali ation makes the entire system efficient and error )free. Typically it takes about ten to fifteen minutes to search, assemble and arrange 27 Tiffin=s onto a crate, and by /0.17 pm they are delivered to offices. In a way, (T.+"=s system is like the internet. The internet relies on a concept called packet switching. In packet switch networks, voices 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. 5acket switching maximi es network density, but there is a downside< your packets intermingle with other packets and if the network is overburdened,

36

packets can collide with others, even get misdirected or lost in cyberspace, and almost certainly not arrive on time. To better understand the complex sorting processE let=s take an example. "t Kile 5arle station, there are four groups of dabbawala, each has twenty members and each member services 27 customers. That makes 1,077 Tiffin=s in all. These 1,077 Tiffin=s have to be collected by 6.77 am, reached the station and sorted according to their destinations by /7.77 am when the J,abbawala +pecial= train arrives.

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THE CODIN# SYSTEM:

VLP:' Vi)e Par)e >E1/:' c "e & r Da??a@a)a at "e%ti!ati ! >:' !$m?er & "a??a@a)a @( -icA% it $- at "e%ti!ati ! E:' eB-re%% t @er% :?)".8 !ame, 1/:' &) r! 8

E:' c "e & r "a??a@a)a at re%i"e!tia) %tati ! 1:' c "e & r "e%ti!ati ! %tati ! :E8.8 Narima! - i!t,

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SI* SI#MA AND DABBA+ALA +ix +igma can be used to create a brand business process from ground up. +ix +igma strives from perfection. It allows only 1.2 defects per million opportunities for each product or services transaction. +ix +igma relies heavily on statistical techni!ues to reduce defects and measure !uality. +ix sigma experts :Ireen .elts and .lack .elts; evaluate a business process and determine ways to improve upon the existing process. +ix sigma incorporates the basic principles and techni!ues used in .usiness, +tatistics and 'ngineering. These three form the core elements of six sigma. +ix sigma improves the process performance, decreases variation and maintain consistent !uality of the process output. This leads to defect reduction and improvement in profits, product !uality and customer satisfaction. +ix sigma focuses on improving !uality :i.e. reduce waste; by helping organi ations produce products and services better, faster and cheaper. +ix +igma focuses mainly on defects prevention, cycle time reduction and cost savings. Gnlike mindless cost cutting programs, which reduce value and !uality, +ix +igma identifies and eliminates costs, which provide no value to customer and the production process. To understand the concept of +ix +igma one must understand the concept of normal curve.

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DABBA+ALAS +OR6 AS PER SI* SI#MA 4uman sigma is a measure that focuses on reducing variances in key employee and customer outcomes by improving an organi ation=s human performance and moving it towards excellence. +ix +igma is !uality improvement programmer that links output !uality to financial performance provides tangible measures to help focus the organi ation and outlines processing for managing improvement. It calls for a !uality level of 1.2 ,5( :defects per million; and many Indian companies including TK+ Lucas have benefited from application of the six sigma concept. (ost interestingly, the humble dabbawala who delivers the (umbaikar his home cooked lunch at his office ) on time, come rain or shine ) has achieved the coveted six sigma level of performance. Interestingly this !uality metric :measure; has now been extended to the human side of business ) an area that hitherto has never been !uite so accurately measurable ) and it=s called 4uman +igma. *urt *offman, the global practice leader for %orkplace and *ustomer (anagement for the Iallup ?rgani ation is credited with this phrase. 4uman +igma is a measure that focuses on reducing variance in a key employee and customer outcomes by improving organi ation=s human performance and moving it towards excellence. +imply put,
40

the human sigma approach shows how to manage ) and maximi e ) the human difference. The concept was born out of an extensive research study by the Iallup ?rgani ation involving more than @7,777 managers in more than 277 companies ) the largest study of its kind ever undertaken. The study revealed directs link between the engagement levels of employees and customers and bottom ) line performance of the firm.

DABBA+ALA: MUMBAICS BEST MANA#ED BUSINESS 5rince *harles is not the first person to show an interest in the ,abbawala of (umbai. In fact, the first time they actually shot to international fame was when his compatriots at the ..* did a documentary on them way back in the late 87s. .ut it was in the /667s, when management lexicon became a part of daily life, that the interest in ,abbawalahs, now synonymous with (umbai=s blaringly fast life, grew. Today, they are feted regularly and invited to lecture students of business management. *orporate chiefs applaud themE management gurus use them as a model. -aghunath (edge, president, Butan (umbai Tiffin .ox +uppliers *harity Trust, who met 5rince *harles on Tuesday, will be in Lucknow in Danuary to address the students of the prestigious Indian Institute of (anagement. "nd, in between, some management students will be spending time with him.

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DABBA+ALA ECONOMIC ANALYSIS 'veryone who works within this system is treated as an e!ual. -egardless of a dabbawala=s function, everyone gets paid about 0-2,777 rupees per month :around 03-37 .ritish pounds;. (ore than /, 83,777-0, 77,777 lunches get moved everyday by an estimated 2,377-3,777 dabbawalas, all with an extremely small nominal fee and with utmost punctuality. "ccording to a recent survey, there is only one mistake in every H,77,777 deliveries. The "merican business maga ine >orbes gave a six sigma performance rating for the precision of dabbawalas. The ..* has produced the documentary on ,abbawalas, and 5rince *harles, during his visit to India, visited them :he had to fit in with their schedule, since their timing was too precise to permit any flexibility;. ?wing to the tremendous publicity. +ome of the dabbawalas were invited to give guest lectures in top business schools in India, which is very usual. (ost remarkable, the success of the dabbawala trade has involved no modern technology. The main reason for their popularity could be the Indian people=s aversion to fast food outlets and their love of homemade food.

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MUMBAICS DABBA+ALAS: EFFICIENCY IN SUPPLY CHAIN .attling the traffic and crowds of (umbai city everyday, unfailingly delivering about 0 lakh lunch boxes to office-goers and school children, and returning the empty boxes to where they come from, is what the dabbawalas do for a living. The 3777 workforce is largely illiterate or semi- literate. %hat=s more, they have been doing this consistently for the last //3 years without using any IT. The network operates on a meticulously planned and precise manner using a oning system approach, that consist of several teams each team supervised by a #(ukadam$. The city=s network for local trains is used in the delivery process, as also bicycles and carts, besides the physical ferrying of large wooden crates of dabbas weghing H3-87 kg on the heads of the dabbawalas. >or his efforts, the dabbawala, who is also a #shareholder$ in the "ssociation, earns an average of -s.3777/- per month. *urrently, the "ssociation has begun inviting #dabba booking$ through +(+, and has even launched a website in order to keep up with the changing times, though it still aims to keep operational costs low as that has been its G+5. The "ssociation=s representatives spoke about the recognition that their organi ation was currently receiving from all !uarters, especially after 5rince *harles= visit to the (umbai *hurchgate +tation to interact with them, and also after their six sigma certification. Talekar made humorous reference to the #Thumbs Gp$ status of the workforce ) a reference to their illiteracy ) and also to the inconse!uence of certifications to the dabbawala
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who would rather get on with his &ob of delivering his dabba to the satisfaction of his customer. (edge, for his part, said that for the dabbawala, the customer was a greater king than any other royal representative. %hat came across was the sincere belief of the dabbawalas in their role as #"nnadatas$ or providers of food. Their motivation stems from the desire to ensure that no individual subscribing to their service would go hungry on any working day. Though their logistics and delivery processes can be interpreted as akin to the #hub and spoke system$, one even Dust- In- Time and Betwork (anagement, one certainly cannot find an e!uivalent in management parlance to their motivational tools.

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CHAPTER 3 ANALYSIS
UNIDUENESS OF DABBA+ALAS • "t the simplest, the dabbawala deliver home cooked meals to individuals at their workplaces and return empty Tiffin boxes to homes and, in some cases, caterers. >or this, they charge -s.177 to 137 that LH-8. a month. • The workforce of the Tiffin box suppliers= trust, the cooperative that runs the system, is 3,777. 'ach Tiffin box contains two or three containers, often carrying traditional Indian fare- rice, curry, chapattis, and vegetables. 4ousewives even send notes to their hubbies in these boxes. • 'ach tray can hold up to 27 boxes. These trays then travel in local trains down to various stations. "t each station, there is another set of dabbawalahs who !uickly take the dabbas meant for other stations. • " (umbai local halts at a station for about 07 seconds or less and thus, the dabbawala have to work with precision and speed. ,uring rush hour, it=s a nightmare. "sk anyone who has done time on (umbai locals. • "t each station, the boxes are once more sorted for localities and offices and taken there by handcarts or sometimes carried
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by individuals. They carry up to 13 kg for distances of a couple of kilometers. • The boxes are placed in the offices= reception area by /0.17 pm and are picked up from the same spot by the deliverer a couple of hours later. The whole process then starts again in the reverse. The boxes are picked up from the offices, taken to the nearest station and sorted for their &ourney home. • >orbes maga ine gave this service its highest !uality rating of sigma H, which means that per million transactions, there is &ust an error of one. • ?n an average, a dabbawalah can make about -s.1,777 to 3,777. the trust provides several services to its members, including schools for the children and health care in emergencies. • (umbai=s geography makes it uni!ueE it is a longish city where residences are in the north and offices in the south, so it makes our work simple. They tried a similar service in ,elhi a few tears ago and it didn=t work outE ,elhi being a circular city, the logistics were difficult. • Today, the service delivers not &ust homemade food but also picks up food from caterers and deliver them to offices. .ut (edge said that foods from caterers are still a small segment of the total operation.

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DISADVANTA#ES OF THIS SYSTEM
• The dabbawala=s entire scheduling and system will be disrupted if any customer cause a delay in giving a dabba to him. • "nd secondly if the dabbawala falls ill or take leave due to any reason there won=t be anyone to substitute his place and therefore no back up. The customers will be frustrated and will switch over to another dabbawala if he has a habit of remaining absent. That would be the great loss to the dabbawala and hence his health also needs to maintain. 'ven more that any other dabbawala who are working in groups. This is rather difficult considering the rigorous working and long hours re!uired. • "s it is apparent enough, there is hardly any contact with the clients and the dabbawala during each day. The dabbawala meet his client in the office only on the / st day of delivery to verify and to show the spot where the Tiffin is to be delivered. • The system has been honored to such perfection that many dabbawala=s carry out the operation with the help of &ust one code, which is absolutely reserved. This system is specifically for city like (umbai. +uch daily exercise can run successfully only in city like (umbai because of the following reasons< • 5lentiful commuters who goes to office daily. • 5resence of efficient and widespread railway network. • Large distance between residence and workplace.
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• "n efficient and simple information system like coding used by dabbawala=s.

IMPORTANCE OF DABBA+ALAS
• They have 3,777 people on their payroll to ensure the prompt delivery of lunch boxes within (umbaiE these Jdelivery boys= travel by local trains and use bicycles or walk to reach every nook and corner of (umbai. • The lunch boxes are delivered exactly at /0.17 pm. Later, the empty boxes are collected and taken back to the homes, catering services or hotels before 3.77 pm. • ?n an average, every Tiffin box changes hands four times and travels H7-87 kilometers in its &ourney to reach its eventual destination. • 'ach box is differentiated and sorted along the route on the basis of marking on the lid, which give an indication of the source as well as the destination address.

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SU##ESTIONS: • Logistics is very important aspect of dabbawalas. • The error free system can be taken as blue print and be implemented in many systems. • +ix sigma acts as very important aspect of shipment.

RECOMMENDATION: • Literacy rate has to be increased among ,abbawalas in order to help them over come all problems. • ,abbawala can implement this model in different countries. • Training has to be given to ,abbawalas in order to make them compete globally. • Beed for global recognition. • ,evelopment of infrastructure for supporting initiative taken by ,abbawala.

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CONCLUSION • The supply chain management systems used by the (umbai ,abbawalas. They have global applause and are featured as case studies in . school books. • "part from career- giving tips, they also give life changing tips on honesty, commitment, stress management, humility, discipline, and 4- and Time (anagement. • The process begins early in the morning. *ooked food is picked up from houses and caterers by ,abbawala and taken to the nearest railway station. There, the different Tiffin boxes are sorted out for specific destination stations and loaded on to large, rectangular trays accordingly. The service runs every working day. • "s long as the dabbawala service is there, (umbaikars alone in the world would have the option of eating homemade food in offices without bother of having to carry a cumbersome lunch box. • Logistics is the new mantra for building competitive

advantage, the world over. (umbai=s dabbawalas developed their homegrown version long before the was coined

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