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Mumbai Dabbawalas.pdf
Mumbai Dabbawalas.pdf
Mumbai Dabbawalas.pdf
Mumbai Dabbawalas.pdf
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Mumbai Dabbawalas.pdf
Mumbai Dabbawalas.pdf
Mumbai Dabbawalas.pdf
Mumbai Dabbawalas.pdf
Mumbai Dabbawalas.pdf
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Mumbai Dabbawalas.pdf

  1. ENTREPRENEURSHIP Case Folio July 2004 41 © 2004 The ICFAI Center for Management Research (ICMR). All Rights Reserved. For accessing and procuring the case study, log on to www.ecch.cranfield.ac.uk or www.icmrindia.org. Mumbai’s ‘Dabbawalas’ – An Entrepreneurial Success Story The Dabbawalas who provide a lunch delivery service in Mumbai have been in the business for over 100 years. In 1998, Forbes Global magazine conducted an analysis and gave them a Six Sigma rating of efficiency. This case examines how the Dabbawalas operate. It describes their delivery process and coding system, and how they work as a team to achieve a common goal. The case also explores the future of the Dabbawalas’ service in the light of changing environment. – Suchitra Jampani, Sanjib Dutta A model of managerial and organizational simplicity. – C K Prahalad, Professor, University of Michigan Business School and Management Guru, commenting on the Dabbawalas’ operations.1 The fascinating story of Mumbai’s Dabbawalas is an inspiration to all organizations aspiring to compete in the global marketplace. – Pradeep B Deshpande, President of Six Sigma and Advanced Controls, Inc. and Professor of Chemical Engineering, University of Louisville.2 1 Shamsi Maria, “The Charioteers ofMeals,” Jetwings Online, June 2003. 2 Deshpande B Pradeep, “India, Inc., and Six Sigma: If DabbawallahsCanDoIt,YouCanToo!”,www.sixsigmaquality.com/ sixsigma_papers.html 3 In Hindi, ‘dabba’ means lunch box and‘wala’ means man. The prefix to‘wala’indicates the occupation of the person. Therefore, Dabbawala means lunchbox delivery man. 4 Tiffin means lunch. 5 Six Sigma is an efficiency standard developed by Motorola. To get a Six Sigma rating a company should not have more than 3.4 defects per million opportunities. A Six Sigma Performance Every day, battling the traffic and crowds of Mumbai city, the Dabbawalas,3 also known as Tiffinwallahs,4 unfailingly delivered thousands of dabbas to hungry people and later returned the empty dabbas to where they came from. The Dabbawalas delivered either home-cooked meals from clients’ homes or lunches ordered for a monthly fee from women who cook at their homes according to the clients’ specifications. The Dabbawalas’ service was used by both working people and school children. In 1998, Forbes Global magazine, conducted a quality assurance study on the Dabbawalas’ operations and gave it a Six Sigma5 efficiency rating of 99.999999; the Dabbawalas made one
  2. ENTREPRENEURSHIP Case Folio July 2004 42 error in six million transactions. That put them on the list of Six Sigma rated companies, along with multinationals like Motorola and GE. Achieving this rating was no mean feat, considering that the Dabbawalas did not use any technology or paperwork, and that most of them were illiterate or semiliterate. Apart from Forbes, the Dabbawalas have aroused the interest of many other international organizations, media and academia. In 1998, two Dutch filmmakers, Jascha De Wilde and Chris Relleke made a documentary called “Dabbawalas, Mumbai’s unique lunch service”. The film focussed on how the tradition of eating home-cooked meals, and a business based on that could survive in a cosmopolitan city like Mumbai. In July 2001, The Christian Science Monitor, an international newspaper published from Boston, Mass., US, covered the Dabbawalas in an article called ‘Fastest Food: It’s Big Mac vs. Bombay’s Dabbawalas’.6 In 2002, Jonathan Harley, a reporter, did a story on the Dabbawalas with the Australian Broadcasting Corporation (ABC). In 2003, BBC also aired a program on the Dabbawalas, which was part of a series on unique businesses of the world. In 2003, Paul S Goodman and Denise Rousseau, both faculty at the Graduate School of Industrial Administration of Carnegie Mellon University, made their first full-length documentary called “The Dabbawalas”. According to the press release of the TV station presenting the documentary, “The film also serves as a counterpoint. Instead of asking how knowledge in developing countries can help less developed countries, this film focuses on how developed countries can learn from less developed countries.”7 Back home, the Dabbawalas were invited to speak at Confederation of Indian Industry (CII)8 meets and at leading Indian business schools such as IIM, Bangalore and Lucknow. Background Note The origin of the Dabbawalas’ lunch delivery service dates back to the 1890s during the British raj.9 At that time, people from various communities migrated to Mumbai for work. As there were no canteens or fast food centers then, if working people did not bring their lunch from home, they had to go hungry, and invariably, lunch would not be ready when they left home for work. Besides, different communities had different tastes and preferences which could only be satisfied by a home-cooked meal. Recognizing the need, Mahadeo Havaji Bacche (Mahadeo), a migrant from North Maharashtra,10 started the lunch delivery service. For his enterprise, Mahadeo recruited youth from the villages neighboring Mumbai, 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 100 Dabbawalas and cost the client Rs. 2 a month. Gradually, the number of Dabbawalas increased and the service continued even though the founder was no more. In the 1950s, the Dabbawalas were delivering 2,00,000 lunches a day. The Dabbawalas became organized after 1954 when the Nutan Mumbai Tiffin Box Suppliers’ Charity Trust was 6 Scott Baldauf, the reporter who covered the story, followed aDabbawala to understand the delivery process and their daily routine. 7 “WQED Multimedia Pittsburgh presents Paul S Goodman’s documentary about theDabbawallas ofMumbai,India”, www.wqed.org 8 CII is a not-for-profit and non-government organization established in 1895 by members of the Indian industry. They work with the government, companies and similar international organizations to facilitate the growth of industry in India. The CII has a membership of over 54,800 companies, both national and international. They have offices in India and overseas. 9 British raj was what the British rule in India was called. 10 Maharashtra is one of the states of India. Mumbai is the capital of the state.
  3. ENTREPRENEURSHIP Case Folio July 2004 43 established. The Trust had offices in various parts of the city such as Grant Road, Dadar, Chembur, Ghatkopar and Mulund. It was the only body representing the Dabbawalas. The Dabbawalas lost a large group of clients, the mill workers, during the 1980s and 1990s, when the mills started closing down. However, they eventually gained other clients. People who felt that outside food was unhygienic and who wanted to have a specific diet started to use their service. In early 2000, the Dabbawalas were back to delivering up to 1,75,000-2,00,000 lunches a day. Organizational Structure and Working Style The Nutan Mumbai Tiffin Box Suppliers’ Charity Trust had a very flat structure with only three levels, the Governing Council, the Mukadams11 and the Dabbawalas (Refer to Exhibit I). From the Governing Council, a President and a Secretary were elected. The Governing Council held meetings once a month which were attended by the Mukadams and Dabbawalas. At these meetings, the Dabbawalas discussed their problems and explored possible solutions. The problems could be with the police, municipal corporation, customers, etc. They also adjudicated disputes among Dabbawalas using their own system. The Trust collected Rs. 15 from each Dabbawala every month to maintain a welfare fund. These funds were used to give loans to Dabbawalas, help them in medical emergencies, meet the educational costs of their children, run pilgrim rest houses, subsidize religious pilgrimages and provide facilities for important occasions like weddings, etc. A monthly amount was also set aside for a charitable fund to feed the poor. The Dabbawalas were organized in cooperative groups of 15 to 20 members, and each group was supervised by four Mukadams. The responsibilities of a Mukadam, who was essentially a supervisor, involved sorting dabbas, keeping records of payments, settling disputes, sourcing more customers and training new Dabbawalas. Every group was financially independent but worked together in the delivery process. Each group sourced their own clients, but one group was not allowed to undercut another. In 2003, the Dabbawalas charged customers anything between Rs. 150 and Rs. 350 per month for their services. Every month the payments received were shared equally amongst the members of the group. After expenses, each Dabbawala received between Rs. 5,000 and Rs. 6,000 a month. Their expenses included railway passes12 and rent for handcarts, cycles and crates. Newcomers who wanted to become Dabbawalas were initially hired on a salary to gauge their performance, and later made members of the Trust and assigned to one of the cooperative groups. Exhibit I: Dabbawalas’ Organizational Structure Source: The ICFAI Center for Management Research 11 Mukadam is a team leader or supervisor. 12 A railway pass can be obtained by paying a fee to the railway authorities. This can be used to travel on the local trains in Mumbai without having to buy a ticket every day. Governing Council Secretary President Mukadams Dabbawala
  4. ENTREPRENEURSHIP Case Folio July 2004 44 To become profit sharing members of the Trust, new Dabbawalas needed to pay a certain amount to the Trust. This was Rs. 30,000 in 2003. The Trust gave loans to assist them to become members of the organization. Every member was guaranteed a monthly income and was employed for life. As there was no retirement age, a Dabbawala worked as long as he was physically fit. Over the years, primarily family members and relatives of the existing Dabbawalas were inducted into the business. Of the nearly 5,000 Dabbawalas (2003), most were from the same region and community, making them a close-knit group. Every year they went to their villages for the “Bhairavnath Maharaj Utsav”13 festival. That was usually the only occasion for which the Dabbawalas took time off. Delivery System The Dabbawala service was available wherever the local trains ran in Mumbai as it was their primary mode of transportation. During the delivery process, the dabbas changed hands at least four times before they reached their destination. Every client who availed the service was given a cylindrical aluminum container (dabba) with the appropriate code painted on the lid. Someone from the client’s home put the layered lunchbox packed with food into that container. Depending upon the distance between the client’s home and the nearest railway station and the time taken to reach the destination (office/school) of the dabba, a collection time was fixed. This was usually between 8.30 a.m. and 10.30 a.m. Every day, at the same time, the Dabbawalas collect the dabbas from the clients’ homes. They take the dabbas to the nearest railway station where a Mukadam sorts the dabbas brought in and arranges them in crates or trays, according to the destination station. Each Dabbawala takes one of these trays and boards the train. When he gets off at his destination, another Mukadam re-sorts the dabbas, along with those brought in by other Dabbawalas assigned to areas near that particular station. Here, the dabbas that need to be put on another train are taken by the assignedDabbawalas, and the dabbas that have to be delivered are taken by the Dabbawalas deputed for this task. The Dabbawalas deliver the dabbas either by walking, using a tray/handcart, or on a bicycle. They deliver the dabba to the common/reception area of the office/school. The client returns the empty dabba to the same place. In the afternoon, at about 3.00 p.m., the process is reversed for the return of the dabbas to the homes of the clients (Refer to Exhibit II for a better understanding of the delivery system). The delivery system of the Dabbawalas has been compared to a relay race14 and the Internet.15 The Dabbawalas developed their own coding system. The codes enabled each Dabbawala to identify and fulfill his responsibility at every step in the process. These codes were understood by the Dabbawalas and no one else. The appropriate code was painted on the lid of the dabba, which revealed the originating address and station, and the destination station and address. Raghunath Medge (Medge), President of the Trust, said, “The codes have been developed over the years, beginning with colored thread and then more systematic and logical codes.”16 When they began painting codes on the dabbas, they initially used symbols, such as swastikas, dots, crosses, strokes, dashes, etc., in various colors. Later on, they included alphabets and numbers in their coding. The new codes were developed by Medge. They used both alphabets and numbers to identify stations, buildings, floors and Dabbawalas. For example, if the code on a dabba was “P-BO-10-15/A/11,” 13 During this festival, prayers were offered to the god they worshipped, Lord Vithoba, and their patron saint, Dnyaneshwar. As part of the festivities, bullock cart races and lotteries were held. 14 Baldauff Scott, “It’s Big Mac vs. Bombay’sDabbawallahs,” www.csmonitor.com, July 6, 2001. 15 “The Human Origins of the Internet,” www.sun.com 16 “Mumbai Dabbawalas Ready for the Prince,” www.mid-day.com, October 29, 2003.
  5. ENTREPRENEURSHIP Case Folio July 2004 45 P identified the Dabbawala, BO the suburb, Borivili, where the dabba had to be collected from, 10 represented the area, Nariman Point, where the dabba was to be delivered, and 15/A/11 stood for 15th building, 11th floor.17 One Dabbawala claimed, “We often recognize a dabba by its feel, like we would a familiar slipper.”18 “We generally make one mistake in two months. We can’t afford to make mistakes too often or else we will be out of business. And our employees understand this reality very well so they are always very cautious,” said Medge.19 The Dabbawala delivery process was dependent on Mumbai’s local railway which was known to be the most far-reaching, fast and efficient local train system in India (Refer to Exhibit III for an idea about the railway network in Mumbai). The trains ran 365 days a year and there was very rarely any interruption in the service. The only circumstance under which the service was disrupted was the monsoon when the tracks would get flooded. According to the Dabbawalas, their ability to successfully run the service in a crowded city like Mumbai could be attributed to its geography and local train system. Medge said, “Mumbai’s geography makes it unique, it is a longish city where residences are in the North and offices in the South, so it makes our work simple”20 (Refer to Exhibit IV for a map of Mumbai City). He also said, “Our people move by local trains and are able to cover long distances. On cycle, one can cover only a radius of two to three kilometers”.21 Thus, the Dabbawalas use the cheap public transport system to their advantage. 17 Deshpande B Pradeep, “India, Inc., and Six Sigma: If Dabbawallahs Can Do It, You Can Too!,” www.sixsigmaquality.com/sixsigma_papers.html 18 Karkaria Bachi, “The Dabba Connection,” www.uppercrustindia.com 19 Chatterjee Sumeet, “Dabbawallahs:Lifeline of Mumbai’s Working People,” Indo-Asian News Service, www.yahoo.com, September 20, 2002. 20 Diwanji K Amberish,“Dabbawallahs: Mumbai’s Best Managed Business,” www.rediff.com, November 4, 2003. 21 Lakshman Nandini, “Mumbai’s Dabbawallahs, Flavor of theSeason,” www.rediff.com, November 15, 2003. Exhibit II: Dabbawalas’ Delivery System Stage I The Dabbawalas collect the dabbas from the clients and take them to the nearest railway station. Stage II Stage III Stage IV At the station, a Mukadam sorts the dabbas according to their destination and arranges them in trays/ crates. The Dabbawalas take their consignments and get on the train. The Dabbawalas get off at their respective stations where a Mukadam re-sorts the dabbas, along with the dabbas brought by other Dabbawalas from the surrounding area. The dabbas are grouped according to area of delivery. The Dabbawalas take their consignments and deliver the dabbas to each client's office or school. Deliveries are made either by walking, using a tray/handcart, or on a bicycle. Source: The ICFAI Center for Management Research
  6. ENTREPRENEURSHIP Case Folio July 2004 46 Will the Dabbawalas Continue to Feed the Hungry? The Dabbawalas have been in service for more than a hundred years, surviving the many changes in the city of Mumbai. However, the changing environment was threatening the survival of the Dabbawalas. “The second generation does not want to get into this business as the returns are not much,” said one Dabbawala.22 SomeDabbawalas felt that there was danger of the business eventually dying out as they are unable to attract new recruits from within their families and relatives who had traditionally been their main source of recruitment. Exhibit III: Railway Network in Mumbai Source: www.mumbainet.com 22 Lakshman Nandini, “Mumbai’s Dabbawallahs, Flavor of theSeason,” www.rediff.com, November 15, 2003.
  7. ENTREPRENEURSHIP Case Folio July 2004 47 Exhibit IV: Map of Mumbai City Source: www.mumbainet.com
  8. ENTREPRENEURSHIP Case Folio July 2004 48 There are more and more two-income families now, with the increase in women’s employment. As a result, wives do not stay home or have time to prepare elaborate meals. They either prepare small and quick lunches for themselves and their spouse to carry or they eat out. The demand for the service of the Dabbawalas has also come down as many organizations have started giving free lunch vouchers to their employees. These vouchers are used at their office cafeteria to buy lunch, thus eliminating the need for the Dabbawalas’ service. Also, many working people do not have time to eat an elaborate lunch and so just grab a quick bite. In Mumbai, there are many options for a person who wants to eat out and all types of cuisine are available, with the growth of fast food centers that sell Indian food and Western fast food centers like Mac Donald’s, Pizza Hut and Dominos. In addition, most restaurants and fast food places deliver food. But according to Medge, “There is no prospect of our business suffering on account of the fast food joints because Mumbai’s conservative middle classes remain skeptical of what is described as outside food.”23 Most Dabbawalas are of the opinion that their services will always be needed. Firstly, there are people from different communities, castes and religions in Mumbai. Their cuisine is unique to them and often what they can or cannot eat is dictated by their caste or religion (for example, Jains do not eat garlic and onions, Brahmins are strict vegetarians, and Muslims do not eat pork). Therefore, food can be prepared to their individual tastes only by a parent, spouse or their own cook. Secondly, there are an increasing number of people who are diet conscious and feel that restaurant food and fast food is very unhealthy because of all the fat and processed ingredients. Thirdly, there are people who feel that the food available in the cheap fast food places is unhygienic. To skeptics who believed that the Dabbawalas are a dying breed, Medge retorted, “How can it be? Sure, some clients may move away, but children will continue to go to school and people to offices. As long as people feel hungry, the Dabbawala will be there.”24 Suchitra Jampani, Faculty Associate, The ICFAI Center for Management Research. Sanjib Dutta, Faculty Member, The ICFAI Center for Management Research. References 1. Chakravarty Subrata N and Karmali Naazneen, Fast Food, August 10, 1998, www.forbes.com 2. Jacobson Doranne, Doing Lunch, March 2000, www.findarticles.com 3. Unnithan Sandeep, Delivering Goods, May 31, 2001, www.lists.cs.columbia.edu 4. Now ‘dabbas’ Join the Ad Club, December 27, 2001, www.responservice.com 5. Reporters on the Job, www.csmonitor.com 6. Harding Luke, A Bombay Lunchbox, June 24, 2002, www.tiffinbites.com 7. India Inc Takes Some Time Off to Applaud India Invisible, September 19, 2002, www.indianexpress.com 8. The Food Chain, August 19, 2002, www.india-today.com 9. Chatterjee Sumeet, Dabbawallahs: Lifeline of Mumbai’s Working People, September 20, 2002, www.in.news.yahoo.com 23 Chatterjee Sumeet, “Dabbawallahs: lifeline of Mumbai’s working people,” Indo-Asian News Service, www.yahoo.com, September 20, 2002. 24 Lakshman Nandini, “Mumbai’s Dabbawallahs, flavour of the season,” www.rediff.com, November 15, 2003.
  9. ENTREPRENEURSHIP Case Folio July 2004 49 Questions for discussion 1. The Dabbawalas have been in service for more than 100 years. What lessons on entrepreneurship can one learn from them? 2. The Dabbawala service achieved a Six Sigma level of performance without using any technology or elaborate processes. How do you think they were able to attain that level of efficiency? 3. What are the challenges being faced by the Dabbawalas? How can they ensure their existence in the future? Reference # 14M-2004-07-07-02 10. Indian Glimpses, September 28, 2002, www.baroda-online.com 11. Kataria Sunil, Dabbawallahs Deliver with No Hiccups, February 12, 2003, www.lists.cs.columbia.edu 12. The Charioteers of Meals, www.jetairways.com/jetwings_June_03/ 13. Mashelkar R A, India, with a Can-do Spirit, August 26, 2003, www.indianexpress.com, www.hvk.org/hvk/articles/0903/ 14. American Association of State Highway and Transportation Officials’ Luncheon Address, June 9, 2003, www.freight.transportation.org 15. Dsouza Lajwanti, Mumbai Dabbawallas Lecture at IIMs, October 15, 2003, www.mid-day.com 16. Mumbai Dabbawallas Ready for the Prince, October 29, 2003, www.mid-day.com 17. Panda Manoj, Mumbai’s Dabbawallahs, November 3, 2003, www.lists.cs.columbia.edu 18. Diwanji Amberish K, Dabbawallahs: Mumbai’s Best Managed Business, November 4, 2003, www.in.rediff.com/news/ 19. Harley Jonathan, India – Bombay Lunchbox, www.abc.net 20. Thakraney Anil, Dabbawala for CEO? November 9, 2003, www.chalomumbai.com 21. Lakshman Nandini, Mumbai’s Dabbawallahs, Flavor of the Season, November 15, 2003, www.rediff.com 22. Malhotra Umesh, The e-Dabbawalla, www.e1947.com 23. Karkaria Bachi, The Dabba Connection, www.uppercrustindia.com 24. The Human Origins of the Internet, www.sun.com/executives/digitaljourney/stories/ 25. Curran Ann, Videos about Work and Workers, www.cmu.edu/magazine/02summer 26. WQED Multimedia Pittsburgh, www.wqed.org 27. Special Bronze Dabba Awaits Prince Charles, www.headlines.sify.com 28. Luthra Jagdeep, Be a Layman to Understand Logistics, www.safexpress.com 29. Morris Bob, Dead Medium: Dabbawallah Delivery Service, www.deadmedia.org 30. Scott Baldauf, It’s Big Mac vs. Bombay’s ‘dabbawallahs’, www.csmonitor.com 31. Deefholts Margaret, The Dabbawallahs of Mumbai, www.travel-wise.com 32. Lulla, Suresh, Failures per Million, www.qimpro.com 33. Deshpande Pradeep B, India Inc., and Six Sigma: If Dabbawallahs Can Do It, You Can Too! www.sixsigmaquality.com/sixsigma_papers.html
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