This paper mainly dwells on the examination of Mumbai Dabbawala operations and achievement of almost zero-fault performance including their problems and prospects in this changing environment of their business. Please do drop your comments.

1. IILM Institute for Higher Education
School of Business
PROJECT
Business Research
Mumbai Dabbawalas
Abhishek Tewari
IILM Gurgaon
(Pgp 2007-2009)
Prepared By Abhishek Tewari (April 2008)

2. INTRODUCTION
• A dabbawala (one who carries the box), sometimes spelled dabbawalla, tiffinwalla,
tiffinwalla or dabbawallah, is a person in the Indian city of Mumbai whose job is to carry
and deliver freshly made food from home in lunch boxes to office workers. Tiffin is an old-
fashioned English word for a light lunch, and sometimes for the box it is carried in.
Dabbawalas are sometimes called tiffin-wallas. For the efficiency of their supply chain it
has been claimed that this virtually achieves a six sigma performance rating (i.e. 99.99% of
delivery are made without error, he is at CMMi 6).
• Though the work sounds simple, it is actually a highly specialized trade that is over a
century old and which has become integral to Mumbai's culture.
• The dabbawala originated when India was under British rule: many Indian people who
worked in British companies disliked the British food served by the companies, so a
service was set up to bring lunch to them in their work place straight from their homes.
Nowadays Indian businesses are the main customers for the dabbawalas, and the service
often includes cooking as a delivery.
Prepared By Abhishek Tewari (April 2008)

3. What is NMTBSA
N -Nutan
M - Mumbai
T -Tiffin
B -Box
S -Suppliers
A -Association
The origin of the dabbawalas’ lunch delivery services dates back to the year1890.
Mahadeo Havaji Bacche, amigrant from Pune district (North Maharashtra) started this
lunch delivery service. At that time, people came from different states and form
different communities migrated to Mumbai for work. At working place there were no
canteens or fast food centers and they did not bring their lunch from home. Besides,
different communities had different food habits, tastes and preferences which could
only be satisfied by a home made meal. Recognizing the need, Mahadeo started this
lunch delivery service. In his business, Mahadeo recruited young men from the
villages neighboring Mumbai (generally Pune district and adjoining areas), who had no
formal education or technical efficiency to get work in the city. There were 100
dabbawalas at the Commencement of the service and charged the client Rs. 2 per
month. Gradually, the number of dabbawalas increased. In 1950, dabbawalas were
delivering 1, 00,000 lunches per day. After the death of Mahadeo they became
organized in 1954 and formed Nutan Mumbai Tiffin Box Suppliers’ Charity Trust. The
trust had branch offices in different parts of the Mumbai such asChembur, Dadar,
Ghatkopar etc. In 2005, 5000 dabbawalas are delivering around 2, 00,000 lunches per
day.
Prepared By Abhishek Tewari (April 2008)

4. Objectives
The main objectives are:
(i) To examine how the dabbawalas operate;
(ii) To study how Operations Management Dabbawalas of Mumbai perform an amazing role in
procurement and distribution of tiffins to their clients from which one can learn many critical
issues of supply chain, distribution and logistic management. This paper mainly dwells on the
examination of their operations and achievement of almost zero-fault performance including their
problems and prospects in this changing environment of their business. They work as a team to
achieve a common goal with a cent percent accuracy and
(iii) To explore the problems and prospects of the dabbawalas’ services in the light of
Changing environment.
Prepared By Abhishek Tewari (April 2008)

5. Levels of Management:
The Trust is a co-operative body having three levels of management, viz.
(i) The Governing Council, its President, Secretary - top level:
(ii) Mukadams (team leaders or supervisions)–middle level
(iii) Dubbawalas – lower level.
The Governing Council (also called as Panch Committee) holds meetings on the 15th
day of every month. Mukadams and dabbawalas are entitled to attend the meetings. At
These meetings, dabbawalas discussed their problems and business policies. The trust
Collected Rs. 15 p.m. from each member to maintain a welfare fund. The trust provides
various services to its members, including loan facilities for emergencies, educations
expenses for children, health care etc. from this welfare fund. The dabbawalas are
organized in 15 to 20 members groups. Each group is supervised by 4 mukadams.
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6. Mukadams supervise to sorting dabbas (tiffin box), to keep records of payment, to
settle disputes, to search new customers and train new dabbawalas.
Each group is financially independent but work together in the delivery process.
Each group serves its own customers without hampering the interests of other. Now the
Dabbawalas are charging customers Rs. 250 to Rs.300 p.m. for their services. Total
monthly collection is shared equally among the members of the group. Each dabbawala
receives Rs. 5000 to Rs. 6000 p.m. after meeting all expenses like railway monthly ticket,
rent for handcarts, crates etc. Newcomers who want to become dabbawala are initially
hired on a salary, after evaluating their performance they are offered
membership (shareholders) of the trust and assigned to one of the groups. Each
dabbawala is guaranteed to receive a monthly income and employment for life. As
there is no retirement age, he may work as long as he is physically fit. To become profit
sharing member of the trust, new dabbawala needs to pay a certain amount to the trust.
Prepared By Abhishek Tewari (April 2008)

7. PORTERS FIVE FORCE THEORY
• Competition: Its difficult to replicate their supply chain network
• New entrants:
Fast food joints as well as office canteens. However, since neither of
these serve home food, the dabbawallas' core offering remains
unchallenged.
• Bargaining power of buyers:
Delivery rates are so nominal (about Rs 300 per month) that one simply wouldn't
bargain any further.
• Bargaining power of sellers:
Prepared By Abhishek Tewari (April 2008)

8. Minimum infrastructure and practically no technology is used, hence they are not
dependent on suppliers.
• Threat of a new substitute product or service:
No substitutes to home cooked food in Indian scenario, hence threat to the
dabbawalla service is not an issue at least in the foreseeable future.
SWOT Analysis
Strengths: Weaknesses:
• Simplicity in • High dependability on
organization with local trains
Innovative service
• Coordination, team • Funds for the
spirit, & time association
management
• Limited Access to
• Low operation cost
Education
• Customer satisfaction
• Low Attrition Rate
Prepared By Abhishek Tewari (April 2008)

9. Opportunities Threats
• Indirect competition is
• Wide range publicity
being faced from
• Operational cost is low caterers like maharaja
• Catering community
• Indirect threats from
fast foods and hotels
• Change in timings
• Company transport
• Ticket restaurant
HOW THE DABBA IS DELIVERED
The entire system depends on TEAMWORK and meticulous timing. Tiffins are
Collected from homes & taken to nearest Railway Station. Then they are sorted out for
area-wise distribution, so that single tiffin could change hands 3 to 4. Times in the
course of its daily journey.
Flow Logic of Distribution
Prepared By Abhishek Tewari (April 2008)

10. This service is available in every working day and whenever the local trains run in
Mumbai & Suburban because it is their primary mode of transportation. The mode and
the way of transportation are:-
• Pick up Dabba from Residence and bring it to Andheri ( between 9.30 am -10.30 am)
• Journey by Local train. ( between 10.34 am-11.20)
• Unloading and sorting at destination station.( 11.20am-12.30pm)
• Lunch time.(12.30pm-1pm)
• Collection of empty Dabba and sorting at destination station.( 1.15pm-2.30pm)
• Return Journey.(2.48pm-3.30pm)
• Sorting and delivery of empty Dabba at residential station.
9.30am-10.30am 10.34am-11.20am
11.20am-12.30pm
Andheri Andheri Stn Church Gate
Prepared By Abhishek Tewari (April 2008)

11. 2.48pm-3.30pm 1.15pm-2.30pm
12.30pm-1.00pm
Return Journey All Destination Station
Lunch Time
The Color Coding of Dabbas
3.30pm-4pm
At all original station
The dabbawalas have developed their unique coding system. The codes help each
dabbawala to identify and fulfill his responsibility. These codesare understood by the
dabbawalas and no one else. The code is painted on the lid of the dabba, which
indicates the originating address & station and the destination station & address. Their
coding system is very interesting. They use colours and code markings to ensure
Prepared By Abhishek Tewari (April 2008)

12. faultless delivery. They use both alphabets and numbers to identify dabbawala, station,
building and floor.
Six Sigma Certification by Forbes Group
• 4 students from Delhi visit Dabbawala office to do project
under Mr. C.K. Prahlad.
• For 4 days they travelled with Dabbawala collecting
various data.
• After few days there was news in Times of India that
Mr. C.K Prahlad met President Mr. K. R .Nararyan and
Dabbawals got six sigma (error rate is 1 in 16 million
Prepared By Abhishek Tewari (April 2008)

13. transactions and six sigma performances is 99.99%)
Six Sigma quality rating helps the organization streamline their delivery systems,
eliminate errors and achieve a cent percent accuracy. Around 5000 dabbawalas deliver
about 200,000 tiffin boxes to factories and offices across Mumbai with high labour
intensive and with almost zero technology inputs. But they receive international
recognition after 115 years of glorious service. Every year their business grows by
25000 to 30000 tiffin boxes. They lose a few customers too each year but are
more than compensated with the additions. Actually they grow annually
by about 10%. Till the time people will feel hungry their business will keep
growing. They have started advertising on dabbas by putting stickers on them.
This brings in extra income. Mumbai dabbawalas deliver mainly during day
time. They are not night bird. But India shifts to a 24 hours X 7 days work
culture, the tiffin boxes’ network would also work under the moon and stars.
Management Learning from Dabbawala
1. Keep Operational costs as low as possible
• Dabbawala use cycle, hand cart, local train- all low cost.
• No Big Office to maintain.
• No IT budget and no miscellaneous expenses.
• No Ad budget- word of mouth publicity.
• Average monthly service cost Rs.250.
2. Keep Capital investment bare minimum.
Prepared By Abhishek Tewari (April 2008)

14. • Only investment is the hard work, honesty, promptness and time
management.
• Low cost offices.
• Very cheap hand cart.
• Easy to maintain cycles- Fuel is free air ( God given Fuel)
• Use public space for sorting.
• No IT or HR department.
3. Just serve your customer-Nothing Else
• Dabbawalas always deliver food on time- even during heavy rains.
• On time without wearing a watch.
• They do not try impress or bother customer with unsolicited offer.
• Bothering customer with unsolicited offer forces them to discontinue even
existing services.
4. Customer is not the RAJA – But Maharaja
• England King Prince Charles met Dabbawala on 4th Nov 2003.
• He was told to come to church gate station to meet Dabbawalas.
• So that the delivery of Dabbas to clients is not affected.
• He spent around 20 minutes with Dabbawala.
• Virgin Group chairman, Richard Branson, traveled with Dabbawala and
delivered Dabba to his own employee.
5. Never Deviate From your Core Competency
• Dabbawala are only in the business of delivering home made food to offices.
• Effort to sell FMCG and other products through Dabbawala system failed.
• Be- “Master of one trade rather than jack of all”.
• If required develop product & services around core competency.
6. Do not be over Dependent on Technology
• For 116 years, Dabbawalas did not touch technology- yet got six sigma and ISO.
• Today mobile phones are mostly used to communicate- only incoming.
• Website & SMS used to get more customer and give information.
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15. • But logistics is still manual.
7. Co-operation inside- Competition Outside.
• There are 2-3 Dabbawala group in each segment.
• Dabbawala collection is group wise but transport is shared with other group.
Competition is only up to collection.
• Profit is shared equally within each group after deducting expenses.
• World‘s most democratic organization.
8. Commitment Matters- Qualification Doesn’t
• About 85% of Dabbawalas are illiterate.
• 15% are class 8 failed.
• Still they are able to offer world class services as they are committed to offer
food to customer on time.
• If commitment is there, then qualification can be built.
9. Know the implication of Failure
• If food is not delivered on time then customer will be angry and work will
suffer.
• Problem with Boss and wife.
• If vegetarian gets non vegetarian Dabba, then Big problem.
• Knowing the implication of failure makes you more responsible and serious
towards your work.
10. Bulid your services around existing infrastructure.
• Dabbaswala use reliable, fast, efficient and cheap existing local train for
transportation.
• Many food companies in Mumbai use their own infrastructure which is tough to
maintain and costly as well.
• 3 sigma, out of six sigma that Dabbaswala got, should be given to local trains
system.
• Building new infrastructure increase cost to server.
11. Abandon Bad customers.
Prepared By Abhishek Tewari (April 2008)

16. • When Dabbawala knocks the door, the Dabba should be ready.
• If not- then for 2-3 days the time is given to adjust.
• After that, the services are stopped as it affects the services to other customer.
• Bad customers affect the operation and profitability from existing customers.
12. Penalize Employees for non compliance
• Dabbawalas are penalized for not wearing Gandhi Topi, not pre- informing
leave and misbehaving with customers.
• After giving a few warnings, if Dabbawala does not change then he is expelled
from the system.
• Discipline is one of the main reasons of Dabbawala success.
• If Not penalized for non compliance then what are the rules for?
13. Do Not Transfer Your Employees Very often.
• 5000 Dabbawalas remember the address of 2 lack customers by heart.
• Most have been serving for about 30 years+ on average.
• Fully know the needs of their customers.
• So customers trust them.
Achievements
Documentaries made by :
Prepared By Abhishek Tewari (April 2008)

17. • BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY, SAHARA SAMAY, STAR TV,
CNBC TV 18, CNN, SONY TV, TV TOKYO, NDTV.
CASE STUDY made by :
• ICFAI Press Hyderabad & Bangalore
• Richard Ivey School of Business – Canada
• Also, Included in a subject in Graduate School of Journalism University of California,
Berkeley
Radio:
• German Radio Network, Radio Mirchi, Radio Mid-day, FM – Gold, BBC Radio,
Radio City
 World record in Best Time
Management with Six Sigma rating.
 Name in “GUINESS BOOK of World
Records”.
 Registered with Ripley's “ believe it or not”.
 Participated in “Deal Ya No Deal Contest” by Sony Entertainment Television
 Invited for marriage of Hon. Prince Charles of England on 9th April, 2005.

Problems & Prospects
The trust faces the cut-throat competition from the growth of fast food centers like Pizza
Hut, Mac Donald’s etc. While there are thousands of die-hard customers, rapid
urbanization, increasing personal transportation and availability of different kinds of
fast food have drawn a good chunk of the younger generation away from the home
made food. But there is an increasing number of people who are health conscious and
feel that home cooked food suits their stomach and health. Even some customers now
send water along with their tiffins. Knowing this very issue the trust do not bother
about the competition. Today, the dabbawala delivers not only homemade food but also
Prepared By Abhishek Tewari (April 2008)

18. picks up food from caterers and delivers them to offices. The food from caterers are still
small segments of the total operation. Most people want to eat homemade food in the
offices without the bother of having to carry a cumbersome tiffin box.
Conclusion
The concept of ‘dabbawala’ comes into picture in one
of India’s big and busiest cities–
where people can enjoy the fresh homemade lunch
every day. What a wonderful service they provide.
It is not just a service but a vocation. Their main aim
is customer satisfaction. The trust shows how these
illiterate or semiliterate dabbawalas have mastered
the art of logistics management, supply chain
Prepared By Abhishek Tewari (April 2008)

19. management, customer service,Just-in-time management, team work and problem solving.
People cannot believe that uneducated people can provide such an efficient service. Even people
of foreign countries (like U. K., Italy etc.) are amazed that uneducated dabbawalas can carry out
such type of business so accurately. Actually the uneducated have an ability to
memorize and retain more as opposed to the educated who are used to writing down
everything. So they claim that “our head is our computer and Gandhi cap in the
computer covers to protect it from the sun or rain.” The white–capped, white–shirted
dabbawalas shot the limelight when they were awarded the six sigma rating, but it was
Prince Charles’ meeting with them in Mumbai in November 2003 that really helped
them. He was the first celebrity who visited them. R. Megde said “Many people talk
about us, but Prince Charles was the first famous person who met the dabbaswala and
encouraged them Hard work and sincerity of dabbawalas are the two main factors to
reach such levels of efficiency with such an untrained work force. They got six sigma
rating of highest operational efficiency without using any paper work or computer.
Prepared By Abhishek Tewari (April 2008)