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Mumbai Cha Dabawala
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Transcript of Mumbai Cha Dabawala
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MUMB ICHD B W L S
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VIDYALANKAR INSTITUTE OFTECHNOLOGY
MASTER OF MANAGEMENT STUDIES
SUB BUSINESS COMMUNICATIONMMS BATCH B CHANAKYA)
PROJECT ON :MUMBAICHA DABAWALA
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INDEX
EXECUTIVE SUMMARY
INTRODUCTION
ORGANIZATION STRUCTURE
PROCESS
JOURNEY OF DABBWALACODING
RULES AND REGULATIONS
SAFETY AND WELFARE
SIX SIGMA
SWOT ANALYSIS OF DABBAWALA
ASSOCIATION
WHAT TO LEARN FROMDABBAWALAS?????
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EXECUTIVE SUMMARY
The service which has surprised one and all by its efficient work and management
skill, many things come into the mind when one thinks about dabbawalas theirsupply chain management their distribution network structure, the team work of
the system, the unique coding system followed by to identify and deliver the
Tiffin boxes and finally the mutual trust and goodwill that they have created for
themselves in the minds of the people of Mumbai with their unique service its one
of the oldest service system in Mumbai which has survived the hardship of time.
The association of the dabbawalas in Mumbai is over a hundred years old. Itbegan as a Tiffin carrier service for particular community who worked in
downtown Mumbai. Today, this organization caters to over 2, 00,000 customers
everyday, using 60 - 80kilometers of the cities transport service with the help of
over 5000 individual dabbawalas aiming to serve the customer with full
dedication and hard work. This system basically involves service of delivering
Tiffins from the customers residence in themorning transporting it by train to
the destination station and then dispatching it to the respective offices. The systeminvolved follows a strict pattern of operation they are time specific and are
standard everyday. The entire system is dependent upon the coding, which is an
ingenious creation which is easy to decipher by the semi illiterate dabbawalas.
The system is recognized worldwide for their accurate operation and it has
received six sigma certification from Forbes and ISO 9001: 2000 certification for
its error free operation. The dabbawalas are famous case study in all the reputed
B- school for their efficient management skill and they have the pleasure of
respect from great personalities like Prince Charles, Princess Diana and Richard
Branson who visited them on their trip to India. They are appreciated for their hard
work and efficient management skill they posses.
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Dabbawalas are following efficient SBU ( strategic business management )
concept before it was even introduced , they have monopoly in their type of
business with very tough competition by the fast food and canteens which can be
explained by applying porters five forces.
SWOT analysis is necessary to study the various aspects of the business and gain
more knowledge about its present and future. Being the traditional Indian
management system, it is bound by simplicity and efficiency. It is technology free
and does not involve any paper work, modern communication techniques.
It is an esteemed organization and is an aspiration to companies and other
organization across the globe. In absence of HR policies and guidance
Dabbawalas are highly motivated and there is zero attrition rates. They give us
enormous knowledge about many management concepts. India take proud of
such an organization and give it due recognition and support.
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INTRODUCTION
OVERVIEW
Every city has beautiful building and views but no other city ,in the world has
DABBAWALAS. This is a story of a conventional Indian system of
management that is today a favorite case study among management institution for
a simple reason that is doesnt use any technology and yet outperforms most
organizations in operational efficiency. To the extent that it received a six sigma
rating from forbes international and has received ISO 9001:2001 certificate. They
are famous for their supply chain management their distribution network structure,their team work. Dabbawalas work efficiently in absence of any human resource
policies and continuous supervision.A look at this unique lunch delivery systemof dabbawalas reinforces the fact that work is both an economic and a social
necessity while the economic necessity gets answered by the fact that because the
labor is cheap, tiffin boxes are delivered at lower rates than the cost of the outside
restaurant meals. The social necessity is fulfilled by the delivery of the tiffin boxes
to the customers and satisfying them.DABBAWALASDabbawalas are believed to be the descendants of the
soldiers of the great Chatrapati Shivaji Maharaj, the founder of the Maratha
Empire. They belong to places like Rajgurunagar, Akola, Ambeggaon, Junnar
and Mashi. The dabbawalas ancestors used to climb up the fort hills in a single
breath thats probably the kind of energy the dabbawalas have inherited which
helps them to maintain an undisturbed monopoly in this profession.
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HISTORICAL BACKGROUND
Mumbaithe city of dreams and ambitions has been on the fast track since the
British had developed the basic infrastructure of roads, railway and buildings.When the British ruled India, the prime business centers were fort and billard pier
areas. These were the places that have housed banks government departments,
insurance houses, shipping companies and other industrial head office, soon
residential colonies moved further away from the fort area and hence a lot of
office goers started finding it difficult to go home for their lunch from work
carrying lunch boxes was also not a preferred routine .
In 1890 , a parsi banker working in ballard pier employed a young man, from
Pune district, to bring his lunch everyday. More and more people joined the group
through referrals and soon it was taken as a serious business. As the business grew
the tiffin-carrying entrepreneur had to hire more helping hands from his village.
This led to the unleashing of an army that even today in the 21stcentury serves
millions of mumbites with same spirit and competence.
Today, 5000 dabbawalas across Mumbai coordinate with each other for picking
up and delivering the tiffins for over 2,00,000 Mumbaites everyday in 3 hour
period, through 60kms of public transport and in very rare case a tiffin may miss
being on its owners lunch table at the lunch hour.
The organization is really a marvel because it achieves a high level of efficiency
and performance without any documentation, without computers and without
an highly educated workforce. Yet, they are the ultimate practitioner of logisticsmanagement. They have been practicing hub and spoke system, just in time
tactics, no inventory policy and supply chain management principles even before
these terms were even coined.
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ORGANIZATIONAL STUCTURE
The dabbawalas follow a flat organization structure .In 1890, when the
dabbawalas actually began their services, there was no umbrella organization thefirst attempt to unionize was made by Mahadev Bacche in 1930. The carriers
started collecting one anna each per month then as fund and these funds were used
to build an inn in 1940. A charitable trust was registered in 1956 under the name
of NUTAN MUMBAI TIFFINBOX SUPPLIERS TRUST .
Today every dabbawala contribute certain amount per month towards the trust.
The commercial arm of this trust was registered later in 1968 as MUMBAITIFFIN BOX CARRIERS ASSOCIATION The NMTBST is the apex body
representing the dabbawalas. It represents a trim hierarchy with three tiers. The
governing council the mukadams or team leader, and the dabbawallas themselves
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PROCESS
The 5000 dabbawalas are divided into 3 sets of activities. Between 9-9:30 am, one
crew of dabbawalas collects freshly packed Tiffin from individual homes anddelivers it to the nearest railway station, when they are sorted at a place designated
as sorting places on the station itself. This sorting is done as per the destination
stations, then, the train for churchgate or CST departs between 10:3011:00 am
and stops at all stations with intermediate stopover for the dabbawalas like
Thane, Kurla, Andheri and Dadar. At these junction, the second set of dabbawalas
exchange and sort the Tiffins in a speedy manner, involving zero
documentation. Then there is a third set of dabbawalas waitingat the respectivedestination- station who sort out and assemble the respective set of tiffins and load
them into handcraft, trays, bicycles and then, each carrier sets out for the final
delivery. Not to mention, after all these efficiently carried out activities, a tiffin
boxrarely misses the destined stomach at lunchtime.
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JOURNEY OF DABBAWALLAS
The job of dabbawalas begins at around 8:008:30 am with collect in the tiffins
from various households. Usually, people generally leave their tiffins outside thedoor for the dabbawalas to pick up. In case they are late, the dabbawalas have to
urge them to hurry up at times, very rarely though; the dabbawalas have to leave
the clients tiffin if it getsreally late.
The dabbawala picks up the tiffin from his lot of houses and meets the other group
members at the designated spot at the station. They should make sure that they
reach the platform for the sorting process at least 30 minutes prior in order to
ensure a smooth flow of their networking throughout the daily routine. Now starts
the critical phase of the system that is sorting of all the tiffins as per the destination
station and to arrange them in the wooden crates in a short period of 20-
25minutes. The aim of this process is to segregate the tiffins in order to
differentiate them as per the destination and therefore it is important to make
easier and less time consuming for the respective dabbawala. This is essentially
the process that makes the entire system error-free. Since each tiffins changes
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many hand, each of the lids of the tiffin is marked With a colored code indicating
the originating station, destination and the building with the floor number the
coding system is the secret behind the efficient working of the system and that is
exactly the reason why the network is information rich.Dabbawalas are semi-literate they understand the coding on the tiffins and can effectively deliver them
on time. This is a very unique feature also because it requires no documentation or
record keeping. There is no communication between two different groups of
dabbawalas but there is just simple coordination among them because the whole
blue print is pre-decided by the dabbawalas themselves.
Thus, the dabbawalas have to ensure over here about proper coordination among
them, understand the coding system on the tiffins and delegate the jobs ofdispatching the tiffins to the respective dabbawalas. The mukadam plays a key
role over here to ensure the smooth working and proper coordination. The
responsibility of the mukadam is to the extent that he has to know all the tiffins
that his group carrier. Therefore, he must be able to recognize these tiffins thathis
group carries. Therefore, he must be able to recognize these tiffins even is the
codes on them are barely visible. Also, if any member of the group abstains from
his duty for a particular day for some reason, then it is the responsibility of themukadam to ensure that all the dabbas that the absentee was responsible for are
duly picked up and delivered back on time.
Hence, we see that the mukadam plays a key role in this stage of sorting and
allocating jobs. The dabbawalas load the wooden crates filled with tiffins onto the
luggage or goods compartment in the train. Generally, they choose to occupy the
last compartment of the train. This not only makes it more convenient for them as
they avoid the rush at the platform but is also very easy to locate as the lastcompartment is conveniently situated once the train arrives at the platform.
Mostly, other commuters avoid boarding onto these compartments as they are
already filled with the crates and there is not enough room. There are also others
joining into the group from these stations as they have common destination points.
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The allocation of manpower at each station depends on the number of tiffins that
are to be delivered in that particular area. If there are 150 tiffins that are to be
delivered in Grant Road area, then 4 people would be assigned to that station. This
is done keeping in mind that one person can carry not more than 35 dabbas. Theywill also be assigned specific codes which are written on top of the tiffin. These
four dabbawala can be from any groups and irrespective of any station.
Their job is now to deliver these 150 tiffins irrespective of which group they
belong to. If the number of tiffins that are to be delivered in an area like, Nariman
point, is large then the number of people allocated goes up. Within that area, if one
location, lets say, Mittal towers, hasa huge number of the location number remains
the same and the tiffins are differentiated on the basis of color. A unique feature ofthe system is that in bigger buildings with large office densities, like nariman
point, or the stock exchange itself, an elevator is specially reserved for the
dabbawalas during the lunchtime.
Usually these elevators have queues throughout the day as the offices are
extremely busy and hence, in order to provide convenience and quick delivery
without queues, the dabbawalas have a special elevator reserved for themselves
onto which others cannot board. In some cases, they also leave the tiffins in thecanteen that is common to the whole building and hence the respective owners
can simply pich up theirs. This is also a feature seen in school where the
dabbawalas deliver. So, in this process, the dabbawalas save a lot of time by
cutting short the delivery process. Thereafter, the dabbawalas take a break and
have their own lunch which is usually their tiffins kept along with the others in the
crate with special markings. Different groups have their lunch at different
locations. It is generally on the footpath or some benches on the roadside. Thebreak is usually of 45-60 minutes in duration. Till then, the customers must finish
having their lunch and keep the dabbas outside for the dabbawala to collect.
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CODING
VPThe first thing on the tiffin, is the code for the originating station from where
the dabbawalas picks up the tiffin in the morning. In this case VP denotes Vile
Parle. The area under this station will include Juhu and also J.V.P.D scheme since
this is the only station ,which is nearest. Even if the dabbawala goes it the
most interior parts like juhu ,it will not be mentioned in the coding simply
because the dabbawalas are just concerned about the respective railway station.
AThis is the code for the dabbawala who is picking up the tiffin from its origin
orhome. In this case, the dabbawala with the code of E , will be a part of the
group distinguished by the color code RED. In many instances, the code will be
the initial of the name of the dabbawala. This is one of the elements that can be
changed during the course of time if the dabbawala for that particular customer
changes.
3This is the code for the destination area. This may not necessarily be restricted
to a station only. For, instance, churchgate is allotted number codes from 1-10.
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Number 11 is allotted to Marine lines ,12 to Charni road and so on. In this
example , the number 3 isallotted to the area between Flora Fountain and cross
Maidan area . Other prime location would include Nariman point, stock exchange,
ballard pier, RBI etc.9E X1 2
9This is the code number for the dabbawala who delivers the tiffin to the
destination office from Churchgate station. This is the dabbawala who is
responsible for delivering to the respective office and picking it up after the lunch
hours. He is a part of another group from the one he worked with at the originating
station. Thus, in most cases , each dabbawala will be a part of more than one
group for sure one at the origin and one at the destination.
VSThis code denotes the exact location or more likely, the buildings initial in
the area that falls under churchgate station. In this case, it is the VSNL building
VS being the initial for the building is unique and therefore , creates no confusion
whatsoever for the dabbawalas. Office buildings around southern Mumbai are
very popular and hence , easy to comprehend when given in codes. Other
examples would be M for mittal towers, R for RBI , and MC for MakersChambers and so on.
12Finally , the last code among the three codes that form the right side of the
top of the dabba is the floor on the building ( VSNL) or the room number in case
of building with large number of rooms on each floor. Such an example would be
stock exchange ,RBI, and BMC etc.
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SALARY
The dabbawalas operate in groups of 25-30. Each group pool in the collected
money and deduct the expenses that was incurred during the month like the train
pass, bicyclemaintenance and other charges and average of the amount is
divided equally among the group. Each dabbawala earns minimum Rs.5000
Rs.6000 per month The salary of the dabbawala depends on the number of
customer the group serves.
RULES AND POLICIES
An important feature of the dabbawalas service is customer satisfaction also the
ultimate objective of any logistic operation Keeping in line with this objective, all
problem are usually resolved by the associationsofficials1.Like of theft or loss
of a Tiffin-box, if any carrier is found guilty then the client is allowed to
deduct the costs from the dabbawalas charges for the subsequent month. If a client
receives improper services by any dabbawala, for which a complaint has been
made to the association that particular dabbawala will be directed to end his
services with that client and another dabbawala will be allotted to the client. In this
manner, no future disputes between that client and the dabbawala will arise and
with the allocation of another dabbawala is his place, the client will also receive
continuous and efficient service. Thus leading to greater customer
satisfaction.2.The association also has the responsibility of handling all
the internal disputes. Apart from discouraging undercutting between two
dabbawalas, the association has to handle all kinds of disputes arising between
two dabbawalas. For this reason, the association charges Rs.100-200/- before
looking into the complaint. This is done to ensure that the officials time is not
wasted on any petty disputes. A meeting is conducted every 1 days of every
month at the dadar office where all the committee members assemble and all
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complaints and disputes are heard and resolved. The dabbawalas are not supposed
to take any major decision and are not supposed to claim any amount arising out
of a disputes until the actual dispute matter is brought forward in front of everyone
during the monthly meet.3.Each Tiffin carrier has to pay Rs.15 to the unionevery month. This money accumulates and helps as aid in maintaining and
funding their Dharamshalas atvarious locations in Maharashtra. This is a social
of the association since the dabbawalas get proper accommodation whenever they
go to these places.4.In the association code of ethics, no dabbawala is
allowed to undercut another. As far as possible, coordination among groups is
encouraged so that undercutting doesntlead to disputes.5.The whole
dabbawalas union takes a one week break every year in the month
of March when all go to Ambegaon for their annual village festival. This is a
welcome break from the hectic day to day routine that the dabbawala follow. All
customer are informed much in advance about this period when the dabbawalas
will collectively remain absent from duty. This is the individual dabawalas
responsibility to communicate with the clients and in order to authenticate the
reason for the leave, the association also circulates notices for customer along with
each carrier.6.Wearing the traditional white cap is very important. It is the
only integral symbol of the dabbawala. If a dabbawala is caught not wearing
the cap, he will be finedRs.30 when spotted by the official.7.Each dabbawala is
allowed to carry a maximum of 35 Tiffin boxes. If the number is more
than 35, then the excess Tiffins need to be carried by another carrier.8.In the long
historical relationship with Mumbai city, the dabbawalas have one major
unattended demand. The union has constantly requested the railways to reserve
one goods compartment for them during the peak hours but they have not been
adhered to. But, it is an unwritten rule that people are not to load the particulargoods compartment occupied by dabbawalas for their goods. Meaning between
10:00 and 11:30 am and 15:00 to16:30 hrs, commuters generally are not supposed
to board the goods compartment occupied by the dabbawallas. In fact , until the
1970`s, the particular compartment read something like reserved for Tiffin carrier.
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But with growing number of commuters and more and more demand for better
service and space, this reservation has been discontinued.9.Every dabbawala
has to handle his own expenses handcraft and bicycle maintenance, railway
pass , luggage pass and all other contribution and fees. They can also opt for theloan from union at around 5%p.a , which is lower than market rate of interest. The
union also runs a small co-operative bank in order to help the dabbawalas and the
community as a whole. The dabbawalas belong to a large community and hence,
it is a part of the associations social commitment to help achieve the upliftment of
the community.
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SIX SIGMA
In the year 1998 the famous US business Magazine The Forbes gave the
dabbawalas system a SIX SIGMA plus performance rating or a 99.999999
percentage of correctness. In simple words, this means one error in six million
transactions, a benchmark reserved for blue chip companies like Motorola. From
a six sigma perspective the dabbawalas must contend with two critical quality
parameters, the lunch boxes must be delivered on time. The response variables
therefore are arrival time and correct box delivered which has been well adhered
to by the dabbawalas.
MANAGEMENT PRINCIPLES DERIVED
Team work
Timemanagement
Innovation
Customerrelationship
management
99.99%
Quality
Performance
Logistics AndSupply chain
management
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SAFETY AND WELFARE
There is no protection for the dabbawalas from the rain and scorching sun. Eventhe dabbas are not under any cover or protection except for what is actually given
by the customer. Raincoats do not provide adequate protection when they have to
cycle around. Whereas, umbrellas are more of a haste o carry around during their
hectic activities. Thus, they are vulnerable to any illness during the season. As for
the dabbas, its not much of a worry because the rainwater isnt going to get into
the food anyway. There is also a minute risk of the bicycles getting stolen or tiffins
getting stolen or lost but its extremely rare. Since three is no insurance foranything, what is lost is a loss incurred by the responsible dabawala. In case the
tiffin gets stolen or lost, the respective customers of the dabbawalas are to deduct
the amount from the dabbawalas salary. Another cases, where the incident of the
loss is due to the fault of another member that leads to a dispute, that matter is then
settled during the monthly meetings held at dadar where the committee decides
who will bear the compensation and who is to be blamed. Of course, the loss of a
tiffin is a one in 8 million cases that leads to the achievement of six sigma
distinction. As for the bicycles, the dabbawalas usually have an understanding
with the watchmen or security people who take care of these cycles as the
dabbawalas areaway delivering. In case they do get stolen, nobody is blamed and
the dabbawala has to bear the loss completely. During morning times, the carriage
would take around 40-50 tiffins. Now, each tiffins is filled with food and the
whole carriage weighs on an average 70-80 kgs. This is extremely heavy for a
head load. But the dabbaala manage this as their daily routine. So much weight in
the scorching heat of the day may lead to fatigue and therefore is unsafe for them
but due to the physical fitness levels, it is rare for a dabbawala to fall ill due to
fatigue. But there is no welfare policy in this regards. The only welfare activity
carried out by the union is the social gathering that the association carries out
every year at their village festival
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SWOT ANALYSIS
A SWOT analysis is very important for a thorough and complete analysis of theDabbawallas system. Being over a 100 years old organization ,it is bound to have
many strength inherent in the system and it may also have certain weaknesses
arising out of conventional methodology. There will be several opportunities since
it is such an open organization and its performance is also always visible to
everyone. Lastly , there will surely be certain threats to this system. Increasing
competition from various other means and sources that provide similar or
substituting services to commuters will also have a great impact on theorganization.
STRENGTHS:
SIMPLICITY IN ORGANIZATIONThe organizational structure is very
simple. It is a loose cooperative with the entire organization divided into strategic
business units that is group of 10-20 individual dabbawalas. These group are
responsible for their own sources of money and have to maintain their ownaccounts if required. Therefore , they are financially independent. With relatively
medium income levels and greater levels of customer satisfaction, this
organization does not at all need a rigid operating structure.
COORDINATION The groups, although independent as far as money matter
are concerned ,work very smoothly and effectively with each other. Not only is
the coordination within the group is perfect but also the coordination amongdifferent groups is really remarkable. A group responsible for a particular area in
Andheri will effectively coordinate with other groups on the way to churchgate
station and will gradually, the individuals will merge into groups for delivery. The
effectiveness of coordination can best be seen during the sorting process. There is
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no rivalry whatsoever among different groups and the functioning is smooth and
problem free.
WEAKNESS
ILLITERACYThe majority of the members of the dabbawala association
can only manage to sign their names. They are unable to read or write in English.
This poses as major problem in case the individual leaves the association and has
to look at an alternative profession. His inability to read or write will then pose a
problem to his own survival. The association does not take any up any initiative to
educate the dabbawalas. As a part of its welfare and social commitment, education
is absent from the agenda. Butthe dabbawalas do manage to carry out theiroperations with their limited ability to read and write. They are able to
comprehend the codes imprinted on the tiffins. If they are totally illiterate.
OPPURTUNITIES
ADVERTISINGThe dabbawalas have been approached by various
companies before for advertising on the tiffins. The most famous and successfulcampaign to date has been the kaun banega crorepati advertisement. Star plus
approached the organization and offered a amount of Rs.10,000 for pasting its
stickers o every tiffin box. This is incidentally the standard rate the association
charges from every company that wishes to advertise. The 9 baj gaye kya?
campaign was a great success as all office goers would notice this on their tiffin
boxes everyday and would hence remember to watch the program at 9 pm every
night. It had a great recall value. Thus, association has several more opportunitiesto grab in form of additional revenue that arises from these advertisement is also
minute compared to the exposure that it offers. The contract would-be on a
weekly basis or a monthly basis.
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Other CitiesThe dabbawala network could also work in other cities but in
smaller scale. Cities like pune already have a small network of dabbawalas who
operation bicycle only. There is definitely a source of income in such cities asthere is a huge market. Although the absence of local train makes it very difficult
for the dabbawalas to operate is major cities like Bangalore, Pune, Hyderabad
,Ahmadabad etc but they can operate in medium scale. Cities like Delhi now have
the metro rail as an efficient means of transport. Thus, these cities are a great opportunity
for the dabbawalas to expand their service network.
THREATS
The business of the dabawallas had to withstand some major shocks during the
last decade.
Textile Industry Shutdown - A major chuck of the clientele were lost with
the closure of textile mills in Mumbai. These mills constituted a huge labour force
and thus , their was a severe blow to the dabbawalas.
Change In Timings - Many of the citys banks changed their timings from
10:30 hrs to 11:00 hrs. The RBI employees used to leave for work at 9:00 am
previously and so there were crates of tiffins leaving from the colonies but after
the changes in timing, they can leave an hour later and take their lunch with them
as they have sufficient time for the preparation.
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WHAT TO LEARN FROMDABBAWALAS?????
Utmost dependence on Human Capital
The most vital link in this chain of food delivery is human capital. The procedures
could have been laid down over a century ago, but it is the
Implementation of the procedures that makes the system work. The
Mumbai dabbawalas propagate that correct amount of human dependence
can yield amazing results.
Honesty and Integrity
The threads of integrity and honesty hold the dabbas together. Though it is
lunchtime for dabbawalas also, the aroma wafting from the dabbas has
never tempted them. Overcoming a basic instinct like hunger is possible
only because of strong roots in a culture that encourages truthfulness and
integrity.
Discipline and Time Management
The dabbawalas operate on the Chanakya system of
Sama-Dama-Danda-Bhed
for the errant members. This ensures that the errant member stays within
the system. Secondly, they are extremely particular about time and
realize the value of every second in the value chain. So much so that
when Prince Charles wanted to meet them, they gave him a precise time
slot so that the thousands others would not have to skip their lunch
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Pride towards their work
The dabbawalas take their role as 'Annadatas' very seriously. For them, thedelivery of tiffins is much beyond a jobit means quelling the hunger
that strikes the customer when lunch hour approaches. And so they
move about their mission briskly with a smile, making sure they are never
late.
Complete Contentment
There was an unseen halo of positive vibrations around the members who
delivered the talk. The glow on their faces came from complete
contentment with their lives. They seemed as if they possessed all the
happiness and riches in life. 'Be contented in what you have' is the
principle that governs their life. This is particularly surprising because
the members earn not more than 5-6 thousand a month and lead a very
hard life compared to most of us. Still there was not even an iota of stress on
their facesquite contrary to many others who earn much more than them.