HISTORY

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 and execution--strategic, operational and tactical. Logistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology. 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 required at the lowest cost possible. All the 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 far- reaching 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.

Within the firm the challenge is to co-ordinate individual job 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. Even though the generals of the past have understood the critical role of logistics it is only in the recent past that the big organizations have realized its role in the achievement of competitive advantage.

A PROJECT REPORT ON

ABOUT THE TITLE

The present study is title as Logistics Management A Case Study.

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 Dabbawala management.

To know the success of Dabbawala management with reference to logistic management.

SCOPE OF THE STUDY

The project basically revolves around logistic management with reference to Dabbawala and how the Dabbawala implemented this system and use to their best knowledge to reach the point of success.

LIMITATIONS OF THE STUDY

This project is limited to the Dabbawala Management. In this project Dabbawalas only related to the Logistics.

DATA AND METHODOLY

Primary Data:

A questionnaire was prepared for getting the view of president of Dabbawalas management about their work which is most related to the logistics.

Secondary Data:

Secondary data was collected from Reference Books and various websites

CHAPTER LAYOUT:

Chapter 1

This chapter gives introduction to the topic

Chapter 2

This chapter gives activities involved in logistics management.

Chapter 3

This chapter gives introduction to Dabbawala Management.

Chapter 4

This chapter gives how Dabbawala implement six sigma in their work.

Chapter 5

This chapter gives final conclusion.

CHAPTER 2THE EVOLUTIONEvery major war has been learning for industries. Second World War was disastrous but has taught many things to the mankind. However, the industries have gained.

Pre-1950 was the dormant years. All the places the monopolistic conditions were prevailing, Low quality products were selling at high cost. Customer was not having demanding character.

World War II developed military logistics. Concept of getting required material immediately at needful place was the need of the hour. It gave an important massage to the industries.

1950 to 1970 were the years of development for the industries. In this logistics included total cost concept which represent transportation costs for inventory & other costs.

1970 to present year were the Take off years for the subject of logistics. Here there was shift from cost control to revenue generation in the world competition. In the competitive situation number of companies realized 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.

DEFINITION OF LOGISTICS MANAGEMENT

Logistics Management is defined by the Council of Logistics Management (CLM) 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 requirements.

Business Definition:-

Logistics is defined as a business- planning framework for the management of material, service information and capital flows. It includes the increasingly complex information. Communication and control systems required in todays business environment.

The Formal Definition:-

The process of systematically identifying, defining, designing, developing, producing, acquiring, delivering, installing and upgrading logistics support capability requirement through the acquisition process for Air Force systems, subsystems and equipments.

IMPORTANCE OF LOGISTICS MANAGEMENT

Without selling and or buying there can be no trade and business. Buying 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.

Each pocket trying to sub optimizes its objectives at the cost of overall organizational objectives.

Operations produce large quantities 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.

One could study about logistics matters simply because the subject is interesting & essential. Such study would likely make one more knowledgeable & interesting. However, there are far more practical reasons for spending some time learning about this subject.

Most 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 acquire such people outside the logistics organization who have had no formal training in the area.

Even at the career entry level, there are many opportunities. It is estimated that 87% of the countrys largest companies plan to hire college graduates with degrees in transportation and/ or logistics by 1981.

Future 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 quality resources seems to be reaching a limit. Because of this, company will turn to competing for market share. As a recent article in Business Week point out, no business firm or service organization 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.

OBJECTIVES OF LOGISTICS MANAGEMENT

Basic objectives of logistics are to provide customer satisfaction with the product/ services availability, customer satisfaction is to providing the required product at required place of required time.

To understands the needs and the requirements of the customers. Apart 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 join hands to stay in the business.

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

From all the parts of the company their has to real time of information available to all the people concerned for doing any job. Keeping 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 LOGISTICS TO EXISTLogistics 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.

For Example, for many years marketing and manufacturing have been as largely separate activities within the organization. At best they have coexisted at worst there has been open warfare. Manufacturing priorities and objectives have typically been focused on operating efficiency achieved through long production runs, other hand marketing has sought to achieve competitive advantage through variety, high service levels and frequent product changes.

In todays 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 customers requirements is a prerequisite for survival. At the same time in the search for improved cost competitiveness, manufacturing management has been subject of massive renaissance. The last decade has seen the rapid introduction of flexible manufacturing systems of new approaches to inventory based on Materials Requirements Planning (MRP) and Just In Time (JIT) methods a sustained emphasis on quality.

Equally 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.

NEW DIRECTION FOR LOGISTICS The business reaching a state of maturing started strategy use of logistics.

Involving channel partnership, inter organizational 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.

Professional discipline

Specialized skills knowledge

Cost, globalization and time trends

THE LOGISTICS MISSION

The logistical mission of an enterprise is to develop a system that meets objectives at the lowest possible dollar expenditure. The logistical system is primarily concerned with support of manufacturing and marketing operations. At the policy level, the critical question 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 objectives of the enterprise. This logistical policy provides managerial mandate for system design.

A well design logistical effort must have the capacity to control operational variances and to minimize inventory commitments across the entire system. Total cost expenditure is directly impacted by achieving maximum possible transportation consolidation. In addition to cost containment, the objectives of quality control and life cycle support are integral to the logistical mission.

ACTIVITIES INVOLVED IN LOGISTICS MANAGEMENT 1) Order processing

2) Inventory management

3) Materials planning

4) Warehousing

5) Transportation

Provide a targeted level of customer service at the least cost maximize profits, not the sales. So the company must compare the benefits of providing higher levels of service with the costs. Some 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) Order processing :-

Orders can be submitted in many ways; by mail, telephone, through sales people, or via computer. Order processing systems prepare invoices and order information. The warehouse receives instructions to pack and ship the ordered items. And bills send out.

2) Inventory management :-

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.

3) Materials planning :-

Easy to think about output side. In put side is just as important, especially with perishable food products. Every company stores in goods while they wait to be sold.

4) Warehousing :-

The company must decide on_

How many and

What types of warehouses it needs and

Where they will be located

The company might own private warehouses or rent space in public warehouses or both.Owning a private warehouse; bring more control ties up capital is less flexible if locations change.

On other hand, public warehouses; charge for rented space provide additional services for inspecting, packaging, shipping and invoicing goods but at a cost offer wide choice of locations. Basic types of warehouses_ Storage warehouses

Distribution warehouses

Storage warehouses store goods for moderate to long periods, distribution centers are designed to move goods rather then just store them. They are large and automated warehouses designed to receive goods from suppliers, take orders and deliver goods to customers. 5) Transportation :-The choice of transportation carriers affects_ The pricing of products

Delivery performance

Condition of the goods when they arrive

all affect customer satisfaction.

In choosing a transportation mode, shippers consider five criteria _ speed door to door delivery time

Meeting schedule on time

Ability to handle various products

Number of geographic points served

Cost per ton kilometer.SUPPLY CHAIN MANAGEMENT DEFINITION

The supply chain management (SCM) profession has continued to change and evolve to fit the needs of the growing global supply chain. With the supply chain covering a broad range of disciplines, the definition of what is a supply chain can be unclear. Often times SCM can be confused with the term logistics management. CSCMP and the board of directors, comprised of industry experts, created official definitions for the following terms.

Supply 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.

Supply Chain Management Boundaries and Relationships

Supply chain management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing 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

HISTORY

MUMBAI the city of dreams and ambitions. The city of explorers and wildcatters. The city that had always been on fast track. Here success happens purely on merit. The British develop the basic infrastructure of roads, railways and buildings for Bombay. At that time, the prime business centers were Fort and Ballard pier areas. These were the houses of banks, government departments, insurance houses, shipping companies and the other industrial head offices. Soon, the residential colonies moved away from fort and hence, lot of Paris Christians and Europeans started finding it difficulty to go home from lunch from work. Carrying lunch boxes was not always preferred routine for them since they did not like having cold meals.

The Dabbawalas service began informally in Mumbai. According to Raghunath Medge; In the 1980s, a Paris banker working in Ballard Pier employed a young man who came down Pune to fetch his lunch everyday. Business picked up through referrals and soon our pioneer Dabba- 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 21st century, serves millions of Mumbai with the same spirit and competence.

Such 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 Mumbai that is, and delivers it back to the residence at a very economical price. However 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 Mumbai local trains and that too during the rush hour.

Approximately 5000 dabbawalas across Mumbai coordinate each other for picking up and delivering the Tiffins for over 1,75,000 Mumbai ties everyday in a 3 hour period, through 60 kms of public transport. In fact, the modes of transport simply includes the local trains, bicycles and handcarts. Of course it is rare that Tiffin may miss being on the owners lunch tables at the lunch hour.

The history of the Dabbawalas lunch delivery service dates back to the 1890s during the British Raj. 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 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 taste and preferences, which could only be satisfied by a home, cooked meal. Recognizing the need, Mahadeo Havaji Bacche (Mahadeo), a migrant from North Maharashtra, started the lunch delivery service.

For his enterprise, Mahadeo recruited youth from 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 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 established. The trust had offices in various parts of the city such as Grant Road, Dadar, Chembur, Ghatkopar and Mumabi.

WHO IS DABBAWALA?

Descendants of soldiers of the legendary Maharashrian warrior- king Shivaji, dabbawalas belongs to the Malva caste, and arrive in Mumbai grom places like Rajgurunagar, Akola, Ambegaon, Junnar and Maashi. They believe in employing people from our own community. So whenever there is a vacancy, eiders recommend a relative from their village.

Farming earns a pittance, compelling us to move to the city. And the Tiffin service is a business of repute since we are not working under anyone. Its their own business, they are partners, and it confers a higher status in society.

The proud owner of a BA (Hons) degree, Raghinath Medge, president of MTBSA, is a rare graduate. He wanted to be a Chartered Accountant but couldnt complete the course because of the family problems. Of his three children, his daughter is a graduate working at ICICI, one son is a dabbawala and the younger son is still studying.

Apart from commitment and dedication, each dabbawala, like any businessman, has to bring some capital with him. The minimum investment is two bicycles (approximately Rs.4,000), a wooden crate for the Tiffins (Rs.500), at least one cotton kurta- pyjama (Rs.600), and Rs.20 for the trademark Gandhi topi.

DABBAWALA METHODOLOGY AND RULES

Error is horror, in the event of the dabbawala meeting with an accident in route, alternative arrangement are made to deliver the lunch boxes. For Example, in a group of 30 dabbawalas catering to an area, five people act as redundant members; it is these members who take on responsibility of delivering the dabbas in case of any untoward happenings . The dabbawales must be extremely disciplined. Consuming alcohol while on duty attracts a fine of Rs.1,000. Unwarranted absenteeism is not tolerated and is treated with a Similar fine. Every dabbawala gets weekly off, usually on Sunday.

The Gandhi cap serves as a potent symbol of identification in the crowded railway stations. Not wearing a cap attracts a fine of Rs.25.

In fact, Richard Branson, the maverick businessman who is never shy to promote him and virgin brand, donned a Gandhi topi and dhoti (the dabbawalas signature dress code ), during the lunch of virgins inaugural flights to Mumbai.

There are no specific selection criteria like age, sex or religion; 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- months probation.

After that period, the employment is regularized with a salary of Rs.5, 000 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 required of him.LOGISTICAL DISTRIBUTION NETWORK

The dabbawala mean distribution network was characterized by a combination offer baton relay system in which dabbas 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 model on which this distribution network was design. All 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. For example, the delivery system does not rely on the computers.

The only change in the dabbawalas delivery model was the fine- turning of the coding system in 1996. 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.

STARTING POINT - 8.30 TO 10.34 AM

The day for the dabbawala starts at 8.30 am, with collection of dabbas at various houses. People 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. Because 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 required 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 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 Santacruze and meets the other group member at the designated spot at the station. This particular group of 10 dabbawalas takes the 10.34 am Churchgate local time everyday. Therefore the dabbawala have to make sure that they reach the platform for the sorting process at least by 10.15 am. In order to ensure smooth flow of their networking throughput there daily routine, this period in the morning that includes picking up the Tiffins and meeting at the designated spot on the station is most crucial part of the system. One bit delay in this aspect will disrupt the whole system. And will lead to a chaotic situation. Therefore the dabbawalas have to collect the Tiffins at time and reach the station with enough time left for the sorting to take place before train arrives.

SORTING PROCESS - 10.15 TO 10.34 AM

The critical phase of the system is sorting. Sorting of all the Tiffins according to their destination station and arranging them into wooden crates taken 20-25 mins. The aim of the process is to segregate the Tiffins and differentiate them as per the destination. Sorting makes them it easier to identify each group of Tiffins and less time consuming for respective dabbawalas. Sorting makes the entire process error free. The process is similar to that of the post office where letters are segregated according to their destination. Since 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 thats why the network is information rich.

This is a unique feature, as it requires no documentation and record keeping. There is no communication between the two groups, but just coordinating among them because the whole blue print is pre-decided by the dabbawalas themselves.

The Mukadam plays a key role here to ensure smooth working and coordination, his responsibility is to know all the Tiffins his group carrier. The responsibility of the Mukadm is to extend that he has to know all the Tiffins that his group carries. Therefore he must be able to recognize these Tiffins even if the codes on them are barely visible. Also if any member of the group absent from his duty for particular day for some reason. Then it is the responsibility of the Mukadam to ensure that all the dabbas that the absentees are responsible for are duly picked up and deliver back on time. Hence we see that the Mukadam plays a critical role in this stage for sorting and allocating jobs.

The dabbas are collected and sorted out and sent to their destination based on the numerical and alphabetical code. Every 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. An employees deliver the dabbas collected individually from houses at the railway station nearest to houses. At the station the destination are sorted out, based on the codes. And taken by trains to respective stations.

JOURNEY IN TRAIN 10.34 TO 11.20 AM

During this time the dabbawalas load the wooden crates on tiffins in to the goods and luggage compartment of the trains. Generally 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. Mostly the commuters dont get this compartment as they are already filled crates and there is not enough room. This is common understanding among daily commuters and dabbawalas. in any case the platform is filled with people. And 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 Dadar, Lower Parel, Grant Road and Churchgate.

The allocation of manpowerat each station depends on the number of Tiffins that have to be delivered in a particular area.

SORTING WHEN REACHING - 11.20 TO 12.30 PM

At this stage the unloading takes place at Churchgate and our destination station. Dabbawalas have to be dispatched accordingly and the dabbas are to be delivered in large quantities at times to areas like Nariman Point, RBI, and Stock Exchange. Now within that area, if one location like Mittal Tower has a huge number of Tiffins 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. He may not have in some cases, picked up his Tiffin from the originating stations; he has been allotted these dabbas only at Churchgate. This kind of specification makes the entire system efficient and error free.

The unique feature of system is that bigger buildings with large office densities. Like in Nariman Point and stock exchange building itself. An elevator is especially reserved for dubbawalas during lunch time. Usually 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 Mittal Chambers the dabbawalas leaves the Tiffins outside the respective offices. The peons come and give them to the respective client thats why even the peons are good to recognized Tiffins. So 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. Different groups have there lunch at different locations. It is generally on the footpath or on the benches on road side.

The break is for 45-60 mins. Till then customers finish having there lunch and keep there dabbas outside the office to get collected.

COLLECTION PROCESS 1.15 TO 2.00 PM

Here 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 dabbawalas are the same in this case. The one who delivers it to the office will be the same one to collect it. Most of the time the dabbawala will collect the dabbas from all the officers situated on the same floor will leave them in the corridor. Then he goes and collect all the dabbas from various floors and gets them at the base level. Finally 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 dabbas. While the other one goes and collect the remaining. This is related to a personal experience and hence the mention of this situation is critical in analyzing the mechanism of the system. By complains and suggestions from customers the dabbawalas can actually bring the improvement such as the one mention. A dabbawalas who can secure Tiffin can greatly help in reducing theft.

RETURN JOURNEY 2.00 TO 2.30 PM

After the collection is over the dabbawalas need the remaining members designated spot and the first assortment on the first return journey 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 Tiffins 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 just identify the boxes and put them into crates.

One important thing is to note is that a particular dabbawala need not operate in the same group throughout the day. He will, in most cases operate with two different groups one at the origination station and one at the designation station. The coordination is equally important in either group. And there is total unity among them.

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

TRAIN JOURNEY 2.48 TO 3.30 PM

This again is return journey by train where the group finally meets after the days routine after dispatching and collecting from various offices. The group members from Marine Lines, Grant Road and Dadar board and designated compartment and finally they arrive at origin station.

Usually since it is more of a pleasant journey compared to the earlier part of the day, the dabbawalas lighten up the moment by merry making, joking and singing. Dabbawalas have created impression on the passengers for being hardworking, dedicated and joyous people.

FINAL JOURNEY OF THE DAY 3.30 TO 4.00 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 Tiffins as per designated area. This is the easiest process because of the limited quantity of Tiffins that gets off the train with them. It is simpler to understand which Tiffin belongs to whom. The delivery process takes roughly 30-45 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 customers origin point. The customer is satisfied with the timely delivery of home food and getting Tiffins back to their origin.

There is still one important and unique aspect to this system and that is individual dabba. This dabbawala doesnt operate in any group. He picks up the dabba himself in the morning travels to various destinations to deliver and collect the Tiffins back to send to the origin. A real example of this kind of dabbawala can be cited here. This type of dabbawala travels from Ghatkoper to Cuffe Parade and back everyday. It is simply unbelievable that a person can work and travel so much everyday and can still maintain punctuality.

He operates on an 8.00am to 8.00pm shift. But he does not have an option of taking up the train to at any point because there are always Tiffins 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 just to earn a bit of that extra income.

CHAPTER 4

IMPLEMENTATION OF LOGISTICS BY DABBAWALAIn the dabbawalas elegant logistics system, using 25 kms of public transport, 10 kms of footwork and involving multiple transfer points, mistakes rarely happen. According to a Forbes 1998 article, one mistake for every eight million deliveries is the norm. For one, the system limits the routing and sorting to a few central points. Secondly a simple color code determines not only packet routing but packet prioritizing as lunches transfer from train to bicycle to foot.

The entire system depend on team work and meticulous timing. Tiffins are collected from homes between 7.00 am and 9.00 am, and taken to the nearest railway station. At various intermediary stations, they are hauled onto a platforms and sorted out to area-wise distribution, so that single Tiffin could change hands three to four times in the course of its daily journey.

At Mumbais downtown stations, the last link in the chain, a final relay on dabbawalas fan out to the Tiffins destined bellies. Lunch hour over, the whole process moves into reverse and the Tiffins return to suburban homes by 6.00 pm., 200 Tiffins are collected by 9.00 am, reach the station and sorted according to their destinations by 10.00 am when the Dabbawala Special train arrives.

The railway provides sorting areas on platforms as well as special compartments on trains traveling south between 10.00 am and 11.30 am.

During the journey, these 80 dabbawalas regroup according to the number of Tiffins to be delivered in a particular area, and not according to the groups they actually belong to. If 150 Tiffins are to be delivered in the Grant Road station area, then four people are assigned to that station, keeping in mind one person can carry no more than 35-40 Tiffins.

During the earlier sorting process each dabbawala would have concentrated on locating only those Tiffins under his charge wherever they come from, and this specialization makes the entire system efficient and error free. Typically it takes about ten to fifteen minutes to search, assemble and arrange 40 Tiffins onto a crate, and by 12.30 pm they are delivered to offices.In a way, MTBSAs 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. Packet switching maximizes network density, but there is a downside: your packets intermingle with other packets and if the network is overburdened, 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 process; lets take an example. At Vile Parle station, there are four groups of dabbawala, each has twenty members and each member services 40 customers. That makes 3,200 Tiffins in all. These 3,200 Tiffins have to be collected by 9.00 am, reached the station and sorted according to their destinations by 10.00 am when the Dabbawala Special train arrives.

THE CODING SYSTEM:

VLP:- Vile Parle9E12:- code for Dabbawala at destination

9:- number of dabbawala who picks it up at destination

E:- express towers (bldg. name)

12:- floor no.

E:- code for dabbawala at residential station

3:- code for destination station (E.g. Nariman point)SIX SIGMA AND DABBAWALASix Sigma can be used to create a brand business process from ground up. Six Sigma strives from perfection. It allows only 3.4 defects per million opportunities for each product or services transaction. Six Sigma relies heavily on statistical techniques to reduce defects and measure quality.

Six sigma experts (Green Belts and Black Belts) evaluate a business process and determine ways to improve upon the existing process. Six sigma incorporates the basic principles and techniques used in Business, Statistics and Engineering. These three form the core elements of six sigma. Six sigma improves the process performance, decreases variation and maintain consistent quality of the process output. This leads to defect reduction and improvement in profits, product quality and customer satisfaction.

Six sigma focuses on improving quality (i.e. reduce waste) by helping organizations produce products and services better, faster and cheaper. Six Sigma focuses mainly on defects prevention, cycle time reduction and cost savings. Unlike mindless cost cutting programs, which reduce value and quality, Six Sigma identifies and eliminates costs, which provide no value to customer and the production process. To understand the concept of Six Sigma one must understand the concept of normal curve.

DABBAWALAS WORK AS PER SIX SIGMA

Human sigma is a measure that focuses on reducing variances in key employee and customer outcomes by improving an organizations human performance and moving it towards excellence.

Six Sigma is quality improvement programmer that links output quality to financial performance provides tangible measures to help focus the organization and outlines processing for managing improvement. It calls for a quality level of 3.4 DPM (defects per million) and many Indian companies including TVS Lucas have benefited from application of the six sigma concept.Most interestingly, the humble dabbawala who delivers the Mumbaikar his home cooked lunch at his office on time, come rain or shine has achieved the coveted six sigma level of performance.

Interestingly this quality metric (measure) has now been extended to the human side of business an area that hitherto has never been quite so accurately measurable and its called Human Sigma. Curt Coffman, the global practice leader for Workplace and Customer Management for the Gallup Organization is credited with this phrase.

Human Sigma is a measure that focuses on reducing variance in a key employee and customer outcomes by improving organizations human performance and moving it towards excellence. Simply put, the human sigma approach shows how to manage and maximize the human difference. The concept was born out of an extensive research study by the Gallup Organization involving more than 80,000 managers in more than 400 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.

DABBAWALA: MUMBAIS BEST MANAGED BUSINESS

Prince Charles is not the first person to show an interest in the Dabbawala of Mumbai. In fact, the first time they actually shot to international fame was when his compatriots at the BBC did a documentary on them way back in the late 70s.

But it was in the 1990s, when management lexicon became a part of daily life, that the interest in Dabbawalahs, now synonymous with Mumbais blaringly fast life, grew. Today, they are feted regularly and invited to lecture students of business management. Corporate chiefs applaud them; management gurus use them as a model. Raghunath Medge, president, Nutan Mumbai Tiffin Box Suppliers Charity Trust, who met Prince Charles on Tuesday, will be in Lucknow in January to address the students of the prestigious Indian Institute of Management. And, in between, some management students will be spending time with him.

DABBAWALA ECONOMIC ANALYSIS

Everyone who works within this system is treated as an equal. Regardless of a dabbawalas function, everyone gets paid about 2-4,000 rupees per month (around 25-50 British pounds).

More than 1, 75,000-2, 00,000 lunches get moved everyday by an estimated 4,500-5,000 dabbawalas, all with an extremely small nominal fee and with utmost punctuality. According to a recent survey, there is only one mistake in every 6,00,000 deliveries. The American business magazine Forbes gave a six sigma performance rating for the precision of dabbawalas.

The BBC has produced the documentary on Dabbawalas, and Prince Charles, 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). Owing to the tremendous publicity. Some of the dabbawalas were invited to give guest lectures in top business schools in India, which is very usual. Most remarkable, the success of the dabbawala trade has involved no modern technology. The main reason for their popularity could be the Indian peoples aversion to fast food outlets and their love of homemade food.

MUMBAIS DABBAWALAS: EFFICIENCY IN SUPPLY CHAIN

Battling the traffic and crowds of Mumbai city everyday, unfailingly delivering about 2 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 5000 workforce is largely illiterate or semi- literate. Whats more, they have been doing this consistently for the last 115 years without using any IT.

The network operates on a meticulously planned and precise manner using a zoning system approach, that consist of several teams each team supervised by a Mukadam. The citys 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 65-70 kg on the heads of the dabbawalas. For his efforts, the dabbawala, who is also a shareholder in the Association, earns an average of Rs.5000/- per month. Currently, the Association has begun inviting dabba booking through SMS, 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 USP.

The Associations representatives spoke about the recognition that their organization was currently receiving from all quarters, especially after Prince Charles visit to the Mumbai Churchgate Station to interact with them, and also after their six sigma certification. Talekar made humorous reference to the

Thumbs Up status of the workforce a reference to their illiteracy and also to the inconsequence of certifications to the dabbawala who would rather get on with his job of delivering his dabba to the satisfaction of his customer. Medge, for his part, said that for the dabbawala, the customer was a greater king than any other royal representative.

What came across was the sincere belief of the dabbawalas in their role as Annadatas 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 Just- In- Time and Network Management, one certainly cannot find an equivalent in management parlance to their motivational tools. CHAPTER 5

ANALYSISUNIQUENESS OF DABBAWALAS

At 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. For this, they charge Rs.300 to 350 that $6-7. a month.

The workforce of the Tiffin box suppliers trust, the cooperative that runs the system, is 5,000. Each Tiffin box contains two or three containers, often carrying traditional Indian fare- rice, curry, chapattis, and vegetables. Housewives even send notes to their hubbies in these boxes.

Each tray can hold up to 40 boxes. These trays then travel in local trains down to various stations. At each station, there is another set of dabbawalahs who quickly take the dabbas meant for other stations.

A Mumbai local halts at a station for about 20 seconds or less and thus, the dabbawala have to work with precision and speed. During rush hour, its a nightmare. Ask anyone who has done time on Mumbai locals. At each station, the boxes are once more sorted for localities and offices and taken there by handcarts or sometimes carried by individuals. They carry up to 35 kg for distances of a couple of kilometers. The boxes are placed in the offices reception area by 12.30 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 journey home.

Forbes magazine gave this service its highest quality rating of sigma 6, which means that per million transactions, there is just an error of one.

On an average, a dabbawalah can make about Rs.3,000 to 5,000. the trust provides several services to its members, including schools for the children and health care in emergencies.

Mumbais 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. They tried a similar service in Delhi a few tears ago and it didnt work out; Delhi being a circular city, the logistics were difficult.

Today, the service delivers not just homemade food but also picks up food from caterers and deliver them to offices. But Medge said that foods from caterers are still a small segment of the total operation.

DISADVANTAGES OF THIS SYSTEM

The dabbawalas entire scheduling and system will be disrupted if any customer cause a delay in giving a dabba to him.

And secondly if the dabbawala falls ill or take leave due to any reason there wont 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. Even more that any other dabbawala who are working in groups. This is rather difficult considering the rigorous working and long hours required.

As 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 1st 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 dabbawalas carry out the operation with the help of just one code, which is absolutely reserved. This system is specifically for city like Mumbai. Such daily exercise can run successfully only in city like Mumbai because of the following reasons:

Plentiful commuters who goes to office daily. Presence of efficient and widespread railway network.

Large distance between residence and workplace.

An efficient and simple information system like coding used by dabbawalas.

IMPORTANCE OF DABBAWALAS They have 5,000 people on their payroll to ensure the prompt delivery of lunch boxes within Mumbai; these delivery boys travel by local trains and use bicycles or walk to reach every nook and corner of Mumbai. The lunch boxes are delivered exactly at 12.30 pm. Later, the empty boxes are collected and taken back to the homes, catering services or hotels before 5.00 pm.

On an average, every Tiffin box changes hands four times and travels 60-70 kilometers in its journey to reach its eventual destination.

Each 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.SUGGESTIONS: Logistics is very important aspect of dabbawalas. The error free system can be taken as blue print and be implemented in many systems.

Six sigma acts as very important aspect of shipment.

RECOMMENDATION:

Literacy rate has to be increased among Dabbawalas in order to help them over come all problems.

Dabbawala can implement this model in different countries.

Training has to be given to Dabbawalas in order to make them compete globally.

Need for global recognition.

Development of infrastructure for supporting initiative taken by Dabbawala.CONCLUSION The supply chain management systems used by the Mumbai Dabbawalas. They have global applause and are featured as case studies in B school books.

Apart from career- giving tips, they also give life changing tips on honesty, commitment, stress management, humility, discipline, and HR and Time Management.

The process begins early in the morning. Cooked food is picked up from houses and caterers by Dabbawala 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.

As long as the dabbawala service is there, Mumbaikars 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. Mumbais dabbawalas developed their homegrown version long before the was coined

ZONES FOR DESTINATION

OFFICES

LUNCHING TO

CARRIERS AT

DISTRIBUTION BY

1

7

6

5

4

3

2

(14)

PAREL

LOWER

10)

-

(1

GATE

CHURCH

GRANT

ROAD (12)

COLLECTION FROM HOME

E

D

C

B

A

& SORTING

AGGREGATION

POINT OF

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