Assignment Questions

Question 1:

How does the Dabbawala organization achieve its high service performance? What is its secret
for success?

 Members recruited in the organization were from only about 30 villages near Pune, which shared
same culture and values. This embedded a sense of belongingness and unity amongst the
dabbawalas.
 The dabbawalas were not educated and hence rarely questioned the system they were working
for. This resulted in less time consumption answering the queries of dabbawalas.
 Discipline was of utmost importance in the organization and this helped in swift resolving of
disputes or meting out punishment.
 10% of dabbas were delivered near their originating homes, without the help of any public
commute services.
 Dabbawalas used the extensive network of Mumbai local trains for delivery and took advantage
of the longitudinal landscape of Mumbai.
 Their operating costs were low, which were a result of using the existing railway network and
using low-maintenance, non-fuel-based transportation such as bicycles and handcarts.
 Various modifications were done to bicycles such as wide handlebars, addition of front basket
and a parcel tray behind the seat for accommodating dabbas, carrying a maximum of 30 to 35
boxes.
 A dabba typically changed hands only 4 times in a round-trip journey: 2 times at each originating
and destination railway station.
 Every dabbawala followed a fixed route and time schedule, which helps them in remembering
their tasks and thereby improve their efficiency.
 Also, the customer also knew the exact time by which the dabbawala will be coming, so the dabba
is already kept ready. This helped in squeezing the time frame for collection to about 30-60
seconds.
 Deciding upon a railway station as their central distribution center, eases out and simplifies the
delivery scheduling for different dabbawalas. This results in a hub & spoke distribution system.
 Dabbawalas positioned themselves according to the position of luggage compartment and
performed their tasks within a short time frame of 20 to 40 seconds.
 Usage of comprehensive system of identification codes enables easy identification of designated
dabbawala, origin and destination.
 Keeping a buffer of 2-3 members in each group and their cross-functional training, eliminates the
disruption caused by the absence of any regular dabbawala.
 The organization focused only on delivery of lunch and none of the other meals.
 They denied the opportunity of backward integration, stating that their proficiency is in delivery
only.
Apart from the technical aspects, the most important factor enabling such high efficiency is the
dedication of dabbawalas to deliver the dabba on time and treating the dabba as a medicine for a
patient.

Question 2

Why do world-class companies like FedEx study the dabbawala system? What do they expect to
learn?
 With no use of technology, Dabbawallas are highly synchronized and integrated. FedEx uses a lot
of technology and are highly dependent on it.
 Due to flat structure, decision making is quick in Dabbawalla. FedEx can easily adopt this
structure into their organization.
 Dabbawalla used existing transportation and supply chain for delivery whereas FedEx owns
multiple vehicles and planes for its delivery. They cannot completely remove this, but surely, they
can integrate public transport where ever possible.
 Since dabbawalla are not working as employees but as a partner thus takes full responsibility for
the work and are highly committed.
 FedEx can learn ways to maintain customer relationship and improve service level.
 Just like Dabbawalla, they can also hire local employees to take full advantage of local know how
and language.
 Dabbawalla is sticking to their core competency since their inception. Many companies usually
look forward to vertical or backward integration once they achieve economies of scale. FedEx can
take learning from Dabbawalla and do what they do the best.

Question 3
A consultant wants to move the dabbawala system into the twenty-first century and proposes
several changes. How should Raghunath Medge respond?

(a) Stop the consultant immediately

(b) Make changes to the system. Please list specific examples of what you would change.

Raghunath Medge should listen to the consultant and figure out what all changes are feasible and can
be made. Only those changes should be made which are in alignment with the CTQs (Critical to
Quality).

 Create a database of the customers: This data may help in generating more business from the
existing customers. Database of the customers can give an overall perspective of the system and
upon further analysis, some improvements can be made. Moreover, the database can be made
with proper IDs and background verification of customers and thereby will add as an advantage
to security. With a strong database customer without permanent address in Mumbai can become
new prospects for business. They may also start parcel services.
 Basic Cell phones can be given to each dabbawala: The cost of initial investment can be
subsidized with the help of donations and NGOs. Having cell phones can enable online order
booking and cell-phone based text inquiry system.
 Incorporation of E-rickshaw: Generally, while picking the dabbas, the traffic is less as the
dabbas are generally picked from residential areas and while delivering the dabbas, the traffic is
more considering they are being delivered in commercial areas. E-rickshaws can be incorporated
to certain regions as per the feasibility. The advantage will be to carry more dabbas at one go.
The initial investment may be subsidized by government and other NGOs and donations. The cost
of operations includes charging the E-rickshaw which is approximately Rs 40 for 80 kilometers.
The average distance travelled in a day for delivering (including forward and reverse logistics)
dabbas is about 10 kms (4+4+1+1). Hence, on a single charge, the dabbawala can use it for a week.
Parking can be made in the parking area of the stations. Therefore, the operation cost is marginal.
The secondary advantage to this that they can drive E-rickshaws once they are done for the day
with the dabbas and can have additional income.