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Case: The Dabbawala System: Presented by

The document discusses how world-class companies like FedEx study the Dabbawala system in India and what they expect to learn. Specifically: - They aim to learn about achieving low operating costs through the use of existing rail infrastructure and non-fuel based transportation like bicycles. - Other lessons include maintaining a high level of service quality comparable to six sigma while keeping error rates extremely low, and utilizing a flat organizational structure and incentive-based pay. - Companies hope to understand how the Dabbawalas have aligned their complex food delivery processes with the skills of their primarily illiterate workforce.

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Ayush Bhatnagar
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192 views5 pages

Case: The Dabbawala System: Presented by

The document discusses how world-class companies like FedEx study the Dabbawala system in India and what they expect to learn. Specifically: - They aim to learn about achieving low operating costs through the use of existing rail infrastructure and non-fuel based transportation like bicycles. - Other lessons include maintaining a high level of service quality comparable to six sigma while keeping error rates extremely low, and utilizing a flat organizational structure and incentive-based pay. - Companies hope to understand how the Dabbawalas have aligned their complex food delivery processes with the skills of their primarily illiterate workforce.

Uploaded by

Ayush Bhatnagar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Case : The Dabbawala System

Presented by:
• Amritha V. : 19PGP022
• Arvind Kumar : 19PGP028
• Ayush Bhatnagar : 19PGP031
• Mohd Asad Khan : 19PGP084
• Mayank Jain : 19PGP081

Section A : Group 9
• Quality level : They have operating quality level
Ques 01: How comparable to six sigma processes.
• Word of mouth: Positive word of mouth helped in
does the acquiring new customers.

Dabbawala • Organization system: Owner partner system based on


profit sharing model. Loosely coupled groups which
organization managed their own operational activities.
• Recruitment and Training: Hired only from 30 villages
achieve its high around Pune and it was based on employee referral.
Hired on probation of 6 months. Trainees learned on the
service job by performing all the activities.

performance? • Low operating cost: They incur low operating cost as


they used existing infrastructure i.e. railways, and low
What is its secret maintenance, nonfuel based transportation like bicycles
and handcarts.
for success?
• Coding system: Each dabba has codes on it,
which contained delivery information,
Ques 01: How does helped them identify which ones they need
to carry. This had led to an impressive error
the Dabbawala rate of 1 error in 6 million deliveries.
organization achieve • Hub and spoke delivery system: In their
its high service distribution model, the railway station served
as central sorting and distribution point and
performance? What each station had different delivery routes.
is its secret for • Organization structure: They followed flat
success? organization structure, which helped them in
making quick decisions during variability
which are caused by weather conditions.
The dabbawala mill distribution networks an example of world class
service. Companies like FedEx can learn the following things:
 Cost-Effective Transportation : Utilizing trains, bicycles and hand
carts substantially reduces operating costs for the Dabbawalas.
Trucks, cars and other automobiles require large initial
Why do world-class investments, maintenance and gasoline. 
companies like  Sustainability : The delivery methods utilized are sustainable and
FedEx study the are not as harmful to the environment as automobiles. Plus
employees are active, which contributes to better health and
Dabbawala system? morale.
What do they  Low Transaction Error Rate : The Dabbawalas have less than one
expect to learn? error per million transactions. This means the Dabbawalas operate
with a phenomenal level of accuracy rarely achieved by other
businesses.
 Flat Organizational Structure and Incentives :The flat
organizational structure of the Dabbawalas reduces overhead
costs and empowers frontline employees. Pay is based on team
results and is shared equally among employees. This incentivizes
all team members to work efficiently to achieve optimal results.
Why do world-class companies like FedEx study the
Dabbawala system? What do they expect to learn?

Aligning the process with


workforce skills :The Dabbawalas
utilize a coloring system to
differentiate lunchboxes. Most of
Effective workforce : The the Dabbawalas are illiterate and
Dabbawalas have also right-sized do not use technology. The
their workforce in an effort to company developed a system
reduce costs, and maximize the which aligns its food delivery
efficiency of operations. service with its employees’ skill
sets. The system allows for quick
identification, packaging, on
boarding and distribution to
customers. 

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