Management Control System

Mumbai Dabbawala

Presented ByArnav SubbaSandeep Goel (1083)

Mumbai Dabbawalas - An Introduction

• By Mahadeo Havaji Bacche who inaugurated “The Nutan Mumbai Tiffin Box Suppliers Trust”

•Almost 5000 Dabbawalas deliver and collect more than 200,000 lunch boxes very day, across the entire MumbaStarted in 1880•Total distance coverage in a day : 60-70 Kms •No. of Dabbawalas : 5000 •Number of Tiffin's suppied in a day : 2,00,000

Organizational Structure

Process- Supply Chain

Pick up Dabba from Residence/Caterer

and bring it to Andheri Station.

*Journey in Local Train*

Unloading and Sorting at

Destination Station.

Delivery to respective customers.

Collection of Empty Dabba.

Sorting at Destinations station.

Returning Dabba to Residence/Caterer.

Information SystemWhere to go ?

VP- Vile ParleC- Cooper HospitalRed Color Denotes the Station10- Nariman Point9- Dabbawala Handling the destination areaM-Mittal Tower16-16th Floor

Pricing

Charges vary between 150-300 depending on a number of a factors :-

• Location• Time• Money Collection Process• Money divided equally among the group members• Contribution of Rs 10-15 per month to the association• Each dabbawala earns Rs 4000-5000 per month on

average• Loans are given by the association

HR Aspects

• No HR policies but work with self motivation• Recruitment through word of mouth• Each person in the value chain is selected

through due recommendation• Referrer assumes the responsibility for the

incumbent• Attrition rate is very low

Operational Control

Each Dabbawala in itself is a:• Responsibility Center• Expense Centre• Revenue Centre• Profit Centre

Each Dabbawala is a business Unit

Role of Association in Control

• Handling of funds • Handling the internal disputes• Charge of Rs 100-200 before looking into any

complaint• Meeting conducted every 1st day of the month• Follow a code of ethics- no dabbawala is

allowed to undercut other• Dabbawalas’ are bound to wear white cap

Role of Association in Control

• Each Dabbawala is allowed to carry a max of 35 boxes

Disciplines• No Alcohol drinking during business hours• Wearing White Cap during business hours• Carry Identity Cards

Key success factors- MCS

• 99.9999% of correctness in delivering the dabbas (achieved 6+ sigma) i.e. one error in 6 million transactions

• Buffer Lead time: Have around 2-3.5 hours to deliver the boxes. 30-45 min to collect the boxes. 30-45 min to deliver the boxes. Time slack in the delivery process.

• System design according to human capabilities

SWOT Analysis

Strength

• Commitment to serve attitude• Coordination, team spirit & time management• Low operation cost• Customer satisfaction• Low attrition rate

Weakness

• Highly dependent on local trains• Funds for association• Limited access to education

Opportunity

• Wide range publicity• Low cost • Catering services• Advertising: Approached by many companies• Network in other cities like Pune

Threats

• Indirect competition is being faced from caterers like maharaja community

• Indirect threats from fast foods and hotels• Change in timings• Company transport• Shut down of many textile companies• Subsidized Lunch• Ticket Restaurant

Thank You