SERVICE DOCUMENTPROF. ABHA WANKHADE

NAME : GAURAV SALUNKHE [MARKETING]

INDRABHUSHAN PANDEY [OPERATION]

SUBJECT: SERVICE MANAGEMENT

COURSE: MMS /SEM 4

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INDEX

1. SERVICE DEFINATION………………..3

2. SERVICE IDEA………………………….4

3. SERVICE & TARGET AUDIENCE……5

4. FEATURES OF SERVICE.......................8

5. CUSTOMER BENEFITS FROM FEATURES………………………………12

6. VALUE PROPOSITION………………...13

7. SERVICE DELIVARY………………….17

8. PRICING DOCUMENTATION………..22

9. SERVICE ASSURANCE………………..23

10. TERMS & CONDITION..........................24

11.CUSTOMER ACTIVATION…………...25

12.Future…………………………………….26

13.Management learning’s………………….27

SERVICE DEFINATION:

The supplying or supplier of utilities or commodities, as water, electricity, or gas, required or demanded by the public.

The organized system of apparatus, appliances, employees, etc., for supplying some accommodation required by the public: a television repair service.

There are various services present in the market they are as follows:

Trade Hotels and Restaurants Railways Other Transport & Storage Communication (Post, Telecom) Banking Insurance Dwellings, Real Estate Business Services Public Administration; Defence Personal Services Community Services Other Services

For this project I have select the “PERSONAL SERVICE” which is service of “MUMBAI DABBAWALAS”.

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Tiffin Carrier In India is known as “DABBAWALA”.

They provide Tiffin to various customers from their home to their desired destination in mumbai..It’s business model which is purely based on providing a service by carrying a tiffinbox of customer from their home to their workplace. Though it looked very simple but time management played very huge role in it & it also has less chance for error.

But still they are very successful in their business & it’s

“A Real story of the Organization Which really shake all the Masters of Business Administration Experts !”

SERVICE IDEA:

HOW THE DABBAWALA SYSTEM STARTED?

It was the time when British were ruling the India.Many British people who came to the colony did not like the local food, so a service was set up to bring lunch to these people straight from their homes.

New Government offices, Post Offices, Bridges etc. were being Constructed & lots construction was going on as part of city development programme.

There were no fast food chains like Mc’Donald or Pizza Hut which provide food in very less span of time.

A Parsi Banker employed a person to bring home made food to site of work because people always love to have fresh & homemade food which is good for their health.

His Colleagues too liked this idea and Started availing this service.

Slowly this evolved into the present 5000 strong Dabbawala System.

This service was introduced in 1880. In 1890, Mahadeo Bachche, started this service with only 100 men.

Later in 1930, he informally attempted to unionize the dabbawalas .In 1956, a charitable trust was registered in the name of Nutan Mumbai Tiffin Box Suppliers Trust.

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The comnmercial arm of this trust was registered in 1968 as Mumbai Tiffin carriers Association.

The present president of the association is Raghunath Medge.

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SERVICE & TARGET AUDIENCE:

1. WHO ARE DABBAWALAS ?

A dabbewala in Marathi ,literally means box person.Dabbawala is a person in Indian city of Mumbai who is employed in a unique service industry whose primary business is collecting the freshly cooked food in lunch boxes from the residence of office workers & delivering it to their respective work places and returning back the empty boxes by using various modes of transport.

There are total 5000 Dabbawala in Mumbai.

They carry 2, 00,000 Dabbas daily.

They are Six Sigma Certified.

ISO 2000 Certified

Most of employees working in organization are Illiterate.

They take Lecture in MBA institute due to their unique & innovative method of management.

No strike for 116 years

Icon Of Hard Work

A management Guru

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2.

FOUNDER OF DABBAWALA SYSTEM :

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Hon. Mahadu Havaji Bacche

Educated only up to Class 2

Started the Dabbawala System with a handful of 35 Dabbawala in 1890

Hon. Dhondiba Medge

Educated only up to class 4

Framed the Rules and Regulations of Dabbawala

3. BELIEVES OF DABBAWALA :

Work is Worship. Serving People is serving god. Annadan is Mahadaan. The Decedents of the Dabbawalas were the warriors in army of Chatrapati Shivaji Mahraj. Time is money. Unity is Power.

4. WHAT IS NUTAN MUMBAI TIFFIN BOX SUPPLIERS ASSOCIATION?

History- Started in 1890

Charitable Trust- Registered in 1956

Education:- 85% Illiterate

Total area Coverage:- 60Kms/ 70 Kms

Employee Strength:- 5000

Mukhadhams:- 635

No. of Dabbas:- 2,00,000 Dabbas i.e. 4,00,000 transactions every day.

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Time Taken:- 3 Hrs.

5. TARGET AUDIENCE :

Customer working in corporate.

Affluent families for lunch to their school- college aged children’s.

Those who don’t want to go home during their lunch time.

Those who don’t want to pay for meal in café.

Many office workers who have cooked meal from their home or from caterers.

The range of customers includes students (both college and school), entrepreneurs of small businesses, managers, especially bank staff, and mill workers.

They generally tend to be middle-class citizens who, for reasons of economy, hygiene, caste and Dietary restrictions or simply because they prefer wholesome food from their kitchen, rely on the dabbawala to deliver a home cooked mid-day meal.

FEATURES OF SERVICE:

The features of their service is based on three point formula :

1. Discipline.

2. Code of conduct.

3. Hard work.

“Service Quality” factor provided by Dabbawalas :

1. Error Rate:- 1 in 16 million transaction

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2. Six sigma Performance (99.9999)3. Technological Backup:- Nil4. Cost Of service:- Rs. 250- 300 per Month5. Standard price for all (Weight; Distance; Space)6. Rs. 30 Crore approximately Annual Turnover.7. “ No Strike” records as each one a share holder8. Earnings:- 4000 To 5000 P.m

Major features of supply chain :

1. 0% Fuel

2. 0% Modern Technology

3. 0% Investment

4. 0% Disputes

5. 99.9999 Performance

6. 100% Customer satisfaction

7. Food is taken from home or mess & is delivered at office.

Discipline:

This is the important factor of their process which is decisive in their success.

1. Wearing White Cap During business Hrs.2. Reporting To Duty on time3. Behave Properly & respect the customers4. Carry Identity cards.5. No Alcohol Drinking during business hours

Organizational Flowchart Of Dabbawala :

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President

Vice president 13 MEMBER

General secretary

Tresurer

Director (9)

Mukaadam

Member (500)

The Nutan Mumbai Tiffin Box Suppliers' Charity Trust had a very flat structure with only three levels, the Governing Council, the Mukadams and the Dabbawalas . From the Governing Council, a President and a Secretary were elected. The Governing Council held meetings once a month which were attended by the Mukadams and Dabbawalas. At these meetings, the Dabbawalas discussed their problems and explored possible solutions. The problems could be with the police, municipal corporation, customers, etc. They also adjudicated disputes among Dabbawalas using their own system. The Trust collected Rs.15 from each Dabbawala every month to maintain a welfare fund..

Although attrition rate is almost nil but still if some dabbawala leaves the organization for some or the other reason than he always finds his replacement so that work does not get disrupted. It is not a written rule but they are following it for generations as they feel that they have some responsibility towards organization. As it is quite understandable that members will play an active role in institution building if benefits which they derive far exceed the costs.

Coding system:

Initial Coding System used colored threads to mark 7 Islands

Then Utilized thrown away cotton waste from tailors.

Now using colour markers.

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Following are the examples of coding system which is very simple to understand & to implement.

EG. 1

EG. 2

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E:: Code for Dabbawala Street at residential station

VLP:: Residential Station Ville Parle

3:: Code for Destination station.

E.G :- Church gate

9:: Code for Dabbawala at Destination.

Ex: Express towers ( Building name)

12:: Floor no. in the building.

CODING OF DABBAS

1-11 CHURCHGATE

12 MARINE LINES

13 GRANT ROAD, BOMBAY CENTRAL

15 LOWER PAREL

16 DADAR (WEST)

17 DADAR (EAST)

18 ANDHERI (EAST, WEST)

CUSTOMER BENEFITS FROM FEATURES:

Customer will get benefit from this service which will help them to save their time & improve their health.

1. Relief for housewives :

Due to this service housewives don’t have to wake up early for making a tiffin box for their husbands & chidren.she can cook a food properly within enough time before lunch & can provide very fresh & “GARMA GARAM “food to her family members.

2. Fresh lunch :

People & kids at office & school respectively get a homemade fresh cooked food during their lunch time instead of having packed lunch. It helps to improve their health & also keep energy ruining till afternoon.

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3. Save travelling :

No need to travel by going home or to restaurant to have lunch. Also no need for parents to take their kids tiffin at school .Homemade lunch will be provide at desired destination in time.

4. Affordable cost :

Cost of service is 250 to 300 rs per month. This is very much affordable to everyone instead of losing money in filling fuel in vehicles & travelling by public transport.

5. Threat of strike :

“No Strike” records as each one is a share holder.

6. Identity :

Each Dabbawala has his own identity card & also he is aware about particular area allotted to him. So we can trust him.

7. Empty Tiffin box :

Dabbawala also take the empty tiffin box to the respective residence from destination. So no need to carry along with us while returning to home.

8. The dabbawalas even carry forgotten spectacles and mobile phones. Sometimes, customers even send home their salary with the empty Tiffin box. That’s customer service.

VALUE PROPOSITION:

It is answer to customer question that why they should buy your product or service.

Value proposition for Dabbawala are as follows :

Uninterrupted services :

1. The local dabbawala at the receiving and the sending ends are known to the customer personally.

2. They are well accustomed to the local areas they cater to.3. People communicate between home and work by putting messages inside the boxes.4. Known for time management and accuracy.

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Success factor :

1. Low cost delivery Rs. 250 to 3002. Delivery reliability – Because Error Rate 1 in 16 million transaction3. Entrepreneurs, not employees –Because each one is shareholder in an organization4. No strikes5. Flat structure6. Referrals from friends and relatives7. No dilution of service culture8. Decentralization of work process9. Perceived equality ie. Cost of operation is same for any Tiffinbox10. Use Suburban Railway Network which is fastest mode of transport in Mumbai city at an

affordable price.

Achievements :

1. Documentaries made by :

• BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY, SAHARA SAMAY, STAR TV, CNBC TV 18, CNN, SONY TV, TV TOKYO, NDTV.

2. CASE STUDY made by :

• ICFAI Press Hyderabad & Bangalore• Richard Ivey School of Business – Canada

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• Also, Included in a subject in Graduate School of Journalism University of California, Berkeley

3. Invitations from :

• CII for conference held in Bangalore, IIML, IIMA, CII Cochin, CII Delhi, Dr. Reddy’s Lab Foundation Hyderabad, SCMHRD Pune, SCMHRD Nasik, Sadahana – Pune, Rotary Club – Bangalore, NIQR at Chennai

4. Radio:

• German Radio Network, Radio Mirchi, Radio Mid-day, FM – Gold, BBC Radio, Radio City.

5. World record in Best Time Management with Six Sigma rating.Dabbawalas got six sigma .Dabbawalas were invited to collect the six sigma certificate they did not know what it is made of Gold or Bronze. The certificate is lying in cupboard eating dust. Dabbawalas got ISO 9001- 2000 for Excellence in service.The only thing that they think is “ Error is Horror” Dabbawalas work with Great efficiency without caring for any certificates.

6. Name in “GUINESS BOOK of World Records”.7. Registered with Ripley's “ believe it or not”.8. Participated in “Deal Ya No Deal Contest” by Sony Entertainment Television9. Invited for marriage of Hon. Prince Charles of England on 9th April, 2005

Porters five force theory :

It is included to show the industry competition in which Dabbawalas are operating, how they retaliate the competition & emerged as toughest player in this business.

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SWOT analysis :

It is included to show the customer their various aspects of internal & external environment.

Strengths:

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PORTERS FIVE FORCE THEORY

Competition: Its difficult to replicate their supply chain network New entrants: Fast food joints as well as office canteens. However, since neither of these serve home food, the dabbawallas' core offering remains unchallenged. Bargaining power of buyers: Delivery rates are so nominal (about Rs 300 per month) that one simply wouldn't bargain any further. Bargaining power of sellers: minimum infrastructure and practically no technology is used, hence they are not dependent on suppliers. Threat of a new substitute product or service: No substitutes to home cooked food in Indian scenario, hence threat to the dabbawalla service is not an issue at least in the foreseeable future.

• Simplicity in organization with Innovative service • Coordination, team spirit, & time management• Low operation cost• Customer satisfaction• Low Attrition Rate

Weaknesses:

• High dependability on local trains• Funds for the association• Limited Access to Education

Opportunities

• Wide range publicity • Catering

Threats

• Indirect competition is being faced from caterers like maharaja community • Indirect threats from fast foods and hotels• Change in timings• Company transport• Ticket restaurant

SERVICE DELIVARY:

Distribution Network :

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– Baton relay system– Hub and spoke arrangement– No historical, theoretical legacy in the design– No use of computer technology– Coding system – Decentralized at the group level– Workday schedule – 30-35 deliveries (manageable)– Sorting, loading and unloading at peak rush hours

– For handlings of a dabba in a day- coding essential

– K-BO-10-19/A/15– Clients name is not even existing– Easy coding scheme as the level of literacy is not very high

Supply Chain of Dabbawala :

The Flow Logic :

a)

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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.

Zones for destination

b)

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Point of AggregationAnd Sorting

C DB

A E

Collection from home

Executive Committee(5 members)

Teams of 20-25 headed bya group leader

Individual dabbawallahs workload:Collect from home – 35 tiffinsDelivery at office – 35 tiffinsReturn empty tiffins to home – 35 tiffins

Grant road 12

Churchgate 1 -10

Lower parel 14

1

2

3

4

5

6

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Distribution by carriers at lunch time to office

In this topic journey of Dabbawala is explained through their routine root from Andheri station to Churchgate station.

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PICK UP DABBA FROM RESIDENCE & BRING IT TO ANDHERI STATION.

9:30 A.M- 10:30 A.M

• This time period is Utilized for collecting Dabbas from Different places around Andheri • Dabbas are collected from different resources such as homes, hotels, messes etc. by

Dabbawalas & brought to Andheri Station.• Red Light, No entry etc. is crossed.• Now these collected Dabbas are sorted according to Destination.• Wherever there is Dabba- There is Dabbawala.

JOURNEY IN THE LOCAL TRAIN

10:34- 11:20 A.M ( Andheri Station)

• This time period is actually the journey time. The Dabbawalas load the wooden Crates filled with Tiffin on t the luggage or goods compartment in the train.

• Generally, they Choose to Occupy the last compartment of the train.• 12 coach Train• 4,000 Commuters• 8,000 Disputes• But no excuses Duty First.

UNLOADING & SORTING AT DESTINATION STATION

11:20- 12:30 P:M ( Church gate Station)

• At this stage; the unloading takes place at the destination station• Re- arrangement at Tiffin's takes place as per the Destination Areas & destination

buildings• Dabbas are Delivered by cycle; hand card or even walk.

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ANNADATAS HAVE THEIR FOOD

12:30P.M- 1:00P.M (LUNCH TIME)

• Dabbawalas carry their Food with them• Areas wise sit together & have their lunch• The family that eats together stays together.

COLLECTION OF EMPTY DABBA & SORTING AT DESTINATIONS STATION

1:15- 2:30 P.M( At all destination stations)

• Here on begins the collection process where the Dabbawalas have to pick up the Dabbas from the offices where they had delivered almost an hour ago

• The Return journey by train where the group finally meets up after the day’s routine of dispatching & collecting from various destination offices.

• The Dabbawalas meet for the segregation as per the destination suburb.

RETURN JOURNEY

2:48- 3:30P:M

• Usually since it is more of a pleasant journey compared to the earlier part of the day; the Dabbawalas lighten up the moment with merry making; joking around singing.

• There is no cause of tension or worry as customer has eaten the lunch.• Even if the Return journey is delayed little bit there is no problem.

SORTING & DELIVERY OF EMPTY DABBA

3:30- 4:40 P.M ( At all Origin Stations.)

• This is the stage where the final sorting & dispatch takes place. The group meets up at origin station & they finally sort out the Tiffin's as per the origin area & the empty Dabba is delivered at the Respected Residence.

• The actual address of the residence is not mentioned on the Dabba. It is remembered by the Dabbawalas.

PRICING DOCUMENTATION:

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Price :

The Cost of Service per person is Rs250/month it is Standard price for all (Weight, Distance and Space). The Dabbawalas Turnover is Approx Rs 50cr.Total Earning of 20 people is Rs125000. Earning per person varies from Rs5000 to 6000/month. Maintenance Cost is Rs 35000 per year. Tiffin Luggage Basket pass is Rs 180 per person. Maintenance Cost of cycles is Rs300 that is for 2cycles per month .Maintenance of wooden boxes is Rs100 per person .If any Police robbery of Tiffin is Rs500 yearly. An organizational fee is Rs 15 per head and Puja held per station Rs50 per head. They get Diwali bonus one month’s from customers.

Other physical products :

· Dabba ( Tiffin box) is Rs.200/-· Gandhi cap is Rs 50/-· Video CD is Rs.200/-· Dabbawala Mug is Rs.300/-· Dabbawala T-shirt Rs 400/-

Service charges vary from Rs 150 / £2 to Rs 300 / £4 per tiffin box per month, depending on location and collection time. Money is collected in the first week of every month and remitted to the mukadam on the first Sunday. He then divides the money equally among members of that group. It is assumed that one dabbawala can handle not more than 30-35 customers given that each tiffin box weighs around 2 kgs. And this is the benchmark that every group tries to achieve.Typically, a twenty member group has 675 customers and earns Rs 100,000 / £1,200 per month which isdivided equally even if one dabbawala has 40 customers while another has 30. Groups compete with each other, but members within a group do not. It's common sense, points out one dabbawala.

One dabbawala could collect 40 tiffin boxes in the same time that it takes another to collect 30. From his earnings of between Rs 5,000 / £60 to Rs 6,000 / £70, every dabbawala contributes Rs15 per month to the association. The amount is used for community improvement, loans and marriage halls at concessionary rates. All problems are usually resolved by association officials whose ruling is binding.

The New York Times reported in 2007 that the 125 year old dabbawala industry continues to grow at a rate of 5-10% per year.

SERVICE ASSURANCE:

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Error Rate : 1 in 16 million transactions

Six Sigma performance (99.999999)

An online poll on the web site ensures that customer feedback is given pride of place.

Meetings are held in the office on the 15th of every month. During these meetings, particular emphasis is paid to customer service.

If a tiffin box is lost or stolen, an investigation is promptly instituted. Customers are allowed to deduct costs from any dabbawala found guilty of such a charge.

If a customer complains of poor service, the association can shift the customer's account to another dabbawala. No dabbawala is allowed to undercut another.

Before looking into internal disputes, the association charges a token Rs 100 to ensure that only

Genuinely aggrieved members interested in a solution come to it with their problems, and the officials' time is not wasted on petty bickering.

TERMS & CONDITION OF BUSSINESS:

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Legal documents [ leases , contract & agreement]

Owners financial statements

Credit report

Permission license for opening business

Resumes of owners as well as employees

CUSTOMER ACTIVATION :

The customer activation is done through following activities

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1. Dabbawala goes high-tech:

"The world is moving ahead on technology," said Gangaram Talekar-61, the Hindi-speaking secretary of the Association, "and we have to move with times too. So we decided to take advantage of technology to expand our business."

New customers are generally acquired through referrals. Some are solicited by dabbawalas on railway platforms. Addresses are passed on to the dabbawala operating in the specific area, who then visits the customer to finalize arrangements. MODERN TECHNOLOGIES

E-COMMERCE

BOOKING THROUGH SMS OR PHONE LINES

ON-LINE BOOKING

PROPER DRESS CODE OF EMPLOYEES

DELIVERING FOODS ON BIKE INSTEAD OF CYCLE

2. Advertise With Dabbawala

Website www.mydabbawala.com

Website attracts more than 1 million visitors annually.

Informative newsletter

Send your leaflet, product description also with the Dabba.

Fees given for advertising are shared equally among dabbawala and are used for their welfare.

3. Promotion and education

Maharashtra government has roped them in to spread of AIDS awareness

Owing to the tremendous publicity ,some of the dabbawalas were invited to give guest lectures in top business school of India, which is very unusual.

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Future :

• Key concerns

– Shrinking customer base and loyalty

• Loss of textile mill workers in 80s amd 90s

• Each group authorized to target new customers (school children etc.)

– Lifestyle changes

• Not a major damage for the business

– Workforce management

• Next generations do not seem to be greatly interested

• Not many incentives for good workers

Management learnings from Dabbawala :

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Keep operational costs as low as possible.

Keep capital investment bare minimum.

Just serve your customer – nothing else.

Customer is not the Raja but Maharaja.

Complexity opposes compliance.

Never deviate from your core competency.

Do not be over dependent on technology.

Flat organization – fast decision making

Co operation inside – competition outside.

Keep extras for fault tolerance.

Commitment matters, qualification doesn’t.

Know the implication of failure.

Build your services around existing infrastructure.

Abandon bad customers.

Strike means suicide – labor means life.

Penalize employees for non compliance.

Do not transfer your employees very often.

Keep your employees emotionally united.

High salary alone cannot retain employees.

Be humble and do not boast your success.

HENCE SALUTE TO THIS “MUMBAI DABBAWALAS” WHO ARE THE “TRUE GURUS OF MANAGEMENT”.

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