1 Service Standards and Measurement Webinar Series Summary March 6, 2009.

1

Service Standards and

Measurement

Webinar Series Summary

March 6, 2009

2

“Establishment of Modern Service Standards”

By December 20, 2007, in consultation with the PRC for all Market Dominant Products

Various Objectives and Factors to be consideredValue, access, reliability, measurability

Implementation of a Measurement System\

Law Requirements

Service Standards and Targets

3

First-Class Mail (Single-Piece and Presort) International Single-Piece Periodicals Standard Mail (Origin and Destination entry) Package Services

Includes Single Piece Parcel Post, Media Mail, Bound Printed Matter, Library Mail

Special Services

Market Dominant Products Requiring Service Reporting


4

Two Levels of Service Standard Review Ongoing Maintenance - Quarterly

Localized adjustments

National Systemic Review - Annual Review System wide review First annual internal review Oct - Dec. 2009

Evaluate business rules Considerations

Operationalizing service standard initiatives Network plan Full year of performance measurement data

Ongoing Review Process


5

Based on Operating and Logistics capabilities by product

Class based, independent of shape

Integrate origin entry and destination entry standards

Service Standard Business Rules


6

Estimated Volume Distribution – All Market Dominant Products

Sources: FY2007 ODIS/RPW, and YTD2007 Trend Summaries

0.1%

9.8%

90.1%

0

50,000

100,000

150,000

200,000

1 - 5 6 - 10 11+

Service Standards (Days)

Vo

lum

e (

in m

illi

on

s)


7

Estimated Volume Distribution – All Market Dominant Products


0

20,000

40,000

60,000

80,000

100,000

1 2 3 4 5 6 7 8 9 10 11+

Es

t. P

iec

e V

olu

me

(in

mill

ion

s)

DDU DSCF DADC DBMC ORIGIN

21.6%

17.0%

38.2%

0.7%

12.6%

2.1% 3.9% 3.0%

0.7% 0.1%0.1%


8

Estimated Volume Distribution – First-Class Mail

0

10,000

20,000

30,000

40,000

50,000

1 2 3 4 5

Est

. Pie

ce V

olu

me

(in

mill

ion

s)

ORIGIN

41.2%

26.4%

32.2%

0.0%0.3%

Sources: FY2007 ODIS/RPW and FY2007 WebEIS


9

Estimated Volume Distribution – Periodicals


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1 2 3 4 5 6 7 8 9 10+

Es

t. P

iec

e V

olu

me

(in

mill

ion

s)

DDU DSCF DADC ORIGIN

1.0% 0.1% 0.4%

7.6%

13.6%6.3%

0.4%3.5%

64.7%

2.4%


10

Estimated Volume Distribution – Standard Mail


0

10,000

20,000

30,000

40,000

50,000

60,000

2 3 4 5 6 7 8 9 10 11+

Est

. Pie

ce V

olu

me

(in

mill

ion

s)

DDU DSCF DBMC ORIGIN

8.9%

46.0%

0.6%

25.3%

3.9%

7.5%6.0%

1.3% 0.2%0.2%


11

Estimated Volume Distribution – Package Services

Sources: FY2007 ODIS/RPW

0

100

200

300

400

1 2 3 4 5 6 7 8 9+

Es

t. P

iec

e V

olu

me

(in

mill

ion

s)

DDU DSCF DBMC ORIGIN

5.8%

37.0%

29.4%

11.5%

0.5%0.6%

5.7%

0.3%

9.3%


12

First-Class Mail Flow

Origin Entry

PostOffice

MailerSurface/Air

TransportationIn

Home

1 - 4 Days

OriginP&DC

Turnaround O/NSCF Service

Area

Non- turnaroundO/N SCF

Service Area

ADC SCF DDU


13

Periodicals Mail Flow Origin Entry

Destination Entry


PostOffice

MailerIn

Home

1 - 4 Days

OPDC = SCFSVC STD = 1 Day

Long HaulSurface

Transportation

1 Day

OriginP&DC

Turnaround O/NSCF Service

Area

ADC SCF DDUL009

1 Day 1 Day 1 Day

L201 - FCMSurface

Follows FCMFrom thisPoint on

ADC = SCF(1 Day)

1 Day

InHome

ADC SCF DDU

1 Day 1 Day

DBMC

1 Day (ADC = SCF)

14

Standard Mail Flow

PostOffice

MailerIn

Home

1 - 4 Days

OPDC = ADC

Long HaulSurface

Transportation

1 Day (L009)2 Days (Turnaround)

OriginP&DC

Turnaround toADC Service

Area

ADC SCF DDUL009

1 Day 2 Days 1 Day

Turnaround toSCF Service

Area

ADC = SCF(1 Day)

1 Day

OPDC = SCF

Origin Entry

Destination Entry

InHome

ADC SCF DDU

1 Day 1 Day

DBMC

2 Days1 Day


15

Package Services Flow

Origin Entry

Destination Entry

PostOffice

MailerIn

Home

1 - 4 Days

Long HaulSurface

Transportation

1 Day

OriginP&DC

ASF SCF DDU

1 Day 1 Day 1 Day

Turnaround toSCF Service

Area

OBMC = DBMC (ASF)

OPDC = SCF

OBMC

Turnaround toBMC Service

Area

DBMC

1 Day

OBMC = DBMC (no ASF)

No ASF(1 Day)

InHome

1 Day

DBMC/ASF SCF DDU

1 Day1 Day


16

New Origin Entry Service Standards - Domestic

* Alaska, Hawaii/Guam and Puerto Rico/Virgin Islands not included

End-to-End Flow

Range (days)*

First-Class Mail 1 - 3

Periodicals 1 - 9

Standard Mail 3 - 10

Package Services 2 - 8

Mail Class


17

New Destination Entry Service Standards - Domestic

* Alaska, Hawaii/Guam and Puerto Rico/Virgin Islands not included** Only applies to Periodicals receiving the DBMC Container rate

*

**

DDU SCF ADC BMC

(Days) (Days) (Days) (Days)

Periodicals 1 1 1 - 2 1 - 2

Standard Mail 2 3 5

Package Services 1 2 3

Mail Class

Destination Entry


18

New Service Standards – Alaska, Hawaii/Guam and Puerto Rico/Virgin Islands

Performance Measured at Port of Entry

Length of range due to additional time required for transportation (duration of travel and frequency of available transport)


19

USPS Operational Changes – Internal

Established process for Mail Flow to achieve Service Standards

Revised Color Code policy

Revised Mail Condition Reporting System policy

Updated all Mail Processing Operating Plans


20

Analyzed and updated labeling lists

Established national critical entry time for destinating Standard Mail All other CETs established locally

Create and deploy Customer/Supplier Agreement templates and determine optimal separations (in process)

Implement Full Service Intelligent Mail in May 2009

USPS Operational Changes – Customers


21

FY09 Targets - Market Dominant Products

%On-Time %On-TimeMail Class Target EOY Mail Class Target EOY

First-Class Mail PeriodicalsSingle Piece Overnight 96.5 Letters and Flats 90.0Single Piece Two-Day 94.0Single Piece Three-Day / Four-Day 92.7Presort Overnight 96.5Presort Two-Day 94.0Presort Three-Day / Four-Day 92.7


Single Piece International Mail Package ServicesFirst-Class Mail 94.0 Parcels 90.0


Standard Mail Letters, Flats and Parcels 90.0 Special Services 90.0

91.0


22

Section 3691 Establishment of Modern Service Standards

“To provide a system of objective external performance measurements for each market-dominant product as a basis for measurement of Postal Service performance.”

“…With the approval of the Postal Regulatory Commission an internal measurement system may be implemented instead of an external measurement system.”

Law Requirements

Service Measurement

23

Essentials of Service Measurement:

Three data points required:

“Start-the-clock”; when the mail entered USPS network

“Stop-the-clock”; when did USPS effect, or in some cases attempt, delivery

Established Service Standard for comparison

Service Measurement

24

Design of Service Measurement System: Achieve three fundamental requirements:

Fulfill legal requirement of Service Measurement reports to PRC

Enable an internal diagnostic system

Provide granular information to mailers

Service Measurement

25

Service Measurement Approaches:

External Measurement (EXFC or EXFC-like)

Hybrid (combination of internal and external)

Internal (only uses USPS captured data)

Service Measurement

26

External Measurement:

Applies to: First-Class (Single-Piece) - EXFC Single Piece International – IMMS

Third-party vendor creates “test mail”

“Test Mail” anonymously dropped into USPS network; date/time recorded

“Test Mail” received by panel of recipients; date/time recorded

Service Measurement - External

27

EXFC Expansion in FY 2009

As of October 1, 2008, virtually all 3-Digit SCF included in EXFC

Specific 3-Digit, and in limited cases 5-Digit, exclusions submitted to PRC

Coverage expanded to 891 ZIP Codes

Additional 428 ZIP CodesRepresents 99% of Single Piece First Class volume

Reflect Modern Service StandardsIncludes Four and Five Day Service StandardImpacts Alaska, Honolulu and Caribbean


28

Increased EXFC test mail volume

Increased overnight volume for PCs with increased coverage and origin-destination ZIP Code pairs

Additional two and three-five day destinating volume for all PCs

Service Standard

Destinating Volume Target per PC

Current EXFC System

Destinating Volume Target per PC

Expanded EXFC System

Overnight 4,785 pieces 4,785 piecesTwo-Day 1,500 pieces 2,285 pieces

Three-to-Five-Day

1,500 pieces 2,685 pieces


29

National Percent of Letter Failures Pareto Chart

54.9%

13.0%

5.2% 4.7% 4.4% 3.2% 3.1% 3.1% 2.6% 2.1% 2.0% 0.9% 0.7%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Failure Category

Per

cen

t o

f F

ailu

res

Originating Destinating

EXFC O/N Letter Service Impact – 1/3/09 – 2/27/09

1.93 % point impact 0.10 % point impact

1.47 % point impact


30

MHTS FCM Service Predictor

Delivery Unit Processing

Origin Processing

Destination Processing

DeliveryTransport to Delivery Unit

Transport to Destination

Collection

Collection Factor

MHTS Service

Last Mile

Factor% On-Time

EXFC O/N Letters 0.10 98.98% 1.93 96.95%


31

Last Mile Impacts on FCM Single-Piece

Get mail in DPS – automate volumes

Connect rejects / rework volumes from DPS

Reduce At Risk volumes - machine and operator quality

Dispatch trucks on time 0400 – 0900

Connect hot case - timely customer service distribution

CollectionDelivery Unit Processing

Origin Processing





32

Key FCM Single-Piece Actions

Collection box management process in place

Standardized mail flows in place

Operating plan and 24 hour clock adherence discipline

High levels of machine and operator method quality

Service responsive transportation

Timely customer service distribution


33

Hybrid Measurement:

Will take effect with the implementation of the Intelligent Mail, Phase 2

Applies to: First-Class (Pre-sort) Standard Periodicals

Supplements mail scans from internal Intelligent Mail® system with externally collected data

Service Measurement - Hybrid

34

Hybrid Measurement Approach

Origin Processing


DeliveryAcceptance Transport to Delivery Unit



Stop-the-Clock

External reporters scan IMb on mail at delivery

Visible through Intelligent Mail, up to final MPE Operation Code or other scan event

External Measurement

External Reporters will scan live mail

Contractor will calculate delivery service performance factor for each mail class

Factor combined with IM data to form end-to-end measurement

Delivery FactorExternal

Stop-the-Clock


35

First-Class Pre-Sort and Standard Interim Approach

Will use “first processing scan” at point of entry as a proxy for Start-the-Clock

Processing scan on USPS automated equipment clearly demonstrates the mailing has been entered into USPS Network

As Mailers/USPS demonstrate capability, we will transition to container scans at entry


36

IMAQ BMEU FCM Seeding Trend

IMAQ BMEU Seeding Results - First-Class Mail - Letters

60%

65%

70%

75%

80%

85%

90%

95%

5/1

6/2

008

6/1

6/2

008

7/1

6/2

008

8/1

6/2

008

9/1

6/2

008

10/1

6/2

008

11/1

6/2

008

12/1

6/2

008

1/1

6/2

009

2/1

6/2

009

Overnight 2 - Day 3 - Day


37

IMAQ BMEU Seeded Commercial FCM30 Day Period Ending February 27, 2008

Pieces % On Time Target Gap

Overnight 30501 86% 96.5% 10.5%

2 Day 27249 87% 94.0% 7.0%

3 - 5 Day 24673 85% 92.7% 7.7%


38

Operational Impacts - Acceptance

Retail holdouts and mail prep compliance

BMEU hand-off

Customer Supplier Agreements

Validated acceptance scans

Delivery Unit

Processing

Origin Processing


DeliveryAcceptance Transport to

Delivery Unit

Transport to

Destination


39

Operational Impacts - Processing and Transportation

Operating plan discipline and 24 Hour Clock execution



Dispatch right mail on right network

Delivery Unit

Processing

Origin Processing


DeliveryTransport to

Delivery Unit

Transport to

Destination


Acceptance

40

Operational Impacts - Last Mile

Delivery Unit

Processing

Origin Processing


DeliveryTransport to

Delivery Unit

Transport to

Destination

Merge local first class letter mail at origin or two and three day mail at destination

Nearly all First Class letters flow to delivery through DPS


Acceptance

41

Impact of Processing and Transportation


Origin Processing




Collection

Collections / Acceptance

Processing and Transportation

Last Mile

% On-Time

EXFC Overnight Letters 0.10% 1.47% 1.93% 96.50%


42



Last Mile

% On-Time


IMAQ BMEU Overnight Letters 0.00% 13.66% 1.93% 84.41%


Origin Processing


Delivery

Acceptance

Transport to Delivery Unit

Transport to DestinationCollection



43



Last Mile

% On-Time


IMAQ BMEU Overnight Letters 0.00% 13.66% 1.93% 84.41%

EXFC 2 Day Letters 0.06% 4.96% 1.74% 93.24%

IMAQ BMEU 2 Day Letters 0.00% 13.08% 1.74% 85.18%

EXFC 3 Day Letters 0.06% 7.89% 1.41% 90.64%

IMAQ BMEU 3 Day Letters 0.00% 15.12% 1.41% 83.47%



44

IMAQ BMEU Standard Mail Seeding Trend

IMAQ BMEU Standard Mail Results

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

6/2

0/2

008

7/4

/2008

7/1

8/2

008

8/1

/2008

8/1

5/2

008

8/2

9/2

008

9/1

2/2

008

9/2

6/2

008

10/1

0/2

008

10/2

4/2

008

11/7

/2008

11/2

1/2

008

12/5

/2008

12/1

9/2

008

1/2

/2009

1/1

6/2

009

1/3

0/2

009

2/1

3/2

009

2/2

7/2

009

Week Ending

On T

ime P

erc

enta

ge


45

Local vs Non-Local Standard Mail

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

11/7/2008

11/14/2008

11/21/2008

11/28/2008

12/5/2008

12/12/2008

12/19/2008

12/26/2008

1/2/2009

1/9/2009

1/16/2009

1/23/2009

1/30/2009

2/6/2009

2/13/2009

2/20/2009

2/27/2009

Week Ending

On T

ime

Per

centa

ge

Ser Std 3 - 4

Ser Std 5 - 22


IMAQ BMEU Standard Mail Seeding TrendLocal vs. Non-local

46

Destination Entry Saturation Mail

Home Depot method by carrier route - Saturation Mail Barcode Sheet

Start the Clock: Clerks Scan “Arrival at Unit”Stop-the-Clock: Carrier and PO Box clerks

scan Saturation Mail Barcode Sheet to indicate “Delivered” for the last delivery date (if in-home specific dates are requested for a mailing), i.e., when last pieces are taken to the street or delivered to a PO box


47

Participating Saturation MailersParticipating Saturation Mailers

RED PLUM PENNYSAVER


48

Clerk scans pallet / container“Arrival at Unit”

Clerk Distributes

Clerk stages away from carrier case

YESAre bundles

sorted to carrier case?

Carrier scans Saturation Mail

barcode at staging area and selects

“Delivered”

Carrier scans Saturation Mail

barcode at carrier case and selects

“Delivered”

NO

Carrier retrieves Saturation Mailing

Note:

Box Section clerk will also scan a saturation mail barcode sheet once all saturation mail has been placed into the PO boxes


Destination Entry Saturation Mail Receiving and Scanning

49

Destination Entry Saturation Mail

Implement standardized processes Ensure IMD software is uploaded Monitor compliance reports to ensure scanning

procedures are being followed Ensure communication/SOP’s are cascaded to

delivery units


50

Other Standard Mail Measurement Challenges Carrier route bundles (future)

Density mailings

Container scanned when arrived at unit

Random bundle scanning when delivered


51

Key FCM Presort and Standard Mail Actions Everything counts

Scanning

Secure BMEU hand-off procedures

Operating plan and 24 hour clock discipline



Right mail on the right network at the right time


52

Periodicals Interim Approach Use of two external systems -

Red Tag and DelTrak

Measurement calculated and reported by external providerStatistical validity only at Area level

Once IM adoption is sufficient, measurement process similar to commercial letters and flats

Start-the-Clock Stop-the-Clock

FAST appointment Delivery date reported by each system’s monitors


53

IMAQ BMEU Periodical Seeding1-2 Day Service vs 3 - 18 Days

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

10/10/2008

10/17/2008

10/24/2008

10/31/2008

11/7/2008

11/14/2008

11/21/2008

11/28/2008

12/5/2008

12/12/2008

12/19/2008

12/26/2008

1/2/2009

1/9/2009

1/16/2009

1/23/2009

1/30/2009

2/6/2009

2/13/2009

2/20/2009

2/27/2009

Week Ending

On

Tim

e P

erce

nta

ge

1 - 2 Day

3 - 18 Day

All Service


Periodicals Interim Approach

54

IMAQ BMEU Periodical Seeding Comparison to External Measurement

30.00%

35.00%

40.00%

45.00%

50.00%

55.00%

60.00%

65.00%

70.00%

75.00%

80.00%

10/10/2008

10/17/2008

10/24/2008

10/31/2008

11/7/2008

11/14/2008

11/21/2008

11/28/2008

12/5/2008

12/12/2008

12/19/2008

12/26/2008

1/2/2009

1/9/2009

1/16/2009

1/23/2009

1/30/2009

2/6/2009

2/13/2009

2/20/2009

2/27/2009

Week Ending

On

Tim

e P

erce

nta

ge

External Measurement

All Service


Periodicals Interim Approach

55

Periodicals Future Approach

Will initially use “first processing scan” at point of entry as a proxy for Start-the-Clock

Prefer container scans at entry for Start-the-Clock Stop-the-Clock will be random bundle scans by

delivery personnel (or FSS scans)

Reporter validation


56

Service Measurement

Visibility

Electronic Mailing

Information & Payment

ReconcileElectronic

Documentation with physical mail pieces

Record/Scan at Entry

InductionStart-the-Clock

Electronic Advance

Notification

Unique BarcodesMail Preparation

ScanIn-Process


57

Acceptance of business mail

Entered at the BMEU

Plant Verified Drop Shipment

DMU Verified, USPS Transported

DMU Verified, Mailer Transported

Mail must be accepted prior to Critical Entry Time (CET) to receive same-day processing.


58

Critical Acceptance Time: The latest time mail can be presented for verification for Day Zero processing

Critical Entry Time: The latest time mail can be presented to postal operations for Day Zero processing

Customer Supplier Agreements (CSA): The CSA is a standardized agreement between the USPS and mailer which confirms the origin-entry preparation requirements, the acceptance window, and schedule of transportation times for all origin entered mail classes


59

BMEU Start-the-Clock

event is the documented time

of arrival at the BMEU

BMEU Origin Entry Start-the-Clock


60

• Critical Acceptance Time (CAT) based upon the Critical Entry Time (CET) of the Plant for each class taking into consideration time taken to verify the BME mail load

• Start-the-Clock Day 0 applies to all mailings received prior to CAT as documented in PostalOne!

• Greatest volume of mail/postage statements come in shortly before CAT; ideally, CAT allows sufficient verification time so all mail is presented to Operations prior to the CET

• Determine deposit times / CAT throughout workday for large mailers through Customer Supplier Agreements (CSA). CSA needed for large mailers desiring to deposit their mail after posted CAT if they do additional sortation; may be large volume mailers who will bring mail in earlier under a CSA

BMEU Origin Entry Start-the-Clock


61

Here’s an example for Mail Deposited at a BMEU:

The hours of operation for BMEU are 8:00 am to 7:00 pm

The Critical Acceptance Time for First-Class is 5:00 pm

The mail arrives at 2:45 pm on October 16

The verification start time is 4:30 pm on Oct. 16

The verification complete time is 5:15 pm on Oct. 16

Mail passes verifications

The Start-the-Clock Day 0 is Oct. 16 based upon the mail arrival time of 2:45.

BMEU Origin EntryStart-the-Clock Event


62

PVDS Start-the-Clock

event is the appointment time

if on-timeor unload start time

if late

Plant Verified Drop Shipment Start-the-Clock


63

Full Service requires electronic documentation and appointments for PVDS

PostalOne! receives electronic documentation

Facility Access and Shipment Tracking (FAST) enables appointment scheduling for drop shipments at postal plants

Logistics Information: Location, Date, Time, Type

Mail Content Information: Volume, class, shape, presort etc

Dock Management – appointment arrival

Surface Visibility is used to capture appointment arrival, start and end unload times, content and container scans

TIMES is used to record appointment arrival and start and end unload times



64

Start-the-clock event is based on FAST appointment, which must be scheduled prior to CET for Day 0 processing

On Time Arrival (met appointment time)

Start-the-Clock Day 0 is the Arrival Date

Early Arrival

Start-the-Clock Day 0 is Arrival time or Unload start time, whichever is first

Late Arrival

Start-the-Clock Day 0 based on Unload start time; unload start time must be prior to CET for Day 0 processing



65

Here’s an example for Drop-ship Mail Inducted at a Plant:

The hours of operation for the Plant is 06:00 am to 24:00

The Critical Entry Time for Standard Mail is 16:00 pm

The appointment time is 15:45 pm on Oct. 16

The mail arrives at 15:00 on Oct. 16

Mail is unloaded at 16:15 pm on Oct. 16

The Start-the-Clock Day-0 is Oct. 16 based upon the appointment time of 15:45 and the mail arrival prior to the appointment of 15:00 pm.

PVDSStart-the-Clock Event


66

DMU – USPS Transported

Start-the-Clock event is the mail ready time

as provided in the electronic

documentation

DMU Verified, USPS Transported

Start-the-Clock


67

• Establish CSA for Origin Entered mail

• Critical Acceptance Time (CAT) for each trailer dispatch is based upon the Critical Entry Time (CET) of the processing facility

• The transportation time between the Detached Mail Unit and the Processing Facility, as well as mail verification time must be taken into account when determining CAT

• Additional Presort separations are agreed upon for mail to determine Start-the-Clock by dispatch

• Container readiness per the Start-the-Clock rules established in the CSA is validated by the DMU acceptance clerk

DMU/USPS Transported Start-the-Clock


68

DMU – Mailer Transported

Start-the-Clock event is the FAST

appointment if on-time or unload start time if late

DMU Verified, Mailer Transported


69

• Establish CSA for Origin Entered mail

• Critical Acceptance Time (CAT) for each trailer dispatch is based upon the Critical Entry Time (CET) of the processing facility

• The transportation time between the Detached Mail Unit and the Processing Facility, as well as mail verification time must be taken into account when determining CAT

• Additional Presort separations are agreed upon for mail to determine Start-the-Clock by dispatch

• Container readiness per the Start-the-Clock rules established in the CSA is validated by the DMU acceptance clerk

DMU/Mailer Transported Start-the-Clock


70

• Event same as Plant Verified Drop Shipment

• FAST appointment must be scheduled prior to CET for Day 0 processing

• On Time Arrival (met appointment time)• Start-the-Clock Day 0 is the Arrival Date

• Early Arrival• Start-the-Clock Day 0 is Arrival time or Unload start time,

whichever is first

• Late Arrival• Start-the-Clock Day 0 based on Unload start time; unload start

time must be prior to CET for Day 0 processing

DMU/Mailer Transported Start-the-Clock


71

Create common understanding regarding “start-the-clock” Day 0 criteria

Describe containerization standards for First-Class Mail

Document approved later acceptance times per plants’ containerization requirements

Describe transportation assignments for all classes of mail

Provide structured format to support presort software development for Full-Service requirements

Customer Supplier Agreement Objectives


72

BMEU or Post Office Entry - Origin Entry

Mailers that make additional separations so the mailings could be accepted and verified after the posted CAT

Large volume mailers presenting mail at an early agreed upon time at BMEU

DMU verified - Origin entry

Mail that is origin entered, verified at the mailer’s facility (e.g. a DMU, mailer or postal transported)

Customer Supplier Agreement Conditions


73

CSA is made between the mailer and the Postal Service

Multifunctional team prepares CSAs: Plant Manager; Managers, In-Plant Support, Customer Service, Transportation Networks, Business Mail Entry, and Business Service Network

Example of a current mailer’s CSA

First-Class mail accepted at a DMU

Average of 3 million pieces per day

12 daily transportation dispatches

Transportation provided by USPS

Customer Supplier Agreement Prep


74

CSA is manually completed until electronically available in FAST in 2009

Minimum fields necessary for a manual CSA

Dispatch Time - truck dispatch of 10:55 am

CAT – 18:15

Day(s) of week – MF

Trip volume – % of mail by class expected to be on each dispatch – 20%

ZIP Codes – that dispatch, each mail class – 498-599, 612, 620-693

Facility Name – truck destination – Omaha P&DC

Mail Class – FCM

Processing Category – LTRS

CSA Dispatch/Acceptance Schedule Example


75

Separation Number – sequential numbering of each line (will be applied by electronic CSA)

Container Destination ZIP Codes – 498-599, 612, 620-693

Line 1 of Label

Label To – Omaha P&DC

Label ZIP Code – 681

Line 2 of Label

Processing Category – FCM

Processing Code – MXDS

Minimum Load for Containers

CSA Container Label Information


76

Internal Measurement:

First-Class packages with Delivery Confirmation included in First-Class Mail single-piece measurement; First-Class presort packages with Delivery Confirmation will be included in First-Class presort Measurement

Remittance Mail approach being piloted

Package Services rely upon Delivery Confirmation data (Retail and BMC Bulk Entry)

Special Services cover a broad range of products with

distinctly different data

Service Measurement - Internal

77

Remittance Mail: Pilot test underway Will utilize ID Tag data in MHTS “Start-the-Clock begins with AFCS applied ID

Tag “Stop-the-Clock” is the last scan at destination

processing Transit time compared to FCM service standard

between Origin/Destinating 3-digit


78

Package Services Single Piece Parcel Post, Media Mail, Bound Printed

Matter, Library Mail Delivery Confirmation Internal Data systems

Bulk Entry BMC, BMEU, Destination entry Delivery Confirmation Internal Data systems

Package Services data subject to ongoing review


79

Delivery Services

• Delivery Confirmation; Signature Confirmation; Certified Mail; Return Receipts (electronic); Registered Mail; Collect on Delivery (COD)

PO Boxes

CONFIRM

Address Correction (automated)

Insurance Claims

Money Order Inquiries

Address List Services

Special Services


80

SPECIAL SERVICE SERVICE STANDARDMEASUREMENT

SYSTEM

Delivery Services

Availability of delivery information within 24

hoursDEL CON

PO BoxesMail for delivery by

posted up timePO Box scanning system

CONFIRMAvailability of scan

information within 24 hours

IMB

Address Correction

(automated)

Availability of address information within 24

hoursIMB

Insurance Claims

Claims processing time within 30 days

Customer Inquiry Claims Response System

(CICRS)

Money Order Inquiry

Customer response within 15 business days

Money Order Inquiry System (MOIS)

Address List Services

Information within 15 business days

Internal tracking system


81

PO Box Uptimes

Process Mail for delivery by posted up time

Up time is time of day customers can expect to collect mail

Performance Measurement and Reporting Box section barcode placard scanned after mail

distribution is complete

Reporting at district, area, and national level


82

ACS customers converting to daily fulfillment; completed for Quarter 2

Denominator programming changes will be completed for Quarter 2

Monthly tracking on IMAQ web site

Weekly emails on PO Box Uptime performance

Additional development work: return receipt

Special Services - Status


83

All Market Dominant products will be reported to the PRC on a Quarterly basis

Reports will be for each of 80 Districts or as noted

In addition to On-Time data, the report will also show the Percentage 1, 2 and 3+ Days late

Initially, Periodicals which will be reported at the Area level; when there is sufficient IMB data, Periodicals will be reported at District level

Special Services will aggregated as an index

Service Measurement - Reporting

Reports to the PRC:

84

PBV is a new Intelligent Verification model

Integrated with PostalOne!

Prompts Clerks to Perform Verification based upon:

Past Verification History of Mailer

Verification labor costs

Estimated Cost Avoidance or Additional Postage Collected

Performance Based Verification

BMEU Process Optimization

85

Mailer brings in Mailing

BME clerk enters Postage Statement into PostalOne!

PBV model determines if Verifications are Required

PBV notifies Clerk of Verifications to be performed

Verification results are captured in PostalOne!

Automated communications between MERLIN and PBV

Performance Reports/ Management Reports

Performance Based Verification


86

Establish dock changes for mail flow control Improved mail flow Customer throughput Stage/mail clearance dock space Large/small mailing check in points Staged and cleared mail clearly identified

Reconfigure unit – put work function closer to mail

Realigned/moved equipment and workstations

Moved BMEU facility

Improved continuous mail flow, reduced extra steps, safety conditions

Lean Mail Acceptance Process (LMAP)


87

Establish “team” mail acceptance process Organized DM109 tasks, resources, and visuals to

workstations. What was improved

Pace verification rate to customer mail demand. Aligns mail flow with PBV

Establish visual controls to “trigger” acceptance steps Assigned placard colors/numbers to each mailing Placed In-Process Kanbans (IPK) at the end of workstations What was improved

Uniquely identifies each mailing and verification state. Ensures FIFO order, signals next task to start,

identifies/resolves abnormalities.



88

Improved operational efficiencyStandardizes acceptance and verification

processesEnables ability to improve productivity,

quality, and cost goalsIncreased compliance of financial controls



89

Service Standards have been established

Targets have been established

Measurement Systems have been established

Reporting has been established

Goals for all classes of mail will be reflected in

PFP for FY10

Continue the process improvements already

underway

SUMMARY

90

Questions?

ANY QUESTIONS?

NOTE: Questions and/or comments can be sent to [email protected] at any time

Date post:	03-Jan-2016
Category:	Documents
Upload:	preston-griffin
View:	216 times
Download:	1 times

1 Service Standards and Measurement Webinar Series Summary March 6, 2009.

Documents