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1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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Page 1: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

1

®

August 27, 2013

Mail Prep and Entry Steering Committee Meeting

Page 2: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

2

® Agenda

Welcome Updates since 08/07/13 Flats Strategy Update Reconsider Pallet Stack Limit Engineering Technology Update Load Leveling New Ideas Submission Review Benefit/Effort Matrix Next Steps and Wrap Up

Page 3: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

3

® Mail Prep and Entry Ideas Log

116 ideas submitted to date 35 closed

Out of scope, withdrawn or re-assigned

11 completed Postal Bulletin articles and DMM revisions announced

29 remaining in Benefit/Effort matrix 9 new items that need evaluation

41 open need Change/Improvement template submitted or idea withdrawn

Page 4: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

4

® 20-24 oz Periodical Engineering Test

Evaluate increasing max PER weight to 24oz for co-mail pools

Determination of more specific impacts to each machine will require testing

We now have a commitment from two mailers to provide test mail

Plan on testing FSS & AFSM100 in October at Linthicum and Engineering/Merrifield

Page 5: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

5

® Subgroup Update – FSS Prep Requirement

Re-opened FSS subgroup Still active discussion on current and proposed

requirements FSS entry points (FSS Site & Feeder Locations) Pallet and Bundle size Explore additional members for group

Page 6: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

6

® BPM Update

Commingled BPM Auto Flats with Standard Mail Flats Due to software coding effort required it can

not be included in January 2014 release Possible release in July 2014

Page 7: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

7

®

Flats Strategy Update

Page 8: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®Flats Strategy Status

Associations Collaborating with USPS:

• ACMA – American Catalog Mailers Association

• MPA – Association of Magazine Media

• ABM – Association of Business Information and Media Companies

• NNA – National Newspaper Association

• NAA – Newspaper Association of America

• SMC – Saturation Mailer’s Coalition

Page 9: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

9

®Flats Strategy Process

Group structure and process:

• Formal internal cross-functional group

• Project charter

• Project plan

• Weekly internal group meetings

• Firm timelines

• Weekly updates to USPS leadership

• Face-to-face meetings and webinar discussions with industry

Page 10: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

Flats Document High Level Timeline

Jun Jul Aug Sep Oct Nov Dec Jan 2014

Thanksgiving Holidays

IndustryReview Strategy

Oct

Phase 1 – Facts Gathering

Phase 2 – Develop Options for Flats Update Doc

Phase 3 – Finalize Flats Update

8/27

MTAC

MTAC

Dev. Supply Chain Solution(s)

Review Tech Improvements

Identify Process Improvement Concepts

Identify Lean Concepts for Flat Strategy Improvement Concepts

Consolidate Strategies

Create 1st Draft

Prepare & Brief for MTAC

8/19 – 8/23

Prepare & Brief for MTAC

Consolidate Facts

Down Select to Optimal Joint Strategy

IndustryReview Strategy

Dec

ExecBuy-in

JointMeeting

10 May

Create Final Draft

ExecReviews

Facts Gathered

15 July

Industry Check Point

Industry Check Point

Industry Check Point

10

Page 11: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Table of Contents1 Flats Message2 Executive Summary3 Industry Trends and Innovation3.1 Overview3.2 Innovation4 Flats4.1 Volume Trends4.2 Cost Coverage and Pricing5 Flats Operations End-to-End Strategy5.1 Streamline and Simplify Mail Make-Up5.2 Reduce Number of Entry Points5.3 Induct the Mail Where First Handling Occurs5.4 Bypass Sack / Bundle Distribution5.5 Move Mail up the Ladder to Automation5.6 Automate Sequencing of Flats for Delivery5.7 Leverage the Use of Data (Visibility)6 Summary7 Appendix

Page 12: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Pallet Stack Limit

Page 13: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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® DMM Pallet Stack Regulations

705.8.3 Stacking Pallets 8.3.1 Physical Characteristics Pallets may be stacked two, three, or four tiers high if: a. The combined gross weight of the stacked pallets (pallets, top caps,

and mail) does not exceed 2,200 pounds.b. The heaviest pallet is on the bottom and the lightest is on the top.c. Individual pallets are secured with straps or stretchable or shrinkable

plastic as specified in 8.1.3.d. The stack of pallets is secured with at least two straps or bands of

appropriate material to maintain the integrity of the stacked pallets during transport and handling. Wire or metal bands, straps, buckles, seals, and similar metal fastening devices cannot be used. The stack of pallets cannot be secured together with stretchable or shrinkable plastic.

e. Each pallet is top-capped as specified in 8.2.f. The combined height of the stacked pallets and their loads does not

exceed 84 inches. Exception: Pallets prepared for entry at Anchorage or Fairbanks, Alaska, cannot exceed 72 inches (pallets, top caps, and mail).

Page 14: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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® DMM Pallet Stack Regulations

Top Caps 8.2.1 Use Top caps are used as follows: a. Except as provided below, all pallets of sacks, trays, parcels,

bundles of mail, or pallet boxes must be top-capped if the pallets are stacked two, three, or four tiers high when presented to the USPS for acceptance.

b. The top pallet need not be top-capped if the strapping or banding securing the stacked pallets together neither damages the mail on the top pallet nor allows the stack to shift.

c. Lower pallet(s) containing either parcels or bundles of mail need not be top-capped if the top surface of each pallet load provides a sturdy, flat surface, parallel to the pallet base, that allows safe and efficient stacking of pallets placed on top and prevents sliding of the top pallet(s), damage to the loaded mail, or crushing of the load.

Page 15: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

15

® Pallet Stack Limit

With mixed pallets (244-488 lbs per pallet)

Max 6 pallets @ 84” high(0” remain)Estimated total ~ 2,050 lbs

With 12” mail (450-488 lbs per pallet)

Max 4 pallets @ 72” high(12” and 200 lbs remain)Estimated total ~ 2,000 lbs

With mixed pallets (244-488 lbs per pallet)

Max 5 pallets @ 78“ high(6” remain)Estimated total ~ 2,030 lbs

One foot of mail estimated at 488 lbsPallet weight is 16lbsCurrent max is 4 pallets high & 2,200 lbs

Max height of stacked pallets 84” (DMM 705 8.3.1 f)Mail 6"

Plastic Pallet 6"

Mail 6"

Plastic Pallet 6"

Mail 12"

Plastic Pallet 6"

Mail 12"

Plastic Pallet 6"

Mail 6"

Plastic Pallet 6"

Plastic Pallet 6"

Mail 6"

Plastic Pallet 6"

Mail 6"

Mail 12"

Plastic Pallet 6"

Plastic Pallet 6"

Mail 6"

Mail 12"

Plastic Pallet 6"

Mail 12"

Plastic Pallet 6"

Mail 12"

Plastic Pallet 6"

Mail 12"

Plastic Pallet 6"

Plastic Pallet 6"

Mail 12"

Mail 12"

Plastic Pallet 6"

Page 16: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

16

®

Mailer Example5 pallets highCombination flats / trays 80 inches

This is a mix and pallet height make

up that is diminishing due to more low volume pallets for SCF

Pallet Stack Limit

Page 17: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Mailer Example:6 pallets high all Trays Under 80 inches total

With shape-based mail direction separations mailer unable to add these smaller tray pallets to existing groups of flats pallets for destination delivery due to separate stops for one SCF based on mail shape.

Pallet Stack Limit

Page 18: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Mailer example:5 pallets high, 75 inches; 4 high 75 inches

Pallet Stack Limit

Page 19: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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® Gaylord Stack Limit

Max height 84”

Input needed from

package mailers!

Plastic Pallet Height 6”

Gaylord Height 34”

Plastic Pallet Height 6”

With 34” GaylordsTwo fit within 84” high allowing 4” for top cap.

Gaylord Height 34”

Top cap adds4 Inches?

Only on bottom Gaylord or on both?

Top CapTop Cap

Page 20: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Engineering Technology Update

Page 21: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Committed to improving FSS handling of flat mail

Mail characteristics trend towards lighter and thinner mailingsExtensive studies on mail damage resulted in 4 areas of focus

Feeders (4 per system) Infeed Line Injectors (2 per system) RCT Output Drops (360 per system) ITCs (2 per system)

Next slides show mail handling improvements

FSS Mail Study

Infeed Line Injector

RCT Output Drop

ITC

Feeder

Page 22: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

22

®FSS Mail Handling Improvements

Feeder Testing complete - Final/Best Configuration (Test G & L)

Improvements: No Constant Vacuum, new vacuum plate, improved AI Software, V2 Sensor moved ~ 1 in and adjust to 6 mm sensing range for better stack management

Average Damage 2 reduction >33% (baseline of 0.48%)

Average Damage 3 reduction >66% (baseline of 0.036%)

Test L = Test G. Test G was done on IL2 and Test L was done in IL1

Page 23: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

23

®FSS Mail Handling Improvements

Feeder Improvement Background

Constant Vacuum Removing constant vacuum (require new plate) enables feeder to stand mail up

at destacker plate which minimizes damage AI Software

Faster AI reaction time AI Paddle synches up mail more effectively Allows Auto Paddle to move closer to destacker plate

V2 Sensor Adjust positioning and sensing range of the V2 sensor for better stack

management

Page 24: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

24

®FSS Mail Handling Improvements

Continued to implement design improvements Deployed 12 hardware Modification Kits 20 more hardware Mod Kits planned

FSS SW v3.1 - deploy Fall 2013 (Sept/Oct) SW changes at feeder to better control stack quality and have gentler pick off

of Low “Run Stiffness” Mail SW changes at Infeed Line for better injection into Carousel of Low

“Run Stiffness” Mail to minimize flipped mail

New Separation Belts planned for Fall 2013 (Oct/Nov)

Mail Stack Quality at Feeders planned for Fall 2013 (Oct/Nov) Adding 3 HW modifications at feeder to better control stack quality and have

gentler pick off of Low “Run Stiffness” Mail

Infeed Line Injector planned for Fall 2013 (Oct/Nov) Adding 2 HW mods at Infeed Line for better injection into Carousel of

Low “Run Stiffness” Mail to minimize flipped mail

Page 25: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Increase Flats Sequencing System (FSS) efficiency in the virtual machine 2 (VM2) mode

Achieve a throughput of 6 pieces per second (double that of the current FSS feeder), reducing the number of FSS feeders from four to two Allows VM2 mode, with increased

delivery points per sort plan, to maintain the same throughput as the VM4 mode

Reduce the number of double feeds, decrease mail damage, and minimize manual intervention while feeding mail

High Speed Flats Feeder

Key Features

Page 26: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

FSS Phase 1 With Four Feeders: Throughput Expectations

High Speed Flats Feeder

4,000

8,000

12,000

16,000

20,000

5,00

0

10,0

00

15,0

00

20,0

00

25,0

00

30,0

00

35,0

00

40,0

00

45,0

00

50,0

00

55,0

00

60,0

00

65,0

00

70,0

00

Pass One Pieces Fed

Tw

o P

ass

Thr

oug

hput

FSS-1 VM4 target(Max Del Pts 28K)

FSS-1 VM2 target(Max Del Pts 54K)

Operational Benefits to FSS

Page 27: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

27

®

FSS + HSFF: Throughput Expectations

High Speed Flats Feeder

FSS VM4 FSS VM2 + HSFF

With 95% confidence, FSS machines equipped with HSFFs and running in VM2 mode will perform at the same 2-pass throughput rate as VM4

Operational Benefits to FSS

Page 28: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Install HSFF (Completed) Jun 14 “Live” mail evaluation (started) Jun 15 Check Point 1 Sep 16 Continue “Live” mail evaluation

Through Fall mailing season Check Point 2 Dec 9 End “Live” mail Evaluation Jan

2014

High Speed Flats Feeder

R&D Evaluation Plan

Page 29: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

29

®P

ass

Th

rou

gh

pu

t (F

eed

Rat

e)

Sys

tem

Th

rou

gh

pu

t

Average Throughput – All Runs (August 1, 2013 – August 21, 2013)

Dulles FSS Machine Comparison All Runs

High Speed Flats Feeder

Page 30: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Machine Operational Time (August 1, 2013 – August 21, 2013)

Pie

ces

Fed

Op

erat

ion

al t

ime

(hrs

.)

High Speed Flats Feeder

Dulles FSS Machine Comparison All Runs

Page 31: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

31

®

Increased Mail Volume Processed Per day FSS machines with HSFF | no additional changes

Process current mail with less sort plans, in less hours

FSS machines with HSFF | with changes Re-pack / Add sort plans

Service more Zip Codes | Delivery Points

Decreased mail damage Reduced double feeds | Improved Accept Rate

High Speed Flats Feeder

Future Benefits | Production

Page 32: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

Pre-Production system evaluation Complete Technical Data Package Sep 2013 Complete field validation Jan 2014

Dulles P&DC RFP Spring 2014 Contract Award Summer 2014 Deployment Spring

2015

High Speed Flats Feeder

Forward Plan

Page 33: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

33

®

Flats Preparation Operations

Evaluating feasibility of flats prep technology to reduce cost and increase productivity Operator Assist technology –

cutting of straps and removal of poly material from flat bundles

Automate loading of flat mail into ACT trays

Flats Bundle Preparation

Page 34: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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® Flats Bundle Preparation

Flats Preparation Operations – SAMP Interface

Page 35: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

35

® APPS Singulation Enhancement

Current status Design & drawings - completed Parts - ordered & received Mockup of the APPS Singulator – built Fabrication completed – May Assembled onto mockup & adjusted preliminary design – June Assembled onto Production APPS machine in Washington NDC – July Tested at Washington NDC – July Ordering parts and starting fabrication of pre-production unit - August

Next steps Adjust Final Design - August Generate install manual and Finalize - August Complete build of pre-production Unit - early September Start building production quantities – September Start shipping/installing – Fall mailing season

Page 36: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

MTAC Load Leveling Workgroup 157

36

Page 37: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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® Background

MTAC Workgroup 157 consists of: First Class, Standard and Periodical Mailers Mail Providers, Mail Owners Software venders

Charter Review the current processes and procedures for the

load leveling of volumes across days of the week. Strategize on future initiatives that would meet the

objective of load leveling volumes across days of week.

Analyze future possible initiatives in a cost/benefit format to provide viable recommendations to the Postal Service.

Page 38: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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® Desired Results from WG 157

Develop strategies that will facilitate the load leveling of volume across days of the week.

Model the impact of each strategy on the mail owners, software venders, logistics and transportation providers, USPS operations and mail entry.

Evaluate strategies for potential adoption and implementation. Recommend and/or establish guidelines for the consistent and

predictable collection and dissemination of information, including updates for stakeholders.

Gain a clearer understanding of stakeholders’ expectations Identify/define potential technical or process changes that are

needed by the mailing industry to accommodate the potential impact of load leveling.

Page 39: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

1600 - Monday Blue

Color code for Tuesday until 1600

1600 - Wed green

Color code for Saturday until 1600

Wednesday Thursday SaturdayColor code for Thursday until 1600

SundayColor code for Friday until 1600

TuesdayMonday

1600 - Fri Yellow1600 - Sat Pink 1600 - Thurs Violet

All Day we color code for Monday

1600 - Tues Orange

Color code for Monday until 1600

Color code for Wednesday until 1600

Friday

NDC Standard Drops - Current

1600 - Thurs Violet 1600 - Fri Yellow 1600- Sat Pink

Color code for Thursday until 1600

Wednesday Thursday SaturdayColor code for Tuesday until 1600

FridaySundayColor code for Wednesday until 1600

TuesdayColor code for Friday until 1600

Monday

1600 - Wed Green

Collor code for Saturday until 1600

1600 - Tues Orange1600 - Monday Blue

Color code for Monday until 1600

All Day is color coded for Monday

SCF Standard Drops - Current

Most of the mail whether dropped at the SCF or NDC is earmarkedfor delivery on Monday

Today’s Environment

Page 40: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

40

® DROP SHIP APPOINTMENTS AT SCF PQ 1

Page 41: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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® Service - Standard Letters - SCF

NATIONAL STC BY DAY OF THE WEEK ANALYSISQTR 1 2013

45,468,10810,820,303 28,248,443 36,779,891 40,687,712 29,536,603

57,134,440

265,582,896

94,142,735

316,221,092279,626,591 256,861,529 274,207,706

386,377,836

87.12%90.28%

86.33%88.38%

91.80%89.69%85.38%

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

SATU

RDAY

SUND

AY

MONDAY

TUES

DAY

WED

NESD

AY

THUR

SDAY

FRIDAY

Pie

ces

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

On-T

ime

%

FAILED PCS ON-TIME PCS ON-TIME %

Page 42: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

42

® Standard Letters - NDC

NATIONAL STC BY DAY OF THE WEEK ANALYSISQTR 1 2013

4,453,975 2,004,223 4,112,715 3,111,4687,498,795 6,441,495 6,348,015

46,105,271

23,646,136

42,114,028 44,652,829

47,575,048 47,176,006

56,464,894

89.89%87.99%86.38%

93.49%91.10%92.19%91.19%

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

SATU

RDAY

SUND

AY

MONDA

Y

TUES

DAY

WED

NESD

AY

THUR

SDAY

FRIDAY

Pie

ces

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

On-T

ime

%

FAILED PCS ON-TIME PCS ON-TIME %

Page 43: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

10/1/2012-12/31/201210/1/2012-12/31/2012 Last Mile not included

Destination Entry STD Letters Delivery Day Volumes Analysis

Page 44: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

44

® Standard Flats - SCF

NATIONAL STC BY DAY OF THE WEEK ANALYSISQTR 1 2013

21,094,9743,796,669 10,378,113 9,662,340 6,068,263 9,256,227

52,044,475

52,538,112

10,351,530

40,892,97233,684,552

21,153,652

56,170,775

138,143,118

72.64%

85.85%

77.71%77.71%79.76%

73.17%71.35%

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

200,000,000

SATU

RDAY

SUND

AY

MONDAY

TUES

DAY

WED

NESD

AY

THUR

SDAY

FRIDAY

Pie

ces

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

On-T

ime

%

FAILED PCS ON-TIME PCS ON-TIME %

Page 45: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

45

® Standard Flats - NDC

NATIONAL STC BY DAY OF THE WEEK ANALYSISQTR 1 2013

1,712,430386,333 751,659 483,673

2,176,745 2,955,823 2,944,222

9,881,584

2,998,845

4,928,716 5,386,432

12,702,876

14,387,724 14,429,156

83.05%82.96%85.37%

91.76%

86.77%88.59%

85.23%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

SATU

RDAY

SUND

AY

MONDA

Y

TUES

DAY

WED

NESD

AY

THUR

SDAY

FRIDAY

Pie

ces

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

On-T

ime

%

FAILED PCS ON-TIME PCS ON-TIME %

Page 46: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

10/1/2012-12/31/201210/1/2012-12/31/2012 Last Mile not included

Destination Entry STD Flats Delivery Day Volumes Analysis

Page 47: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

47

® Periodicals Flats - SCF

NATIONAL STC BY DAY OF THE WEEK ANALYSISQTR 1 2013

2,861,824 1,817,661 1,393,9612,665,590 1,740,404 2,212,239

5,019,606

24,388,103

3,628,058 5,071,547

12,525,971

9,216,157

13,371,115

20,775,761

80.54%

85.80%84.12%82.45%

78.44%

66.62%

89.50%

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

SATU

RDAY

SUND

AY

MONDAY

TUES

DAY

WED

NESD

AY

THUR

SDAY

FRIDAY

Pie

ces

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

On-T

ime

%

FAILED PCS ON-TIME PCS ON-TIME %

Page 48: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

48

®

10/1/2012-12/31/201210/1/2012-12/31/2012 Last Mile not included

SCF Destination Entry Periodicals Delivery Day Volumes Analysis

Page 49: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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Volume ImpactBased on historical data, ~40% of Standard DSCF Mail is projected to be impacted if Sunday was a non-processing day.

• Letters impacted ~36%; Flats impacted ~56%

Page 50: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

50

Volume Shift (Letters and Flats) If Sunday was a non-processing day, the variation in Standard DSCF mail volume by expected day of delivery is projected to decrease

from a standard deviation of 12% to 5% % of week’s volume expected to be delivered on:•Monday would decrease from 40% to 15%•Tuesday would increase from 15% to 25%•Wednesday would increase from 4% to 19%•No change on other days of the week

Page 51: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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Volume Shift (Letters vs. Flats)Standard deviation for daily Standard DSCF Letters mail volume is projected to decrease from 10% to 3%; For Flats, it is projected to decrease from 20% to 12%

% of week’s volume expected to be delivered on:•Monday would decrease from 36% to 15%•Tuesday would increase from 14% to 21%•Wednesday would increase from 5% to 19%

% of week’s volume expected to be delivered on:•Monday would decrease from 56% to 16%•Tuesday would increase from 16% to 40%•Wednesday would increase from 3% to 19%

Standard DSCF Letters Standard DSCF Flats

Page 52: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

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®

South Jersey Test

1600 - Fri Yellow 1600- Sat Pink

Thursday SaturdayAll day is color coded for Wednesday

FridayColor code for Saturday until 1600

1600 - Wed Green1600 - Monday Blue

Color code for Tuesday until 1600

Color code for Thursday until 1600

Color code for Monday until 1600

1600 - Tues Orange

Sunday TuesdayColor code for Friday until 1600

MondayColor code for Wednesday until 1600

1600 - Thurs Purple

Wednesday

SCF Standard Drops - Future

Taking out Sunday as a transit day will smooth the mail volumes across days of the week

Proposed change

SundayColor code for Wednesday until 1600

TuesdayColor code for Friday until 1600

Monday

1600 - Wed Green

Collor code for Saturday until 1600

1600 - Tues Orange1600 - Monday Blue

Color code for Monday until 1600

Color code for Thursday until 1600

Wednesday Thursday SaturdayColor code for Tuesday until 1600

FridayAll Day is color coded for Monday

1600 - Thurs Violet 1600 - Fri Yellow 1600- Sat Pink

SCF Standard Drops - Current

Page 53: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

53

® Test

Two weekends in September 9/14 and 9/21 South Jersey will be the test site Standard mail only – Letters and Flats Change color code according to new layout Analyze the results

Impact to the industry Hours saved Volume to carriers across Monday and Tuesday Impact in five day environment

Page 54: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

54

® 9 Open Items on Ideas LogItem #3: Drop Shipments at Cross Dock Hubs Hub WG#159

Does #80 replace this idea?

Container and Pound prices should signal the entry of 5D pallets to the DSCF and DDU

Does #76 replace this idea?Low volume pallet entry

Item #38: Price vs. service level vs. time of day for different pts in USPS operations

6/7/12 No template submitted

Item #39: Narrow the focus of what defines a mailing 6/7/12 No template submitted

Item #40: Allow merging of classes when using same operation scheme

6/7/12 No template submitted

Item #41: Allow drop ship discounts at piece handing and bundle handling ops

6/7/12 No template submitted

Item #68: Streamline linking of new entry to payment process 6/7/12 No template submitted

Item #71: Conflict in DMM language regarding presentation of Mxd AADC trays

Checking with PCSC

Item #32: Pallet Minimums for Drop Ship

Item #4: DDU entry for non-FSS flats

Page 55: 1 ® August 27, 2013 Mail Prep and Entry Steering Committee Meeting

55

® New items on Ideas Log w/o Templates

Item #93: Evaluate opportunity to improve scheme design, including communication around usage, alignment of lists with processing. Also minimum requirements of pallets and trays

Item #102: Label lists - alignment with processing locations, documentation & structure, communication around usage, upcoming and planned changes

Item #111: Bypass manual breakdown by building fuller 5D or 5D scheme trays/tubs

Item #94: Label list alignment with processing locations, documentation & structure, communication around usage and upcoming and planned changes

Item #103: Exploring alternate downstream entry at USPS – Hub Work Group #159

Item #112: Eliminate bundles in full tubs in bundle rate mailings (check pricing implications)

Item #95: DMM vs. CSA sortation & prep requirements as it relates to above items. Also a review and increase of internal USPS understanding of current DMM

Item #104: Explore new presort options for parcels, including 3-digit at DSCF and PSM schemes at DNDC

Item #113: Lower 90 piece minimum for FC flats

Item #96: Explore options for creating fuller trays

Item #105: Identify best practices among eVS and PVDS and incorporate for both processes

Item #: Expand the use and roles of Customer Service Agreements – dynamic and flexible in mail prep/container and entry times

Item #97: First Class drop ship (including exploring alternate downstream entry at USPS) – Hub Work Group #159

Item #106: Improve 99M Container Scan compliance at NDCs and SCFs and expand to include sacks at DDU

Item #: Create drop-ship price signals

Item #98: Evaluate UAA/Move Update options, processing and adherence to procedures

Item #107: Increase maximum pallet height to enhance double stacking of gaylords

Item #: Signal prep of lower minimum tray for CRRT and 5D

Item #99: Improve residual single piece mail process, including communication, definition, pricing

Item #108: Permit combining mailings of different postage methods in a bundle based mailing

Item #100:Evaluate and identify ways to reduce mailer damage mail

Item #109: Value added price incentives

Item #101: Review NDC non-machineable parcel pricing and eliminate higher pricing at deeper sort levels, align pricing to encourage more destination entry and presorting of non-machineable parcels

Item #110: Create 3D scheme container/bundle

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® New Ideas Submission

Templates received – Review

76. Low volume pallet entry (courtesy pallets) 77. Eliminate non-value added container preps78. Bundle & Container prices should signal 5D prep and DSCF79. Container and Pound prices should signal entry of 5D pallets

to the DSCF and DDU80. Increase Pallet Stacking Limits81. Ensure MDF directs all DSCF and 5D containers to the

furthest possible Dest Facility82. Industry and USPS develop a strategy to increase the % of

flats that co-mail83. Enhance address label to include the CRRT designation on

Non CRRT pieces84. Retirement of UFSM 1000’s

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® Benefit/Effort Matrix

Item #6: Reduce time moving mail between bundle and piece sorts

Item #8: FCM 500 Piece Manifest Rule

Item #10: FCM Palletization Rules Confusing

Item #11: Non-automation Presort rules

Item #12: CSA Management Item #21: Eliminate CR prep for STD & PER Ltrs

Item #13: Allow Commingle/CoMail ofBPM and Standard Flats

Item #23: Origin Entry Separation

Item #22: FSS Prep Requirement Item #26: Bundle processing bottleneck and problems

Item #28: Increase 20 oz machinable weight limit

Item #36: Postage Statement Separations

Item #35 Single Piece Commercial Rate Item #44: Requirement to re-qualify mail

Item #42: Maintain Comail Benefits for FSS

Item #62: Carrier management of UAA mail and NIXIE information

Item #43: Cost Based Rates Study Item #66: Presort verification for flats in DMUs

Item #63: Eliminate CR bundles in FSS zones

Item #74: Removal of Origin Sack Mail

High Priority Medium Priority Low Priority

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® Next Steps

Schedule Webinar September 26th 2-3 October 24th Webinar 2-3 Next Face to Face Meeting

November 19, 2013, 9am -12 noon EST Wrap up