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					USPS Product Information
               MTAC


              Jim Cochrane
   Vice President, Product Information

            February 17, 2011
                                                Product Information – Meet the Team

                                              VP PRODUCT INFORMATION
                                                   James P Cochrane


                        EXECUTIVE ADMINISTRATIVE
                               ASSISTANT
                               Carol D McNair




    MGR EMERGING                   MGR OPERATIONAL              MGR PRODUCT          MGR PRODUCT VISIBILITY
    TECHNOLOGIES                    PERFORMANCE            INFORMATION REPORTING            SYSTEMS
    Thomas T Williams               Robert H Raines JR           Edward H Ryan            Juliaann S Hess




MGR SCANNING SYSTEMS            MGR PRODUCT VISIBILITY &    MGR INTELLIGENT MAIL
                                                                                    MGR ADDRESS MANAGEMENT
  AND PERFORMANCE                   COMMUNICATION           PLANNING/STANDARDS
                                                                                          James D Wilson
    Jeffrey L Freeman                 Sandra R Latham           Steve M Dearing




                                 MGR MAIL TECHNOLOGY            PROGRAM MGR
    MGR CUSTOMER                       STRATEGY               INTELLIGENT MAIL
KNOWLEDGE MANAGEMENT                 Edward A Lichorat          Clayton C Bonnell
    Maryellen J Clarke
                                          Getting to World Class
                                                     IMb/IMpb

           Product Information
        Enhance USPS Business Value
 One barcode per piece
 Capture workload by product
 Improves cost modeling
 Reduce labor costs
 Transportation analytics
 Enhances ability to offer new products and services
 Allows for delivery efficiencies
 Service analytics
                                           Getting to World Class
                                                      IMb/IMpb

            Product Information
               Create Customer Value
 Foundational for shipping: Why not mailing?
 Track all volume
 Seamless acceptance
 Improves customer experience
 Provides data to support marketing initiatives
 Manage business processes, service measurement and
  logistic providers
                                                                         Barcode Intelligence
                                                         Value of Information


When you barcode a letter,                                                           940
                                                          CA
                                            CO

you receive a discount       F SA
                          SC FLTS
                                    R AN
                                 N F CF BC
                                     S
                                         CIS BC
                                            /N


                           STD           TIO
                                      RA FAL
                                            N S, M
                                              L
                                                     N

                                    PO N AL
                                 OR
                              Z C ATIO
                           XY ER N
                            INT




                                                                             a   )
                                                                         Are
                                                                  iler
                                                           ( Ma




               When you barcode a
               package, we make you pay

  Core to the product or value with a charge?
                                         Service Performance Measurement
                                                Full-Service Volume




Testing Status 01/29/2010 - 01/28/2011
                                                   Service Performance Measurement
                                                  Full-Service Volume Growth




Full Service Volume has seen a 59% growth from Q2-FY10 to Q1-FY11
                                                  Service Performance Measurement
                                   Intelligent Mail vs. FS Volume Growth




Q1 FY11 had marginal increase in IMb adoption from POSTNET bar code
                                  Service Performance Measurement
                        Full Service Statistics PQ1, FY 2011


                    FS IMb          Total Commercial      % of
                  Volume (000)        Volume (000)       FS IMb
                      First-Class Mail
Letters & Cards       5,012,934             11,390,368    44.01%
Flats                     10,753               179,705     5.98%
Total                 5,023,687             11,570,073    43.42%
                         Periodical
Letters                      162                19,757     0.82%
Flats                   736,810              1,820,043    40.48%
Total                   736,973              1,839,801    40.06%
                       Standard Mail
Letters               3,752,302             15,679,142    23.93%
Flats                 2,271,864              8,106,417    28.03%
Total                 6,024,166             23,785,559    25.33%
                              Service Performance Measurement
                          Full Service Production Trends



Full-Service Customer Sites                         631
Approved For Production

Full-Service Postage Statements               539,877
Finalize

Full-Service Total Piece Volume     45,696,935,719

May 2009 – January 2011
                                 Service Performance Measurement
                                             Moving Forward

Customer
 Improve value for customer
 Refocus on IMb, move off of SPM
 Simplify start-the-clock process


USPS
 Stabilize Performance
   Robust reporting capabilities
   EXFC report-type quality (depth of failure analysis per
    piece level)
 Increase number of Certified Mailers
                                                                        Full Service Certification Update
                                                                                              Container Yields

Certified mailer container yield is twice that of non-certified mailers
Streamlined review checklist for standard & periodicals mailers
System Change Requests
       Feb - CSA Verification Errors will be corrected to STC – Origin Yield: +20%
       June - SV Unload Scans will generate STC - Drop Ship Yield: +15%


                Certified Mailers                                  Non-Certified Mailers

     STC
 generated,
but container                                                                      STC not
  excluded                                                                        generated
    0.1%                                                                            49.9%
                          STC generated                                                                    STC
                           & container                                                                 generated,
                           not excluded                                                               but container
 STC not                      98.1%                                                                     excluded
                                                                                STC generated
generated                                                                                                 2.9%
                                                                                 & container
  1.9%
                                                                                 not excluded
                                                                                    47.3%


                            Data based on Containers with Mailing Date of 1/22 – 1/28
                                                                                  Full Service Analytics
                                             Container Level Mail Quality Errors

Mailers continue to fail certification; BMS working with mailers to identify required
         updates to their software and operations to address key issues


                           Full Service Container Errors by Type
    20,000          0.13                         0.13        15.0%
                                  0.12
    18,000                                                               Other Error

    16,000                                                   10.0%
                                                                         Non-Unique IMcb Error
    14,000

    12,000                                                   5.0%        Appointment/Scan
                                                                         Mismatch Error
    10,000
                                                                         Appointment Error
     8,000                                                   0.0%

     6,000                                                               CSA Verification Error
     4,000                                                   -5.0%
                                                                         Average Errors per
     2,000
                                                                         Container
        -                                                    -10.0%
                 1/8 - 1/14    1/15 - 1/21    1/22-1/28

             Other Errors include: MID Verification Errors and Invalid Entry Point Errors
                                                    Full Service Certification Update
                                                    Certified Mailer Monitoring
   Certified Mailers Weekly Monitoring Strategy

Measured weekly against 8 metrics
Mailers that fail metrics related to direct inputs to STC are decertified
Decertified mailers eligible for recertification after confirming issue(s)
 addressed


                Certified Mailer
               Monitoring Process                       Mailer Monitoring Results
                                                                     1/29 - 2/4
                    Identify
                     Issues/
                    Failures                                                        Mailers w/o
                                                                                       Data
                                                                                         1

                                                           Mailers
    Perform                                                Passed                     Mailers
    Census                     Communicate Issues
                                   to BMS                    29                      Decertified
    Analysis
                                                                                         0
                                                                                       Mailers
                                                                                     Failed Non-
                                                                                       Critical
                  Confirm issues                                                       Criteria
                   are resolved                                                           2
                                  Start the Clock Changes

 Transportation fields used in CSA association
  will not be used in the future
   CSA Type
   Recurring Appointment ID
   Arrival Time
   Dispatch Time
   CSA Trip ID
 Stronger reliance on USPS scans to Start-the-
  Clock
   Scan all 99Ms upon arrival at USPS
   Resolves pallet to FAST appointment challenges
                                                                 Proposed CAT- CET


                                         FCM             STD            PER           BPM
                                    Offsite Onsite Offsite Onsite Offsite Onsite Offsite Onsite
BMEU Entry                            1500 1800 1500 1500                          1500 1500
DMU Mailer Transport No Seperation       1900                1500                          1500
                      Mixed/Wkg          2000                1500                          1500
                      Presort            2100                1500                          1500
DMU USPS Transport Presort Assigned      2200
                      HUB (STC)          2400
                      HUB (THS)          0200
BMEU Mailer Transport
Drop Ship                                               1600                          1600
Drop Ship FSS
                                                              Service Performance Measurement
                                                                   Lean Six Sigma Approach

      Using LSS to Drive Performance

 Completed Value Stream Mapping of package
  and mail flows
 On-going process capability analysis
 Rolled Throughput Yield on all processes

                                                  Dest. Plant to
                Orig. Plant to
P.O. to Plant                    Transportation     Dispatch
                  Dispatch                                          Plant to P.O.   P.O. to Delivery




    99.5%           99.5%            98%              99.5%            99.5%            99.5%          = 95.5%

    99.8%           99.8%            98%              99.8%            99.8%            99.8%          = 97%



                        Measure All Processes
       Full Service Analytics
Rolled Throughput Yield
  On-Time Goal GAP Analysis
Rolled Throughput Yield
Infrastructure Initiatives
                                               Intelligent Mail Container Barcode

Proposed 6-Digit Mailer ID IMcb



                                         6-digit Mailer ID Format
  Field             Field              Field     Character            Logical            Allowable
   No.           Description           Size      Position             Values              Values
       1   Application Identifier       2           1-2               Numeric            “99” (Only)

       2   Type Indicator               1            3                 Alpha              “M” (Only)

       3   Destination Facility ZIP     5           4-8               Numeric


       4   Mailer ID                    6           9-14              Numeric      USPS-assigned ID with
                                                                                   the leading digit ranging
                                                                                     from “0” through “8”
       5   Serial Number                12         15-26            Alphanumeric      Mailer-defined (1)




 (1)NOTE: The Serial Number field shall be padded with leading “ - “ characters or dashes (ASCII
 value 0045) if the mailer-defined value is less than the required 12 characters. For example, if the
 mailer opts for a container identifier of “123456”, a value of “------123456” should be encoded.
             Intelligent Mail Container Barcode

Proposed 9-Digit Mailer ID IMcb
                          Intelligent Mail Container Barcode

           Proposed IMcb Placard

                         SCF SAN FRANCISCO CA
 Destination Facility   STD FLTS SCF BC/NBC
                                                                   940
  5-Digit ZIP            XYZ CORPORATION
                         INTERNATIONAL FALLS, MN




 Human Readable



                                                   (Mailer Area)
                                            Infrastructure Initiatives
                             Package Barcode Reader Program


 Fills the gap where MPE is not used
 Flexible scanning solution
 Provide enroute scans on all Priority
  Mail
 Enhanced technology to handheld
  IMDs
 Integration of hands-free imager
  (Ring Scanner)
 Increases visibility, productivity, and
  operational efficiency
                                               Barcode Intelligence
                                                  Total Visibility
                             Unique
                           Barcodes
                        Mail Preparation
                                               Electronic
                                                Mailing
                                              Information


     Electronic
   In-Process &
Performance-Based
 Mail Verification


                     An Integrated Approach



      Scan at
       Entry               Electronic          Electronic
     Induction             Centralized          Advance
                            Payment            Notification
                                                     Infrastructure Initiatives
                                                  Scan Infrastructure
Passive Scan Infrastructure
                       Number of   Number of
       Equipment        Sorters     Facilities
PSM sorters               21           21
APPS                      73           62
SPBS                     199          147
AFSM100                  530          237
UFSM1000                 104           81
Overhead scanners         57           37
FSS                       19            8
Robotics                   7            2
LCTS                     218          122


                    Active Scan Infrastructure
                                                 Scanners    Sites   % of Scans
             IMDAS Delivery and Retail Scanners 312,577     36,183   69.44%
             Surface Visibility                  16,500      174     0.01%
             POS/IRT/APC/CARS                    60,946     22,185   6.79%
            Final Thoughts
 Full Visibility Process Map
 IMpb update
 Full Service ACS challenge
Questions?

				
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