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1 Postal Automation: Initiatives, Transitions & Best Practices Part II

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1

Postal Automation:

Initiatives, Transitions

& Best Practices

Postal Automation:

Initiatives, Transitions

& Best Practices

Part II

2

Jack WidenerDirector,Finishing and DistributionNewsweek

Rosa FultonExecutive Director,Flats Sequencing SystemUnited States Postal Service

Panel Members

Postal Automation: Initiatives, Transitions & Best Practices Postal Automation: Initiatives, Transitions & Best Practices

Joe SchickDirector, Postal AffairsQuad Graphics

Marc McCreryManager,Operational Requirements & IntegrationUnited States Postal Service

3

AgendaAgenda

Flats Background

Flat Volume

Current Flat Operations

Delivery Vision

Flats Strategy

Flats Sequencing System (FSS)

Machine deployment and Schedule

4

Flat VolumeFlat Volume

Periodicals17%

First-Class8% Standard

75%Standard

75%

53.2 Billion FlatsFY 2006 (RPW)

FY 06 Revenue From Flats: $16.7 Billion

5

2006 Flats Processing / Handling2006 Flats Processing / Handling

Presorted toCarrier Route

58%

NeedsNeedsProcessingProcessing

42%

53.2 Billion FlatsFY 2006 (RPW)

6

Today’s Flats ProcessingToday’s Flats Processing

AFSM 100

• Automated Tray Handling Systems (ATHS)

• Automatic Induction (AI)UFSM 1000

• Auto Flats Feeder

• Manual Keying

APPS

• Flat Bundle Sorting

7

2006 Flat Volume Delivery Unit Handling2006 Flat Volume Delivery Unit Handling

SaturationSaturation

80%80%80%80%

20%20%

Needs Casing By Carrier

8

Current Flat OperationsCurrent Flat Operations

Up-the-Distribution Ladder Carrier Route Processing

Customer Participation / Work-sharing

Increased Productivity Centralize Distribution Operations

Standardization / Certification

Reduce Flat Mail Preparation / Handling Substitute Technology for Labor

9

USPS Total Operating Costs: $71.9 BillionUSPS Total Operating Costs: $71.9 Billion

Delivery 43%

Mail Processing 22%

Support 0.9%

Other Functions 9%

Customer Service 16%

Maintenance 6%Vehicle Services 2.4%

Compensation79% of Total Operating Expense

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Delivery StrategyDelivery Strategy

Letters and Flats Sorted Separately

DPS Letter Sorting Continues

Flats Sequencing in Delivery Point Order

Saturation Mail Continues

Reengineer Our Processes for Handling “Residue Volumes”

11

Delivery VisionDelivery Vision

Minimize Carrier In-office Time Substitute Technology for Manual Carrier Casing

• Sequence Letters and Flats

Benefit from Street Opportunities Carriers Start Street Delivery Earlier Consistent Delivery Times Manage Growth Optimize Routes

Other Benefits Delivery Day Visibility Capture Real Estate Opportunities Manage Vehicle Fleet

12

Flats Sequencing System (FSS)Flats Sequencing System (FSS)

Automatic High Speed Feeders

Dolly Induction Subsystem

Carousel-style Sorter

Tray Staging

Integrated Tray Converters

Mail Prep Subsystem

13

14

Increase Customer Applied Delivery Point BarcodesIncrease Customer Applied Delivery Point Barcodes

11-digit60%

9-digit33%

No Barcode7%

5-digit<1%

2007 Flat Barcode Analysis

Barcode sampling results - January 2007

● Transition from 9-Digit to

11-Digit

● Move From 11-Digit to

Intelligent Mail Barcode

● Intelligent Mail Barcode

Available for Flats in

Spring 2007

15

Improve Address and Barcode ReadabilityImprove Address and Barcode Readability

Standard Destination Address Block

Address Construction Improvements

Font Size, Horizontal and Vertical Character Spacing, and Extraneous Information

Barcode Location

Reduce OCR Return Address Reading Conflicts

CASS Certification™

DPV™

16

Standard Address PlacementStandard Address Placement

Orient Address Location for Carrier Street Handling

• This could represent the front cover or back cover of the mail piece.

• Customer address and optional delivery endorsement can appear anywhere in the address zone (top third above the dotted line) when the bound edge is aligned to the right.

• Customer number, source code and messaging can appear anywhere on catalogs.

Joh

n D

oe

123 M

ain

St

An

ywh

ere, US

A 12

345

Joh

n D

oe

123

Ma

in S

tA

nyw

her

e, U

SA

12

345

Can face left or right

John Doe123 Main StAnywhere, USA 12345

Can be left or right justified, or centered.

Bound edgeon right

John Doe123 Main StAnywhere, USA 12345

Address orientationrestrictions will be determined by the

USPS (e.g., cannot readupside down when at the top) based on

the needs of delivery.

Implement MTAC Workgroup 101 Results

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Maximizing Machine EfficiencyMaximizing Machine Efficiency

Match Mail Preparation Requirements to Processing Needs

Packaging, package and container make-up

Structure Rates to Support Sortation / Handling

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Multi-phase Development / DeploymentMulti-phase Development / Deployment

Prototype – Indianapolis IN April 2006

BOG Approval of 100 FSS Machines Dec 2006

Pre-production Install – Dulles P & DC April 2007

Pre-production – Live Operations Sept 2007

Production First Article June 2008

Phase 1 Deployment Begin Sept 2008

Phase 1 Deployment End Sept 2010

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Phase 1 DeploymentPhase 1 Deployment

100 FSS Systems

29 Districts

32 FSS Processing Facilities

• 26 Existing Processing Centers

• 7 New Facilities / Locations

1403 Zones

2 - 6 Systems per Facility

20

Phase 1 DeploymentPhase 1 Deployment

Area Districts#

FSSPlants / Facility

NYM

Northern NJ

Long Island NY

Central NJ

4

3

3

NJ BMC

Mid Island NY P & DC

Trenton NJ P & DC

NE

Boston

Massachusetts

Connecticut

SE New England

3

4

5

3

Northwest Boston P & DC

Middlesex Essex P & DC

Springfield BMC

Providence RI P & DC

EA Columbus 3 Former Columbus P & DC

SE

South FloridaAtlanta

Central Florida

5224

New Miami Facility ProjectAtlanta AMCNorth Metro GA P & DCOrlando P & DC

WE

Colorado / Wyoming

Arizona

Mid America

5

5

2

Denver P & DC

New West Valley (Phoenix) Facility Project

Kansas City P & DC

21

Phase 1 DeploymentPhase 1 Deployment

Area Districts#

FSSPlants / Facility

PA

Los Angeles

Sacramento

Bay-Valley/San Francisco

Sierra Coastal

Santa Ana

San Diego

234452

Herb Peck AnnexSacramento P & DCSan Jose P & DCVan Nuys Main OfficeNew Aliso Viejo Facility ProjectNew Perris DPC Facility Project

CM

Greensboro

Northern VARichmondCapital

22442

Raleigh P & DCGreensboro P & DCDulles P & DCNew Richmond Facility ProjectCurseen-Morris P & DC

GL

Greater Indiana

Northern IL

Central IL

Southeast MI

232222

Indianapolis MPAPalatine P & DCCarol Stream P & DCFox Valley P & DCSouth Suburban P & DCNew Royal Oak Facility Project

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