1 service standards & measurement status report mtac: february 18, 2009
TRANSCRIPT
1
Service Standards &Measurement
Status ReportMTAC: February 18, 2009
2
Postal Act of 2006 required USPS to “establish modern service standards” By December 20, 2007, in consultation with the PRC for
all Market Dominant Products Consideration of Various Objectives and Factors
Value, access, reliability, measurability
New Service Standard Business Rules Based on Operating and Logistics capabilities by product Class based, independent of shape Integrate origin entry and destination entry standards
Modern Service Standards Established
Service Standards
3
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
Service Standards
4
External: Single-piece Domestic and International First-Class Mail, Periodicals
Hybrid: Presort First-Class, Standard
Internal: Packages (Parcel Post, Library Mail, Media Mail, and Bound Printed Matter), Special Services
Gathering data through three approaches:
Service Measurement
5
External Measurement:
Applies to: First Class Mail® (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 recorded
Service Measurement
6
USPS Mail Processing
Test MailFabrication
Test MailInduction
Test MailReceipt
Collection Origin Processing
Destination Processing
Delivery
Single-piece First Class Mail / External First-Class (EXFC)
Service Measurement
7
EXFC Points of Emphasis: As of October 1, 2009, virtually all 3-Digit
SCF’s are included in EXFC
99.9% mail coverage; 891 three-digit ZIP Code spans
Reported quarterly to the district level IMMS reported at the area level
Specific 3-Digit, and in limited cases 5-Digit, exclusions submitted to PRC
Service Measurement
8
Hybrid Measurement:
Will take effect with the implementation of Intelligent Mail® – Release 2 First-Class Mail (Presort) Standard Periodicals
Supplements mail scans from internal Intelligent Mail® system with externally collected data
Service Measurement
9
Hybrid Measurement Approach
Origin Processing
Destination Processing
DeliveryAcceptance Transport to Delivery Unit
Transport to Destination
Delivery Unit Processing
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 last mile delivery factor for each mail class
Factor combined with IM data to form end-to-end service measurement
Delivery FactorExternal
Stop-the-Clock
Service Measurement
10
FCM Presort and Standard Interim Approach Uses “first processing scan” at point of entry as a
proxy for Start-the-Clock; “last processing scan” plus last mile delivery factor, based on EXFC reporters, as Stop
Processing scan on USPS automated equipment clearly demonstrates the mailing has been entered into USPS NetworkAs Mailers/USPS demonstrate capability, we will
transition to container scans at entry
Pilot data being used to calculate performance; data reported at the area level, quarterly
Service Measurement
11
Periodicals Interim Approach
Use two external systems - Red Tag and DelTrak
Measurement reported by external providerData reported quarterly at the area level
Once IMb adoption is sufficient, measurement process similar to commercial letters and flats
Start-the-Clock Stop-the-Clock
FAST appointment and container scans
Delivery date reported by each system’s monitors
Service Measurement
12
Internal Measurement:Applies to:
Package Services Special Services
Package Services rely upon Delivery Confirmation data (Retail and Bulk Entry)Data reported quarterly to the district level
Special Services cover a broad range of
products with distinctly different data
Service Measurement
13
Special Services PO Box Uptimes
Percent on time reported quarterly to the district level
Delivery Services (eReturn Receipt, Del Con, Certified, Registered, etc.) Scans available within 24 hours of scanned event;
reported quarterly to the district level Insurance Claims, CONFIRM, Money Order Inquiry,
Address Correction Services, Address List Services Reported quarterly at the national level
Service Measurement
14
Implementing saturation flat mail measurement“Home Depot” method
Start the clock: saturation mail barcode scanned to indicate “arrival at unit”
Stop the clock: saturation mail barcode scanned when delivered
Developing remittance mail analyticsSupplements EXFC diagnostic dataUses sort plan data from postal processing
equipment
Measurement Enhancements:
Service Measurement
15
Observations
Work in progress Multiple systems Cost implications Communication
Monthly consultations with PRCDialogue with customers, mailing
communityBi-weekly SSMOC
Results posted on usps.com
Service Measurement
16
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
%On-Time %On-TimeMail Class Target EOY Mail Class Target EOY
Single Piece International Mail Package ServicesFirst-Class Mail 94.0 Parcels 90.0
%On-Time %On-TimeMail Class Target EOY Mail Class Target EOY
Standard Mail Letters, Flats and Parcels 90.0 Special Services 900
91.0
Annual Targets
17
National PerformancePQ 1, FY 2009
Source: IBM Global Business Services
Market Dominant Mail Class
Overnight% On-Time
Two-day% On-Time
Three-Five Day% On-Time
Single-PieceFirst-Class Mail
95.6 91.9 85.7
M.D. Mail Class
Within+1 day
Within +2 days
Within +3 days
Within +1 day
Within +2 days
Within +3 days
Within +1 day
Within +2 days
Within +3 days
Single-PieceFirst-Class Mail
99.1 99.6 99.8 98.1 99.3 99.7 95.8 98.5 99.4
Overnight Two-Day Three-Five Day
PQ1 Results
18Source: IBM Global Business Services
M.D. Mail Class% On-TimeOvernight
% On-TimeTwo-Day
% On-TimeThree-Day
Presort First-Class Mail 91.2 87.8 84.2
M. D. Mail Class
Within+1 day
Within +2 days
Within +3 days
Within +1 day
Within +2 days
Within +3 days
Within +1 day
Within +2 days
Within +3 days
Presort First-Class Mail
97.6 98.1 98.2 96.8 98.0 98.3 94.5 96.9 97.8
Overnight Two-Day Three-Five Day
National PerformancePQ 1, FY 2009
PQ1 Results
19
Presort First-Class Mail®Pilot data Limited district induction pointsMostly lettersRepresentation limitedCustomer identification possible
Area level public reporting Remittance Mail to begin in 2009
Issues and Challenges
PQ1 Results
20Source: IBM Global Business Services
Market Dominant Mail ClassPercent On-Time
Single-PieceFirst-Class Mail International 86.2
Market Dominant Mail Class
Within+1 day
Within +2 days
Within +3 days
Single-PieceFirst-Class Mail International
95.2 98.1 99.1
Inbound/Outbound
National PerformancePQ 1, FY 2009
PQ1 Results
21Source: IBM Global Business Services
Market Dominant Mail Class% On-Time
Destination Entry% On-TimeEnd-to-End
Standard Mail 87.4 77.2
M. D. Mail Class
Within+1 day
Within +2 days
Within +3 days
Within +1 day
Within +2 days
Within +3 days
Standard Mail 93.9 96.7 98.0 85.7 90.5 93.5
Destination Entry End-To-End
National PerformancePQ 1, FY 2009
PQ1 Results
22
Standard MailMostly lettersLimited induction pointsExcludes destination entry and saturation flatsRepresentation limitedCustomer identification possible
Area level public reporting
Issues and Challenges
PQ1 Results
23Source: IBM Global Business Services
Market Dominant Mail Class % On-Time
Periodicals 69.8
Market Dominant Mail Class
Within+1 day
Within +2 days
Within +3 days
Periodicals 85.7 91.4 94.2
National PerformancePQ 1, FY 2009
PQ1 Results
24
PeriodicalsTemporary processVery limited validation for start the clockLack of rigorous reporter discipline Sampling error is a concern
Address Change Service for FY 2009
Issues and Challenges
PQ1 Results
25Source: IBM Global Business Services
Market Dominant Mail Class % On-Time
Ground Package Services 64.7
Market-Dominant Mail Class
Within+1 day
Within +2 days
Within +3 days
Ground Package Services 78.9 87.6 92.7
National PerformancePQ 1, FY 2009
PQ1 Results
26Source: IBM Global Business Services
Delivery InformationSpecial ServicesCombined Score
Post Office BoxUp-Time
% On-Time % On-Time
Special Services 99.3 86.5
CONFIRM Address Correction
Insurance Claims
Processing
Address-List
Services
Money OrderInquiry
% On-Time
% On-Time % On-Time % On-Time % On-Time
Special Services 97.1 59.4 76.4 100.0 97.4
National PerformancePQ 1, FY 2009
PQ1 Results
27
Special ServicesACS customers converting to daily fulfillment
Completion in Quarter 2 Denominator programming changes will be
completed for Quarter 2
Issues and Challenges
PQ1 Results
28
Standards in Place Measurement Systems Developed and
Working Service Opportunities Identified Issues and Challenges Identified
Summary
PQ1 Results