webinar 2013 delivery sequencing webinar
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Evaluating and Implementing Delivery Point Sequencing
April 18, 2013
Webinar outline
� What is automated delivery point sequencing? How is it achieved?
� Evaluating automated delivery point sequencing –Does it make sense for my operation?
� Implementing delivery point sequencing � Steps towards implementation
� Equipment selection
� Infrastructure implications
� Distribution
� Training
� Performance
� Next Steps
2
Automated Delivery Point Sequencing
� Technological advance that will
� Reduce operating costs
� Improve service / induce ad mail / simplify carrier tasks / reduce errors
� Other benefits: address management, new by-products
� Significant operational and network impacts
� Choice of hardware strategy
� Network and operations implications
� Implementation challenges
� Serious evaluation is necessary
� Initial assessment
� Business case
� Detailed evaluation
3
What is “Automated Delivery Point Sequencing”?
What is automated delivery point sequencing?
� Delivery point sequencing (DPS) is an automated process to sort mail in the walk sequence of a letter carrier on his/her route.
� Using multiple passes, mail is sorted to bins (stackers) in carrier route delivery sequence.
� Mail is lifted from the bins in a way that preserves sequencing
� Carriers receive the mail in trays that are ready to ‘hit the street’
5
Benefits of delivery sequencing
6
Sort center
Secondary sort
by route
Casing
Additional
delivery sort
BE
FO
RE
AF
TE
R
Casing In Office
Street Delivery
Street Delivery
Ca
sin
g In
Off
ice
$avin
gs
Post Office
Additional processing step
BIN 1 BIN 2 BIN 3 BIN 4
Example: The sequencing processin 2 sorting passes
7
Carrier 3 Carrier 2 Carrier 2 Carrier 2
Carrier 2 Carrier 3 Carrier 1 Carrier 3
Carrier 2Carrier 1Carrier 1 Carrier 1
Stop 4Carrier 1
Stop 4Carrier 2
Stop 4Carrier 3
Stop 3Carrier 1
Stop 3Carrier 2
Stop 3Carrier 3
Stop 2Carrier 1
Stop 2Carrier 2
Stop 2Carrier 3
Stop 1Carrier 1
Stop 1Carrier 2
Stop 1Carrier 3
Carrier Stop 1 Carrier Stop 2 Carrier Stop 3 Carrier Stop 4
BIN 1 BIN 2 BIN 3 BIN 4
Day DItem
posted
Coordinating pass 1 and pass 2
8
Day d
Origin Post
OfficeDay DItem
posted
Day D Item
postedItem
posted on day d
Day D Outgoing
sort
Transport to destination center
day d
Day DTransport to
destination center
Day D+1Delivery point sequencing
Day D+1 Deliver
Day D/D+1Await all
incoming mail
Origin Post
Office Origin Sort Center
Origin Sort Center
Destination Sort Center
Destination Post Office
Delivery point sequencing: critical times influence the quantity of sequencing machines
9
Run DPS Pass 2
Run DPS Pass 1Hold mail for DPS Pass 1
Hold mail for DPS Pass 1
Bin capacity influences the number of sequencing machines
10
10 20 30 40 100 200 300
1,3 1,3 1,3
13 26 39 52 130 260 390
130 520 1 170 2 080 13 000 52 000 117 000
1,3 1,3 1,3 1,3
Number of Bins
Density N bins N PassesN bins
Determining the number of mail sequencing machines
11
Machine deployment strategies
12
Evaluating Delivery Point Sequencing
Automated delivery point sequencing components
� Address database and updates
� Route walk sequence database and updates
� Updated routes
� Distribution
� Hardware (Machines, trays) and software (Sort plans)
� Implementation – strategy and project management
� DPS performance measurement: machines & people
� Training (sequencing & delivery)
14
Issues affecting the success of a delivery point sequencing program
Machinable versus Non Machinable Mail
How much of the mail cannot be processed on automated equipment
Addressing System and Address Database
Address database; address hygiene
Level of Automation
Number of sorting equipment required; % utilization
Mail mix
Levels of presort; needs to merge flows
Labor Costs and Labor Flexibility
Cost of casing - Ability to adjust routes
15
Addressing System and address database
� The national addressing systemis deficient or simply lacking
� The address database does not reconcile the address due to address inaccuracy or improper format
� The address is incomplete or incorrect (undeliverable as addressed)
16
Level of automation
� Total cost of equipment and related operational requirements
� Machine deployment strategy
� Centralized
� Distributed
� Hybrid
� Service standards/operating windows
� Mail density/bin capacity
17
Non-machinable mail
� Mail not sequenced because its physical and dimensional characteristics cause it to get rejected from the sorting equipment
� Mail rejected by mail sorting equipment because of unreadable addresses
18
Mail mix
� In-office work is necessary to case mail, including:
� Residual letters that could not be sequenced by mail sorting equipment
� Flat mail (oversized envelopes)
� Saturation mail (unaddressed mail)
� In-office labor hours affect total time on the street and, thus, the justification of the sequencing program
19
Several machines versus one machine
Machine
One for each sorting step• Standard: IRV, FSM,
CSS• Flat: FSS
• overlapping time windows
• flexibility
• space for machines• long Idle times• many piles
One for all sorting steps• Standard: 2LS• Flat: FSS
• machine utilization• space for machines• short Idle times
• many piles
One for all sorting steps and formats• Flatsorter
• machine utilization• one pile
• throughput rate• transport of different
formats inside one tray
Machine deployment strategies: pros and cons
21
Fewer sequencing equipment required
Narrow processing window for overnight mail
Higher utilization of sequencing equipment
Large demands for real estate (240 bins or more)
Equipment can be used for other types of sort
Reject mail handled twice, at plant and at post office
Maintenance is centralized
Less expensive machine
More machines required
Versatility means it can be used for other types of sort
Slower operation –usually 3-pass sort
Longer operating window
Maintenance must be provided at local level
Sequencing: pros and cons
22
Office time savings: time in the office manually sequencing a route is ultimately eliminated, but not necessarily entirely
Mail processing costs: New costs are incurred by acquiring mail sequencing equipment:
• The second pass of a sequencing plan is a cost
• There is a cost associated with underutilized machines if, for instance, operating windows are too tight thus requiring more equipment
Improved efficiency: In principle, sequencing standardizes the process of street delivery which should lead to improved carrier’s efficiency.• For instance, sequencing introduces a program of standardization of trays and
of the elimination of sacks and other inefficient forms of containerization
Improved accuracy: the automated sequencing is generally more accurate than the manual casing
Reduced equipment: by reducing the number of routes, vehicles, carrier cases, and other equipment needed for each eliminated route are also eliminated
Address database: This is both an asset and a liability. The address database can help improve sequencing effectiveness and introduce new services (such as the redirection of mail), but there is also a cost to maintain a complex database.
Implementing delivery point sequencing
23
Steps towards implementation
24
� Assessment & Evaluation
� Strategy selection
� Equipment selection
� System architecture and databases
� Implementation plan
� Infrastructure and distribution implications
� Training development and delivery
� Performance management
Next Steps
Next Steps
25
Assessment
Business Case
Detailed Study
Initial Assessment
26
� How much of an impact would a reduction in delivery labor costs make?
� What does the addressing system look like?
� What is your current level of automation?
� What do mail volume and mail mix look like, today and tomorrow?
� How much of the mail is machinable?
Business Case
27
� A rough, conservative comparison of costs and benefits over time.
� Rough estimates of
� Net labor savings
� Other benefits
� Hardware and system costs
� Training costs
� Implementation & management costs
� Evaluation of risks
� Estimate of the return on investment
Detailed Study
28
� Sequencing strategy
� Distribution impacts and changes
� Hardware technical requirements and capacity
� Infrastructure and system changes
� Address management
� Training
� Detailed program plan
� Various subsystems required
� Video encoding
� Vehicle impacts
� Material handling & containerization
29
> insight > action > transformation
decision/analysis partners LLCwww.decisionanalysis.net
Tel: 703 691 038010400 Eaton Place, Fairfax VA USA
Email: Pierre Kacha: pkacha@decisionanalysis.net
Bernard Markowicz: bmarkowicz@decisionanalysis.net
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