mail network optimization project
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Mail Network Optimization Project. Interaction with the Staff Side. New Delhi, November 23, 2010. The Background. Impact. Inconsistent quality of service High operational costs Eroding customer base. External Factors. Systemic Issues. Declining mail volumes - PowerPoint PPT PresentationTRANSCRIPT
Mail Network Optimization Project
New Delhi, November 23, 2010Interaction with the Staff Side
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The Background
External Factors▪ Declining mail volumes
▪ Competition from Domestic and Inter-
national players
▪ Absence of regulation
▪ Change in mail profile
▪ Customer Demands(e.g. Track & Trace)
Systemic Issues▪ Difficulties of existing
mail network vis-à-vis changed mail profile
▪ Low level of IT induction in mail processing
▪ Low productivity and ageing workforce
▪ Delivery inconsistencies and visibility
▪ Lack of customer focus
Impact
▪ Inconsistent quality of service
▪ High operational costs
▪ Eroding customer base
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The Scope of Project
"Get the core right"
"Modernise the look and feel"
▪ Optimise India Post's network from collection to delivery
▪ Standardize processes with focus on significant quality improvement & reduction in network complexity
▪ Put in place an effective performance measurement system through regular reviews
▪ Improve the ambience of mail offices ▪ Upgrade processing facilities and improve
working conditions for employees ▪ Make staff and customers proud of being
associated with India Post
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The Approach
PRO
JECT
APP
ROAC
HStart with limited product range for prioritised cities
Increase the product range for these prioritised cities
Expand to all India for all products
▪ Early pilot and broad involvement of field units
▪ Rigorous monitoring
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The Project Plan G
eogr
aphi
cal r
each
Speed Post & International mail
Ist class IInd class
Product range
Prioritycities
All India
2011
2012
Scenario-based designand pilots
Scenario-based design
Roll-out
2010"Wave 1"
Approach reflects a strong need for immediate tangible impact
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Project Waves for Speed Post
SOURCE: Mail Network Optimisation Project
Wave 1 Wave 2 Wave 3
Cities in scope
Timeline ▪ March-July ▪ August-September ▪ September-November
▪ Mumbai
▪ Delhi
▪ Kolkata
▪ Chennai
▪ Bangalore
▪ Hyderabad
▪ Noida
▪ Gurgaon
▪ Pune
▪ Mysore
▪ Howrah
▪ Bhopal
▪ Trivandrum
▪ Chandigarh
▪ Nagpur
▪ Ahmedabad
▪ Patna
▪ Kochi
▪ Lucknow
8 5 6
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Optimization of delivery in wave 2 (1st class mail) as SpeedPost only accounts for ~10% of delivery volume
Network optimisation: Key Operational Areas (Speed Post)
SOURCE: Mail Network Optimisation Project
▪ What are the right processes within the facility?– How to ensure standardisation?– How to maximize productivity and quality?
▪ What is the right network schedule? – Which cut-off times and processing windows at each processing step across the value chain would facilitate next day delivery?
▪ How to measure India Post's performance?– How is the share of next day delivery (D+1)?– Track & Trace: Are 100% scans ensured
across the network?
▪ What is the right network topolgy?– How many processing SPCs do we need
within one city (and where)?– How many sorting hubs do we need
across cities (and where)?
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Initial Impact of the Project in terms of Operational Improvement
Easier sorting – Ensure minimum multiple handling
Less workload – reduce no. of bags & missorts between different locations
Better equipment – Ease of working for staff at SPCs with new equipments
Higher throughput – Ensure higher processing with improved process design
Streamlined workflow – by having optimised inflow of mails in the processing centersPrioritized processing – Ensure processing prioritisation based on the time of the day for maximum connectivity
Keep everyone informed – Regular interaction and display of SPC's daily performance, suggestions and feedback encouragedTraining & Incentives – Incentivise high performers and help all staff with newly developed training modules
SOURCE: Mail Network Optimisation Project
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The project has witnessed significant changes
▪ International EMS: IT interface fixed (19:59 timestamp) ~Rs. 1.5
crore revenue recovery
▪ D+x performance in 6 metros improved by
~1.0 day over last months
▪ Productivity and throughput improved
across centres by more than 50%
▪ Comprehensive set of 18 KPIs for Speed
Post developed, scorecards and VCs
institutionalised
▪ Detailed Speed Post Manual developed to
ensure standardi-sation of processes
across India
▪ Quality management cells institutionalized
▪ Network schedules in 6 metros revised using comprehensive model
▪ Instructions to merge international EMS
inbound network with Speed Post issued
▪ Multiple sorting at SPC "outlets" reduced, e.g.,
Bangalore (6 sub hubs), Mumbai (GPO
volumes)
▪ Network topology model developed with
revision of sorting hubs from 315 to 89
▪ Integrated SpeedPost database being
developed
▪ Directorate rigorously monitoring the
progress through score card
▪ All CPMGs involved (focus until date on 8 circles) and actively
participating
▪ Performance dialogues initiated on
a daily basis across the organisation
▪ New equipment tested and introduced
to improve working conditions (e.g., roller
containers, revised sorting cases, roller trays, bag scissors)
▪ Project has brought comprehensive look
at the all the stakeholders
▪ Comprehensive Look and Feel workstream
initiated and institutionalized (run
by BD team)
Quality/performance improvement
Quality/performance improvement
Financial improvements
Financial improvements Complexity reductionComplexity reduction Proud to be part of
India PostProud to be part of
India PostChanges in day-to-day
lifeChanges in day-to-day
life
Soft factsHard facts
11 33
55
66
44
99
1010
1111
1313
1414
1818
1919
SOURCE: Mail Network Optimisation Project
1212
2020
77
1616
1515
88
1717
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Number of Speed Post Centres
Number of final selections at each Speed Post Centre
Number of bags closed across Speed
Post Centres
Sorting complexities necessitated changes in the operational network for Speed Post
SOURCE: Mail Network Optimisation Project
1 Assuming that there is at least one mail from every NSPC to every other NSPC
314Selections
315NSPCs 315 314 98,9101=
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Input components of the network topology model
SOURCE: Mail Network Optimisation Project
Locationinformation
Volumedata
Air/roadconnections
Cut-offtimes
Simulationof mail flow in the network
Inputs Outputs
Processing
D+xpercentage
NSPC-POmapping
Volumeflows
Throughputrequirements
For differentnumber of NSPCs
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Basic NSPC and Post Office information
Data type Source
▪ Classification of NSPCs done based on population
▪ Population figures taken from 2001 census reports
▪ Urban: Population >5 lakhs e.g., Delhi, Mumbai
▪ Rural: Population <5 lakhs e.g., Pauri, Vashi
Urban/rural classification
of NSPCs
Data characteristics
▪ List of NSPCs and delivery POs covered by Speed Post
taken from the official Speed Post Directory
▪ Consistency checks on NSPCs done by BD
Directorate
List of NSPCs and Delivery Post Offices1
▪ 315 NSPCs
▪ delivery POs with unique pin codes
▪ Mapping of POs to corresponding NSPCs
SOURCE: Mail Network Optimisation Project
1 SSPCs have not been considered for comprehensively modelling as they do not play a role in arriving at an optimal NSPC – PO mapping
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Coordinates (Latitude / Longitude)
62.0
23.03.0
100.0
Missing coordinates
Questionable2 coordinates
12.0
Unique coordinates
Duplicate1 coordinates
All coordinates
Post Office coordinates and booking/delivery volume
SOURCE: Mail Network Optimisation Project
Percent of average daily booking volumes
Used for modelling as is PO coordinates assumed to be same as NSPC coordinates
Booking / Delivery Volumes
▪ Booking/delivery volume information at the post office level is used to split the “from-to” NSPC volume matrix (previous page) between the POs
▪ For post offices for which no volume information is available, the average daily booking and delivery volumes are assumed to be 1
Source ▪ Coordinate
▪ Volume
: http://itouchmap.com/latlong.html
: Jan - Apr 2010 PO level data from Speed Net
85% of data is usable which is sufficient for the
purpose of modeling
1 Duplicate coordinates exist since India (specially rural areas) is not yet completely mapped by latitude/longitude providers2 The distance between PO and corresponding NSPC is more than 200 km as per the coordinates
Note: 100% = 10 million per month
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Air connections
SOURCE: Mail Network Optimisation Project
Airports
▪ List of ~70 domestic airports in India picked up from a global list of airports
▪ Latitude/longitude information taken from http://itouchmap.com/latlong.html
Flights
▪ List of 6,633 domestic flights collected from airlines
▪ Flights mapped to airports in the above airport list
Loading/Unloading
Times
Loading time, hours
Airport category
Unloading time, hours
Airports classified in 3 categories
based on domestic cargo
traffic
A 2.0 1.5
B 1.5 1.0
C 1.0 0.5
Example
Bangalore
Bhopal
Dibrugarh
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Road connections
SOURCE: Mail Network Optimisation Project
Factor Assumption Reasoning
▪ Air distances calculated based on latitude/
longitude information
▪ Air distances multiplied by detour factors
Distances
▪ Standard practice for distance calculation
▪ Detour factors taken based on
sample calculations for a
few NSPCs
Detour factorUrban
1.45
Rural1.25
▪ Separate MMS speeds assumed for rural and urban NSPC-PO travel
▪ All NSPC-NSPC travel is assumed to be rural
MMS Speed
▪ Based on inputs from the field
Urban20 km/hr
Rural35 km/hr
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Cut-off times (1/2)
SOURCE: Mail Network Optimisation Project
Parameter Explanation
▪ Time at which MMS vehicles leave booking post
offices to take articles to origin NSPCs
▪ All articles booked after this cut-off are assumed to be
booked the next day
Cut-off from POs
▪ Majority of post offices do not work beyond 16:00 hrs
but there are a few post offices which
offer booking up to 19:00 hrs2 or later
▪ Latest time by which MMS vehicles carrying articles
from the destination NSPCs reach the delivery post
offices
▪ Articles that arrive at the delivery post office after this cut-off, will not be delivered the same day
▪ Second delivery rounds have been
introduced in the 6 metros
▪ Only single delivery round is feasible in rural areas because
of long distance
Cut-off to POs1
Reasoning
Metros13:00 hrs
Rest09:00 hrs
Assumption
1 MMS vehicles leave the destination NSPCs 3 hours before this cut-off i.e. at 10:00 hrs for urban POs and at 06:00 hrs for rural Pos2 Only for 6 metros which have 2nd delivery round. 1900 cut off doesn’t mean commitment to customer. Not all mail booked till 1900 would be delivered in D+1
19:00 hrs
Scenarios16:00 hrs
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Cut-off times (2/2)
SOURCE: Mail Network Optimisation Project
Parameter Explanation
▪ Time at which articles leave origin NSPC to be taken (by flight/road) to
destination NSPC
▪ Articles unable to be processed at the origin
NSPC by this cut-off, will not be connected on the
same day
Cut-off between
NSPCs
Reasoning
Options20:00 hrs
21:00 hrs
01:00 hrs
Processing time
A processing time of 120 minutes is
assumed at both origin and destination
NSPC
Articles need to arrive 2 hours before the cut-offs to
be able to get processed and connected the same
day
Assumption
▪ Right cut-off time can vary
depending on number of NSPCs
and hence need to be optimized
02:00 hrs
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Inputs to the model
Contents
Working of the model
Outputs of the model
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Configuration Comparison
Output of the network topology model – Scenario 1
SOURCE: Mail Network Optimisation Project
0
10
20
30
40
50
60
70
80
90
100
0 45 90 135 180 225 270 315
QualityPercentage
No. of NSPCs
No. of sorting hubs ‘D+1’ %
‘D+1 plus D+2’ %
Network Complexity1
20 42.74% 62.19% 0.42%
70 56.63% 84.70% 5.10%
80 57.91% 85.95% 6.66%
90 58.54% 87.19% 8.43%
100 59.51% 88.38% 10.41%
110 60.33% 91.24% 12.59%
120 61.42% 90.69% 14.98%
130 61.51% 92.25% 17.59%
140 62.58% 93.53% 20.40%
150 63.00% 94.28% 23.41%
310 66.74% 98.68% 100.00%
‘D+1’ %
‘D+1 plusD+2’ %
Networkcomplexity
▪ Cut-off from POs : 16:00 hrs▪ Cut-off between NSPCs : 21:00 hrs
▪ Second delivery round : for all urban POs
1 Measured in terms of number of bags closed in a day assuming 1 bag from every
sorting hub to every other sorting hub
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Configuration Comparison
Output of the network topology model – Scenario 2
SOURCE: Mail Network Optimisation Project
0
10
20
30
40
50
60
70
80
90
100
0 45 90 135 180 225 270 315
QualityPercentage
No. of NSPCs
No. of sorting hubs ‘D+1’ %
‘D+1 plus D+2’ %
Network Complexity1
20 38.13% 62.57% 0.42%
70 48.79% 79.95% 5.10%
80 49.23% 83.97% 6.66%
90 50.26% 86.29% 8.43%
100 50.97% 87.97% 10.41%
110 51.57% 88.53% 12.59%
120 52.37% 91.09% 14.98%
130 53.03% 92.48% 17.59%
140 53.41% 92.28% 20.40%
150 53.91% 93.36% 23.41%
310 56.83% 98.46% 100.00%
‘D+1’ %
‘D+1 plusD+2’ %
Networkcomplexity
▪ Cut-off from POs : 19:00 hrs▪ Cut-off between NSPCs : 24:00 hrs
▪ Second delivery round : for all urban POs
1 Measured in terms of number of bags closed in a day assuming 1 bag from every
sorting hub to every other sorting hub
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Configuration Comparison
Output of the network topology model – Scenario 3
SOURCE: Mail Network Optimisation Project
0
10
20
30
40
50
60
70
80
90
100
0 45 90 135 180 225 270 315
QualityPercentage
No. of NSPCs
No. of sorting hubs ‘D+1’ %
‘D+1 plus D+2’ %
Network Complexity1
20 41.34% 66.74% 0.42%
70 52.40% 84.43% 5.10%
80 53.36% 85.61% 6.66%
90 55.18% 87.24% 8.43%
100 55.93% 88.98% 10.41%
110 57.31% 91.08% 12.59%
120 57.47% 91.76% 14.98%
130 57.98% 92.38% 17.59%
140 58.62% 92.85% 20.40%
150 59.47% 94.10% 23.41%
310 62.62% 97.89% 100.00%
‘D+1’ %
‘D+1 plusD+2’ %
Networkcomplexity
▪ Cut-off from POs : 16:00 hrs▪ Cut-off between NSPCs : 21:00 hrs
▪ Second delivery round : for POs in the 6 metros
1 Measured in terms of number of bags closed in a day assuming 1 bag from every
sorting hub to every other sorting hub
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Configuration Comparison
Output of the network topology model – Scenario 4
SOURCE: Mail Network Optimisation Project
0
10
20
30
40
50
60
70
80
90
100
0 45 90 135 180 225 270 315
QualityPercentage
No. of NSPCs
No. of sorting hubs ‘D+1’ %
‘D+1 plus D+2’ %
Network Complexity1
20 37.12% 65.35% 0.42%
70 44.28% 83.92% 5.10%
80 44.94% 84.32% 6.66%
90 45.72% 85.98% 8.43%
100 46.30% 87.02% 10.41%
110 46.53% 88.50% 12.59%
120 47.29% 89.88% 14.98%
130 47.71% 90.58% 17.59%
140 48.02% 91.46% 20.40%
150 48.46% 92.52% 23.41%
310 51.32% 97.25% 100.00%
‘D+1’ %
‘D+1 plusD+2’ %
Networkcomplexity
▪ Cut-off from POs : 19:00 hrs▪ Cut-off between NSPCs : 24:00 hrs
▪ Second delivery round : for POs in the 6 metros
1 Measured in terms of number of bags closed in a day assuming 1 bag from every
sorting hub to every other sorting hub
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Deciding the ‘right’ number of sorting hubs
1 Measured in terms of ‘D+1’ % as per the network topology model2 Measured in terms of number of bags closed in a day assuming 1 bag from every sorting hub to every other sorting hub
SOURCE: Mail Network Optimisation Project
Subjective trade-off between structural
quality and operational ease
No. of sorting hubs
Structuralquality1
Operational complexity2
80 45% 7%
140 48% 20%
Better quality due to improved
network structure…
…will be compensated by delays due to increased operational complexity
310 51% 100%
Fact
or ~
3.0
‘Right’number of
sorting hubs?
ILLUSTRATIVE
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Other outputs provided by the model
SOURCE: Mail Network Optimisation Project
▪ List of sorting hubs
▪ Mapping of post offices to sorting hubs
▪ Expected daily volumes at sorting hubs
▪ Volume flows between sorting hubs
▪ Expected throughput requirements at sorting hubs
Note: The above outputs are provided for specific configurations
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New Speed Post Operational Network
SOURCE: Mail Network Optimisation Project
▪ 89 Sorting Hubs
▪ Sorting hubs: Location and number arrived at through a comprehensive modelling
▪ Only Sorting Hubs to close bags for each other, only a few intra-Circle hubs allowed
▪ Booking interface not reduced
▪ Overall expedited processing, transit and delivery time, reduced sorting complexity (back-routing to a small fraction of mail notwithstanding)
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Inter-national reports
SOURCE: Mail Network Optimisation Project
Scan com-pliance reports
Transit analysis within city
Transit analysis across city
Time per leg of transit within city
Time per leg of transit across city
Scans compliance in the entire network
Scan analysis per leg of transit within city
Scan analysis per leg of transit across city
Percent of F-scans in SpeedNet vs. F-scans in IPS1
Share of SpeedNet Delivery scans vs. IPS F-scans (TBD)
Articles processed per hour per FTE
Staff absenteeism
Share of bags without bag labels
Share of articles not processed in SpeedNet
Share of articles closed after cut-off time
Share of missorted articles
Share of articles with missing pin codes
Share of articles not dispatched same set
Percent of F-scans in IPS vs. D-scans in IPS
D+X reports
KPI What does it do?
Measures for international inbound article the efficiency of movement at every step before
merger with Speed Post
Support-ing KPIs
Measures for each processing step whether articles got
scanned as prescribed
Measures speed and reliability of processing of Speed Post articles
from booking to delivery
Supports achieving better D+x and scan performance
1a
1b
1c
1d
2a
2b
2c
3a
3c
4a
4b
4c
4d
4e
4f
4g
4h
3b
Key Performance Indicators for Speed Post Performance Management: Fortnightly Review through VCs
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System based Performance Report: Sample web page
SOURCE: Mail Network Optimisation Project
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Date: 01 to 15 September 2010
Target Actual
% achieve
ment Target Actual
% achieve
ment Target Actual
% achieve
ment
short term
Target Actual
% achieve
ment
short term
Target Actual
% achieve
ment
short term
Target Actual
% achieve
ment Target Actual
% achievem
ent Target Actual
% achievem
ent
LimitTarget =
100%
Bangalore 1.61 2.48 37% 1.05 2.03 -3% 0.00% 0.15% 85% 5.00% 25.03% -34% 5.00% 24.37% -29% 25.00% 53.26% 62% 50% 27.47% 10% 50% 0.00% -100% 1% 1
Chennai 1.19 2.56 24% 1.05 1.76 25% 0.00% 0.09% 91% 5.00% 22.75% -18% 5.00% 37.02% -113% 25.00% 68.61% 42% 50% 0.01% -100% 50% 0.00% -100% -14% 3
Hyderabad 1.45 2.30 45% 1.05 2.42 -44% 0.00% 0.11% 89% 5.00% 15.99% 27% 5.00% 18.48% 10% 25.00% 65.21% 46% 50% 0.00% -100% 50% 0.00% -100% -9% 2
Kolkata 1.60 3.13 -9% 1.05 2.83 -87% 0.00% 0.15% 85% 5.00% 14.78% 35% 5.00% 92.73% -485% 25.00% 31.67% 91% 50% 0.04% -100% 50% 0.00% -100% -80% 7
Mumbai 1.34 3.25 -15% 1.05 2.88 -93% 0.00% 0.32% 68% 5.00% 28.66% -58% 5.00% 10.94% 60% 25.00% 82.94% 23% 50% 7.01% -72% 50% 0.19% -99% -39% 5
New Delhi 1.51 3.65 -44% 1.05 2.03 -3% 0.00% 0.22% 78% 5.00% 33.19% -88% 5.00% 29.56% -64% 25.00% 79.32% 28% 50% 11.39% -54% 50% 0.59% -98% -37% 4
Noida 1.51 2.79 14% 1.05 4.86 -301% 0.00% 0.12% 88% 5.00% 26.39% -43% 5.00% 66.68% -311% 25.00% 85.59% 19% 50% 0.24% -99% 50% 0.00% -100% -122% 8
Gurgaon 1.51 2.67 22% 1.05 2.79 -83% 0.00% 0.20% 80% 5.00% 39.12% -127% 5.00% 38.16% -121% 25.00% 45.90% 72% 50% 0.15% -99% 50% 0.00% -100% -52% 6
Weightage used
25% 25% 5% 10% 10% 5% 10% 10% 100%
Circle Score Card
Overall score
2.00 = 0% achievement 100 % = 0% achievement
Metro
D+X (TD)D+X (NTD)Share of articles with 'missing'
pin codesShare of 'mis-sorted'
articles (TD)Share of bags without
'correct' bag labelsShare of 'mis-sorted'
articles (NTD)
20 % = 0% achievement1.00 % = 0% achievement
20 % = 0% achievement3.00 = 0% achievement
Overall Ranking
25%= 0% achievement 25%= 0% achievement
Full Scan Compliance (NTD)Full Scan Compliance (TD)
Sample Circle Score Card
SOURCE: Mail Network Optimisation Project
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2.56
AugustJuly
2.60
June
2.69
May
2.86
December
3.57
-1.01 days
2010
Impact in terms of improved transit and delivery performance
NTD D+x of 6 metrosAverage of full month, in days
2009
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To ensure sustainability, a Speed Post manual has been developed
SOURCE: Mail Network Optimisation Project
Speed Post Manual
How many processing SPCs should exist in a
city?
How to use the to ensure constant
performance monitoring and improvement?
How to ensure standardisation and maximise
throughput and quality?
Which are the right cutoff-times
and processing windows to allow
for maximum next day delivery?
Network topology
Processes within facilities
Network schedule
Performance management
Objectives▪ A relevant document for Speed Post operations across the country▪ To help achive reliable, fast, and standardised Speed Post operations▪ Modular approach allows for flexible updates to keep the Manual up to date
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Incentives for good performers being planned through training
SOURCE: Mail Network Optimisation Project
Focus
Recognition of good performers
Training at Bangkok for SPC Managers, ASPs
Find out need for training
Train people to help them to also become star performers
and training
Recognition
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The "look and feel"
SOURCE: Mail Network Optimisation Project
Ensure uniform brand/appearance across locations
Develop standardised and consistent, interior and exterior of the building and supporting infrastructure to the line team
Decide on the new tools and technologies to be used and also on how do we upgrade the exiting ones to ensure faster, better services
Develop scheme for recognising star circles/ performersEnsure 100% trained staff on field
Look and feel
Branding Infrastructure Technology Recognition and training
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Speed Post update11
Approach for First Class22
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First Class Mail Network need a revamp as well
SOURCE: Mail Network Optimisation Project
Volumes and revenues in First Class Mail are on a declining trend
(- 20 to - 25% over the past 5 years)
Current performance does not match customer expectations, they expect a
substantial improvement in D+x
First Class Mail offers untapped potential that India Post could capture
with high-quality network
The context for change
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Share of traffic and revenue
First class accounts for ~63% of mail volumes and ~34% of revenues, but is on declining volume and revenue trends
498
17
481
2004-05
579
561
18
-5% p.a.
2008-09
465
16449
2007-08
460
17443
2006-07
496
18
478
2005-06
INR crore (%), 2009-10 (Projected)
RegisteredUnregisteredCrore items (%), 2008-09
1,2871,3231,3391,4731,530
-4% p.a.
2008-092007-082006-072005-062004-05
SOURCE: Mail Network Optimization Project, Book of Information 2008-2009, MIS reports, Costing department
1 Revenue figures are for First Class and Second Class Mail as they are not separately tracked
Development of First Class over time
Speed Post 74 (11)
International 17 (3)
Second classmail 150 (23)
First class mail 413 (63)
Postal 654 (100)
Volume (crore)
Speed Post 736 (21)
International 307 (9)
Second classmail 1,215 (36)
First class mail 1,178 (34)
Postal 3,436 (100)
Revenue (INR crore) 1
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4.8
2.8
NTD delivery metro to
non-metro
TD delivery
1.5
2.5
3.5
NTD delivery metro
to metro 2.0
2.5
3.2
6.5
2.0
2.8
4.0
SOURCE: Survey of 120 retail customers and 38 corporate customers (30/08/2010 to 08/09/2010), Project team test letter program
2.8
3.5
1.6
2.5
3.4
2.5
1.9
4.2
3.3
1.7
1.8
1.6
Customers are aware of India Post’s insufficient performance and expect improvements in the range of 2 to 4 days for delivery
Unregistered mailN = 51 (non-bulk)
Registered mailN = 69 (non-
bulk) Expected performance
Perceived performance
Actual performance1
1 Performance based on test-letter program conducted by Project Team from 31/08/10 to 06/09/10 (total sample size: 438, of which 238 unregistered letters and 200 registered letters)
2.9
N/A
2.2
1.7
2.9
N/A
2.9
3.5
N/A
0.6
0.7
0.8
Bulk mailN = 38 (bulk)
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India Post is in a good position to capture future growth opportunities in case it can turnaround its First Class mail business
SOURCE: Mail Network Optimisation Project
▪ Indian mail market is underpenetrated with Indians receiving less than 10 mail articles/person vs. 200 articles/person in Germany and 600 articles/person in US
Untapped growth
potential can be captured …
…by leveraging India Post’s unique and
large network
▪ India Post has a strong network with ~155,000 post offices, which means that with a ratio of one office for ~7,000 Indian citizens it provides a very dense service infrastructure
▪ Majority of ordinary non-bulk mail is posted through letter boxes. With ~685,000 letter boxes across the country, India Post provides a wide network
Capturing the growth opportunity in the future will only happen if quality is improved, which will require an
operational transformation of the First Class product segment
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For First Class, we will focus on the same elements as for SpeedPost, while recognizing differences
SOURCE: Mail Network Optimisation Project
What is the right network topology?
▪ Higher fragmentation of network (more facilities, less concentrated volumes)
▪ Higher intra-city complexity (more facilities, less standardized flow)
How to measure India Post's
performance?
▪ Lack of objective data hinders performance measurement▪ Low performance management orientation and lack of
consistency of existing reports for unregistered mail
▪ Higher planning complexity (multiple transport modes involved)
▪ Lower planning capacityWhat is the right
network schedule?
▪ Relative importance of processes within sorting facilities lower in First Class
▪ Relevance of sorting automation and of improvements to delivery preparation higher in First Class (higher volumes)
What are the right processes?
Main differences between First Class and Speed Post
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Proposed approach for First Class wave – Initial efforts will focus on topology (country-wide and intra-city) and network scheduling
29 062215080125181104272013
Dec-10Nov-10Oct-10Sep-10
Develop strategy for sorting machines
Codify best practices
Processes (sorting) – Implement First Class manual
and develop additional improvements in
consolidated facility
Build comprehensive topology model
Build KPI architecture based on SpeedPost and redesign test-letter program
Build preliminary topology model
Define optimal Network Schedule
(between 6 metros)
Processes – Build First Class manual
based on SpeedPost
Manual
Processes (delivery) – Identify improvements in delivery preparation
Define facility for consolidation1 in the
6 metros
SOURCE: Mail network optimisation project
▪ Continued support on Speed Post
“Getting the core right” in country-wide
and intra-city topology is a
prerequisite to achieve long-term
impact as it will create the basis on which
scheduling and process improvements
can be built on and sustained
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First Class Mail Network Optimization: Study in Progress
SOURCE: Mail Network Optimisation Project
▪ Study of mail profile in 6 cities currently undergoing
▪ Mapping of P.O.s to mail offices undertaken
▪ Level I and II sorting offices being planned
▪ Delivery Office process optimization pilot being undertaken in metro cities
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Any questions or comments?