MAIL NETWORK OPTIMISATION PROJECT

Why MNOP?

Mail Network Optimisation project focuses on postal (mail) business, which account above 50% of the department’s revenues India Post’s revenues Percent Mail Revenue Rough estimates in percent Text 100% = INR 5,862 crore International mail Ordinary and registered mail Speed post Postal receipts SB & Financial services SOURCE: Postal and saving bank split taken from Demand for grants and the mail revenue split based on the semiannual survey 3 3

There are 3 main reasons why improvement in Mail Business is required EXAMPLES – NON-EXHAUSTIVE India Post's total mail volume, million items p.a.1 * India Post is losing volume and market share significantly * * */05 */09 Customer survey results2 Customers rate India Post low, especially in reliability EBIT3 margin of postal operators > * India Post's financial performance is poor compared with that of other players > * > * 4 4 4 1 Based on annual report and book of information 2 Based on 50 extensive and structured interviews with 20 loyal and 30 former Speed Post customers 3 EBIT = Earnings before Interest and Tax 4 Mail division only SOURCE: Mail Network Optimisation Project

MNOP What may be the Objectives? Scope?

The objective of MNOP To resolve structural issues in Mail operations. To reduce the flow of mail between different centres. To use the best practices used globally, in India Post. To ensure consistency and reliability

SCOPE OF THE PROJECT MODERNISE THE LOOK AND FEEL GET THE CORE RIGHT Mail Network to be optimized Mail Processes to be standardized Performance should be monitored through effective mechanisms MODERNISE THE LOOK AND FEEL Improve India Post’s appearance To be more trustworthy and reliable Upgrade the processing facilities Improve working conditions India Post

The Approach Pilot project was introduced for Speedpost in 8 major cities 89 Sorting Hubs and 42 Intra Circle Sorting Hubs were identified. It will be extended to First Class and Second Class mail. Further extension will be made to all mail related products.

STANDARDISATION OF OPERATION OF SPEED POST Processes at Booking Offices Optimisation of Network Schedule Processes at Sorting Hubs Processes at Delivery POs

PROCESSES AT BOOKING OFFICE Booking offices should close separate bags for TD and Non TD You should check that it is done, else report the matter in the DR

OPTIMISATION OF NETWORK SCHEDULE RECEIPT FROM POs Sorted first and schedule should suit the cut off for connecting Schedule for Other SPCs NON TD – TD – Sorted while waiting for receipts from other SPCs RECEIPT FROM OTHER SPCs TD – Sorted after receipt and the schedule should suit the cut off for delivery.

Processes at SPC/Sorting Hub Layout Assembly Line concept was introduced Mail agency/TMO was streamlined Improved sorting process Volume based Sorting logic was introduced Sorting diagram was designed to suit this logic New sorting cage was designed Adequate equipments and infrastructure New roller containers, trays, trolleys and bag cutters were used Computers, scanners, printers and internet connectivity were provided. SOURCE: Mail Network Optimisation Project 12

Can you identify your position in this lay out?ove Layout of a Sorting Hub Text Text Text Can you identify your position in this lay out?ove SOURCE: Mail Network Optimisation Project

Equipments for Sorting Hub Text Text Text Sorting Cages Roller containers Bag cutter and stool Tray trolleys SOURCE: Mail Network Optimisation Project

Processes at Delivery PO All delivery related branches were brought under one roof Stamp Cancellation machines were used Postmen were involved in beat sorting activity Delivery status were fed into Speednet

To include the before photo of SPC

To include the After Photo of SPC

KPI – Key Performance Indicator. KPI – a set of parameters, used to define and measure progress towards organizational goals. Thorough this the performance of your office will be monitored regularly by your Higher ups Your role in making your office a better one is very much essential. Scanning of all the Mails received and despatched plays a vital role.

What information does the "scan compliance KPI" provide? 2 What information does the "scan compliance KPI" provide? Share of scan compliance Articles with full scan history KPI identifies actual number of scans available against prescribed scans KPI identifies number of articles with full scan Description Illustrative TD example Booking post office Booking scan Dispatch scan SPC Receipt scan Dispatch scan Delivery post office Receipt scan Delivery scan KPI: Full scans (%) Article 1 2 3 4 5        Example KPI: Share of scans (%) 100 60 40 100 20 80 20 1 Per SPC 3 By sector (e.g., Mumbai to Delhi) Available breakdowns 2 TD vs. NTD 4 Leg-by-leg analysis Note: Detailed calculation logic is in the backup SOURCE: Mail Network Optimisation Project

Scan compliance – No of Scans Articles Booked at PO/SPCC TD Articles: 8 NTD Articles: 12 Articles Booked at BNPL centre/ MBC/ OSA facility/ BPC TD Articles: 5 NTD Articles: 9

Scans for TD Articles Booked at PO/ SPCC PO/SPCC Booking Scan PO/SPCC Despatch Scan SPCC MA/TMO Reciept Scan SPCC Bag Opening Scan SPCC Bag Closing Scan SPCC MA/TMO Despatch Scan Delivery PO receipt Scan Delivery PO Final Delivery Scan India Post

Scans for Non TD Articles Booked at PO/ SPCC PO/SPCC Booking Scan PO/SPCC Despatch Scan Origin SPCC MA/TMO Receipt Scan Origin SPCC Bag Opening Scan Origin SPCC Bag Closing Scan Origin SPCC MA/TMO Despatch Scan Destination SPCC MA/TMO Receipt Scan Destination SPCC Bag Opening Scan Destination SPCC Bag Closing Scan Destination SPCC MA/TMO Despatch Scan Delivery PO receipt Scan Delivery PO Final Delivery Scan India Post

Scan of TD articles booked at BNPL centre/ MBC/ OSA facility/ BPC Booking Office Booking Scan Booking Office Despatch Scan Mail Agency Despatch Scan Delivery PO receipt Scan Delivery PO Final Delivery Scan India Post

Scan of Non TD articles booked at BNPL centre/ MBC/ OSA facility/ BPC Booking Office Booking Scan Booking Office Despatch Scan Mail Agency Despatch Scan Destination SPCC MA/TMO Receipt Scan Destination SPCC Bag Opening Scan Destination SPCC Bag Closing Scan Destination SPCC MA/TMO Despatch Scan Delivery PO receipt Scan Delivery PO Final Delivery Scan India Post

Now can you identify your role in making your office a better one?