MTAC 117 Performance Based Verification Sept 17, 2007

2 Agenda Verification Process –Current –Objective –Process Quality Improvement –Mailing Quality Feedback –Reports; Types and Features –Mail Exception – Bulletin Board Test Results

3 Current Verification Process Mail Verification Activities –Barcode Quality, Presort,, Mailpiece Count, Address Quality, Correct Meter, Bundle Integrity, Weight Verification Mail Verification Approach –MERLIN & Manual (Sample-Based) –Labor/Time Intensive Verification Rules –Every mailing > 10,000, 1 in 6 < 10,000

4 Current Verification Rules No consideration for mailer performance Size-based (solely on total volume of mailing) Current rule’s matrix Pieces per Mailing < 10,000≥ 10,000 All Mailers 1 in 61 in 1

5 Objective – Optimize Verification Process Establish more effective rules –Mail quality performance –Mailing characteristics (size, process category, discount) Create a more efficient process –Standardize procedures –Cost intelligent –Resource intelligent Benefits –Reduce mail entry time –Standardize processes –Focused workload management –Improved mailing quality Performance Based Verification

6 Objective – Performance Based Based on the following factors: –Quality performance of mail preparation » Location specific » Error types » Error type occurrence –Mailing characteristics » Volume, preparation mix, processing categories » Manufacturing process (i.e. staged, continuous) –Results from previous verifications » Previous failure triggers next mailing –USPS cost to perform verification Change the Rules / Improve the Process

7 Process Postage Statement data drives verification activities –Automation checks –Bundle integrity –Weight verification –Additional as required Verification frequency/size system determined Details and results collected and provided online –Barcode quality –Address quality –Presort quality –Additional as conducted Mail quality feedback available

8 Mail Quality Feedback Provide enhanced feedback to mailers regarding their quality of mail preparation –24-hour online access to centralized information via PostalOne! –Ability to sort and view information in multiple ways –Provide increased visibility of mail quality across acceptance locations –Allow mailers to track their quality of mail preparation over time (i.e. ability to analyze trends) –Ability to drill down to detailed levels

9 Mail Quality Feedback – Error Types Information on the following error types will be available in the proposed Mail Quality Reports –Barcode –Presort –Bundle Integrity –Postage –Tap Test –Digit String –Delivery Point Validation –Move Update

10 Mail Quality Feedback – Report Structure Search Criteria –Mail Class or Processing Category –Date Range –Location (Mail Preparer View) –Mail Preparer (Mail Owner View) Types of Reports –Mail Exception Bulletin Board –Mail Exception Details –Summary of Errors –Error Details –Sub-Error Details –Trend Analysis

11 Mail Quality Report – Error Type Details Provides quick access to verification or processing and delivery errors that were found during the past 30 days

12 Mail Quality Report – Error Type Details Provides details of the mailings that had verification errors (accessed through Mail Exception - Bulletin board)

13 Mail Quality Feedback – Customer Views Allows Mail Preparers to view information by one or all locations Search Criteria

14 Mail Quality Feedback – Customer Views Allows Mail Owners to view information by one or all Mail Preparers Search Criteria

15 Mail Quality Feedback – Summary of Errors Provides overview of error types by processing category or class View by Area, District, Local Location, or Individual Customer Drills down to detailed error information per specific mailing Processing Category

16 Mail Quality Report – Error Type Details Presents specifics regarding barcode error types for a specified timeframe Shows the magnitude (in percentage) of each specific error type View by error type categories (Presort, Postage, Bundle Integrity, etc.) Barcode Errors

17 Provides the details of all presort errors found during verification or processing and delivery Mail Quality Report – Error Type Details Presort Errors

18 Mail Quality Report – Error Type Details Provides detailed error information Identifies the POSTNET Barcode or Intelligent Mail Barcode of the mail pieces in the mailing. Identifies only the addresses that contained errors Drills to specific error problem specifics such as invalid delivery point, missing suite numbers DPV Analysis

19 Mail Quality Report – Error Type Details Provides detailed error information such as last time the address received a move update request Move Update Analysis

20 Summary Verifications will be customized based on past performance –Fewer verifications will be performed on mailers with good quality of mail preparation Mail Quality Reports provide a 24-hour electronic access to mail quality information

21 Testing Current Pilots –Portland, Maine BMEU (Began June 8, 2006) –Suburban, Maryland BMEU (Began July 20, 2006) –Detached Mail Unit, Rockville, Maryland DMU (Began Jan 3, 2007) Results –Fewer verifications are being performed on mailers with good quality of mail preparation –The amount of time spent at the acceptance location has been reduced for mailers that have good quality of performance –National deployment will start after pilot testing and field impact study has been completed