® 2/2/2012 Streamline Acceptance Results Based Verification (RBV) Draft Proposal

® 2 Agenda  Definitions  Objectives  Sampling process  Review the RBV sampling components:  Sample frequency  Sample size  Locations to collect mail samples  Next Steps

® 3 Definitions  RBV will calculate the induction sampling frequency/size for mailings entered through the SA process.  Mail Quality – the average result of measuring a mailer's mail product(s) over a given time period against USPS mail specifications.  Mail Job – e.g. Mailer’s Mail.dat Job ID/Mail.XML Mailing Group ID  Mail Sample Frequency – number of mailings to be sampled over time interval  Mail Sample Size – number of mail components to be sampled for a mailing

® 4 Objectives  Develop mail sampling process for SA mailings  Use mailer’s mail quality to drive their sample frequency/size  Protect revenue  Improve mail quality throughout the supply chain  Minimize impact on downstream processes  Minimize mail sampling economics (costs/process time)  Minimize mail sampling effects on service performance

® 5 Sampling Process  Calculate the mailer’s induction sampling frequency based on:  A Mailer’s past mail job volume and mail quality  When SA mailings are auto-finalized – RBV will apply the mailer’s sampling freq to identify SA mail jobs to be sampled  SA mailings selected for sampling, RBV will calculate sample size based on  A Mailer’s mail quality  Optimize mail sampling within/across USPS entry point locations  Send container data marked for sampling to USPS entry facilities

® 6 Sampling Frequency/Size Example Example of RBV Sampling Frequency  Mailer A with good mail quality will have a lower number of mail jobs sampled  Mailer B with low mail quality will have a higher number of mail jobs sampled Mailer A will have a mail job selected for sampling every 1.8 days. Mailer B will have a mail job selected for sampling every 1.4 days. If Mailer B had normal inspection method - the sampling frequency would have lower sample size/freq: - Sample Size: 20 - Mailer's Sampling Freq: 2.3 Example of RBV Sampling Size  Mailer A submits eDoc to PostalOne! – RBV selects the mailing for sampling  RBV calculates the mailing’s sample size using the mailer’s mail quality

® 7 Next Steps  Develop RBV sampling capabilities to support these different business scenarios.