1. ® ACS PROCESSING IMPROVEMENTS IN CFS AND DELIVERY OPERATIONS May 26, 2011

2. ® 2 Executive Summary  Problem: CFS and Delivery Operations must identify process breakdowns that result in mailers incorrectly receiving Traditional Address Change Service (ACS) and manual notification instead of Full Service ACS  Goal:  Identify and mitigate factors driving scan failure  Provide Delivery Operations and CFS Operations with tools to ensure consistent and proper processing of all ACS mailpieces  Results: USPS has identified root causes to reduce barcode obliteration of undeliverable as addressed mail

3. ® 3 Personnel Material Method Measurement Environment Systems Electronic ACS Notification Supervisor Training Clerk/Carrier Training Plastic Wrap Barcode Quality CFS Traditional Keying CFS HHP Scanning DU Audits/ QCChecks CFS Workroom Lighting Dust FCS APES NCSC Mainframe - Significant Factor - Focus Area DU UAA Mail Prep CFS Training Cause and Effect Diagram

4. ® 4 Data Collection PHOENIX

5. ® 5 Contributing Factors  13K periodicals were sampled resulting in a 98% confidence level with a +/- 1% margin of error  Frequency of obliteration more prevalent in Nixie Mail vs. Forwarding Combined View of Contributing Factors impacting CFS Scan Rate and Mailer ACS Notification

6. ® 6

7. ® 7

8. ® 8 Poor Barcode Quality Spacing and inconsistent alignment of the barcode make-up results in Traditional ACS keying in CFS

9. ® 9 Invalid STID / MID Error received in CFS when the STID is invalid requiring Traditional ACS Error received in CFS when the MID is invalid requiring Traditional ACS  Error received in CFS when the STID is invalid requiring Traditional ACS  Error received in CFS when the MID is invalid requiring Traditional ACS

10. ® 10 Samples of Obliteration A single Line Out, Strike or Marking makes a mailpiece non- scannable in CFS – Carrier Applied Use of RTS Labels affixed over the address block makes a mailpiece non- scannable in CFS – Clerk Applied Carrier Endorsed “ANK” + Obliteration of the address block – Both Carrier and Clerk Applied

11. ® 11 Samples of Obliteration Customer Obliteration

12. ® 12 Samples of Obliteration Rubber stamp for Return to Sender Reasons  Rubber stamp for Return to Sender finger and reason  Rubber stamp for CFS ACS Codes

13. ® 13 Do Not Obliterate Poster  Not posted in delivery units  Visuals did not depict correct methods  Employees had a different understanding of what obliteration meant

14. ® 14 Observations/ Recommendations RECOMMENDATION:  Develop communication campaign around “Respect the Clear Zone”  Video, Postal Bulletin, Postal Link, USPS TV, MYPO, IMD Scanners, POS Terminals  Establish frequent communications to reinforce importance TIMELINE:  June 2011/ 2012

15. ® 15 OBSERVATION: Various methods exist in the field RECOMMENDATION: Train all supervisors, clerks and carriers TIMELINE:  June 2011 Observations/ Recommendations

16. ® 16 OBSERVATION: Invalid STID/MID and Poor Barcode Quality identified during CFS keying RECOMMENDATION: - Provide CFS management access to eMIR to report barcode content/quality issues - eMIR reports provides mailer visibility of irregularities TIMELINE:  May / June 2011 Observations/ Recommendations

17. ® 17 OBSERVATION: Flat Machine Skid Marks on Periodicals RECOMMENDATION: Adjust mail guide on all FSS machines TIMELINE:  May 2011 Observations/ Recommendations

18. ® 18 OBSERVATION: HHP Scanner Calibration not set up correctly RECOMMENDATION: Include in preventative maintenance schedule TIMELINE:  June 2011 Observations/ Recommendations

19. ® 19 FCS Software  Enhancements providing checks and balances of data flow from CFS to NCSC OBSERVATION: FCS Software – Could not determine if all processed ACS in CFS was transmitted to NCSC RECOMMENDATION: Include enhancements providing checks and balances of data flow from CFS to NCSC TIMELINE:  October 2011 Observations/ Recommendations