1. ® MTAC Workgroup 114 Establish Service Standards and Measurement USPS Service Measurement Capability July 31, 2007

2. Scanning Requirements for Service Measurement  Two scans are required for transit time measurement:  “Start-the-Clock”  “Stop-the-Clock”

3. First-Class Commercial Letters  Start-the-clock:  Use electronic manifest, unique mailpiece IDs, and container scans  Seamless Acceptance Mailers  Phase 1 (July) – 3 mailers  Drop at 5 locations  2 million pieces weekly  Phase 2 (November) – 4 mailers  Drop at 80 locations  10 million pieces per week  Stop-the-clock:  Use stop-the-clock as defined in the CONFIRM system

4. First-Class Flats  4.5% of total First-Class Mail volume  72.7% of volume is single piece  Single piece volume currently measured in EXFC  No commercial mailers in Seamless Acceptance  Start-the-Clock  Commercial mailers could use electronic manifesting, unique mailpiece ID and container scans  Stop-the-clock  Use stop-the-clock as defined in the CONFIRM system  Recommend continued use of EXFC

5. Standard Letters and Flats  Start-the-clock:  Use electronic manifest, unique mailpiece IDs and container scans  Seamless Acceptance Mailers (Non-CR letters and flats)  Phase 1 (July) – 1 mailer  Drop at > 350 locations  10 million pieces weekly  Phase 2 (November) – 1 mailer  Drop at 350 - 400 locations  20 million pieces per week

6. Standard Letters and Flats (continued)  Stop-the-clock:  Non-saturation Letters  Use stop-the-clock as defined in the CONFIRM system  Flats and saturation letters  Non-Carrier Route Flats  Scan of top piece in tub when cased  In FSS environment; move to last en-route scan  Carrier Route bundles and saturation letters  Bundles - Scan IMB on top piece when bundle is cased or taken to street  Letter Trays - Scan intelligent tray barcode when tray is cased or taken to street

7. Parcels  Delivery Confirmation Priority Mail System – Retail (DCPMR) demonstrates the ability to measure service performance using DELCON  Small volumes of intelligent barcodes on bound- printed matter, library rate, and media mail with unique barcodes. Capable of measuring aggregate parcel performance for parcels that are handled together

8. Parcels (phased approach)  Aggregate single piece parcels, media mail, bound printed matter and library rate  Start-the-clock  Phase 1 – Single piece volume – ready today  Phase 2 – New process for commercial mail (limited sites)  Scan sample of DELCON at induction  Phase 3 – Roll-out to remaining sites and add more retail  Stop-the-clock: DELCON - attempted delivery or delivery scan

9. Exclusions from Service Performance metrics  For Seamless Acceptance:  Mailings with manifest quality issues that exceed the established tolerance  Mailings with an operational scan rate that is lower than the established tolerance  Mailings with presort errors in excess of the established tolerance  Mailings with address quality errors in excess of the established tolerance  Mailpieces with quality issues such as improper presort, UAA, etc.  For non-seamless, mailings that do not pass verifications will be excluded

10. Measurement gaps  Non automation letters & flats  9.6% of letters  45.6% of flats  Mail destinating at non-automated zones  Manual mail and rejected mail  Start-the-clock for BRM / QBRM  Not Flat-Machinables  Parcels without confirmation services  5-digit bundles and trays  Distribution scan acceptable?

11. Measurement barriers  Customer adoption of Intelligent Mail solutions  Operational scanning process needed / training  Software update needed on IMD for start- and stop-the-clock scanning  Additional scanners needed at Dock & BMEU  Resolution of IMB height on flats (some letter mailers)  Parcels inducted at non-POS sites  PTS software upgrade needed

12. Summary  Internal measurement systems provide a reasonable measure for service performance, but highly dependent upon customer participation  IMDAS software updates and revised scanning procedures required at delivery units  Limited volumes of packages, when measured at the product level, require an aggregate measure  Retail (single piece) FCM letters and flats can continue to be measured by EXFC  Scanning data for both “start-the-clock” and “stop-the-clock” is available for significant volumes of mail, across broad geographic areas