1. MTAC WG 114 MTAC Workgroup 114 DRAFT Recommendations Review and Discussion Full Workgroup Meeting August 29, 2007

2. MTAC WG 114 1 st Draft of final report sent out yesterday It’s a draft…comments are welcome All subgroup recommendations are in there – but may be moved to cross-product sections, or may be slightly re- worded Standard Mail subgroup meeting yesterday – some changes to standards/measurement recommendations forthcoming USPS Standards Review presentation today could bring changes… Final Workgroup Recommendations

3. MTAC WG 114 Executive Summary Table of Contents Service Standards Recommendations –Cross-Product Recommendations –Product-Specific Recommendations Service Performance Measurement Recommendations –Cross-Product Recommendations –Product-Specific Recommendations Service Standards/Measurement Review Process Special Services Recommendations Final Workgroup Recommendations

4. MTAC WG 114 High-Level overview of recommendations Subgroup co-chairs: review and comment (ensure all significant recommendations are re-capped) All workgroup members: review and provide comments to subgroup co-chairs or full workgroup co-chairs Executive Summary

5. MTAC WG 114 Outlines existing standards Cross-Product Recommendations: –Improve consistency of service (reduce tail of the mail) –Establish performance goals (baseline, plan for improvement, consistency goals, data quality metric goals) –CETs (access, impact on service, tied to measurement) –Counting Methodology –USPS Standards Review (process description, goals) –USPS should provide specific detail, opportunity for mailer comment Service Standards Recommendations

6. MTAC WG 114 Cross-Product Recommendations: (cont’d) –USPS plan to achieve standards (due by June 2008) – opportunity for industry comment –Service Standards Information/Tools (access, functionality, enhancements, communication, CETs) –Communication –Service Standards and Outsourcing –Keep same standards or consultation process to change Service Standards Recommendations

7. MTAC WG 114 First-Class Mail –Description –Existing service standards –Recommendations –Maintain existing standards, but increase focus and establish performance goals to improve consistency –New standards for forwarded/returned mail –USPS evaluate network capabilities for non-contiguous –No shape-based distinction in standards –No seasonality/volume adjustment Service Standards Recommendations

8. MTAC WG 114 Periodicals Mail –Description –Existing service standards –Recommendations –Maintain existing standards –USPS evaluate network capabilities for non-contiguous –Emphasize importance of CETs –Ensure standards can be met for small density mailers using end-to-end network –Defer Special Services, forwarding/return standards to appropriate subgroups –No adjustment for seasonality/heavy volume period Service Standards Recommendations

9. MTAC WG 114 Standard Mail –Description –Existing service standards –Recommendations –Range of delivery days –Drop-Ship entry service standards matrix –Origin-Entry service standards based on existing network capabilities –No distinction in standards based on shape –Seasonality adjustment for fall mailing season Service Standards Recommendations

10. MTAC WG 114 Standard Mail –Recommendations (cont’d) –Use of Mailer Requested In-Home Dates –USPS evaluate network capabilities for non-contiguous –Consistency of delivery –BPM Flats Service Standards Recommendations

11. MTAC WG 114 Package Services –Description –Existing Standards –Recommendations: –Results of USPS standards review needed –Standards/Measurement as interim for one year then re- evaluate when performance data available –Drop-Ship entry packages service standards matrix –Existing standards for origin-entered packages –Performance goals for on-time to standard and consistency –USPS evaluate network capabilities for non-contiguous and establish Package Services standards –Small business/consumer needs (USPS outreach) Service Standards Recommendations

12. MTAC WG 114 New MTAC workgroups should be formed to continue work on measurement details Access to measurement data: –Adds value to the mail –Increases mail usage –Improves management (USPS and mailer practices) Measurement Recommendations

13. MTAC WG 114 Business mailer needs from measurement systems: –Balance cost of measurement with service needs –Provide USPS with actionable data to improve service –Provide product users with data to better manage businesses –Leads to improvements in service consistency/predictability –Allows costs of measurement to decrease as performance increases –Clearly illustrates performance by geographic area Measurement processes should not disrupt business processes No specific recs on measurement methodologies Measurement Recommendations

14. MTAC WG 114 Intelligent Mail Measurement supported because: –Less costly, largely passive, by-product of operations –More accurate data on real mail, vs. test mail –Granular, real-time, actionable data to pinpoint service issues –More data than statistically needed (allows for excluded volume) –Consistency of data for measurement and tracking products (Confirm, DelCon, etc.) –No mailpiece fabrication, management of reporters –More comprehensive measurement of acceptance, distribution and delivery processes –Extensive data for USPS and mailer business planning Measurement Recommendations

15. MTAC WG 114 Intelligent Mail Measurement supported because: (cont’d) –Data to improve mail preparation and mail quality –Other benefits to USPS from IM data (better costing data, planning tools, etc.) USPS should explore non-Seamless Acceptance Start-the-Clock validation techniques Measurement Recommendations

16. MTAC WG 114 Intelligent Mail Potential “Gaps” Cross-Product Gaps –Non-Auto/Non-Barcoded mail –Mailings lacking electronic manifest –Pieces lacking valid Start or Stop-the Clock scans –Mail drop-shipped to DDUs (may not be cost-effective solution) –5-digit presort trays/bundles First-Class Mail Gaps –Business Reply Mail (Start-the-Clock difficulties) –Others????? Measurement Recommendations

17. MTAC WG 114 Periodicals Mail Gaps –Local newspapers Standard Mail Gaps –Non-Seamless Acceptance mailers –Saturation flats –Non-Auto/Non-Machinable mail –Not Flat-Machinable (NFM) pieces Package Services Gaps –Parcels without confirmation services –Others???? Measurement Recommendations

18. MTAC WG 114 EXFC for single piece, non-commercial FCM letters/cards/flats and for network segments (validation of delivery proxies) Measurement of smaller volume product mailstreams (minimize costs, measuring network segments, special studies or less rigorous statistical sampling over longer period) Implementation time lines for measurement –USPS plan with milestones toward IM measurement implementation early 2009 –Measurement for all product mailstreams not necessary to start (focus on high vol mailstreams and ones where IM solutions can easily be implemented, add others over time) –Implement alternative measurement systems for any mail types/network segments where IM measurement not in place by December 2010 Measurement Recommendations

19. MTAC WG 114 Interim Measurement Solutions (consider if IM implementation not meeting time line, or if product users desire measurement prior to IM implementation) Measurement Process Quality Metrics –Start-the Clock metrics (container scans, improvement plans, measurement of performance) –Stop-the-Clock metrics (performance, measurement, periodic validation tests of delivery proxies) Measurement Recommendations

20. MTAC WG 114 Measurement Data Inclusion –USPS maintain all measurement data, provide access to mailers –USPS and mailers to work out appropriate retention periods –Some data may be excluded from service performance measurement scoring –Excluded data available to mailers/USPS for analyzing, improving performance, mail quality issues, etc. –USPS to use customer’s raw measurement data in service issue discussions –USPS establish and communicate ground rules for data exclusion –Raw data to be used for evaluating effectiveness of Start/Stop Clock (for audit) Measurement Recommendations

21. MTAC WG 114 Service Issue Resolution Process –USPS document formal process for resolving service issues, including escalation process –USPS and mailer access to measurement data for common diagnostics –Separate MTAC workgroup to be formed to work on service issue resolution process Measurement Recommendations

22. MTAC WG 114 External Audit of Measurement Systems –Evaluate procedures for identifying pieces, capturing Start/Stop the Clock data, and USPS’ compliance with procedures –Review and appraise business rules for data exclusion and USPS compliance with those rules –Analyze amount of mail in service performance computation, raw data and total mail to determine representativeness of measurement data Measurement Recommendations

23. MTAC WG 114 Communication –Service performance results –Service performance measurement data/reports Intelligent Mail Start/Stop Clock Determination –USPS description – please review Measurement Recommendations

24. MTAC WG 114 First-Class Mail Recommendations –Measurement data can improve quality –Add value to mail, increase usage, improve management –FCM supports IM measurement –Other product-specific recommendations? Measurement Recommendations

25. MTAC WG 114 Periodicals Recommendations –Periodicals supports IM measurement –Reporting recommendations (see later section) –Industry measurement system as interim solution until IM ready –Container barcode scanning improvement needed –Other product-specific recommendations? Measurement Recommendations

26. MTAC WG 114 Standard Mail Recommendations –Standard Mail supports IM measurement –Anticipated volumes to be adequate by early 2009 –Reliable Start the Clock data –In-process scans augmented by container/unit scan data –Same data available to mailers and USPS –USPS should accelerate IM implementation efforts –Understanding of USPS IM measurement solution for Standard Mail (is some of this redundant with USPS’ Start/Stop the Clock Section?) Measurement Recommendations

27. MTAC WG 114 Package Services Recommendations –Package Services supports IM measurement –DelCon most widely used IM for packages – adequate initial volume for measurement anticipated –May be some gaps at retail (where no POS terminal) –Evaluate DelCon representation for some product mailstreams –Work to remove barriers (e.g., barcode size for Standard Mail parcels) Measurement Recommendations

28. MTAC WG 114 Measurement Reporting –Publicly available data, close to real-time, granular detail –Report on consistency performance as well as on-time performance to standards (e.g., % of mail delivered by day outside the standard; size and length of “tail of the mail,” etc.) –Accessible in aggregate form, with drill-down to disaggregate categories (ideally a web-based system) –Disaggregated data available by product, shape, 3-digit O/D ZIP Code pair (performance vs standard) Measurement Recommendations

29. MTAC WG 114 First-Class Mail Reporting Recommendations –Aggregate by 3-digit O/D ZIP pairs, by shape, entry type (business vs collection), by selected time periods –Aggregate by Plant, District, Area for service issue resolution process –Mailer-specific data not to be disclosed beyond authorized representatives Measurement Recommendations

30. MTAC WG 114 Periodicals Reporting Recommendations –Aggregate available to public, with drill-down to disaggregated data by shape, class/subclass, geography –Close real-time data access, web-based, user-determined level of granularity (including shape, class, CIN group, presort, 3-digit O/D ZIP pairs, Postal Area/District/ZIP, in time segments – daily, weekly, monthly, quarterly, YTD) –Show percent delivered outside standard each day, including early and late delivery –Export and print capabilities of data Measurement Recommendations

31. MTAC WG 114 Standard Mail Reporting Recommendations –Start-the-Clock and piece scans reported by shape, mail make-up, entry location (origin/destination) –Aggregate data that can be drilled down by Postal Area, BMC, SCF, DU –Minimum quarterly/annual reporting but monthly preferred Measurement Recommendations

32. MTAC WG 114 Package Services Reporting Recommendations –Publicly reported on monthly basis –Report performance by 3-digit ZIP O/D pairs and by all destination facilities –Identify number of packages delivered each day, beginning with Day 1 and ending at Day x –Aggregate reports necessary for comparison purposes –New MTAC workgroup should be formed to look at reporting Measurement and Outsourcing –Keep same measurement or consultation process to change Measurement Recommendations

33. MTAC WG 114 Service Standards Review Process –Annual formal review process (USPS, PRC, mailers) –Quarterly update process for minor changes (with advance notice to mailers, opportunity for feedback, notification of changes) –Formal review process for significant changes (FSS, network redesign, etc.) with customer feedback process –Review of 2008 standards (when performance data available) –Non-Contiguous U.S. locations –Forwarded/Returned Mail –Special Services Review Process

34. MTAC WG 114 Communication –Service standards changes –Service performance measurement systems/results Review Process

35. MTAC WG 114 Section 500 = Special Services recommendations Review and comment Missing? Business Reply Mail, Registered Mail ? Special Services

36. MTAC WG 114 Section on customer barriers to IM? IM section with projected volumes, plans (based on IM presentation to FCM subgroup Aug 15) Changes as a result of USPS Standards Review? (at discretion of subgroup) Others??? What Else Should be Added?

37. MTAC WG 114 Draft recommendations will be updated based on any changes from Standard Mail subgroup meeting and today’s full workgroup meeting Revised draft to be sent out by e-mail by the end of this week Review, review, review !!!! Provide comments/edits by e-mail to Kathy Siviter no later than September 10 Final version to be re-circulated to full workgroup by September 17 Final document hand-off to USPS by September 20 One last meeting…at request of USPS Finalizing the Recommendations

38. MTAC WG 114 MTAC Workgroup 114 Thanks for your Participation!