1. 1 Service Standards and Measurement Webinar Series Summary March 6, 2009

2. 2 “Establishment of Modern Service Standards”  By December 20, 2007, in consultation with the PRC for all Market Dominant Products  Various Objectives and Factors to be considered  Value, access, reliability, measurability  Implementation of a Measurement System\ Law Requirements Service Standards and Targets

3. 3  First-Class Mail (Single-Piece and Presort)  International Single-Piece  Periodicals  Standard Mail (Origin and Destination entry)  Package Services  Includes Single Piece Parcel Post, Media Mail, Bound Printed Matter, Library Mail  Special Services Market Dominant Products Requiring Service Reporting Service Standards and Targets

4. 4  Two Levels of Service Standard Review  Ongoing Maintenance - Quarterly  Localized adjustments  National Systemic Review - Annual Review  System wide review  First annual internal review Oct - Dec. 2009  Evaluate business rules  Considerations  Operationalizing service standard initiatives  Network plan  Full year of performance measurement data Ongoing Review Process Service Standards and Targets

5. 5  Based on Operating and Logistics capabilities by product  Class based, independent of shape  Integrate origin entry and destination entry standards Service Standard Business Rules Service Standards and Targets

6. 6 Estimated Volume Distribution – All Market Dominant Products Sources: FY2007 ODIS/RPW, and YTD2007 Trend Summaries Service Standards and Targets

7. 7 Estimated Volume Distribution – All Market Dominant Products Sources: FY2007 ODIS/RPW, and YTD2007 Trend Summaries Service Standards and Targets

8. 8 Estimated Volume Distribution – First-Class Mail Sources: FY2007 ODIS/RPW and FY2007 WebEIS Service Standards and Targets

9. 9 Estimated Volume Distribution – Periodicals Sources: FY2007 ODIS/RPW, and YTD2007 Trend Summaries Service Standards and Targets

10. 10 Estimated Volume Distribution – Standard Mail Sources: FY2007 ODIS/RPW, and YTD2007 Trend Summaries Service Standards and Targets

11. 11 Estimated Volume Distribution – Package Services Sources: FY2007 ODIS/RPW Service Standards and Targets

12. 12 First-Class Mail Flow  Origin Entry Post Office Mailer Surface/Air Transportation In Home 1 - 4 Days Origin P&DC Turnaround O/N SCF Service Area Non- turnaround O/N SCF Service Area ADCSCFDDU Service Standards and Targets

13. 13 Periodicals Mail Flow  Origin Entry  Destination Entry Service Standards and Targets

14. 14 Standard Mail Flow  Origin Entry  Destination Entry Service Standards and Targets

15. 15 Package Services Flow  Origin Entry  Destination Entry Service Standards and Targets

16. 16 New Origin Entry Service Standards - Domestic * Alaska, Hawaii/Guam and Puerto Rico/Virgin Islands not included Service Standards and Targets

17. 17 New Destination Entry Service Standards - Domestic * Alaska, Hawaii/Guam and Puerto Rico/Virgin Islands not included ** Only applies to Periodicals receiving the DBMC Container rate * ** DDUSCFADCBMC (Days) Periodicals 111 - 2 Standard Mail 235 Package Services 123 Mail Class Destination Entry Service Standards and Targets

18. 18 New Service Standards – Alaska, Hawaii/Guam and Puerto Rico/Virgin Islands  Performance Measured at Port of Entry  Length of range due to additional time required for transportation (duration of travel and frequency of available transport) Service Standards and Targets

19. 19 USPS Operational Changes – Internal  Established process for Mail Flow to achieve Service Standards  Revised Color Code policy  Revised Mail Condition Reporting System policy  Updated all Mail Processing Operating Plans Service Standards and Targets

20. 20  Analyzed and updated labeling lists  Established national critical entry time for destinating Standard Mail  All other CETs established locally  Create and deploy Customer/Supplier Agreement templates and determine optimal separations (in process)  Implement Full Service Intelligent Mail in May 2009 USPS Operational Changes – Customers Service Standards and Targets

21. 21 FY09 Targets - Market Dominant Products 90.0 91.0 Service Standards and Targets

22. 22 Section 3691 Establishment of Modern Service Standards  “To provide a system of objective external performance measurements for each market-dominant product as a basis for measurement of Postal Service performance.”  “…With the approval of the Postal Regulatory Commission an internal measurement system may be implemented instead of an external measurement system.” Law Requirements Service Measurement

23. 23 Essentials of Service Measurement:  Three data points required:  “Start-the-clock”; when the mail entered USPS network  “Stop-the-clock”; when did USPS effect, or in some cases attempt, delivery  Established Service Standard for comparison Service Measurement

24. 24 Design of Service Measurement System:  Achieve three fundamental requirements:  Fulfill legal requirement of Service Measurement reports to PRC  Enable an internal diagnostic system  Provide granular information to mailers Service Measurement

25. 25 Service Measurement Approaches:  External Measurement (EXFC or EXFC-like)  Hybrid (combination of internal and external)  Internal (only uses USPS captured data) Service Measurement

26. 26 External Measurement:  Applies to:  First-Class (Single-Piece) - EXFC  Single Piece International – IMMS  Third-party vendor creates “test mail”  “Test Mail” anonymously dropped into USPS network; date/time recorded  “Test Mail” received by panel of recipients; date/time recorded Service Measurement - External

27. 27 EXFC Expansion in FY 2009  As of October 1, 2008, virtually all 3-Digit SCF included in EXFC  Specific 3-Digit, and in limited cases 5-Digit, exclusions submitted to PRC  Coverage expanded to 891 ZIP Codes  Additional 428 ZIP Codes  Represents 99% of Single Piece First Class volume Reflect Modern Service Standards  Includes Four and Five Day Service Standard  Impacts Alaska, Honolulu and Caribbean Service Measurement - External

28. 28  Increased EXFC test mail volume  Increased overnight volume for PCs with increased coverage and origin-destination ZIP Code pairs  Additional two and three-five day destinating volume for all PCs Service Standard Destinating Volume Target per PC Current EXFC System Destinating Volume Target per PC Expanded EXFC System Overnight4,785 pieces Two-Day1,500 pieces2,285 pieces Three-to-Five-Day1,500 pieces2,685 pieces Service Measurement - External

29. 29 EXFC O/N Letter Service Impact – 1/3/09 – 2/27/09 1.93 % point impact 0.10 % point impact 1.47 % point impact Service Measurement - External

30. 30 MHTS FCM Service Predictor Delivery Unit Processing Origin Processing Destination Processing DeliveryTransport to Delivery Unit Transport to Destination Collection Collection Factor MHTS Service Last Mile Factor % On- Time EXFC O/N Letters 0.10 98.98%1.93 96.95% Service Measurement - External

31. 31 Last Mile Impacts on FCM Single-Piece  Get mail in DPS – automate volumes  Connect rejects / rework volumes from DPS  Reduce At Risk volumes - machine and operator quality  Dispatch trucks on time 0400 – 0900  Connect hot case - timely customer service distribution Collection Delivery Unit Processing Origin Processing Destination Processing DeliveryTransport to Delivery Unit Transport to Destination Service Measurement - External

32. 32 Key FCM Single-Piece Actions  Collection box management process in place  Standardized mail flows in place  Operating plan and 24 hour clock adherence discipline  High levels of machine and operator method quality  Service responsive transportation  Timely customer service distribution Service Measurement - External

33. 33 Hybrid Measurement:  Will take effect with the implementation of the Intelligent Mail, Phase 2  Applies to:  First-Class (Pre-sort)  Standard  Periodicals  Supplements mail scans from internal Intelligent Mail® system with externally collected data Service Measurement - Hybrid

34. 34 Hybrid Measurement Approach Origin Processing Destination Processing Delivery Acceptance Transport to Delivery Unit Transport to Destination Delivery Unit Processing Stop-the-Clock External reporters scan IMb on mail at delivery Visible through Intelligent Mail, up to final MPE Operation Code or other scan event  External Measurement  External Reporters will scan live mail  Contractor will calculate delivery service performance factor for each mail class  Factor combined with IM data to form end-to-end measurement Delivery Factor External Stop-the-Clock Service Measurement - Hybrid

35. 35 First-Class Pre-Sort and Standard Interim Approach  Will use “first processing scan” at point of entry as a proxy for Start-the-Clock  Processing scan on USPS automated equipment clearly demonstrates the mailing has been entered into USPS Network  As Mailers/USPS demonstrate capability, we will transition to container scans at entry Service Measurement - Hybrid

36. 36 IMAQ BMEU FCM Seeding Trend Service Measurement - Hybrid

37. 37 IMAQ BMEU Seeded Commercial FCM 30 Day Period Ending February 27, 2008 Pieces% On TimeTargetGap Overnight3050186%96.5%10.5% 2 Day2724987%94.0%7.0% 3 - 5 Day2467385%92.7%7.7% Service Measurement - Hybrid

38. 38 Operational Impacts - Acceptance  Retail holdouts and mail prep compliance  BMEU hand-off  Customer Supplier Agreements  Validated acceptance scans Delivery Unit Processing Origin Processing Destination Processing Delivery Acceptance Transport to Delivery Unit Transport to Destination Service Measurement - Hybrid

39. 39 Operational Impacts - Processing and Transportation  Operating plan discipline and 24 Hour Clock execution  Standardized mail flows in place  High levels of machine and operator method quality  Dispatch right mail on right network Delivery Unit Processing Origin Processing Destination Processing DeliveryTransport to Delivery Unit Transport to Destination Service Measurement - Hybrid Acceptance

40. 40 Operational Impacts - Last Mile Delivery Unit Processing Origin Processing Destination Processing DeliveryTransport to Delivery Unit Transport to Destination  Merge local first class letter mail at origin or two and three day mail at destination  Nearly all First Class letters flow to delivery through DPS Service Measurement - Hybrid Acceptance

41. 41 Impact of Processing and Transportation Delivery Unit Processing Origin Processing Destination Processing DeliveryTransport to Delivery Unit Transport to Destination Collection Collections / Acceptance Processing and Transportation Last Mile % On- Time EXFC Overnight Letters 0.10%1.47%1.93%96.50% Service Measurement - Hybrid

42. 42 Collections / Acceptance Processing and Transportation Last Mile % On- Time EXFC Overnight Letters0.10%1.47%1.93%96.50% IMAQ BMEU Overnight Letters0.00%13.66%1.93%84.41% Delivery Unit Processing Origin Processing Destination Processing Delivery Acceptance Transport to Delivery Unit Transport to Destination Collection Impact of Processing and Transportation Service Measurement - Hybrid

43. 43 Collections / Acceptance Processing and Transportation Last Mile % On- Time EXFC Overnight Letters0.10%1.47%1.93%96.50% IMAQ BMEU Overnight Letters0.00%13.66%1.93%84.41% EXFC 2 Day Letters0.06%4.96%1.74%93.24% IMAQ BMEU 2 Day Letters0.00%13.08%1.74%85.18% EXFC 3 Day Letters0.06%7.89%1.41%90.64% IMAQ BMEU 3 Day Letters0.00%15.12%1.41%83.47% Impact of Processing and Transportation Service Measurement - Hybrid

44. 44 IMAQ BMEU Standard Mail Seeding Trend Service Measurement - Hybrid

45. 45 Service Measurement - Hybrid IMAQ BMEU Standard Mail Seeding Trend Local vs. Non-local

46. 46 Destination Entry Saturation Mail  Home Depot method by carrier route - Saturation Mail Barcode Sheet  Start the Clock: Clerks Scan “Arrival at Unit”  Stop-the-Clock: Carrier and PO Box clerks scan Saturation Mail Barcode Sheet to indicate “Delivered” for the last delivery date (if in-home specific dates are requested for a mailing), i.e., when last pieces are taken to the street or delivered to a PO box Service Measurement - Hybrid

47. 47 Participating Saturation Mailers RED PLUM PENNYSAVER Service Measurement - Hybrid

48. 48 Note: Box Section clerk will also scan a saturation mail barcode sheet once all saturation mail has been placed into the PO boxes Service Measurement - Hybrid Destination Entry Saturation Mail Receiving and Scanning

49. 49 Destination Entry Saturation Mail  Implement standardized processes  Ensure IMD software is uploaded  Monitor compliance reports to ensure scanning procedures are being followed  Ensure communication/SOP’s are cascaded to delivery units Service Measurement - Hybrid

50. 50 Other Standard Mail Measurement Challenges  Carrier route bundles (future)  Density mailings  Container scanned when arrived at unit  Random bundle scanning when delivered Service Measurement - Hybrid

51. 51 Key FCM Presort and Standard Mail Actions  Everything counts  Scanning  Secure BMEU hand-off procedures  Operating plan and 24 hour clock discipline  Standardized mail flows in place  High levels of machine and operator method quality  Right mail on the right network at the right time Service Measurement - Hybrid

52. 52 Periodicals Interim Approach  Use of two external systems -  Red Tag and DelTrak  Measurement calculated and reported by external provider  Statistical validity only at Area level  Once IM adoption is sufficient, measurement process similar to commercial letters and flats Start-the-ClockStop-the-Clock FAST appointmentDelivery date reported by each system’s monitors Service Measurement - Hybrid

53. 53 Service Measurement - Hybrid Periodicals Interim Approach

54. 54 Service Measurement - Hybrid Periodicals Interim Approach

55. 55 Periodicals Future Approach  Will initially use “first processing scan” at point of entry as a proxy for Start-the-Clock  Prefer container scans at entry for Start-the-Clock  Stop-the-Clock will be random bundle scans by delivery personnel (or FSS scans)  Reporter validation Service Measurement - Hybrid

56. 56 Service Measurement Visibility Electronic Mailing Information & Payment Reconcile Electronic Documentation with physical mail pieces Record/Scan at Entry Induction Start-the-Clock Electronic Advance Notification Unique Barcodes Mail Preparation Scan In-Process Service Measurement - Hybrid

57. 57  Acceptance of business mail  Entered at the BMEU  Plant Verified Drop Shipment  DMU Verified, USPS Transported  DMU Verified, Mailer Transported  Mail must be accepted prior to Critical Entry Time (CET) to receive same-day processing. Service Measurement - Hybrid

58. 58  Critical Acceptance Time: The latest time mail can be presented for verification for Day Zero processing  Critical Entry Time: The latest time mail can be presented to postal operations for Day Zero processing  Customer Supplier Agreements (CSA): The CSA is a standardized agreement between the USPS and mailer which confirms the origin-entry preparation requirements, the acceptance window, and schedule of transportation times for all origin entered mail classes Service Measurement - Hybrid

59. 59 BMEU Start-the-Clock event is the documented time of arrival at the BMEU BMEU Origin Entry Start-the-Clock Service Measurement - Hybrid

60. 60 Critical Acceptance Time (CAT) based upon the Critical Entry Time (CET) of the Plant for each class taking into consideration time taken to verify the BME mail load Start-the-Clock Day 0 applies to all mailings received prior to CAT as documented in PostalOne! Greatest volume of mail/postage statements come in shortly before CAT; ideally, CAT allows sufficient verification time so all mail is presented to Operations prior to the CET Determine deposit times / CAT throughout workday for large mailers through Customer Supplier Agreements (CSA). CSA needed for large mailers desiring to deposit their mail after posted CAT if they do additional sortation; may be large volume mailers who will bring mail in earlier under a CSA BMEU Origin Entry Start-the-Clock Service Measurement - Hybrid

61. 61 Here’s an example for Mail Deposited at a BMEU: The hours of operation for BMEU are 8:00 am to 7:00 pm The Critical Acceptance Time for First-Class is 5:00 pm The mail arrives at 2:45 pm on October 16 The verification start time is 4:30 pm on Oct. 16 The verification complete time is 5:15 pm on Oct. 16 Mail passes verifications The Start-the-Clock Day 0 is Oct. 16 based upon the mail arrival time of 2:45. BMEU Origin Entry Start-the-Clock Event Service Measurement - Hybrid

62. 62 PVDS Start-the-Clock event is the appointment time if on-time or unload start time if late Plant Verified Drop Shipment Start-the-Clock Service Measurement - Hybrid

63. 63  Full Service requires electronic documentation and appointments for PVDS  PostalOne! receives electronic documentation  Facility Access and Shipment Tracking (FAST) enables appointment scheduling for drop shipments at postal plants  Logistics Information: Location, Date, Time, Type  Mail Content Information: Volume, class, shape, presort etc  Dock Management – appointment arrival  Surface Visibility is used to capture appointment arrival, start and end unload times, content and container scans  TIMES is used to record appointment arrival and start and end unload times PVDS Start-the-Clock Service Measurement - Hybrid

64. 64  Start-the-clock event is based on FAST appointment, which must be scheduled prior to CET for Day 0 processing  On Time Arrival (met appointment time)  Start-the-Clock Day 0 is the Arrival Date  Early Arrival  Start-the-Clock Day 0 is Arrival time or Unload start time, whichever is first  Late Arrival  Start-the-Clock Day 0 based on Unload start time; unload start time must be prior to CET for Day 0 processing PVDS Start-the-Clock Service Measurement - Hybrid

65. 65 Here’s an example for Drop-ship Mail Inducted at a Plant: The hours of operation for the Plant is 06:00 am to 24:00 The Critical Entry Time for Standard Mail is 16:00 pm The appointment time is 15:45 pm on Oct. 16 The mail arrives at 15:00 on Oct. 16 Mail is unloaded at 16:15 pm on Oct. 16 The Start-the-Clock Day-0 is Oct. 16 based upon the appointment time of 15:45 and the mail arrival prior to the appointment of 15:00 pm. PVDS Start-the-Clock Event Service Measurement - Hybrid

66. 66 DMU – USPS Transported Start-the-Clock event is the mail ready time as provided in the electronic documentation DMU Verified, USPS Transported Start-the-Clock Service Measurement - Hybrid

67. 67 Establish CSA for Origin Entered mail Critical Acceptance Time (CAT) for each trailer dispatch is based upon the Critical Entry Time (CET) of the processing facility The transportation time between the Detached Mail Unit and the Processing Facility, as well as mail verification time must be taken into account when determining CAT Additional Presort separations are agreed upon for mail to determine Start-the-Clock by dispatch Container readiness per the Start-the-Clock rules established in the CSA is validated by the DMU acceptance clerk DMU/USPS Transported Start-the-Clock Service Measurement - Hybrid

68. 68 DMU – Mailer Transported Start-the-Clock event is the FAST appointment if on-time or unload start time if late DMU Verified, Mailer Transported Service Measurement - Hybrid

69. 69 Establish CSA for Origin Entered mail Critical Acceptance Time (CAT) for each trailer dispatch is based upon the Critical Entry Time (CET) of the processing facility The transportation time between the Detached Mail Unit and the Processing Facility, as well as mail verification time must be taken into account when determining CAT Additional Presort separations are agreed upon for mail to determine Start-the-Clock by dispatch Container readiness per the Start-the-Clock rules established in the CSA is validated by the DMU acceptance clerk DMU/Mailer Transported Start-the-Clock Service Measurement - Hybrid

70. 70 Event same as Plant Verified Drop Shipment FAST appointment must be scheduled prior to CET for Day 0 processing On Time Arrival (met appointment time) Start-the-Clock Day 0 is the Arrival Date Early Arrival Start-the-Clock Day 0 is Arrival time or Unload start time, whichever is first Late Arrival Start-the-Clock Day 0 based on Unload start time; unload start time must be prior to CET for Day 0 processing DMU/Mailer Transported Start-the-Clock Service Measurement - Hybrid

71. 71  Create common understanding regarding “start-the- clock” Day 0 criteria  Describe containerization standards for First-Class Mail  Document approved later acceptance times per plants’ containerization requirements  Describe transportation assignments for all classes of mail  Provide structured format to support presort software development for Full-Service requirements Customer Supplier Agreement Objectives Service Measurement - Hybrid

72. 72 BMEU or Post Office Entry - Origin Entry  Mailers that make additional separations so the mailings could be accepted and verified after the posted CAT  Large volume mailers presenting mail at an early agreed upon time at BMEU DMU verified - Origin entry  Mail that is origin entered, verified at the mailer’s facility (e.g. a DMU, mailer or postal transported) Customer Supplier Agreement Conditions Service Measurement - Hybrid

73. 73  CSA is made between the mailer and the Postal Service  Multifunctional team prepares CSAs: Plant Manager; Managers, In-Plant Support, Customer Service, Transportation Networks, Business Mail Entry, and Business Service Network  Example of a current mailer’s CSA  First-Class mail accepted at a DMU  Average of 3 million pieces per day  12 daily transportation dispatches  Transportation provided by USPS Customer Supplier Agreement Prep Service Measurement - Hybrid

74. 74  CSA is manually completed until electronically available in FAST in 2009  Minimum fields necessary for a manual CSA  Dispatch Time - truck dispatch of 10:55 am  CAT – 18:15  Day(s) of week – MF  Trip volume – % of mail by class expected to be on each dispatch – 20%  ZIP Codes – that dispatch, each mail class – 498-599, 612, 620-693  Facility Name – truck destination – Omaha P&DC  Mail Class – FCM  Processing Category – LTRS CSA Dispatch/Acceptance Schedule Example Service Measurement - Hybrid

75. 75  Separation Number – sequential numbering of each line (will be applied by electronic CSA)  Container Destination ZIP Codes – 498-599, 612, 620-693  Line 1 of Label  Label To – Omaha P&DC  Label ZIP Code – 681  Line 2 of Label  Processing Category – FCM  Processing Code – MXDS  Minimum Load for Containers CSA Container Label Information Service Measurement - Hybrid

76. 76 Internal Measurement:  First-Class packages with Delivery Confirmation included in First-Class Mail single-piece measurement; First-Class presort packages with Delivery Confirmation will be included in First-Class presort Measurement  Remittance Mail approach being piloted  Package Services rely upon Delivery Confirmation data (Retail and BMC Bulk Entry)  Special Services cover a broad range of products with distinctly different data Service Measurement - Internal

77. 77 Remittance Mail:  Pilot test underway  Will utilize ID Tag data in MHTS  “Start-the-Clock begins with AFCS applied ID Tag  “Stop-the-Clock” is the last scan at destination processing  Transit time compared to FCM service standard between Origin/Destinating 3-digit Service Measurement - Internal

78. 78 Package Services  Single Piece Parcel Post, Media Mail, Bound Printed Matter, Library Mail  Delivery Confirmation  Internal Data systems  Bulk Entry BMC, BMEU, Destination entry  Delivery Confirmation  Internal Data systems  Package Services data subject to ongoing review Service Measurement - Internal

79. 79  Delivery Services Delivery Confirmation; Signature Confirmation; Certified Mail; Return Receipts (electronic); Registered Mail; Collect on Delivery (COD)  PO Boxes  CONFIRM  Address Correction (automated)  Insurance Claims  Money Order Inquiries  Address List Services Special Services Service Measurement - Internal

80. 80 SPECIAL SERVICESERVICE STANDARDMEASUREMENT SYSTEM Delivery Services Availability of delivery information within 24 hours DEL CON PO Boxes Mail for delivery by posted up time PO Box scanning system CONFIRM Availability of scan information within 24 hours IMB Address Correction (automated) Availability of address information within 24 hours IMB Insurance Claims Claims processing time within 30 days Customer Inquiry Claims Response System (CICRS) Money Order Inquiry Customer response within 15 business days Money Order Inquiry System (MOIS) Address List Services Information within 15 business days Internal tracking system Service Measurement - Internal

81. 81 PO Box Uptimes Process  Mail for delivery by posted up time  Up time is time of day customers can expect to collect mail Performance Measurement and Reporting  Box section barcode placard scanned after mail distribution is complete  Reporting at district, area, and national level Service Measurement - Internal

82. 82  ACS customers converting to daily fulfillment; completed for Quarter 2  Denominator programming changes will be completed for Quarter 2  Monthly tracking on IMAQ web site  Weekly emails on PO Box Uptime performance  Additional development work: return receipt Special Services - Status Service Measurement - Internal

83. 83  All Market Dominant products will be reported to the PRC on a Quarterly basis  Reports will be for each of 80 Districts or as noted  In addition to On-Time data, the report will also show the Percentage 1, 2 and 3+ Days late  Initially, Periodicals which will be reported at the Area level; when there is sufficient IMB data, Periodicals will be reported at District level  Special Services will aggregated as an index Service Measurement - Reporting Reports to the PRC:

84. 84  PBV is a new Intelligent Verification model  Integrated with PostalOne!  Prompts Clerks to Perform Verification based upon:  Past Verification History of Mailer  Verification labor costs  Estimated Cost Avoidance or Additional Postage Collected Performance Based Verification BMEU Process Optimization

85. 85  Mailer brings in Mailing  BME clerk enters Postage Statement into PostalOne!  PBV model determines if Verifications are Required  PBV notifies Clerk of Verifications to be performed  Verification results are captured in PostalOne!  Automated communications between MERLIN and PBV  Performance Reports/ Management Reports Performance Based Verification BMEU Process Optimization

86. 86  Establish dock changes for mail flow control  Improved mail flow  Customer throughput  Stage/mail clearance dock space  Large/small mailing check in points  Staged and cleared mail clearly identified  Reconfigure unit – put work function closer to mail  Realigned/moved equipment and workstations  Moved BMEU facility  Improved continuous mail flow, reduced extra steps, safety conditions Lean Mail Acceptance Process (LMAP) BMEU Process Optimization

87. 87  Establish “team” mail acceptance process  Organized DM109 tasks, resources, and visuals to workstations.  What was improved  Pace verification rate to customer mail demand.  Aligns mail flow with PBV  Establish visual controls to “trigger” acceptance steps  Assigned placard colors/numbers to each mailing  Placed In-Process Kanbans (IPK) at the end of workstations  What was improved  Uniquely identifies each mailing and verification state.  Ensures FIFO order, signals next task to start, identifies/resolves abnormalities. Lean Mail Acceptance Process (LMAP) BMEU Process Optimization

88. 88  Improved operational efficiency  Standardizes acceptance and verification processes  Enables ability to improve productivity, quality, and cost goals  Increased compliance of financial controls Lean Mail Acceptance Process (LMAP) BMEU Process Optimization

89. 89  Service Standards have been established  Targets have been established  Measurement Systems have been established  Reporting has been established  Goals for all classes of mail will be reflected in PFP for FY10  Continue the process improvements already underway SUMMARY

90. 90 Questions? ANY QUESTIONS? NOTE: Questions and/or comments can be sent to service.webinars@usps.gov at any time