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MTAC 138

April 23, 2014FAST User Group 3

January 21, 2015

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Agenda

Roll Call + Review Meeting Minutes (~5 minutes)

Updates (~5 minutes)

– Mail.XML Version 10.0 No Longer Supported: R41

– Issue Regarding Testing FAST TEM Environment Follow Up

• Is testing for making an appointment for HUBs working?

eInduction Pilot at Non-SV Sites Update (~5 minutes)

Network Rationalization Presentation (~40 minutes)

Wrap-up: Questions & Action Items (~5 minutes)

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Roll Call + Review Meeting Minutes

Roll call

Minutes from January 7th meeting are posted on MITS– Previous Meeting Summary

• Completed eInduction Warnings & Verifications Presentation• Reviewed Issue Around Testing the FAST TEM Environment• Discussed Mail Direction File (V3)

⁻ Conclusion: Still a viable file

Questions or concerns?

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Updates

– Mail.XML Version 10.0 No Longer Supported: R41

– Issue Regarding Testing FAST TEM Environment Follow Up

• Is testing for making an appointment for HUBs working?

eInduction Pilot at Non-SV Sites

The USPS is rolling out eInduction to ALL Non-SV sites starting next Monday,

January 26th

The Postal Service asks mailers to contact USPS at the eInduction USPS email

account (eInduction@usps.gov) about concerns with scans, misshipped

containers etc during national employment. This will be communicated up

through the national deployment date

5 FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE)

Subtitle

(20pt. Arial, Bold, Title Case)

Network Rationalization

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Business Imperative

Phase II Service Standards & CETs

Concept of Operations & Volume Distribution

Phase II Network

Consolidation Timeline

Commitment to Employees

Commitment to Customers

Communication Plans

Project Management Approach

Agenda

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Financial losses of $26 Billion over last 3 years

Continued decline of First-Class Mail volume & revenue

Increasing wage inflation and operating costs

Increasing debt pressures

Uncertainty regarding legislative reform

Review of postal prices in courts

Needed capital investments to acquire package sorting equipment and replace aging delivery vehicle fleet

Business Imperative

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FUTURE NETWORK Preserves Approx. 66% of Overnight Delivery Volume

Revised Entry Times

Reduced Equipment

Reduced Footprint

PHASE II BENEFITS

Reduce Excess Capacity

More Efficient Transportation Network

Fully Utilized Workforce

Up to $750 Million Cost Reduction

Driving Efficiency

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Volume Decline

Source: RPW, FY2007 – FY2013

2007 2008 2009 2010 2011 2012 2013 2014 (est)

0

5

10

15

20

25

30

35

40

45Single Piece - First Class LettersPi

eces

(mill

ions

)

16.4% decline since AMP packages developed

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Service Standard Changes – Phase II

First Class Mail– Overnight: First Class Presort mail, properly prepared,

containerized, for local plants SCF service area, entered by applicable CET

– 2-day: Intra-SCF single-piece mail or maximum 6 hour drive time between originating facility and SCF facility

– 3-5 day: Everything else

Periodicals– End-to-end Periodicals transported with First-Class Mail pieces

on surface transportation move to a minimum 3-day service standard (equal to the sum of 1 day plus the FCM service standard)

https://www.federalregister.gov/articles/2014/08/01/2014-18223/designation-of-implementation-date-revised-service-standards-for-market-dominant-mail-products

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Periodicals CET Matrix – Phase II Service Standard Change

Type 

No Bundle Sort Needed

5-Digit / Scheme Container

Bundle Sort Needed

3-Digit and Up Container

Direct 5 Digit Carrier Route

Pallets

NonFSS 1400 1100 1700

FSS 1100 0800

• Periodicals CETs – Under Phase II Service Standard Change

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24:00

06:00

12:00

18:00

08:00

OutgoingOperations

(5:00 PM – 12:30 AM)

ContinuousDPS/Secondary

Operations(12:00 PM – 6:00 AM)

IncomingPrimary

Operations(8:00 AM – 12:00 PM)

BMEU(8:00 AM – 7:00 PM)

ContinuousRemittance/

Caller Service

Processing0800-0600

Concept of 24-Hour Plant Operations

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USPS Modeled Processing Network Phase II

Plan to consolidate processing at 82 mail processing sites in 2015

Facility Type TotalAnnexes 2Customer Service Facilities 16DDC's 1P&DC/P&DF's 63Total 82

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20160

200

400

600

800673

623 614 599

528487

461417

320 319

Decrease in Processing Locations Through 2016

Plant Consolidation

239

At start of FY

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Realignment of operating windows commensurate with earlier availability of committed volume

Realignment of transportation

Delivery opportunities through the earlier availability of mail volume

Optimization Opportunities

82 Consolidation Opportunities Identified

Savings with the Operational Window Change

82 MovesProceeding with January 10, 2015

Employee Move Date

Phase II- Significant Savings Opportunities Identified

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Jan 5 Operational

Window Change effective

January 10 Plant

Consolidations Mail Moves Begin

October 1 Finalize All

Consolidation Activities

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

FY 2015 FY 2016

Timeline Network Rationalization Phase 2 – 2015

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Methodical, measured transition

Options available for staying with the Postal Service

Proven track record of working with Unions and Management Associations; success through attrition

OUR COMMITMENT TO EMPLOYEES

Employees

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Changes

Planning for new mail processing footprint and transport pattern

Revised Critical Entry Times

Our Approach

Industry-specific solutions, as needed

Ongoing communication and collaborative mitigation of issues

Our Customers

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Early Warning System well established Mail move plan updated and posted on RIBBS Continued communication with the mailing

industry Site Intervention based on Early Warning System Feedback system in place to address customer

issues:• CustomerFirst! System• BSN eService

Tools & Processes in

place to ensure High

Level of Service

Performance

Flawless Execution

Recovery “Tiger Team”Early Warning System

High Levels of Service Performance Expected

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AVAILABLE TOOLS

CustomerFirst! System

Business Service Network’s (BSN) repository of mailer customer issues

Issues tracked as Service Requests (SR)

SRs handled as open tickets needing resolution in order to be closed

BSN eService

Customer-facing access point for CustomerFirst!

BSN customers can submit electronic inquiries and can learn status of inquiry from web account

Non-BSN customers may contact a local BSN representative by phone or email for support

EWS Reports

Daily Monitoring of plant inventory levels• First Class• Periodicals• Standard Letters• Standard Flats

Weekly Monitoring of:

• Work in Process (WIP) cycle time

• Pieces processed after clearance time

• Mail Conditions

Early Warning System (EWS) Seamless Service Performance Tools

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Enables mailers to plan consolidation implementation progress

File provides targeted mail move consolidation site information, type, and date

Mail Move Plan File

Mail Move Plan is updated and posted on RIBBShttps://ribbs.usps.gov

RIBBS

Mail Move Plan

AREA Key De-Activation Plant Mail Activation

PlantOriginating Destinating DPS

O-Letter O-Flat

O-Packag

eD-

Letter D-Flat D-Package

DPS-Letter DPS-Flat

SA SA Huntsville P&DFC C C C C C 7/25/15 N/A

Birmingham P&DC

WA WA Tucson P&DC C C 7/11/15 7/11/15 7/11/15 7/11/15 7/11/15 N/A Phoenix P&DCPA WA Eureka CSMPC 7/11/15 7/11/15 7/11/15 7/11/15 7/11/15 7/11/15 7/11/15 N/A Medford CSMPC

PA PA Industry P&DCN/A N/A N/A 4/18/15 N/A N/A 4/18/15 N/A

Santa Ana P&DC (letters)

PA PA Industry P&DCN/A N/A 9/30/15 N/A 4/18/15 9/30/15 N/A N/A

Anaheim P&DC (flats)

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Mail Move Plan File Includes:

Consolidation sites scheduled for 2015

Site address, locale key, and the name of the activation (gaining) facility 

Mail shape effected (e.g. letters, flats, parcels/bundles)

Process step/entry level ( e.g. originating, destinating, and DPS)

Mail Move Plan File

Updated January 9th, 2015

Note: A new "Read Me First" tab has been added to this spreadsheet

to explain key information in displayed below.

KeyN/A = Not Applicable

C or Completion

Date

= Previously Completed

 

AREA Key De-Activation Plant MailOriginating Destinating DPS

O-Letter O-Flat O-PackageD-Letter D-Flat D-

PackageDPS-

Letter DPS-Flat

SA SA Huntsville P&DF C C C C C C 7/25/15 N/AWA WA Tucson P&DC C C 7/11/15 7/11/15 7/11/15 7/11/15 7/11/15 N/APA WA Eureka CSMPC 7/11/15 7/11/15 7/11/15 7/11/15 7/11/15 7/11/15 7/11/15 N/APA PA Industry P&DC N/A N/A N/A 4/18/15 N/A N/A 4/18/15 N/APA PA Industry P&DC N/A N/A 9/30/15 N/A 4/18/15 9/30/15 N/A N/APA PA North Bay P&DC C C C 7/25/15 C C 7/25/15 N/APA PA Redding CSMPC 4/18/15 4/18/15 4/18/15 4/18/15 4/18/15 4/18/15 4/18/15 N/A

WA WAColorado Springs P&DC C C N/A C 7/11/15 7/11/15 7/11/15 N/A

NE NESouthern Connecticut P&DC 9/7/13 9/7/13 N/A 9/7/13 9/7/13 N/A 4/18/15 N/A

NE NESouthern Connecticut P&DC N/A N/A N/A N/A 4/18/15 5/1/13 N/A N/A

NE NE Stamford P&DC 6/17/13 6/17/13 N/A 9/7/13 1/10/15 9/7/13 4/18/15 1/10/15SA SA Gainesville P&DC C C C C 7/25/15 C N/A N/ASA SA Manasota P&DC C C C 9/30/15 9/30/15 C 9/30/15 N/ASA SA Manasota P&DC C C C 9/30/15 9/30/15 C 9/30/15 N/ASA SA Mid-Florida P&DC C C C C C C 7/25/15 N/ACM CM Athens GA P&DF C C C 4/18/15 4/18/15 4/18/15 4/18/15 N/ASA CM Augusta P&DF 7/25/15 7/25/15 7/25/15 7/25/15 7/25/15 7/25/15 7/25/15 N/ASA SA Augusta P&DF 9/30/15 9/30/15 9/30/15 9/30/15 9/30/15 9/30/15 9/30/15 N/AWA WA Pocatello ID CSMPC 4/18/15 4/18/15 4/18/15 4/18/15 4/18/15 4/18/15 4/18/15 N/AGL GL Fox Valley P&DC C C C 9/30/15 9/30/15 N/A 9/30/15 TBDGL GL Gary P&DC C C C 7/25/15 7/25/15 TBD 7/25/15 N/AGL GL Kokomo IN P&DF C C C 3/14/15 3/14/15 3/14/15 3/14/15 N/AGL GL Lafayette IN P&DF C C C 4/18/15 4/18/15 4/18/15 4/18/15 N/AGL GL Muncie P&DF C C C 7/18/15 7/18/15 7/18/15 7/18/15 N/AGL GL South Bend P&DC 2/14/15 2/14/15 2/14/15 6/13/15 6/13/15 6/13/15 6/13/15 N/AWA WA Salina KS P&DF C C C 4/18/15 4/18/15 4/18/15 4/18/15 N/AEA EA Campton CSMPC 6/1/15 6/1/15 6/1/15 7/1/15 7/1/15 7/1/15 7/1/15 N/A

AREA Key De-Activation PlantMail

Activation Plant

Originating Destinating DPS

O-Letter O-Flat O-Package D-Letter D-Flat D-Package DPS-Letter DPS-Flat

SA SA Huntsville P&DF C C C C C C 7/25/15 N/A Birmingham P&DC

WA WA Tucson P&DC C C 7/11/15 7/11/15 7/11/15 7/11/15 7/11/15 N/A Phoenix P&DC

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RIBBS FAQ’s

Frequently asked questions posted to RIBBShttps://ribbs.usps.gov/

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We will continue: Industry Alerts Industry, PCC webinars and presentations

PCC and Managed Account messaging from: PCC program office HQ Business Customer Support & Service From Area and District BSNs

BME messaging to affected customers

Weekly posting of planned operational moves on RIBBS

Structured release cycle for labeling list / mail directional file changes

Industry and Customer Communications

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Project Management

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Project Plans Established for:

Consolidated Site

Gaining Site

All Sites – Operating Window Changes

Project Plans

Complement

Advantages of a Transformed InfrastructurePhase ll Benefits

Reduce Excess Capacity

More Efficient Transportation Network

Fully Utilized Workforce

Up to $750 Million Cost Reduction

Reduced Equipment

Reduced Footprint

Revised Entry Times

Phase ll Benefits:

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100% commitment to success of Network Rationalization

Commitment to minimal impacts to customers and our employees

Achievement of the savings projections

 

Our Commitment

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• We are doing our utmost to maintain the long-term affordability of mail and high level of service

Long-term Affordability

and High Levels of Service

• We are working to make this transition as seamless as possible for our business customers as well as our 150 million residential addresses

Seamless Transition

• We value the mail and our employees and will provide responsible solutions throughout the transitionResponsible

Solutions

Concluding Thoughts

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Thank YouQuestions?

Thank YouQuestions?

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Action ItemsItem

#Open Items Owner

1 Follow up on multi stop appointments and whether appointments must be linked and if a mailer has to have Accept_Misship = “Y”

2 Further discussion into the appeals process regarding multi stop loads

3 Find a special case regarding how the Postal Service finds the discount level (potentially at a collocated site) and pull a drop site locale key reference

4 Follow up regarding the discussion around small mailers

5 Future Agenda Topic: Update on eInduction Reports for FCM logical mailers do not work

6 Table Zone Discount Verification (E13P) slide 23 for the next meeting. Pull this specific discussion for Zone Discount Verification and to organize for the next discussion

7 Double check EPD (slides 19-21) and Zone Discount Verification (slides 22-24) to make sure this wasn’t a copy

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Action ItemsItem

#Open Items Owner

8 Double check in this release if changes were made so that Zone Table would be off induction time versus calculation time and postage time. The changes were separate from the eInduction focus.

9 Send files to the group regarding the MDF/Labeling List Effective Dates. Try to include effective dates in April release

10 Update on Entry Point Discount Mismatch Warning (E7). This is still going on in CAT. Update if it falls out and if there are clarifications

11 Industry Request: Expecting this UG to handle all eInduction things, such as going through these reports to make sure they meet the needs of everyone (ie: make sure there are reports. They want to see the language and the errors and then go through the reports)

12 Industry to provide an answer as to if the testing for making an appointment for HUB is working

13 At one time we talked about getting facility name back into PostalOne!. It is difficult to look up because of locale keys. What is the status of this? Action: Double check this and bring this up in the presentation

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MTAC 138

April 23, 2014Questions?