mtac workgroup 115 flat mail prep & entry in fss environment november 18, 2009

MTAC Workgroup 115Flat Mail Prep & Entry

in FSS Environment

MTAC Workgroup 115Flat Mail Prep & Entry

in FSS Environment

November 18, 2009

MTAC 115 – November 18

, 2009

2

FSS Update

USPS / IDEAlliance Think Tank II

MTAC 115 in Review

FSS Mail Prep - Next Steps

Agenda

®

FSS UpdateFSS Update

Rosa Fulton

Executive Director, FSS


, 2009

4

Flat Volume by Class FY 2009RPW

First Class Periodicals Standard Total Flats

2008 3,347,726 8,466,043 34,107,226 45,920,995

2009 2,834,331 7,838,032 28,888,753 39,561,116

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

Vo

lum

e / P

iece

s (0

00)

Class & Total Volume

FY 2009 Flat Volume Comparison by ClassOctober 1, 2009 - September 30, 2009

-15.3%

-15.3%

-7.4%

Flat volume decline FY 2009 -13.8%6.3 bil pieces

Flat volume decline FY 2009 -13.8%6.3 bil pieces


, 2009

5

20

25

30

35

40

45

50

55

60

2001 2002 2003 2004 2005 2006 2007 2008 2009Vol (Bil) 58.2 57.8 51.7 52.4 53.9 53.8 52.4 45.9 39.6

Flat Volume TrendRPW

Flat volume decline FY 2009 -13.8%Flat volume decline FY 2009 -13.8%

FY 2005 – FY 2009Flat volume decline 26%

14.3 billion fewer flats annually

FY 2005 – FY 2009Flat volume decline 26%

14.3 billion fewer flats annually


, 2009

6

Sequencing Operations

● Dulles – 4 FSS

● Columbus – 2 FSS

● Kansas City – 2 FSS

● Phoenix – 3 FSS

Operations & Installations

Installation of 14 FSS in progress


, 2009

7

FSS Operations – Ramp-up Status

FSS Site# FSSOn-line

# Delivery Units

On-line

# ZonesOn-line

Dulles P&DC 4 39 52

Columbus FSS Annex 2 24 36

Kansas City P&DC 2 18 44

Phoenix (West Valley) L&DC 3 8 27

Totals 11 89 159


, 2009

8

Installations – 14 FSS, 9 Sites

Area FSS Location Install Start% Complete

Install

CM CURSEEN-MORRIS DC P&DC 12-Sep-09 90%

NE NEW JERSEY NDC 12-Sep-09 95%

NE MID-ISLAND NY P&DC 26-Sep-09 65%

NE NEW JERSEY NDC 26-Sep-09 55%

NE NW BOSTON MA P&DC 10-Oct-09 45%

SE ORLANDO FL L&DC 10-Oct-09 20%

PA VAN NUYS CA FSS ANNEX 24-Oct-09 10%

SE SOUTH FLORIDA L&DC 24-Oct-09 10%

EA TRENTON NJ P&DC 7-Nov-09 5%

SE SOUTH FLORIDA L&DC 7-Nov-09 5%

GL INDIANAPOLIS IN MPA 21-Nov-09

NE MID-ISLAND NY P&DC 21-Nov-09

NE NW BOSTON MA P&DC 5-Dec-09

SEORLANDO FL L&DC 5-Dec-09

Install schedule of next 25 FSS in

progress


, 2009

9

FSS Redirection – New Deployment Plan

19 FSS planned for redirection

● Deploy fewer FSS in 10 sites

Two sites removed from original plan

12 new FSS sites

42 FSS sites versus 32


, 2009

10

Phase 1A (Redirect Sites) Space Planning

FSS Site # FSS

Linthicum MD IMF 1

Charlotte NC L&DC 1

Rochester NYL&DC 2

Philadelphia PA NDC 1

Philadelphia PA P&DC 2

Mid Island NY P&DC 1*

Westchester NY P&DC 1

Stamford CT P&DC 1

North Metro GA P&DC 2

Atlanta GA L&DC 2

North Houston TX P&DC 1

Minneapolis / Eagan P&DC 2

San Diego P&DC 2

* Mid-Island receiving 4th FSS

®

USPS / IDEAllianceThink-Tank II

USPS / IDEAllianceThink-Tank II

Susan Hawes

Operational Requirements


, 2009

12

WG 115 collaborated with IDEAlliance, again!

● Met September 2, 2009

● Focus: Presort software programs and data files

● Participants this time included production and systems/software representatives

Provided context for Think-Tank II Participants

● Reviewed workgroup recommendations

Auto-ready pallet

Non-compensated bundles

Bundle heights 3”, 4”, or 6”

Think-Tank II Meeting


, 2009

13

Modeling Exercise

What would FSS pallets look like today?

● Volume and thickness of flats has changed since earlier modeling of bundles and pallets in 2007

● Pallet prep the same as 5-D/5-D schemes today

Test Plan included real “address lists” for destinating Dulles FSS site

● Using specific ZIP Codes processed on FSS

● Using real mailpiece characteristics and volumes


, 2009

14

Test plan included:

● Bundle and pallet counts● Current presort rules for comparison● ‘Artificial’ Labeling List data to use when identifying FSS schemes● Presort software that used LL to make up bundles and pallets● Specified bundle heights for each presort processing

Testing process was to:● Run presort for all 3-digits (201, 220-223, 226 and 227) ● Roll up data for non-FSS 5-digits using today’s rules● Prepare individual FSS sort plan pallets (1-4 5D ZIPs per sort plan)● Prepare multi FSS pallets based on each site

Presort FSS Test Plan


, 2009

15

FSS schemes:

● FSS sort plans mirror 5-digit and 5-digit scheme sort plans● Dulles currently has 49 FSS sort plans

19 sort plans with 1 5-digit ZIP Code 20 sort plans with 2 5-digit ZIP Codes 8 sort plans with 3 5-digit ZIP Codes 2 sort plans with 4 5-digit ZIP Codes

Test results:● Periodicals had few FSS sort plan pallets● Pallet counts remained same for PER and STD mailings● FSS scheme pallet (all sort plans at a site) has potential

Test Plan Results


, 2009

16

Test Plan Results

Test # Bundle height # Bundles Pallet Presort # Pallets Weight

Standard Mail

1 209,694 1,607 1,331

2 207,543 1,602 1,329

3 3 1,217 FSS 19 675

4 3 870 FSS Scheme 5 1,819

3 4 916 FSS 19 675

4 4 656 FSS Scheme 5 1,819

3 6 614 FSS 19 675

4 6 441 FSS Scheme 5 1,819

Periodicals Mail

1 105,460 443 1,310

2 105,375 442 1,311

3 3 - FSS 0

4 3 142 FSS Scheme 1 781

3 4 - FSS 0

4 4 70 FSS Scheme 1 797

3 6 - FSS 0

4 6 68 FSS Scheme 1 666

®

MTAC 115 in ReviewMTAC 115 in Review

Krista Finazzo

Postal Co-ChairJoe Schick

Industry Co-Chair


, 2009

18

Workgroup Focus – Issue Statement

Deployment Phase1 FSS● FSS program will impact:

Flats preparation How mail is presented and scheduled for entry

Continuous process - mail owner to USPS● Interdependencies of inputs and outputs through

entire process, concept to delivery Will drive standards/requirements for prep & entry Will play a major role in determining efficiency of

processing on FSS


, 2009

19

Desired Results

“Identify areas of impact to the USPS and customers associated with preparation and entry of flats in an FSS environment including the lowest combined cost model.”


, 2009

20

Workgroup Action Items

Workgroup 96 handed off four items to MTAC WG 115:● Bundle preparation● Containerization● Presort Parameters● Destination entry


, 2009

21

Workgroup Activities

Developed a prototype system “Automated Flats Processor” (AFP) to improve:

● Productivity of bundle processing

● Equipment space required to process daily volume

● Capability to accept multi-zone pallets

● Flats auto processing – induction to piece sorting


, 2009

22


AFP key functions are:● Auto Depalletize Bundles – automatically unloads

bundles from pallets

● Distribute Bundles based on sort plans with OEL

readability – convey & prep bundles for processing

● Process Bundles – cut and remove bundle strapping

and load bundles into ACTs

● Make Dollies – produce sort plan based dollies

● Dispatch Dollies – full ACTs, produced for specific sort

plans, released for induct into flats sorting equipment


, 2009

23


Bundle / Container testing:● Built on auto-ready pallet concept

● Evaluated – uniform bundle heights, compensation of bundles, containerization, and bundle securing methods

● Determined counter-stacked bundles of uniform height travel well through transportation / distribution system

Bundle securing methods tested:● Two cross-straps around length and girth● Shrinkwrap “bellyband” with a single-strap as alternative

to strap only


, 2009

24


Discovered auto-ready pallet prep will allow bundles to flow directly to the bundle prep operation and bypass APPS processing

Evaluated potential pallet levels:● Pure FSS (single scheme)

● Pure FSS (multiple schemes)

● Combined FSS and non-FSS


, 2009

25


Assessed impact of volume reduction● Volume reduction has required more ZIP Codes and

FSS sites than original plan● Some original sites receiving fewer machines● Volume reduction makes preparation of FSS single-

scheme pallets more difficult

Considered single preparation solution● Lowest end-to-end cost achieved with one bundle

preparation method Prep compatible with FSS and AFSM process


, 2009

26

Status of Action Items

Bundle● Optimal bundle height of 3”, 4”, 6”● Secured using two cross-straps

Container● Non-compensated bundles on compensated pallet● Content determined by FSS scheme & destination

Presort● Driven by FSS Label List and sort plan contents

Entry● Destination entry, at minimum, should not change

and may contract with optimized network


, 2009

27

®

FSS Mail Preparation

Next Steps

FSS Mail Preparation

Next Steps

Krista Finazzo

Manager, Operational Requirements

Rosa Fulton

Executive Director, FSS


, 2009

29

FSS Flat Mail Prep – Next Steps

Propose new MTAC workgroup● Workgroup: “Implementing FSS Presort Parameters”● Align under the “Optimization of Mail Preparation

& Entry” focus area

Charter of new workgroup:● Develop and implement presort parameters to

support defined (optional) FSS prep ● Identify timing of software updates related to FSS

deployment● Communicate timing & FSS Label List


, 2009

30

In closing

mtac workgroup 115 flat mail prep & entry in fss environment november 18, 2009

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