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Introduction

Introduction. Postal Challenge of Core Delivery Productivity in Current Markets The Postal Productivity Equation Factors Creating Labour Flexibility Conclusion - Productivity Checklist. Increased use of ICT : Two out of three people now use ICT

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Introduction

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  1. Introduction • Postal Challenge of Core Delivery Productivity in Current Markets • The Postal Productivity Equation • Factors Creating Labour Flexibility • Conclusion - Productivity Checklist

  2. Increased use of ICT: Two out of three people now use ICT • Growing work intensification Evidence to show that “effort levels” were on an upward trajectory for most of the 1990s,. It is said that individuals are increasingly expected to handle larger workloads as computers have replaced and speeded up routine tasks. • More team-based working: Over half of all employees in 2000 worked in a team or group, compared to under half in 1990 However, WERS 2004 suggests that just because people work in a team, does not mean they work as a team. • Increase in “functional flexibility”: In 2004 nearly a fifth (19 per cent) of workplaces trained at least three-fifths of their staff to move between jobs and functions. Two-thirds of workplaces (65 per cent) had at least some core employees doing jobs other than their own at least once a week (WERS, 2004). • Control Less than half of workers feel they have a great deal of influence over how they do their work, empowerment and task enrichment are becoming increasing concerns • Alienated: some ‘new jobs’ have been de-skilled, rendering people wholly disposable. suggests that workers have responded in kind, no longer thinking of long-term relationships with their organisation, which has negative consequences for workers’ emotional and psychological well being Productivity and the Post Posts now have to deliver increasing productivity in more demanding environments all aspects of the corporate model will come under pressure to increase output and reduce input to meet these challenges. Scenarios Issues • Achieving productivity growth in high automation environments • Accelerating productivity growth in the light of mail volumes and packet competition • Defining productivity paradigms for the new market • Developing flexible work practice environments • New contractual forms • Productivity cultures • Optimisation trade-offs around productivity decisions • Overheads • Transport • Collection and Induction • Processing • Delivery Areas

  3. Postal Ambition and Productivity Equation • Goal is to minimise base unit cost to create competitive platform • Goal is that USO is based within acceptable financial and service parameters and reflects demand changes service and productivity implication • Goal is to establish continuous improvement cultures • Goal is to increase flexibility and agility which enables alignment between hours and works at acceptable levels of contract flexibility

  4. The Productivity Equation: Regulatory Framework In future market conditions engaging in the regulatory debate on USO Standards and requirements is critical as these will place a constraint on process and flexibility initiatives. Current Environment EmergingIssues • Universal Service Standards have been driven by a common set of assumptions • Rising volumes, inelastic prices • Demand for next day service • Customer Demand for increasing quality of next day services • These service standards place an operational fixed point on productivity development. • Key regulatory factors on pipeline • Number of collection points • Collection cut off times • Delivery Times • Quality Standards • Access conditions • Impacts resourcing and flexibility –understanding cost fundamental to creating arguments • The demand profile for mail is changing • Declining volumes • Different composition • Customer migration around cost, quality reliability trade-offs-price sensitivity • Green concerns • The new debate • What USO at What Cost and Who pays ? • Competitive alternatives for document delivery-Mail prices cant assume RPI link • Regulatory accommodations to support productivity growth • Alternate day – defacto or de jure • Digital • CMB,Roadside boxes, Lockers,

  5. The Productivity Equation: Technology and Logistic Enablers There are established leading practices in relation to logistic design and technology deployment. The Challenge is to drive productivity from the next generation of technology opportunity Parcel Automation RFID Flat Sequencing Intelligent Network not Machines Mobile and PDA Packet Sorting Operations Performance Mgmt. Addressee Information Collection Scheduling Software Dynamic Route Planning Collection Scanning Mail Sequencing IMS/ Visibility Route Planning Collection Rationalisation OCR & Video Coding Production Planning and Control Mechanical Handling Mail and Flat Sort Automation Customer Forecast and Schedules Tracking Systems Plant Modernisation and Rationalisation Depot & Frames Modernisation Product/Machine Alignment Address Database

  6. The Productivity Equation: Process and Management Posts have implemented a range of schemes to change productivity cultures. The hardest challenge in the productivity equation is the implementation and continual renewal of management and work process which focuses onunit cost not labor cost thinking and measurement.

  7. Postal Productivity- The Labour Challenge • Competition, cost pressures , consumer demand and a shift to 24x7 commerce all create pressure to increase flexibility • Labour still accounts for 50-70% of cost • Alignment of labour time to work load critical to gain productivity benefits • Collective contracts prevail and have created rigidities through standard work measures, complex allowances and fixed working periods • Posts have a tradition and expectation to be a high quality employer • Post need greater labour flexibility and agility to meet productivity imperative and customer expectations • Posts would want to create flexibility within the Lisbon “Flexicurity” model rather than in a free market model of low rights, wages and certainty. Both for ethical and commercial reasons ( commitment, recruitment, quality ) • New and creative thinking will be required

  8. Productivity Equation Labour : Flexibility : A Working Definition Successful flexibility cannot only be an employer centric zero hours model to be successful and sustainable there need to be employee centric features which are about having sufficient autonomy that works for the individual, the customer and increases the productivity and efficiency of the organisation

  9. Productivity Equation Ideal Postal Flexibility ? Postal Productivity requires greater labor flexibility to reflect work flows - achieving the ideal is a long process. • Part-time unskilled for mail preparation • Full time sorting shifts (manual, video or OCR feed) • Managing relief • Dynamic rostering • Productivity Measurement Processing • Full-time: load & drive • Outsource or owner-driver models Transport • Vehicle care • Collections critical for service • Part-time skilled walk sorting/Sequence • Full-time delivery • Part- Time • Daily hours variation for weekly volume cycle • Managing relief • ‘Cut-ups’ • Productivity Measurement • Health & safety • Seasonality Delivery • Part-time options Retail • Rosters to meet foot traffic However to achieve these process & productivity led innovations there will be a need to accept some employee centric flexibility elements and incorporate these in total review of work organisation, job design, workplace culture, management styles and performance management systems

  10. Productivity Equation : Core – Periphery Models The Postal Logistic E-commerce Sector is increasingly moving to a core- periphery labour model with greater use of peripheral workers. To retain competitiveness the Post will incorporate elements of this. However if the balance is too far to the right then significant quality and churn cost will undermine benefits. To retain a core it will need to be more flexible in certain areas Periphery Intermediary Core Difficult to implement especially in social partner environments if perceived as an attack on employment security. Relating flexibility to a more diverse set of employee values can be key enabler………

  11. Productivity Equation : Tools for Flexibility Post should consider utilising more employee centric flexibility models to win support for a more agile labour environment V-Time working Family Contracts Shift Swapping Self Rostering Compressed and Banked Hours Term-Time Work Employee Centric Home Working Team Working Annualised Hours. Over time. Part time. Relief Pools Weekly Hours Employer Centric Sub -contracting Casual Split Shifts Zero -Hours Increasing Flexibility

  12. Conclusion – Productivity Check List • Technology Enablers • First generation implemented • Second generation plan • Regulatory Alignment • Cost understood • Clarity on universal access to information vision and regulatory / price negotiation strategy • Product Alignment to drive productivity • Work Practices • Stretch productivity orientated standards and measurement • Front Line management business orientated and empowered • Labour Agility • Vision of model • Incorporation of employee centric tools • Clear defined negotiation and change strategy • Culture • Stakeholders aligned and understanding the imperative of the productivity agenda if the Posts is to continue to be a financially independent and sustainable key national infrastructure

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