1 / 42

Capital Metro Area Business Customer Focus Group Meeting

Capital Metro Area Business Customer Focus Group Meeting. Operations update. Dave Williams VP, Network Operations February 19, 2014. Agenda. Qtr I Service Performance. MTE Update. PEAK Season Overview. Optimization Update. Label List Changes. Flat Strategy Update.

tabib
Download Presentation

Capital Metro Area Business Customer Focus Group Meeting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Capital Metro Area Business Customer Focus Group Meeting Operations update Dave Williams VP, Network Operations February 19, 2014

  2. Agenda • Qtr I Service Performance • MTE Update • PEAK Season Overview • Optimization Update • Label List Changes • Flat Strategy Update • Load Leveling Initiative • 24 Hour Clock Compliance • Summary 2

  3. Qtr 1 SERVICE PERFORMANCE FIRST-CLASS MAIL STANDARD AND PERIODICALS

  4. SERVICE PERFORMANCE First-Class mail

  5. First-Class Service Performance Overnight 2 Day 3-5 Day (.13) SPLY (.15) SPLY +.09 SPLY - 98 96.80 96.50 - 96 95.25 - 94 - 92 % On-Time - 96.04 90 95.89 95.35 95.22 93.26 93.17 - 88 - 86 - 84 Qtr 1 FY13 Qtr 1 FY14 Target 5 * Targets Shown are FY 2014 * Preliminary Qtr 1, FY 2014 Data

  6. SERVICE PERFORMANCE Standard and periodicals

  7. Standard Letters Service Performance SCF Letters NDC Letters +2.87 SPLY +3.59 SPLY - 92 91.00 - 88 - 84 - 80 % On-Time 90.83 89.95 - 76 87.96 86.36 - 72 - 68 - 64 Qtr 1 FY13 Qtr 1 FY14 Target 7 * Targets Shown are FY 2014 * Preliminary Qtr 1, FY 2014 Data

  8. Standard Flats Service Performance SCF Flats NDC Flats +2.38 SPLY +3.83 SPLY - 91.00 90 - 86 - 82 - 78 % On-Time - 74 84.17 81.79 - 70 74.27 - 70.44 66 - 62 Qtr 1 FY13 Qtr 1 FY14 Target 8 * Targets Shown are FY 2014 * Preliminary Qtr 1, FY 2014 Data

  9. Periodicals 1-2 Day Service Performance Periodicals +3.08 SPLY - 92 91.00 - 88 - 84 - 80 % On-Time - 76 83.87 80.79 - 72 - 68 - 64 Qtr 1 FY13 Qtr 1 FY14 Target 9 * Targets Shown are FY 2014 * Preliminary Qtr 1, FY 2014 Data

  10. Service Performance Continuous Improvement Focus • Lean Mail Processing (LMP) • Improving efficiencies in mail flows and cycle times through application of LMP Principles throughput the network • Driving daily compliance to Run Plan Generator (RPG) • Planned vs. actual equipment Run Hours, Volumes, and Throughput per hour performance • Load Leveling • Leveling the Monday workload to improve efficiencies and predictability in delivery performance • Leveraging IMb • Enhanced diagnostics to enable course correction to ensure FIFO processing and prevent service failure

  11. MTE Update

  12. Fall Mailing Season Update • Successful Fall Mailing Season!!! • No cancelled orders • Overall inventory exceeded demand, allowing us to fulfill every order • Strongest inventories of the past 5 years 12

  13. MTEOR Full Implementation • MTEOR moves toward full implementation • MTEOR will be launched for Local Mailers in all Areas in 2014 using a phased approach by Area • Southern Pacific – February 3, 2014 • Northern Pacific – March 3, 2014 • Eastern Area – April 7, 2014 • Great Lakes Area – May 5, 2014 • Southern Area – June 2, 2014 • Northeast Area – July 7, 2014 • Capital Metro Area – August 4, 2014 • Western Area – September 8, 2014 13

  14. PEAK SEASON Overview

  15. Cancellation Volume • Total Packages • Retail Access

  16. Optimization Update

  17. Optimization Update • Network Rationalization – Phase 1 • Completed 176 Consolidations • Network Rationalization – Phase 2 • POSt Plan • 7,995 Implementations Completed in FY 2013 • Remaining 5,186 Will be Completed in FY 2014 17

  18. Label List Changes Structured Release Cycle

  19. Structured Release Cycle • Background • Task Team #11 re-opened per request of mailing industry • USPS agreed to 30-day notification period • USPS can be more agile with labeling list changes (5-digit) through monthly update cycle • Enables top down management of labeling lists • Ensures alignment of pre-sortation & internal USPS sort schemes • Benefits of Top Down Approach to L012 and L006 Lists • Enables deeper pre-sort levels • Fewer piece and tray handlings • More efficient use of containers & transportation

  20. Flats Strategy Update

  21. Flats Strategy Status Flats Strategy Document • Collaborative effort with Industry Association leaders • Will include overview of strategies • Sub-group exploring additional opportunities • Draft disseminated to workgroup for review on • January 10, 2014 • Joint strategy discussion January 13, 2014 • Collaborative efforts will continue through 2014

  22. DSCF Standard Mail Load Leveling

  23. DSCF Standard Mail Load Leveling Overview • On average ~42% of DSCF Standard Mail volume is drop shipped by mailers on Friday. The disproportionate volumes committed for delivery on Monday results in: • Service Variability • Operational Inefficiencies • Increased Cost

  24. Current State FY13 Qtr 1 All Dropship Appointments / Vol for Full Service IMb Standard Mail 70,000 1,000.0 942.3M 900.0 60,000 800.0 50,000 700.0 600.0 40,000 523.3M Mail Volume (millions) Number of Dropship Appointments 500.0 434.1M 30,000 376.7M 372.8M 357.9M 400.0 300.0 20,000 200.0 10,000 65.8M 100.0 0 0.0 SAT SUN MON TUE WED THU FRI Dropship Appointment Counts Destination Piece Counts 24

  25. Current State Impact on Delivery – Average % of Standard Mail Delivered by Day 1,800 42.4% Monday Delivered Volume 1,600 35.4% Standard Letters 1,400 52.4% Standard Flats 1,200 1,000 Delivery Day Volumes 800 16.3% 600 13.0% 12.6% 10.5% 400 5.2% 200 0 SAT SUN MON TUE WED THU FRI Qtr 1, FY 2013 DSCF Standard Flats DSCF Standard Letters 25

  26. Percentage of City Carriers Returning After 1700 Current State Impact In FY 2013 54.4% of instances where a carrier returned to the office after 1700 occurred on a Monday 70.0% 60.0% 50.0% 40.0% Percent Returned 30.0% 20.0% 10.0% 0.0% Monday Total

  27. 24 Hour Clock Impact Disproportionate Monday workload not only results in late delivery and added costs, it also impedes our ability to meet critical 24 hour clock parameters resulting in: PROCESS INDUCT • Late processing DELIVER • Late / missed transportation • Additional processing / transportation costs • Service failure

  28. Expected Days of Delivery SCOPE OF LIMITED CHANGE DELIVERY DAYS MEETING SERVICE STANDARD Thursday Friday, Saturday, Monday Friday, Saturday, Monday DSCF Standard Mail** Dropped Before 4pm* on Current Proposed Friday Saturday, Monday Saturday, Monday, Tuesday Saturday Monday, Tuesday Monday, Tuesday, Wednesday Sunday Monday, Tuesday, Wednesday Monday, Tuesday, Wednesday *The current Critical Entry Time (CET) for Standard mail is 4 pm **For delivery in the continental United States 28

  29. Expected Days of Delivery What Doesn’t Change • Standard Mail dropped at a DDU does not change • Standard Mail dropped at a NDC does not change • EDDM-Retail does not change • Periodical/Newspaper processing does not change • First-Class Mail does not change • Priority Mail does not change 29

  30. South Jersey Test Scope: Evaluate the impact of load leveling the Standard Mail volumes received at the South Jersey P&DC across the days of the week. Test Location – South Jersey P&DC (First Lean Mail Processing Plant) Test Period – Sep 12th through Sep 26th, 2013 Delivery Zones Participating: 110 Delivery Routes Participating: 1,190 Standard Mail Volume in Evaluation: 5.3M pieces

  31. Load Leveling Standard Mail Test • Trained Expeditors, Mail Handlers on new color code matrix • Changed all Signage • Developed comprehensive plan with local site to segregate mail by color code, stage at plant • Strict adherence to machine schedules allowed us to control what mail was advanced by sort program

  32. Test Results South Jersey P&DC Sep 14th – 20th • Efficiency • Reduced Total Weekly Carrier Work Hours • Reduced Carrier OT and Penalty OT 4,000,000 3,500,000 3,000,000 • Customer Service • Improved Carrier Return Times • Improved On-Time Service Performance 2,500,000 Test Week – Avg Delivered Volume by Day 2,000,000 20.8% 1,500,000 17.1% 15.4% 17.3% 15.2% 14.2% • Employee Satisfaction 1,000,000 • Overwhelmingly Positive Feedback 500,000 0 SAT SUN MON TUE WED THU FRI 32

  33. Load Leveling Initiative Timeline of Events FY 2013 FY 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 9/12 - 26 Load Level Test 12/27 PRC Filing 2/13 Comments Proposed Rule So Jersey P&DC May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 6/11 Telecom WG #157 7/24 Telecom WG# 157 10/21 Telecom WG# 157 12/10 BOG Approval 1/10 Industry Webinar 2/28 Publish Final Rule 5/29 Telecom WG# 157 7/12 Telecom WG# 157 8/7 Telecom WG# 157 11/6 Telecom WG# 157 1/14-16 MTAC Meeting 8/28-29 MTAC Meeting WG# 157 Meeting 11/20-21 MTAC Meeting WG# 157 Meeting Implement No earlier than 3/27 33

  34. Next Steps • Continue Stakeholder Engagement • Add Additional Sites to Test Implementation Approach • Review Comments to Proposed Rule – Feb 13, 2014 • Publish Final Rule: February 28, 2014 • Receive PRC Advisory Opinion • Implement Change no Earlier Than March 27, 2014 34

  35. Going Forward USPS - Industry Collaboration • Provide Easy Access to Information and FAQs Updated Weekly on RIBBS • industryfeedback@usps.com • Committed to Collaboration/Communication Commitment to Communicate Success requires collective effort 35

  36. Expected Long Term Benefits • Predictable Service • Customer Satisfaction • Cost Containment 36

  37. 24 Hour Clock Compliance

  38. Collective Effort • Modify current 24 hour clock parameters to reduce the cycle time expectations of: PROCESS INDUCT • Collections • Processing DELIVER • Transportation • Delivery Target – 95% Carriers off the street by 1700

  39. Charter 24 Hour Clock Compliance Charter Implement processes, technology and operational discipline to align with the 24hr clock parameters to drive consistent service and increase operational efficiency. Workstream Owner Workstream Owner ELT Sponsor Delivery Ed Phelan Network Operations Engineering Dave Williams 1 4 Initiative Lead • Detailed project plans developed and tracked for key activities. • Area and District project plans under development to coincide with all Headquarters activities for field implementation • Provide weekly updates on key activities, risks, and next steps. Weekly meetings every Thursday starting January 2, 2014 • Escalate any issues/barriers to success to ELT as needed • Union / Management Associations engagement Post Office Operations Ed Phelan 2 5 Product Visibility Robert Cintron Megan Brennan Processing Operations Dave Williams 3 6 Engineering Systems Mike Amato

  40. Summary

  41. Summary Going Forward • Intense Focus on 24 Hour Clock Execution • Our Commitment • Drive Operational Efficiencies • Effective Use of Data and Diagnostic Tools • Predictable Service • Industry Engagement

  42. Thank You Questions? 42

More Related