FY02 ASA Presentation Provide Mail Services

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FY02 ASA Presentation Provide Mail Services

• Presented by
• James V. Spears
• Team Members
• Angela Milton
• Tracy Niksich
• Office of Research Services
• National Institutes of Health
• 18 November 2002

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(No Transcript)
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Customer Perspective
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DS1 Customer Segmentation Process and
Deliver Incoming Mail
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DS1 Customer Segmentation Process and
Deliver Incoming Mail

• 21 NIH buildings (18 of 85) accounted for 80 of
  all mailstops
• 32 buildings account for only one mailstop each
• mailstops are not evenly distributed among
  buildings
• The average number of mailstops per building is
  13.3

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DS1 Customer Segmentation Process and
Deliver Incoming Mail

• Fewer mailstops per building means that mail
  delivery is more time consuming than if the
  mailstops were distributed among fewer, larger
  buildings
• Mail comes to NIH from around the world
• impossible to formally document the primary
  sources of mail.

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DS2 Customer Segmentation Perform Mail
Directory / Locator Service
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DS2 Customer Segmentation Perform Mail
Directory / Locator Service

• The volume of directory mail stays proportionate
  with the volume of first class mail
• On a monthly basis, any differences in directory
  mail generation by different first class mail
  types (e.g. FedEx bills, Christmas cards, etc.)
  cancel each other out
• Directory services are only performed after the
  incoming mail volume has been processed for
  delivery and does not increase variable costs

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DS3 Customer Segmentation Process and
Dispatch Outgoing Mail
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DS3 Customer Segmentation Process and
Dispatch Outgoing Mail

• 16 of NIH postage accounts (9 of 56) accounted
  for 80 of all postage used
• 55 of NIH postage accounts (31 of 56) accounted
  for only 3 of all postage used
• Outgoing mail has priority only after all
  incoming mail has been dispatched for delivery at
  1230 p.m.
• All Outgoing mail is processed daily before USPS
  pick-up.

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DS4 Customer Segmentation Process and
Deliver Inter-Office Mail
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DS4 Customer Segmentation Process and
Deliver Inter-Office Mail

• 21 NIH buildings (18 of 85) accounted for 80 of
  all mailstops
• 32 buildings account for only one mailstop each
• Inter-Office mail is processed separate from
  incoming mail when processed for delivery
• Inter-Office mail cannot be tracked by source as
  Inter-Office mail lacks a return address
• All Inter-Office mail is processed daily

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DS5 Customer Segmentation Management of Postal
Accounting System
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DS5 Customer Segmentation Management of
Postal Accounting System

• 16 of NIH postage accounts (9 of 56) accounted
  for 80 of all postage used
• 55 of NIH postage accounts (31 of 56) accounted
  for only 3 of all postage used

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Customer Satisfaction (Poll)

• 20.4 rate of return (224 of 1100)
• The range of the rating scale was from A
  (excellent) to E (poor) in order to keep the
  grading system familiar to respondents
• Scoring was done on the collegiate system (e.g.
  A4.0, B3.0, etc.)
• The overall mean score (excluding N/A responses)
  of 3.0 is equal to a B (very good)

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Customer Satisfaction (Poll)
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Customer Satisfaction (Poll)
Poll Analysis By Question Percent C
(Acceptable) or better
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Customer Satisfaction (Poll)
Poll Analysis By Question Percent C or better
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Customer Satisfaction (Poll)

• Poll Analysis
• Low scores given for Question 2 were nearly all
  related to Question 2c (per their comments)
• Many complaints from Question 2c were due to a
  misconception among some employees concerning
  positional mail
• Complaints from Question 4 were primarily
  concerned with slower delivery of poorly
  addressed interoffice mail (e.g. see following
  slide)

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Customer Satisfaction (Poll)(cont.)
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Customer Satisfaction (Poll)

• Poll Analysis
• The lower than average mean score (2.68) for
  Question 6 was not unexpected, this is the most
  difficult mail type to process to intended
  recipient
• The 88 C or better for Question 6 shows that
  most of our customers understand that this mail
  is difficult to process and they feel that we are
  doing an acceptable to excellent job with it

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Reduce Customer Complaints Regarding Missorts
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Reduce Customer Complaints Regarding Missorts

• There is no source pattern to the complaints as
  they are addressed immediately with corrective
  action and verified continuously for several
  weeks to be certain the problem is solved

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Internal Business Process Perspective
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Block Diagram Provide Mail Services

• Discrete Services for MCSB
• Are sequential in nature
• Cannot be performed out of order
• Must all be performed on a daily basis

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Conclusions from Discrete Services Deployment
Flowcharts

• Our Service Group completed Five deployment
  flowcharts for Five discrete services
• Production of the deployment flowcharts, and
  verification by sorters confirmed that
  managements perception and understanding of the
  process workflow was correct and complete.
• MCSB Management monitor every step of the
  work-flow process for standards compliance

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Process Measures

• List process measures for each discrete service
• DS1-1 Time of day at route midpoint
• DS1-2 Error Rate from Random Samplings
• DS2 Error Rate from Random Samplings
• DS3 Error Rate from Random Samplings
• DS4 Error Rate from Random Samplings
• DS5 Dollar savings vs. Postal OMAS statement

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Process Measure Results

• Findings from process measures data
• DS1 Process and Deliver Incoming Mail
• Control Charts showed that the driver delivery
  times were consistently within normal variation
  when regular drivers were present
• Random Samplings from clerk sortation showed a
  1.06 initial error rate for September.
• DS2 Perform Mail Directory/Locator Service
• Random samplings showed no clerk look-up errors

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Process Measure Results

• Findings from process measures data
• DS3 Process and Dispatch Outgoing Mail
• Random Samplings of meter-stamped outgoing mail
  showed a 0.21 error rate for September. All
  errors were from one day. Cause of error was
  failure to apply oversize surcharges where needed
• DS4 Process and Deliver Inter-Office Mail
• Random samplings of inter-office mail showed no
  clerk sortation errors.

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Process Measure Results

• Findings from process measures data
• DS5 Management of Postal Accounting System
• 8,748,000 savings vs. OMAS statement by
  disputing unauthorized charges from USPS and
  other sources since 1992.

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Learning and Growth Perspective
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Conclusions from Turnover, Sick Leave, Awards,
EEO/ER/ADR Data

• Turnover
• Turnover is expected to become an issue for MCSB
  in the near term
• Turnover will be less of an issue in the longer
  term, due to increased outsourcing of duties
  within MCSB
• Sick Leave
• MCSB has the lowest sick leave usage of any
  Service Group in the study, despite having one
  employee on long-term sick leave during the whole
  of the study period. This is due to high morale
  and dedication to duty within MCSB

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Average Hours of Sick Leave Used (Oct 2001 - June
2002)
Average Hours
Service Group Number
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Conclusions from Turnover, Sick Leave, Awards,
EEO/ER/ADR Data

• Awards
• By giving awards where deserved and spreading
  them fairly between Management and Clerk
  employees, MCSB has created a high-morale
  environment
• EEO Complaints
• MCSB EEO complaint average was based on only one
  complaint. This was due to the termination of an
  employee who was trying to avoid this management
  action.

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Conclusions from Turnover, Sick Leave, Awards,
EEO/ER/ADR Data

• ER
• MCSB ER average is higher than the MCSB ADR
  average, due to the fact that MCSB counsels
  employees and provides numerous opportunities for
  reform before taking corrective action
• ADR
• MCSB ADR average was higher than would normally
  be expected due to the efforts of two employees
  who were trying to avoid progressive corrective
  action and eventually, termination.

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Analysis of Readiness Conclusions

• All major skills and abilities required by MCSB
  are present among current employees
• MCSB is currently short by six positions. It is
  expected that these positions will be filled
  through outsourcing
• Since 850,000 sq ft of NIH lab space is expected
  to be created over the next three years, MCSB
  must be prepared to constantly reexamine its
  needs and to amend the current mail services
  contract, as needed
• MCSB must continue to promote safety / security
  awareness, teambuilding, and computer skills
  through the use of available training classes to
  keep employee skills up-to-date
• MCSB must begin to analyze options for replacing
  its Pitney-Bowes Paragon postage machines to
  ensure best value for NIH

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Financial Perspective
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Unit Cost Measures

• Analysis
• Process / Deliver Incoming Mail Cost
  per hour is relatively stable, but dependent on
  set wage rates
• Mail Directory / Locator services No
  direct variable costs associated
• Process and Dispatch Outgoing Mail No direct
  variable costs associated
• Process / Deliver Inter-Office Mail No
  direct variable costs associated

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Unit Cost Measures

• Analysis
• Manage Postal Accounting System Postage costs
  by IC must be tracked to
• properly attribute time and costs
• accurately assess ICs for next Fiscal Year
• ensure accurate USPS billing

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Asset Utilization Measures
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Asset Utilization Measures

• Analysis
• Idle Capacity
• The daily weekday period between 500 p.m. and
  700 a.m. (14 hours), and Saturday-Sunday,
  represents the weekly operational Idle Capacity.
• This idle capacity is not marketable.
• The operation is not staffed during this period.
  
• due to security concerns, the area must have
  restricted access

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Asset Utilization Measures

• Analysis
• Non-Productive Capacity
• Standby time is minimal
• Due to the flexibility of our operation there is
  no waste of time resources.
• Rework due to sorting errors is very small.
• Scheduled Maintenance occurs only during those
  times when equipment is not expected to be in use

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Unique Financial Measures

• Reduce Dollar Amount of USPS (OMAS) Billing
  Errors
• MCSB records from the last 10 years show that
  8,748,000 has been recovered, to date, from the
  USPS and other sources as a result of
  MCSB-initiated billing inquiries
• Results from the careful record keeping and
  management of the postal accounting system by MCSB

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Unique Financial Measures
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Conclusions and Recommendations
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Conclusions from FY02 ASA

• Major Findings
• Deployment flowcharts confirmed that managements
  perception and understanding of the process
  workflow was correct and complete
• Process perspective studies show that delivery
  times are consistent within normal variation when
  regular delivery drivers are present

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Conclusions from FY02 ASA

• Major Findings
• Random samplings showed no or low error rates for
  the process perspective of DS 1 - 4
• DS 5, Management of the Postal Accounting System
  has been very effective in preventing waste

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Conclusions from FY02 ASA

• Major Findings
• MCSB is prepared for the near term with regard to
  employee skills
• MCSB has high morale and dedication, as evidenced
  by having the lowest sick leave usage rate in the
  group studied
• MCSB must be prepared to constantly re-examine
  its needs and to amend the current mail services
  contract, as needed in order to meet needs
  created by future growth

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Conclusions from FY02 ASA

• Countermeasures begun
• MCSB has begun contacting those respondents to
  our poll who showed concern over mail forwarding.
  MCSB representatives will explain the rules and
  regulations concerning positional mail and mail
  forwarding
• MCSB is preparing a fact sheet on positional mail
  to be distributed to all mailstops at a future
  date

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Recommendations

• That MCSB move forward with its educational
  campaign to explain about positional mail and
  forwarding
• That MCSB continue to monitor delivery driver
  standards to ensure consistency of delivery both
  on and off campus

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Recommendations

• That MCSB continue to take random samplings of
  work that forms our discrete services to ensure
  quality and compliance with standards
• That MCSB continue to review the USPS OMAS
  billings and recover funds where NIH has been
  billed in error