Webinar

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Webinar 2 Service MeasurementandReporting
RequirementsPresented by Tom Day, Senior Vice
President, Intelligent Mail and Address
QualityFriday, September 26, 2008
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Agenda
Service Measurement - Reporting Requirements

• Legal Requirements
• Service Measurement Methods
• Specific approach by product
• Reporting Requirements

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Legal Requirements
Service Measurement - Reporting Requirements

• Section 3691 Establishment of Modern Service
  Standards
• To provide a system of objective external
  performance measurements for each market-dominant
  product as a basis for measurement of Postal
  Service performance.
• With the approval of the Postal Regulatory
  Commission an internal measurement system may be
  implemented instead of an external measurement
  system.

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Postal Regulatory Commission further refined
Market-Dominant products
Service Measurement - Reporting Requirements

• First-Class single piece
• First-Class pre-sort
• Periodicals
• Standard mail (origin and destination entry)
• Package Service (4 products combined)
• Single piece parcel post
• Media mail
• Bound printed matter
• Library mail
• Special services and
• Single piece international mail

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Essentials of Service Measurement
Service Measurement - Reporting Requirements

• Three data points required
• Start-the-clock when the mail entered USPS
  network
• Stop-the-clock when did USPS effect, or in
  some cases attempt, delivery
• Established Service Standard for comparison

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Design of Service Measurement System
Service Measurement - Reporting Requirements

• Achieve three fundamental requirements
• Fulfill legal requirement of Service Measurement
  reports to PRC
• Enable an internal diagnostic system
• Provide granular information to mailers

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Service Measurement Approaches
Service Measurement - Reporting Requirements

• External Measurement (EXFC or EXFC-like)
• Hybrid (combination of internal and external)
• Internal (only uses USPS captured data)

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External Measurement
Service Measurement - Reporting Requirements

• Applies to
• First-Class (Single-Piece) - EXFC
• Single Piece International IMMS
• Third-party vendor creates test mail
• Test Mail anonymously dropped into USPS
  network date/time recorded
• Test Mail received by panel of recipients
  date/time recorded

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Single-piece First-Class Mail / External
First-Class (EXFC)
Service Measurement - Reporting Requirements
Test MailFabrication
Test MailInduction
Test MailReceipt
USPS Mail Processing
Delivery
Destination Processing
Origin Processing
Acceptance
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EXFC Points of Emphasis
Service Measurement - Reporting Requirements

• As of October 1, 2009, virtually all 3-Digit
  SCFs are included in EXFC
• Specific 3-Digit, and in limited cases 5-Digit,
  exclusions were already submitted to PRC

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Hybrid Measurement
Service Measurement - Reporting Requirements

• Will take effect with the implementation of the
  Intelligent Mail in May 2009
• Applies to
• First-Class (Pre-sort)
• Standard
• Periodicals
• Supplements mail scans from internal Intelligent
  Mail system with externally collected data

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Service Measurement - Reporting Requirements
Hybrid Measurement Approach
Origin Processing
Destination Processing
Delivery
Transport to Delivery Unit
Transport to Destination
Delivery Unit Processing
Acceptance
Visible through Intelligent Mail, up to final
MPE Operation Code or other scan event
External Stop-the-Clock

• External Measurement
• External Reporters will scan live mail
• Contractor will calculate delivery service
  performance factor for each mail class
• Factor combined with IM data to form end-to-end
  measurement

Stop-the-Clock External reporters scan IMb on
mail at delivery
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First-Class Pre-Sort and Standard Interim Approach
Service Measurement - Reporting Requirements

• Will use first processing scan at point of
  entry as a proxy for Start-the-Clock
• Processing scan on USPS automated equipment
  clearly demonstrates the mailing has been entered
  into USPS Network
• As Mailers/USPS demonstrate capability, we will
  transition to container scans at entry

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Origin Entry at BMEUAll Classes
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Origin Entry at DMUAll Classes
PostalOne!
External Reporters scan IMb on all mail they
receive
Mail release time validated by Clerk
DPS / Flat Sorter scans
Start-the-Clock
Last MPE Scan
Stop-the-Clock (delivery factor calculated)
Mailer Facility
USPS Processing
Delivery
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Destination Entry at SCF/BMC Standard Mail
Periodicals
PostalOne!
External Reporters scan IMb on all mail they
receive
DMU Verification
FAST arrival time
Stop-the-Clock (delivery factor calculated)
Start-the-Clock (unit scans follow at DDU,
pre-FSS)
Mailer Facility
USPS Processing
Delivery
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Destination Entry at DDU Standard Mail
Periodicals
PostalOne!
External Reporters scan IMb on all mail they
receive
Container Barcode scan
DMU Verification
Stop-the-Clock (delivery factor calculated)
Start-the-Clock (unit scans follow)
Mailer Facility
USPS DDU
Delivery
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Periodicals Interim Approach
Service Measurement - Reporting Requirements

• Use two external systems -
• Red Tag and DelTrak
• Measurement reported by external provider
• Statistical validity only at Area level
• Once IMB adoption is sufficient, measurement
  process similar to commercial letters and flats

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Internal Measurement
Service Measurement - Reporting Requirements

• Applies to
• Package Services
• Special Services
• Package Services rely upon Delivery Confirmation
  data (Retail and BMC Bulk Entry)
• Special Services cover a broad range of products
  with distinctly different data

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Origin Entry Retail Parcels
En-route Parcel processing equipment scans
Retail clerk scans Parcel barcode during
transaction
Carrier scans Parcel barcode
Start-the-Clock
Stop-the-Clock
Retail Lobby
USPS Processing
Delivery
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Destination Entry at SCF/BMC Package Services
PostalOne!
Carrier scans Parcel barcode
DMU Verification
FAST arrival time
Stop-the-Clock
Start-the-Clock
Mailer Facility
USPS Processing
Delivery
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Special Services Standards
Service Measurement - Reporting Requirements
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Reporting Requirements
Service Measurement - Reporting Requirements

• All Market Dominant products will be reported to
  the PRC on a Quarterly basis
• Reports will be for each of 80 Districts or as
  noted
• In addition to On-Time data, the report will also
  show the Percentage 1, 2 and 3 Days late

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Reporting Requirements (continued)
Service Measurement - Reporting Requirements

• Initially, Periodicals which will be reported at
  the Area level
• When there is sufficient IMB data, Periodicals
  will be reported at District level
• Special Services will aggregated as an index

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Questionsand Answers
Service Measurement - Reporting Requirements
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Webinar 3 Friday, October 10 Overview of
Intelligent Mail and Start the Clock ??
Presented by Pritha Mehra, Vice President,
Business Mail Entry SAME TIMESAME DAY