Performance Management Presentation Provide Mail, Courier and Package Screening Services

1
Performance Management PresentationProvide
Mail, Courier and Package Screening Services

• Team Members
• Leader James Spears
• Members Tracy Niksich
• Angela Milton
• Division of Mail and Courier Services
• ORS
• National Institutes of Health
• Date January 09, 2004

2
Table of Contents

• Main Presentation
• PM Template .Slide 4
• Customer Perspective..Slide 7
• Internal Business Process Perspective
  Slide 15
• Learning and Growth Perspective
  Slide 28
• Financial PerspectiveSlide 35
• Conclusions and RecommendationsSl
  ide 47

3
Table of Contents (cont.)

• Appendix
• Pages 2-5 of template
• Customer Perspective
• NONE.
• Internal Business Process Perspective
• IB1 Complete and update process maps of
  Service Group/Discrete Services
• IB5 Actual postage used vs. OMAS statements
• IB6 Percentage of courier items meeting the
  two hour delivery target
• Learning and Growth Perspective
• LG1a Turnover
• LG1b Sick leave usage
• LG2a EEO
• LG2b ER
• LG2c ADR
• LG3 Awards/Recognition

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Relationship Among Performance Objectives
Learning and Growth Objectives
Internal Business Objectives

• Customer needs and expectations

Operational Objectives
Performance Improvements / Operational Changes
Performance Feedback
Financial Objectives
Customer Objectives
6
Relationship Among Performance Objectives

• Division of Mail and Courier Service (DMCS)
  performance objectives have little, if any impact
  on other objectives
• DMCS performance objectives refer to well-defined
  but separate areas of the discrete services they
  represent

7
Customer Perspective
8
Customer Perspective
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Customer Scorecard Methodology

• DMCS did not conduct a survey in FY03. We
  believe
• It was too soon to conduct another survey since
  countermeasures from the last survey had only
  been in place for about six months
• We wouldnt be learning anything of value
  concerning contractor-conducted services since we
  have been in the process of replacing the former
  mail services contractor
• We plan to conduct a survey in FY04. There will
  be a survey sent out to each mail stop through
  the DMCS delivery network, with questions to be
  determined at that time

11
Customer PerspectiveWhat does the data tell you?

• IC mail managers provided an excellent means of
  disseminating information concerning mail service
  issues, performance improvement initiatives, and
  postal news
• IC mail managers were a good source of
  information about the potential reactions of IC
  customers to various issues, from postage rate
  increases to DMCS performance improvement
  initiatives
• Positive reaction from the IC mail managers
  convinced us that the small volume/secure mail
  initiative should be immediately implemented in
  full scale (next slide picture)

12
Customer Perspective small volume/secure mail
initiative
13
Customer PerspectiveWhat does the data tell you?

• The small volume/secure mail initiative was the
  result of a long-term study in response to
  customer concerns over the physical condition of
  mail, when received in small bundles, and the
  difficulty of sorting and keeping small bundles
  and their contents in delivery sequence for DMCS
  delivery drivers
• The solution had to address both these concerns
  and be relatively inexpensive to use since the
  solution would be frequently utilized
• DMCS delivers to over 1100 mail stops, two times
  per day

14
Customer PerspectiveWhat actions are planned?

• DMCS will continue to schedule a mail managers
  meeting every four months to keep this
  communication channel open and viable
• DMCS will conduct a customer poll in FY 2004

15
Internal Business Process Perspective
16
Internal Business Process Perspective
17
Driver Delivery Times are Consistent
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Internal Business Process Perspective
21
Internal Business Process Perspective
22
Internal Business Process Perspective
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Internal Business Process Perspective
24
Internal Business Process PerspectiveWhat does
the data tell you?

• Driver Delivery Times
• Average variation for driver delivery times is
  much lower than in FY 2002 (FY02 13-35 min).
  Times ranged from 4 to 9 minutes between
  consecutive days
• Using control charts, the only delivery times
  that were out of control were the two delivery
  days following the work days that were cancelled
  due to the hurricane-related storms in the summer
  of 2003

25
Internal Business Process PerspectiveWhat does
the data tell you?

• Incoming Mail is Sorted Correctly
• Two years of quality control samplings and
  feedback to the mail service contractors have
  been successful in lowering the primary sortation
  error rate from 1.06 (FY 2002) to a consistent
  score of less than 0.30, with no problem areas

26
Internal Business Process PerspectiveWhat does
the data tell you?

• Postage is Correctly Applied to Outgoing Mail
• Since the new mail services contractor began
  operations with increased training in June 2003,
  the quality sampling error rate has gone from
  0.5 to 0.0.
• Under the old contract, no one person was
  assigned to the job, so no one had ownership of
  the operation. Under the current contract, there
  is one primary person on a given day, with
  cross-trained back-ups available as needed

27
Internal Business Process PerspectiveWhat
actions are planned?

• DMCS will continue to monitor the work of the
  contractor in ways that provide creative feedback
  that increases operational excellence
• PMP quality goals for incoming mail sortation in
  2004 will be adjusted accordingly

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Learning and Growth Perspective
29
Learning and Growth Perspective
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Learning and Growth Perspective
31
Percentage of Computer-simulated Bomb Threats
Identified
32
Learning and Growth PerspectiveWhat does the
data tell you?

• Training
• Meeting our training goal shows that training,
  especially safety training continues to be a
  priority at DMCS
• DMCS believes that additional training makes for
  a safer, more effective organization

33
Learning and Growth PerspectiveWhat does the
data tell you?

• X-Ray Clerk Proficiency
• X-ray clerks are becoming more proficient at
  identifying potential explosives, which is due to
  ongoing training efforts and only somewhat to
  worker experience, since 100 turnover is taking
  place each year (two positions) in these
  contracted positions

34
Learning and Growth PerspectiveWhat actions are
planned?

• Training for DMCS will continue at the two
  training sessions per year minimum, with at least
  one session devoted to workplace safety
• Training for x-ray technicians will be increased
  in order to achieve our goal of 97 for next year

35
Financial Perspective
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Financial Perspective (cont.)
37
Financial PerspectiveWhat does the data tell you?

• Unit Costs
• Labor costs for contracted discrete services are
  fixed by contract and increase when Bureau of
  Labor statistics job classification standards are
  raised. Nothing can be affected by DMCS
  management in the near term
• Labor costs for the FTE centered discrete
  services are fixed by Congress. Nothing can be
  affected by DMCS management in the near term
• Unit costs for Scan Incoming Packages are
  decreasing due to the increase and projected
  future increase in parcel volume in this area
• The only way to decrease unit costs in the long
  term is to maximize throughput and minimize down
  time. Since down time is very low, efforts must
  be made toward increasing efficiency such that
  volume increases will not increase total costs

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Asset Utilization Measures
39
Financial PerspectiveWhat does the data tell you?

• Asset Utilization
• Hours of downtime are centered in Process and
  Deliver Incoming Mail because the other discrete
  services are performed only when there is work of
  that nature available to be done
• Process and Deliver Incoming Mail uses the most
  work hours each day, and is what most employees
  are doing unless something else arises and work
  hours are needed in another area

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Financial Perspective (cont.)
41
Total Savings vs. USPS Parcel Post
42
Total Savings vs. USPS Parcel Post
43
Financial PerspectiveWhat does the data tell you?

• Alternative Ground Shipping
• The alternative ground shipping program has far
  exceeded expectations by doubling the savings
  from the previous FY (140,000 vs. 70,000)
• While savings closely track volume, savings are
  greatest on medium-sized parcels (20-70 lbs)

44
Financial PerspectiveWhat does the data tell you?

• Awareness of the alternative ground program was
  raised by means of flyers and by keeping IC mail
  managers aware of the savings potential and
  actual savings at each mail managers meeting
• Efforts to increase volume through awareness
  began to pay off in March 2003

45
Financial PerspectiveWhat actions are planned?

• DMCS continues to employ more effective ways to
  utilize the work hours were paying for through
  applied technology (such as the additional
  PacTrac system, anti-fatigue mats, specialized
  safety cutters for mail bundles) and by
  minimizing sortation errors through a
  comprehensive quality control program (which
  minimizes rework)
• Although the NIH community continues to grow and
  spread out geographically, DMCS has not needed to
  increase contractor personnel to accommodate
  these changes

46
Financial PerspectiveWhat actions are planned?

• The alternative ground program will continue, as
  it has been extremely effective at saving money
  vs. USPS Parcel Post, while providing superior
  service
• DMCS will continue to try and capture any
  remaining internal parcel business that can
  result in savings for NIH

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Conclusions
48
Conclusions from PMP

• Meetings with the IC Mail Managers have helped
  improve service and understanding
• The reduction of average delivery time variation
  has resulted in better service for our customers
• DMCS Quality Control program has resulted in
  improved service
• Ongoing training continues to be a key part of
  DMCS customer service improvement
• Current x-ray clerk training is very effective
• Technology has improved service and slowed
  contractor cost increases

49
Conclusions from PMPImprovements

• Expenses have been avoided by using technology to
  get work done more effectively
• Anti-fatigue mats have been installed in the
  sortation areas to prevent worker fatigue, which
  can lead to lower production
• Safety cutters have been provided to more easily
  cut the straps on bundles of mail, which used to
  be a time-consuming task
• Small delivery bundles of mail are now placed in
  special plastic bags and heat sealed to
  facilitate sortation and delivery to mail stops
• An added PacTrac system has enabled DMCS to
  process the larger number of accountable mail
  pieces currently received in less time to ensure
  that delivery trucks will never have to wait for
  accountable mail
• DMCS quality control program has reduced
  sortation error from 1.06 (FY2002) to 0.30
  (FY2003)

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Conclusions from PMPImprovements

• The alternative ground shipping program has far
  exceeded expectations by doubling the savings
  from the previous FY (140,000 vs. 70,000) due
  to excellent service and promotional efforts

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Appendix
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Appendix

• Pages 2-5 of template
• Customer Perspective
• NONE.
• Internal Business Process Perspective
• IB1 Complete and update process maps of
  Service Group/Discrete Services
• IB5 Actual postage used vs. OMAS statements
• IB6 Percentage of courier items meeting the
  two hour delivery target
• Learning and Growth Perspective
• LG1a Turnover
• LG1b Sick leave usage
• LG2a EEO
• LG2b ER
• LG2c ADR
• LG3 Awards/Recognition
• Financial Perspective
• NONE...

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Internal Business Process Perspective
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Appendices Block Diagram
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Appendices DS1 Process Chart
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Appendices DS2 Process Chart
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Appendices DS3 Process Chart
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Appendices DS4 Process Chart
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Appendices DS5 Process Chart
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Internal Business Process Perspective
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Appendices Process Measures
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Internal Business Process Perspective
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Internal Business Process Perspective
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Internal Business Process PerspectiveWhat does
the data tell you?

• Increase understanding of process
• All process maps are updated and agreed to by NIH
  management, contractor management, and contractor
  employees as an actual representation
• USPS billing is accurate
• There was no discrepancy in USPS OMAS reporting
  this year
• ORS Courier delivery is timely
• All parcels entrusted to the ORS courier service
  were delivered within the two hour window

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

• No data was available from Human Resources from
  FY2003 with which to generate comparative studies