USPS-T-27
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268-0001
Docket No. R97-1
DIRECT TESTIMONY OF
LESLIE M. SCHENK
ON BEHALF OF
UNITED STATES POSTAL SERVICE
-
USPS-T-27
TABLE OF CONTENTS
CONTENTS ......................................................................................................
i
LIST OF EXHIBITS.. ........................................................................................
ii
AUTOBIOGRAPHICAL
I.
PURPOSE
II, BUSINESS
SKETCH ...................................................................
OF TESTIMONY
......................................................................
REPLY MAIL CHARACTERISTICS.
.......................................
Ill. BIRM MAIL FLOWS ....................................................................................
A.
B.
C.
D.
I.
BRMAS-Qualified
BRM Pieces.. .........................................................
Non-BRMAS Advance Deposit BRM Pieces ......................................
Non-Advance Deposit BRM Pieces .....................................................
Advance Deposit Accounts and BRM Permits .....................................
DATA COLLECTION
..................................................................................
iii
1
2
4
.4
.6
7
7
8
II. SIJRVEY RESULTS .................................................................................
11
..................................................................................
12
Ill, COST ESTIMATES
IV. EXHIBITS ..____.._.._._.._.
1..._..._......................................................................
V.
APPENDIX
VI. APPENDIX
A: BRMAS Cost Survey - Data Collection and Processing
B: BRMAS Cost Survey - Survey Forms and Instructions
16
USPS-T-27
Direct Testimony
of
Leslie M. Schenk
Autobiooraohical
My name is Leslie M. Schenk.
Sketch
I am a Senior Economist with Christensen
Associates,
which is an economic analysis and consulting firm located in Madison,
Wisconsin.
I have been employed at Christensen
my 1:enure at Chrisl:ensen Associates,
Associates
since June, 1995.
During
I have worked on many research projects for the
U.S. F’ostal Service.
.-
In 1982 I received a B. A. from SUNY College at Buffalo, with a major in
economics
and a minor in mathematics.
in mathematics
(with a concentration
1986, respectively.
I received an M.A. in economics,
and an M.A.
in statistics) from Indiana University in 1984 and
In 1995 I received a Ph.D. in economics
from Miichigan State
University.
From 1985 to 1986 I was a research assistant on the economlic forecasting
modeliing project at the Indiana University Business School.
for quarterly econolmic forecasts for industry clients.
demand analyst for Indiana Bell Telephone
Company.
There I was responsible
From 1986 to 1989 I was a
Among my dluties there, I helped
prepare analyses for rate case filings before the Public Service Commission
I also provided in-house statistical consultation.
/--
From 1993 to 1995 I worked as a
research assistant at the Institute for Public Policy and Social Research
III
of Indiana.
at Michigan
USPS-T-27
Stalte University.
IMy research there was on nonprofit organizations
1993,, I taught numerous
university economics,
From 1’983 to
business statistics, and mathematics
courses.
I recently presented
nonletter-size
testimony to the Postal Rate Commission
Business Reply Mail in Docket No. MC97-1.
on the costs of
My previous research for
the Postal Service also involved a number of in-field surveys to support Dockets No.
MC951
and MC96-2.
I.
Purpose
of Testimony
The purpose
counting,
rating,
and beyond
and billing
the costs
4
were developed
5
procedures
6
of the current
7
maintenance.
using
for the Business
attributed
current
information
BRM fee categories,
costs
of counting,
10
Business
Reply Mail (QBRM).
11
piece fee for advance
12
(USPS-T-39).
13
piece costs
14
deposit
account
15
8-cent
per-piece
16
costs
of counting,
17
which
My testimony
of counting,
rating,
Needham
and billing
proposes
19
variable
20
currently
costs
associated
denominated
deposit
the test year volume-variable
as the Prebarcoded
of
for the Other
witness
rating,
category
per-
category
of advance
Needham
proposes
the volume-variable
deposit
per-piece
per-
Needham
the test year volume-variable
for non-advance
the counting,
category
by witness
account
an
per-piece
BRM, for
fee.
is based upon an examination
with
for each
serve as a basis f#or the 6-cent
also estimates
a 30-cent
costs
account
for the Qualified
Reply Mail, for which
In part, my testimony
16
and billing
My testimony
and accounting
QBRM proposed
also estimates
rating,
Business
fee.
account
costs
above
My estimates
the test year per-piece
and billing
These
deposit
Mail (KM).
on operating
is to estimate
rating,
of
Reply Mail (BRM) service,
and for advance
of my testimony
per-piece
the test year costs
to First-Class
I will determine
9
witness
is to estimate
already
used for BRM.
One purpose
8
,f-
of my testimony
of the volume-
and billing
of advance
for what
deposit
is
account
ZIP+4
barcode,
qualified
and have gone through
BRM currently
First-Class
pays a two-cent
5
with
6
for a specified
7
annual
9
a balance
r‘
future
compatible
11
advance
12
regular
(depending
account
advance
postage
on average
to the regular
from
BRM currently
deposit
account,
due and per-piece
daily volume),
fees
and pay an
$205).
BRM pieces
barcode,
due deducted
deposit
an advance
fee (currently
deposit
or have a ZIP+4
postage
maintain
to cover the projected
period
deposit
Non-BRMAS
daily
BRMAS-
per piece fee, in adldition
BRM recipients
sufficient
advance
10
process.
Mail postage.
BRMAS-qualified
8
a qualification
may or may not be automation
but, like BRMAS-qualified
an advance
deposit
pays a ten-cent
account.
BRM, have the
Non-BRMAS
per piece fee, in addition
to the
FCM postage.3
Non-advance
13
14
compatible
15
postage
16
pieces
are delivered
17
either
(a) collected
18
(b) deducted
19
volumes
20
BRM currently
21
postage.
deposit
or barcoded.
BRM pieces
Non-advance
due and per-piece
from
deposit
fees through
to the recipient
by the carrier
BRM recipients
an advance
upon payment
account.
of postage
These
due, which
is
clerks,
Due account.
Mailers
low
use non-advance
deposit
pays a 44-cent
delivering
deposit
do not pay the
this mail or by box section
a Postage
of BRM generally
may or may not be automation
receiving
BRM.
per piece fee, in addition
’ With the excep,tion of certain nonletter-size
ERM, which currently
experimental per-piece fees as a result of Docket No. MC97-1.
3
relatively
Non-advance
to the regular
or
deposit
FCM
quali-iies for lower
III.
BRM Mail Flows
To determine
1
the counting,
2
and BRM, it is necessary
3
the destinating
4
operation,
5
operation
6
from
(usually
is processed
operation
BRMAS-Qualified
As shown
10
11
goes through
12
number4
13
ZIP+4
14
sartation
15
Secondary
obtained
of destination.
or to a manual
either
These
in the Incoming
operation
in a Delivery
QBRM
(either
At
Primary
sortation
flovvs
differ
Prirnary
automated
Point Sequence
or
(DPS)
(e.g., cased by the carrier),.
chart
in Exhibit
Primary
other
BRMAS-qualified
and then can be sorted
ZlP+4)
in a BRMAS
this sort is equivalent
in the DPS operation.
that
USPS-27A,
operation,
to a unique
a Each ERM recipient is required
combination
Secondary
to address
to a BRM recipient,
distribution
with
BRM Pieces
the Incoming
is unique
operation,
after sortation
operation
in the flow
(corresponding
at the office
Due Unit or Box Section).
in an Incoming
or in a manual
cost associated
is held out from the Incoming
the BRMAS
FCM, which,
and is then sorted
and billing
on operations
BRM currently
in the Postage
nonpresort
operation,
Imanual),
to focus
and sent to either
other
A.
office,
rating,
These pieces
FCM pieces
to have a separate
received.
4
operation.
BRM
to permit
Because
to the level of
avoid the lncomling
receive.
ERM permit
for each
,shape/rate
element
the
BRMAS
1
2
either
3
(MPBCS),
a Delivery
includes
'4
operations
vary across
Barcode
Sorter
as determined
both
“primary”
mail finalized
6
BRMAS-qualified
mail arrives
7
sort scheme,
a
and the rest is sorted
9
schemes,
qualified
11
Incoming
12
BRMAS
some is sorted
Primary
facilities,
pieces
schemes.
number
Barcode
Sorter
operation
in order to get all
facilities,
mixed;
all
on a “primary”
(for the highest
volume
In the secondary
mailers),
sort
for the rest of the BRMAS-
BRM is sorted
to BRMAS
so the BRM receives
finalized
14
also performs
counting
15
BRM recipient
of postage
16
due from the advance
Even at facilities
17
number
is run on
the BRMAS
For these
operation
program
scheme
on the
only one handling
in the
operation.
For those
13
to permit
operation,
number.
at the BRMAS
to the secondary
At other
sort schemes,
to permit
to permit
the mail is sorted
mail.
In some cases,
and “secondary”
BRMAS-qualified
The BRMAS
(DBCS) or a Mail Processing
by the facility.
5
10
facilities.
18
qualified
19
results
20
sortatian),
21
characteristics),
and rating
operational
pieces
functions,
due (i.e., a bill).
deposit
operation,
BRMAS
program
a report
does not deduct
for the
the postage
account.
to permit
limitations
being rejected
or diversion
the BRMAS
and can provide
that sort BRM in a BRMAS
mail gets finalized
from
in the BRMAS
number
operation,
in the BRMAS
(e.g., the number
5
operation,.
of bins available
(e.g., due to mechanical
of some BRM to other
not all BRMAS-
problems
mailstrealns
This
for
or piece
(e.g.,
mixing
1
with
other
2
are usually
FCM that
sorted,
counted
Even when
3
4
BRMAS
5
pieces
all BRMAS-qualified
operation,
verification
Currently,
have BRMAS
software,
a
rated in a BRMAS
9
facilities
operation
without
BRMAS
using
a variety
IO
and billed
11
manually
12
16 and 18).
counting
Mail stream
15
USPS-27A.
These
given
16
FCM pieces
receive.
17
Incoming
18
Postage
14 percent
19
manual
20
billing,
distribution,
and accounting
Deposit
these
advance
deposit
functions.
Reference
13).
BRM is counted,
method
Reference
operation,
Secondary
can receive
operations,
the Postage
H-l 79, Table
BRM pieces
Primary
avoid the Incoming
pieces
do not
and
At
rated
being
H-l 79, Tables
13,
BRM Pieces
after the Incoming
15, USPS Library
with
BRM is coulited
Reference
the most common
or BRMAS
in the
many facilities
of BRMAS-qualified
of methods,
These
Due Unit.
associated
and because
BRMAS-qualified
Due Unit (see USPS Library
5 See Table
above
operations,
pieces
pieces
Due Unit.
non-BRMAS
First-Class
residual
can be finalized
activities
(see USPS Library
Advance
14
Primary
for a mailer
of each piece (see USPS Library
Non-BRMAS
In general,
13
only
pieces
These
in the Postage
and accounting
for the reasons
7
in a DPS operation).5
and rated manually
are done in the Postage
6
B.
got distributed
sortation
but are typically
Reference
These
sorted
pieces
are then
H-l 79.
6
-
in lthe
in the
In addition
counting,
picked
in Exhibit
manually
13).
the
thalt other
to the mailer
includes
from
as shown
distribution
H-l 79, Table
Due Unit operation
are diverted
rating,
up at the
to
--.
F
1
Postage
2
(see USPS Library
C.
Non-Advance
5
instead:
6
rating,
7
section
a
relief involving
9
postage
due unit clerks
10
Postage
Due accounts).
11
shown
12
advance
,/--
D.
for non-advance
diversion
deposit
Advance
Other
13
deposit
functions
Due Unit,
by carriers
or box section
(for accepting
workload
attributable
14
of the advance
deposit
15
advance
deposit
16
adequate
funds
17
notifying
the mailer
ia
account,
and the initial
accounts
(remitting
H-l 79.
is followed
lby carriers
or box
and accountability
fees collected)
and
or for deductions
methocls
from
currently
The mailflow
used is
for non-
USPS-27B.
and BRM Permits
to BRM is associated
This workload
with
includes
to cover the postage
of inadequate
is
counting,
clerks,
of collection
funds,
deducting
set up of the advance
7
-
pick-up
set up for BRMAS-qualified
mail recipients.
are on deposit
Due Unit,
fee collections,
in Exhibit
Accounts
distribution,
clerks
operation
mailflow
manual
or box section
The distribution
BRM is shown
distribution
BRM, and the following
5, USPS Libral-y Reference
Deposit
Secondary
at the Postage
fee collection
carriers
in Table
Incoming
to the Postage
and billing
to customer
BRM Pieces
or automation
avoided
clerks for distribution
H-l 79, Table 4).
Deposit
4
clerks,
or box section
Reference
The manual
3
.-
Due Unit by carriers
deposit
the administration
and non-BRMAS
determining
due for future
daily post,age
accounl..
whether
mail received,
due from
These
the
activities
1
are generally
2
Entry
administered
Unit (BMEU).
An annual
Each Business
3
4
The administration
5
permit
imprint
IV.
through
the Postage
accounting
fee is charged
Reply Mail recipient
of the BRM permit
mail of other
Due Unit or the Business
must
obtain
is similar
to cover these
a permit
to that
Mail
Costs.
to receive
of permits
..\
BRM.
obtained
for
classes.
Data Collection
Two surveys
6
7
testimony.
8
Library
Reference
9
facilities
across
were
conducted
The BRM Practices
Survey,
H-l 79, collected
the country.
to support
which
the cost estimates
is discussed
data on BRM-related
In a,ddition
to other
derivesd in this
in detail
practices
results,
in USPS
at 441
this survey
postal
provides
-
10
national
11
collection
12
deposit
13
non-advance
14
equipment.
15
facilities
16
estimates
of several
methods
variables
for non-advance
BRM, and the percentages
deposit)
receiving
As a preliminary
and viewed
of another
survey
18
on workload
19
informed
that
done at selected
operations.
a new version
BRM, delivery
of non-BRMAS
Iprofiles
modes
pieces
(both
to finer depth
step in this survey,
BRM-related
in BRMAS
deposit
distribution
The cost of BRMAS-qualified
17
used in my cost models:
o,f fee
for advance
advance
and
of sort on autornation
we visited
several
postal
operations.
BRM was developed
postal
facilities.
in part using the results
This survey
At the time this survey
of the BRMAS
8
program
would
collected
was designed,
be implemented
data
I was
1
nationally
2
program
would
3
BRMAS
currently
4
BRMAS-qualified
pieces,
5
test year,
have been over-estimated
6
all sites currently
7
Therefore,
,h
c--.
during
the test year,6 and that
be higher
than the productivity
would
using
if a new BRMAS
I developed
for BRMAS-qualified
9
currently
have relatively
productivity
11
reasonably
12
context
13
BRMAS.
was quantified
Given the results
facilities
of
with
were up and running
efficient
BRMAS
programs
in the
productivity
as counting
BRMAS
and rating
of the BRM Practices
postal
using the BRMAS
16
of BRM (i.e., more than
14,000
17
operation
day).
18
which
19
local needs
20
had made local changes
had made changes
program
of
Survey,
to count
site with
BRMAS
which
BRMAS
could
in this
of BRM using
I was able to identify
and rate a significant
pieces
sorted
program
high BRMAS-counted
software
facilities
Efficiency
high volumes
cost
average
level which
T~hese sites were also identified
to the BRMAS
’ To my knowledge,
the Postal
program,
and no longer expects
at postal
program.
BRMAS-qualified
to the (national)
A fifth
and billing
and whose
to the productivity
in an improved
on an average
rating,
BRM based on operations
15
better.
associated
had I used the average
a test year counting,
is likely to be similar
be expected
under the version
the costs
program
under the new
BRMAS.,
estimate
10
productivity
realized
Iln this cost model,
being used.
8
14
,,I-
sometime
(but which
four
volume
in the BRMAS
as facilities
to rnake it suit their
volurnes
and which
was not one of the
Service has not yet developed
a new version of the BRMAS
to have a new version in place dumg the t,est year.
9
1
sites that
2
Service
had responded
to the BRM Practices
Survey)
was identified
by Postal
personnel.
A two-week
3
4
collected
5
and accounting
6
were
7
the five sample
8
Appendix
survey
on workhours
was conducted
and volumes
of BRM pieces
used to determine
sites.
involved
processed
the average
The BRMAS
five sites;
in all stages
using
BRMAS
productivity
data were
of distribution,
software.
of BRMAS
Cost Survey
These
operations
is discussed
billing,
data
across
in more detail
in
A.
By the time it was determined
9
at these
that a new BRMAS
10
operational
11
determine
12
BRMAS.
13
cost model.
This means that the results
14
BRM should
be interpreted
15
test year volume
16
reasons.
17
volumes
18
count
and rate BRM, the productivity
19
effect
on the average
20
BRMAS.
21
counted
22
have as much
during
the test year, there
the average
Therefore,
Given
BRMAS
was not enough
productivity
I used the average
variable
with
costs
of BRM, and given
And because
number
of these
productivity
results
operation,
on overall
not be
to
using
efficient
sites
in my
for BRMAS-qualified
can be used to proxy
the
BRM, folr the following
are those
that
of facilities
sample
‘count and rate high
now using
sites would
over all facilities
such a low percentage
and rated in a BRMAS
influence
sites chosen
currently
at these
of my cost model
of BRMAS-qualified
the limited
BRMAS
productivity
would
time to do a survey
at all facilities
care, but these
that the sample
prclgram
have a big
currently
of all BRMASqualified
the BRMAS
productivity
cost as does the productivity
BRMAS
using
BRM is
does not
associated
with
to
1
manually
2
Section
3
the workload
/-
counting
VI below
and rating
this BRM (see description
for more details).
data previously
In addition,
collected
these
(for Docket
of c(Dst estimates
in
data are more current
than
No. RSO-1 J7.
4
V.
/--
Results
Productivity
5
r‘
Survey
estimates
6
sorter)
and additional
7
handling
8
Section
9
productivities
represent
10
each of these
two
11
line [5] for distribution
12
BCS operations
13
verification
14
Business
15
Postage
for distribution
BRMAS-related
of residual
pieces
of counts)
Reply/Postage
across
functions
all sample
sites.
The productivity
reported
in line [6] has been adjusted
since these
and
as descl-ibed
processed
The productivity
by the volume
for additi’onal
by the vcllume
functions
on the barcode
procedLlres
lines [51-[61.
of pieces
has been adjusted
Due (0.797),
operation,
USPS-27C,
number
(sortation
(verification
in BRMAS
in Exhibit
the average
‘tasks’
(0.945).
procedures
not finalized
Ill, Part A.) are shown
functions
in
These
per hour for
reported
in
variability
workload
for
(i.e.,
variability
are performed
for
by
Due Unit personnel.
’ Because rhe sample facilities are the most efficient BRMAS users, and were selected fo proxy
the productivity
under a new BRMAS program, the sample is not considl?red to be
representative
of the population of facilities using the current BRMAS program (with more
variant levels of proficiency).
Accordingly,
no standard errors are reported for the productivity
estimates presented here.
11
Vi.
Cost Estimates
The cost models
1
2
described
3
BRMAS
above,
were
built incorporatinlg
productivities
the mail flows
developed
from the
Cost Survey.
5
shown
6
and rating
7
Ibecause
8
operation,’
9
the test year.
in Exhibit
of the cost estimate
USPS-27C.
of BRM is included
a percentage
11
pieces
12
manually-sorted
13
coverage
(with
The productivity
direct
is expected
equal to the BRMAS
pieces
(with
weight
to receive
volume-variable
average
BRM pieces
with
manual
for BRMAS-qualified
is not processed
and indirect
mail is a weighted
weight
associated
in the cost model
percentage
The total
BRMAS-qualified
for BRMAS-qualifiesd
of this mail currently
and a similar
10
14
here
as well as the average
The derivation
4
presented
is
counting
BRM
im the BRMAS
such processing
in
co,st associated
with
of the cost for BRMAS-sorted
coverage
factor)
equal to 100 percent
ancl the cost for
minus
the BRMAS
factor).g
The BRMAS
15
pieces that
16
BRM Practices
coverage
are counted
Survey
factor
is the percentage
and rated in the BRMAS
indicate
a See USPS Library Reference
that
14.24
percent
of all BPIMAS-qualified
operation.
The results
of all BRMAS-qualifiied
of the
BRM
H-l 79, Table 13.
’ The automation
coverage
factor included in Docket No. R90-1 and R94--1 is not needed in this
model, because the BRMAS coverage
factor was determined
from a reprr!sentative
sample of all
Postal facilities
(see USPS Library Reference
H-l 79). and so takes into xcount
the ‘extent of
automation
at Postal facilities.
12
/--
f--
1
is counted
2
expected
3
percentage
4
paribus.
5
reduced
6
32).
7
qualified
8
PRM, the BRMAS
9
BRMAS-qualified
BRM.
IO
BRMAS-qualified
volume
11
of BRMAS-qualified
12
percent,
13
across
14
PRM), the resulting
15
r--
and rated in the BRMAS
to be in place during
is the applicable
However,
This service
would
As shown
16
BRMAS-qualified
17
$0.0785.
18
additional
19
piece processed
20
operation.
If there
According
to witness
is projected
factor
USPS27C,
BRM piece,
This cost includes
piece-related
volume
all distribution
functions
at the BRMAS
to PRM.
operation
avoids
factor
by 34
has migrated
is 5.87
to
percent.
with
of 5.87
operation,
pieces”.
Incoming
of
the volume
cost associated
the Incoming
in an automated
the cost of
mail, and weighting
66 percent
coverage
to
66 percent
operation
after this migration
on these
affect
Multiplying
in the BRMAS
performed
The cost of distribution
(after
the attributable
lusing a BRMAS
volumes
testimony,
of all BRMAS-qualified
coverage
BRMAS-
would
and rated in the BRMAS
BRMAS-qualified
in Exhibit
Fronk’s
to migrate
the percentage
BRMAS
which
with
fee (see USPS-T-
of BRMAS-qualified
change,
ceferis
has been proposed,
for some high-volume
would
is
coverage
to use in this model,
fee, and no per-piece
is migration
factor
mail counted
by total
factor
BRMAS
Reply Mail (PRM) service
accounting
coverage
determining
coverage
be advantageous
BRM recipients.
strata
BRMAS
a monthly
Since a new ISRMAS program
the test year, the current
a Prepaid
postage,
operation.
a
percent,
,as well
However,
as
a BRM
Secondary
Secondary
” As dIscussed
in Section
III, Part A. above, piece-related
functions
are performed
I” the
Postage Due Unit on BRMAS-processed
BRM. These activities
include vserificatlon
of machine
counts,
pulling rrlissorted
or overweight
pieces, and compiling
all piece counts for a permit
number from other mall streams.
13
is
1
operation
for BRMAS
pieces
2
for a nonpresort
3
derived
4
cost of a BRMAS-qualified
barcoded
in USPS-T-25.
to the cost for that
Mail piece.
That cost is $0.02211,
out this cost avoidance,
which
productivity
BRMAS
7
the average
8
the best data available.
This means that,
9
coverage
in the test year, the estimated
productivity
11
BRMAS-qualified
estimate
in Exhibit
all facilities.
assuming
for non-BRMAS
shown
14
non-BRMAS
USPS-27D.
15
manually,
16
barcode
17
for a finer depth
18
that
19
manual
20
since the activities
do not change.
21
volume
using
advance
deposit
Two
in the Incoming
of sort.
used in Docket
BRM pieces:
variability,
the current
than
represent
BRMAS
cost Ipresentecl
rating
the
rather
data do however
Primary
affect
most pieces
operation,
estimate
USPS-T-23;
here is a
and billing
The productivity
variability
BRM pieces
are
the cost estimates
for
are czounted and rated
equipment
or in the t3RMAS
(on
operation)
used in this cost analysis
productivity
such as this one does not change
the volume
deposit
on automation
The productivity
No. R90-1,
advance
productivities
but some pieces get distribution
operation
These
facilities,
from
BRM.
13
sorters
are those
the most efficient
of the test year cost of counting,
The cost derivations
12
represents
across
rate continues
conservative
as
the lnet volume-variable
data available
6
IO
operation
BRM piece is $0.0554.
BRMAS
Cost Survey,
be comparable
First-Class
Netting
The only current
5
should
is
of an essentially
substantially
over time,
has been adjusted
for Business
fileply/Postage
for
Due
__
1
of 0.797.
2
piece is $0.0701.
.-.
The cost derivation
3
.-
The net attributable
4
USPS-27E.
In addition
5
non-BRMAS
BRM pieces
6
associated
7
carriers
8
distribution
9
Survey
with
results
11
Exhibits
clerks,
The derivation
14
account
is shown
15
was obtained
16
to believe
17
differ
methods
Reference
and billing
deposit
These
fees are either
from
BRMAS-qualified
that
incur
other
costs
collected
Postage
13ue accounts.
from
EIRM Practices
H-l 79, Table
5).
deposit
the derivation
by
The
The net attributable
USPS27F.
associated
of the advance
The productivity
of the BRMAS
with
of cost components
BRM models.
of the cost for the maintenance
from the results
BRM
in Exhibit
costs
BRM pieces
was determined
271 show
and non-aldvance
in Exhibit
deposit
BRM piece is $0.2250.
through
that the workload
between
non-advance
advance
BRM is shown
rating,
or are deducted
deposit
USPS-27G
for the non-BRMAS
deposit
and fee collection.
(USPS Library
cost of a non-advance
13
incur,
of fee collection
10
12
for non-advance
to the distribution,
postage
or box section
cost of a non-BRMAS
Cost Survey.
the advance
and non-BRMAS
cleposit
used in this model
There
deposit
is no reason
account
would
accounts.
15
----__
Appendix
A:
BRMAS
Cost Survey
In order to estimate
BRMAS-qualified
1997.
postal
with
personnel
of various
activities
associated
of five sites was conducted
these
BRMAS-qualified
billing,
and Processing
sites recorded
pieces
times
and accounting
of these
in April-May,
spent
in all operations
with
by all
associated
pieces.
of Sites
7
used as a proxy
8
BRMAS
9
using the current
selected
pieces
11
such from
12
and an additional
13
personnel,
nationwide.
BRMAS
represented
15
had made individual
16
program
more efficient
17
adapted
the program
ia
designed
19
bill printing
billing
program
high volume
possible
without
which
were
(USPS Library
identified
Reference
by Postal
as
H-l 79)
Service
in my testimony.
for loc:al use.
software.
facilities
of BRMAS-qualified
user was identified
sample
‘to the (national)
so that
postal
be
of a new
Four sites were
Survey
could
implementation
that
facilities.
used to select
changes
productivity
to sort high volumes
BRMAS
earlier
criterion
with
It was assumed
of the BRM Practices
as described
average
obtained
the most efficient
results
The other
so that the resulting
for the productivity
program
10
14
a survey
weeks,
counting,
Sites were
6
of two
working
the sortation,
Selection
the productivities
BRM pieces,
Over a period
- Data Collection
machine
Another
sites was whether
BRMAS
program
to make the
For example,
one of the sample
counts
be downloaded
could
site had made an equipment
s,topping
the facilities
machine
processing.
sites had
into locallychange
to make
Data Collection,
Entry and Processinq
Time and volumes
1
2
daily
basis,
3
were
returned
4
from the BRMAS
5
The sites were sampled
6
accommodate
7
sites,
9
using the forms
program
training
Completed
Excel spreadsheet.
Associates,
schedules.
10
volumes
for each “task”
11
computed
12
the ratio of average
13
in each task.
14
average
15
BRMAS-qualified
per site.
Productivity
The overall
of productivities
volume
in Appendix
8.
End-of-Run
with
staggered
on a
These forms
(EOR) reports
supporting
documents.
start
dates to
was done over the telephone
for two
sites.
upon receipt,
were done in Excel.
(machine
daily hours
periods,
were checked
All calculations
were collected
run, and other
Training
for the other three
forms
shown
along with
for all schemes
over two-week
survey
for all employees
and instructions
to Christensen
and in person
8
by oper-ation
sortation
and entered
Average
and additional
into an
daily hours
workload)
were
for each task for each site was calculated
per task to the average
average
productivity
across sites,
processed.
with
daily volume
as
processed
for each task is the weighted
weights
equal to the average
daily
and
USPS-T-27
EXHIBITS
ixhibit A: Flow Chart-Advance
Deposit BRM
ixhibit B: Flow Chart - Npn-Advance
Deposit BRM
ixhibit C: Determination
of Attributable
Cost of BRMAS-Qualified
ixhibit D: Determination
of Attributable
Cost of Non-BRMAS
ixhibit E: Determination
of Attributable
Cost of Non-Advance
ixhibit F: Cost of Oversight and Maintenance
BRM
Advance
Deposit BRM
of BRM Advance Deposit Accounts
ixhibit G: Cost of BRM Pick-up at Postage Due Unit
ixhibit H: Colle,ction Cost for Non-Advance
Deposit f3RM -- Carrier
ixhibit I: Collection
Deposit ElRM - Box Section
Cost for Non-Advance
Deposit BRM
--
Exhibit
USPS-27A:
Advance
Deposit
BRM
Mail
Flow’
/--.,
1
~“:~e~~~~~ed;
deduction
from advance
1
deposit
\
ICalkr
Servmice
,/-
‘BRMAS and non-BRMAS advanced deposit BRM have the same flow pattern,
but may differ in sorting and delivery operations.
Exhibit
USPS-27B:
Non-Advance
Deposit
BRM
Mail
Flow
‘I
-\
Postage Due Unit:
postage
due calculated
Postage
Postage
Collected,
Box Section
Postage
Settlement
Postage
with
Due Clerk
.-.
deducted
’
Exhibit USPS27C:
Determination
of Attributable
Costs of BRMAS-qualified
BRM Pieces
BRMAS coverage factor (net of rejects)
5.67% [I]
Average productive hourly wage rate for clerk/mailhandler
$25.45 [2]
Average of MPBCS and DBCS Piggyback factors
MODS 18 -- Business Reply Piggyback factor
Marginal BRMAS processing net productivity
Marginal BRMAS productivity, Postage Due Unit activities
ViF-r-in-1
,yy,yI
Manua! Sedation Produc!ivi!y, Postage Due Uni!
2.077 (31
1.477 [4]
Direct 8
Pieces
Direct
Indirect
Per Hour
Cost/Piece
Cost/Piece
6,207 [5]
$0.0031 [8]
$0.0064 [I I]
9,361 [6]
$0.0027 [9]
$0.0040 (121
454 (71
$0.0560 [lg]
WV.”
C” “697
L ]I 3;
Weighted cost per piece (direct & indirect)
Cost avoidance
(Inc. Sec. for automation
$0.0785 [14]
compatible FCM piece)
($0.0231) 115)
Net direct and indirect weighted cost of BRMAS processing
Footnotes (all piggyback factors are from LR-H-77. volume variabilities
[I]
[2]
[3]
111
,‘,
[5]
[6]
(71
]8]
[9]
[IO]
$0.0554 [16]
from LR-H-113):
Percentage of BRMAS pieces finalized to mailer using BRMAS for all sites using BRMAS software to sod ERM (LR-H-179,
Table 13), adjusted for migration to PRM (see text for description of adjustment process)
FY98 before cost, disaggregated wage for other mail processing (see LR-H-146)
Average of FY96 Cost Pool Disaggregate MPBCS and DBCS piggyback factors = (1.719+2.434)/2
r\mn
: _^__ ?,^_I
_^_. ___I
__. L--I_ ‘^_A__
r IJO -D”>ll,C‘33
“c‘ply L”SL
IJ”“’ _:
p’yyy”“b”
lc¶Ll”I
Pieces processed in BRMAS operation (TPH) per hour 1997 (fr. BRMAS Study); marginal productivity = productivity/O 945 (volume variability for BCS)
BRMAS pieces (TPH) per additional hour 1997; marginal productivity = productivity0797
(volume variability for Business Reply/Postage Due)
Productivity fr. R90-1; marginal productivity = productivity/O.797 (volume variability for Business Reply/Postage Due)
]2] divided by [5]
[2] divided by [S]
[2] divided by [7]
l31'[81
IllI
1121WI91
1131 [41'[101
1141 ([~1'([111+[1m
+ (I131 *(1-(w)
[15] Cost of incoming secondary automalion
11'311141+[151
basic IC presort (from USPS-T-25)
Exhibit USPS27D:
Determination of Attributable
Costs of Non-BRMAS
Advance
Deposit BRM
Manual Clerical Processing Marginal Productivity at Postage Due Unit
Average Productive Hourly Wage Rate (ClerkslMailhandlers)
454 (I]
$25.45 [2]
MODS 18 -- Business Reply Piggyback factor
Average of MPBCS and DBCS Piggyback factors
1.477 [3]
2.077 (41
Per piece direct cost
Per piece direct and indirect cost
Per piece Cost Avoidance, Incoming Secondary
i
$0.0560 [5]
$0.0827 [6]
($0.0231) [7]
Net incremental direct 8 indirect cost (clerical processing)
Direct and indirect cost of BRM pick-up (at Postage Due Unit)
Additional cost BCS Sod (to obtain more depth of sod)
$0.0597 [E]
$0.0098 [9]
$0.0007 [IO]
Total Non-BRMAS Advance Deposit BRM Attributable
$0.0701 [I I]
Costs
Footnotes (all piggyback factors are from LR-H-77. volume variabilities from LR-H-113):
Productivity fr. R90-1: marginal productivity = productivity IO.797 (volume variability for Business Reply/Postage
111
FY98 before cost, disaggregated wage for other mail processing (see LR-H-146)
PI
FY98 Business Reply cost pool piggyback factor
(31
Average of FY96 Cost Pool Disaggregate MPBCS and DBCS piggyback factors = (1.719+2.434) I2
I41
151
PI / 111
A
[51 * PI
Cost of incoming secondary anlomnlion hasic IC presort (from IJSPS-T-25)
!7]
~ PI
PI
1101
[Ill
Due)
Fl + 171
see Exhibit USPS-T-27G
(using productivity for BRMAS as proxy); ([wage] ! BRMAS pieces per hour) ‘volume variability for BCS l % BCS sod
* average barcode sorter piggyback factor = ((2) I8207) * 0.945 * 0.115 * ((1.719+2.434)/2); % BCS sod from LR-H-179, Table 13
PI + PI + [I @I
i
i
i
Exhibit USPS27E:
Deiermination of Aitribuiable
Cosis of Non-Advance
Carrier Delivery Related Cost
Box Section Clerk Related Cost
Daposii BRM
$0.8770 [I]
$0.6863 [Z]
% Fee Collection Through Carrier
% Fee Collection Through Box Section
% Fee Collection Through Postage Due Account
12.3% (31
8.4% [4]
79.3% [5]
Weighted Delivery related cost
$0.1652 [6]
Clerical Processing Cost at Postage Due Section
Additional BCS sort (for non-advance deposit)
$0.0597 [7]
$0.0001 [E]
Total Attributable
$0.2250 [9]
Cost of Non-advance
Deposit BRM
Footnotes (all piggyback factors are from LR-H-77. volume variabilities from LR-H-113):
[l] See Exhibit USPS-T-27H
[2] See Exhibit USPS-T-271
[3] LR-H-179, Table 5
[4] Id.
[5] Id.
[6] (111* ]31) + (M * 141)+ (0 * 151)
[7] See Exhihil~ USPS-T-270
[S] (using productivity for BRMAS as proxy); ([wage] / BRMAS pieces per hour) *volume variability for BCS ’ % BCS sod
* average barcode sorter piggyback factor = ([2]/8207) * 0.945 * 0.115 l ((1.719+2.434)/Z); % BCS sort from LR-H-179. Table 13
PI [61 + I71 + PI
Exhibit USPS27F:
Cost of Oversight and Maintenance
Clerk/Mailhandler
Productive
Total Workhours(per
of BRM Advance Deposit Accounts
Hourly Wage Rate
account; two weeks)
0.28 [Z]
Total Direct Cost
FY98 Piggyback factor for Accounting/Auditing
Total Direct and Indirect Cost
Annualized
ootnotes
[l]
[2]
[31
[51
[6]
$25.45 [l]
$7.14 [3]
Cost Pool
1.492 [4]
$10.65 [5]
$276.93 [6]
(all piggyback factors are from LRH-77):
FY98 before cost, disaggregated wage for other mail processing (see LR-H-146)
1997 BRMAS Study
PI - PI
I31 * 141
[S] * 26 periods of two weeks
.-
‘;
\
)
Exhibit USPS27G:
Cost of BRM Pick-up at Postage Due Unit
1.477 [l]
1.315 [2]
Piggyback Factor for Business Reply
Piggyback Factor for total IC Cily Delivery
Productive
Productive
.
I
$26.08 [3]
$25.45 (41
hourly wage rate for City carriers
hourly wage rate for Clerks/Mailhandlers
20.70% [5]
79.30% [6]
Proportion of BRM picked up by carriers
Proportion of BRM picked up by box section clerks
Direct 8
Pieces i
Direct
indirect
Volume
Workhours Workhour Cost/Piece CosUPiece
454.04
3,114
$0.0084
$0.0110 [7]
BRM picked up by carriers 1.414,026
3,981
$0.0064
477.46
$0.0094 [E]
BRM picked up by clerks 1,900.580
Weighted Cost Per Piece
3.314,606
$0.0072
$0.0098 [9]
Footnotes (all piggyback factors are from LR-H-77):
[I] FY98 MODS18 - Business Reply piggyback factor
[2] FY98 City Delivery Carrier Piggyback Factor -- 1C
[3] FY 98 Productive Hourly Wage Rate for city carriers (see LR-H-12)
141FY98 before cost, disaggregated wage for other mail processing (see LR-H-146)
[5] LR-H-179. Table 4
[6] LR-H-179. Table 4
[7] [3] * (workhours/volume)
l [2]
[E] [4] * (workhours/volume)
l [l]
PI 151. [71 + 1’31* I81
Exhibit USPS27H:
Collection
Cost for Non-Advance
Deposit BRM -- Carrier
Productive hourly wage rate for City carriers
Piggyback Factor for total 1C City Delivery
$26.08 [I]
1.315 [2]
BRM
Volume
(Pieces) [3]
1414026
Workhours
141
454.04
Examine and sign due bill (Form 3582-B)
96372
306.31
315
$0.0829
$0.1090
Collect From Customer
94125
1359.38
69
80.3767
$0.4954
Turn in Postage
94125
355.82
265
$0.0986
$0.1297
116276
447.24
260
$0.1003
$0.1319
$0.6669
$0.8770
Work Element
Travel To/From Postage Due Section
Accept Collections
Carrier Collection Cost for Non-Advance
Deposit BRM
Footnotes (all piggyback factors are from LR-H-77):
[l] FY 98 Productive Hourly Wage Rate for city carriers (see LR-H-12)
[2] FY98 City Delivery Carrier Piggyback Factor -- 1C
[3] Exhibit USPS23H. R90-1, page 1
[4] Id.
151 1111121
PI [II/ 131
!7] !4! * !2!
Pieces I
Direct Cost Direct 8 Indirect
Workhour [5] Per Piece [6] Cost I Piece [7]
3,114
$0.0084
$0.0110
!’
Exhibit USPS-271: Collection Cost for Non-Advance
Deposit BRM -- Box Section
Productive hourly wage rate for ClerkslMailhandlers
Piggyback Factor for Business Reply
Work Element
Travel To/From Postage Due Section
I
$25.45 [l]
1.477 121
BRM Volume
(Pieces) 13)
1900580
Workhours
Pieces I
Direct Cost Direct & Indirect
Workhour ]5] Per Piece 16) Cost / Piece ]7]
141
477.46
3981
$0.0064
$0.0094
Examine and sign due bill (Form 3582-B)
30569
100.79
303
$0.0839
$0.1239
Prepare Call Slip and Place in Lock Box
30569
90.95
336
$0.0757
$0.1118
Collect From Customer
29535
114.68
258
$0.0988
$0.1459
Turn in Postage
25935
103.93
250
$0.1020
$0.1506
116276
447.24
260
$0.0979
$0.1446
$0.4646
$0.6863
Accept Collections
Box Section Clerk Attributable
Delivery Related Cost
Footnotes (all piggyback factors are from LR-H-77):
[I]
FY98 before cost, disaggregated wage for other mail processing (see LR-H-146)
(21 FY98 MODS18 - Business Reply piggyback factor
[3] Exhibil USPS23H, R90-1, page 2
[4] Id.
I51 [31/ 141
PI
Ill/ [31
171 141* [21
.
Appendix
A:
BRMAS
Cost Survey
In order to estimate
with
BRMAS-qualified
April-May,
spent
1997.
with
Selection
Over a period
personnel
activities
of five sites was conducted
weeks,
these
sites r,ecorded
BRMAS-qualified
counting,
associated
billing,
pieces
in
times
in all operations
and accountiing
of these
pieces.
of Sites
7
used as a proxy
a
BRMAS
9
using
program
selected
10
pieces
11
such from
12
and an additional
13
personnel,
nationwide.
BRMAS
represented
15
had made individual
16
program
more efficient
17
adapted
the program
la
designed
19
make bill printing
billing
program
high volume
Survey
BRMAS
for loc:al use.
so that
software.
possible
machine
Another
without
postal
which
facilities
of this library
identified
Reference
by Postal
program
the facilities
to make the
one of the sample
counts
be downloaded
site had made an equipment
stopping
machine
H-179)
Service
For example,
could
as
reference.
sites was whether
BRMAS
were
of BRMAS-qualified
user was identified
to the (national)
be
of a new
(USPS Library
sample
could
implementation
Four sites were
facilities.
used to select
changes
that
productivity
to sort high volumes
in the main text
criterion
with
It was assumed
of the BRM Practices
as described
average
obtained
the most efficient
results
The other
so that the resulting
for the productivity
the current
14
of two
_-
and Processing
of various
a survey
working
the sortation,
Sites were
6
the productivities
BRM pieces,
by all postal
associated
- Data Collection
processing.
sites had
into locallychange
to
Data Collection,
Entrv and Processing
Time and volumes
daily
basis,
forms
were
reports
the forms
returned
documents.
6
start
7
telephone
dates to accommodate
sites,
Completed
8
survey
Excel spreadsheet.
and instructions
program
The sites were
for two
and volumes
11
computed
12
the ratio of average
13
in each task.
14
average
15
BRMAS-qualified
shown
Associates,
over two-week
training
schedules.
forms
for each “task”
in Appendix
with
upon
(machine
sortation
B. These
(EOR)
supporting
with
staggered
was done clver the
three
sites.
receipt,
were done in Excel.
on a
End-of-Run
periods,
Training
for the other
were checked
collected
run, and other
sampled
and in person
were
along
for all schemes
All calculations
10
for all employees
to Christensen
from the BRMAS
5
9
using
by operation
and entered
Average
and additional
daily
into an
hours
workload)
were
for each task for each site ‘was Cahhted
as
,*-..
per site.
Productivity
daily
The overall
of productivities
volume
hours
per task to the average
average
across
productivity
sites,
with
processed.
2
daily
volume
processed
for each task is the weighted
weights
equal to the average
daily
Inputs obtained
(all FY98)
from Postal Service for use in ERM cost estimates
?
Input
$25.445
$26.083
LR-H-146
LR-H-12
Wage rates:
Before cost, disaggregated wage for other mail prOWSSing
Productive Hourly Wage Rate for city carriers
Piggyback Factors:
MPBCS
DBCS
MOD 18 Business Reply
Accounting/Auditing
Cost pool
City Delivery Carrier Piggyback Factor -- 1C
1.719
2.434
1.477
1.492
1.315
LR-H-77
LR-H-77
LR-H-77
LR-H-77
LR-H-77
Cost Avoidance:
Automation
2.3079
USPS-T-25
Volume variabilities:
BCS
Business Reply/Postage
basic presort incoming secondary cost (in cents)
Due
0.945
0.797
LR-H-113
LR-H-113
717197
Appendix
P.
r-
B - Survey
Forms and Instructions
Appendix
B, USPS-T-27
Processing
ERM with BRMAS Software
-- Time & Volume Report
Site:
Tour Supervisor:
Tour #
Data:
This form should be completed by the tour supervisor.
Please include all processing of BRM on barcode sorters using BRMAS software.
Enter hours for each employee engaged in BRMAS-related activities on a separate line, and also provide tour totals.
Sortation
of BRM
Moving Sorted BRM
Total time to run all BRMAS schemes:
Provide the following
Downtime
volumes of BRM processed using BRMAS software.
Volume (number of pieces)
BRM finalized to mailer
BRM sorted to “overflow”
maker.4
BRM sorted to reject bin
Number of customer
or mixed bins (multiple
bills printed (if applicable)
in BRMAS processing:
Appendix
B. USPS-T-27
,-’
“Processing
Instructions for completing the form:
BRM with BRMAS Software - Time and Volume Report”
A. General
On the ‘BRM Processing with BRMAS Software” form, record the volumes and
associated workhours related to automated BRM processing (sorting and counting)
using BRMAS software.
Data included on this form should be collected for all
operations using BRMAS software to sort and count YRM at your facility.
This form should be filled out by a supervisor
BRMAS software.
familiar with BRM processing
ulsing
Your office will record volumes and workhours on a daily basis, for a two-week
study period, beginning on April 0 and ending April 21, 1997.
In addition to completing
reports on a daily basis.
B. Instructions
1. Complete
,-
the form, please provide a copy of all BRMAS activity
for completing
the form each day
the general information
at the top of the form.
2. Maintain a continuing record of time spent by all personnel involved in
processing BRM at any barcode sorter operation using BRMAS software.
Enter
the total time per tour in the designated spot on the form. Use whole hours or
fractions of hours converted to decimal equivalent.
For example: 5 hours and
30 minutes = 5.50 hours.
Workhours should reflect total workhours for the operation, suc:h as loading and
feeding mail into the barcode sorter, as well as allied labor time for sweeping,
traying, strapping, and moving mail to the Postage Due Unit. Also include
supervisory time as well. mnot
include time scent completinql this form.
3. At the end of each tour of duty, record on the form the total number of pieces
sorted by barcode sorters using BRMAS software, based on activity or end-of
run reports generated by the BRMAS software.
Note that you need to
differentiate
between number of pieces finalized to mailer, sorted to the reject
bin, and sorted to ‘Overflow”
bins. “Overflow”
bins refer to those bins to which
multiple mailers’ pieces are sorted (that is, pieces that will be finalized in an
operation other than BRMAS).
4. If any entry requested
applicable).
on the form is not applicable,
please mark N/A (not
5. Time spent on collecting data for the survey and to complete
should not be included in the workhours reported.
the data forms
Appendix
8, USPS-T-27
6~. Enclose with each day’s survey forms a copy of all activity
generated by the BRMAS software.
or end-of-run
report
If you have any questions concerning this survey, please contact us at the
telephone number given below. The data you will be collecting are important to the
Postal Service’s rate making efforts. As such, we need to receive your survey
results in an expeditious manner. Please return all survey forms and copies of
activity reports as follows:
4/8 - 4112: Fax or Express Mail each day’s results
4/l 3 - 4/21: Fax or Priority Mail each day’s results
Leslie Schenk
Christensen Associates
4610 llniversity Avenue Suite 700
Madison, WI 53705-2164
Phone: (608) 231-2266
Fax: (608) 231-2108
Appendix
i
J *
i
-, ‘USPS-T-27
BRMAS-rated
BRM Counting/Billing
-- Time & Volume Report
Site:
Tour #
Tour Supervisor:
Date:
This form should be completed by the tour supervisor.
Please include all activities associated with counting and billing of BRMAS-rated
BRM. Enter hours for each employee engaged in these activities on a separate line, and also provide tour totals.
I
Employee
1
1
Workhours
Check for missorts and
overweight pieces or
verify BRMAS report
counts; adjusting bills for
discrepancies
Manually sorting,
counting and
rating BRMASrated pieces
Prepare statement
I due bill to mailer
Record
keeping of
daily
activity
or
Notifying mailer of
low balance in
advance deposit
account (calls or
notes)
Other
(please
specify)
2
Total
i
Provide the following
volumes of BRMAS-rated
I
BRM
Volume (number of pieces)
BRM pieces for which BRMAS reports were used for
munts
BRMAS-rated pieces manually counted
BRM pieces for which BRMAS bills were used
BRMAS-rated
pieces manually
billed
Reason BRMAS counts/bills
not
I
A,ppendix
B, USPS-T-27
‘BRMAS-rated
BRMAS Survey
Instructions for completing the form
BRM Counting and Billing, Time & Volume Report’
A,. General
On the form “BRMAS-rated
BRM Counting and Billing, Time & Volume
Report”, record volumes and associated workhours related to procedures for
sortation, counting, and billing of BRMAS-rated mail done by the Postage
Due Unit or Box Section. Data reported on this form shoulid be collected for
all personnel from all tours involved in manually processing BRMAS-rated
BRM at the Postage Due Unit or Box Section at your facility.
No short-paid mail should be included in these figures. Only volumes and
workhours associated with BRMAS-rated BRM (not all BRM) should be
reported.
Your office will record the information requested
survey period, April 8 - April 21, 1997.
B. Specific
1. Complete
Instructions
for completing
the general information
on the form for a two-week
the form
at the top of the form.
2. Maintain a continuing record of time spent for each one of the work elements
listed on the form for all personnel involved with handling BRMAS-rated BRM.
Workhours reported should be onlv those associated with BRMIAS-rated oieces,
not all BRM,
3. At the end of the tour of duty, record on the form the total time spent and the
number of BRMAS-rated pieces handled for each of the work elements as
applicable.
Use minutes or fractions of minutes to be converted to decimal
equivalent.
For example:
5 minutes
4. Individual
and 30 seconds
Questions
= 5.50 minutes
on the form:
Item 1. Checking for accuracy of BRMAS reports - If BRMAS reports/bills
accompany bundles of sorted BRM, enter the time involved in recounting,
checking for and adjusting for heavy pieces and missorts.
Item 2. Manually counting & rating BRMAS-rated pieces - Include any
workhours used to manually count and rate BRMAS-rated pieces (instead of
using machine counts from BRMAS activity reports). These would include
any pieces from the reject bin, from overflow bins (pieces not sorted to
customer by the barcode sorters) or pieces for mailers not included in the
BRMAS software runs (because of low volume, for example).
--
Appendix
B, USPS-T-27
,,,--
Item 3. Preparation of Due Bill or Statement - if bills generated by BRMAS
software are not used. These include bill generated using meter strips, an
IRT, a hand-written
3582-A, ‘entering piece counts into the PERMIT system
and printing a bill/statement,
entering information into a computer to
generate a bill to be attached to the BRM bundle, etc. Any workhours
associated with activities involved with creating a statement that will be
given to the mailer regarding the day’s BRM charges should be included here.
Item 4. Record keeping of daily BRM activity by mailer - This includes
writing in manual logs or data entry (if other than for generating a daily bill) if
accounting is done on a computer.
Item 5. Notifying mailer of low balance in advance deposit account - Include
any time spent on the phone or writing reminders for telling a mailer that
more funds are needed in their account.
5. In the bottom table on the form, please record volumes of BRMAS--rated pieces
for each day of the survey. Spec:ifically, we need you to differentiate
between
BRMAS-rated pieces which were manually counted and rated, or billed by
{personnel in your unit, and volumes of BRMAS-rated pieces which were counted
and billed using BRMAS activity reports and BRMAS-generated
customer
zstatements. If BRMAS activity reports or customer statements/bills
were not
rused, please explain why (for example, “we don’t receive customer bills from
In-rail processing ” , “counts were f’or pieces from reject bins”).
6. If any entry required
applicable).
on the form is not applicable,
please mark N/A (not
7. Time spent on collecting data for this survey and completing
should not be included in the survey.
the survey forms
If you have any questions concerning this survey, please contact us at the
telephone number given below. The data you will be collecting are important to the
Postal Service’s rate making efforts. As such, we need to receive yoLlr survey
results in an expeditious manner. Please return all survey forms as folllows:
4/8 - 4/l 2: Fax or Express Mail each day’s results
4/l 3 - 4/21: Fax or Priority Mail each day’s results
Leslie Schenk
Christensen Associates
4610 University Avenue Suite 700
Madison, WI 53705-2164
Phone:: (608) 231-2266
Fax: (608) 231-2108