BEFORE THE
~“~1~.
POSTAL RATE COMMISSION
WASHINGTON DC 20268-0001
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POSTAL RATE AND FEE CHANGES, 1997
REBUTTAL
Docket No. R97-1
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TESTIMONY
JEFFERY
OF
W. LEWIS
ON BEHALF OF
UNITED STATES
POSTAL SERVICE
TABLE
OF CONTENTS
AUTOBIOGRAPHICAL
1. PURPOSE
SKETCH .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . . .. . .. . . . .. . .. . . .. . .. .. . .. . .. . . . .. . . .. . . .. . II
OF TESTIMONY
2. BROAD PERSPECTIVE
3. OPERATIONS
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._..___...........................................................................
MANAGEMENT
APPLICATIONS
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3A. VEHICLE MANAGEMENT ACCOUNTING SYSTEM (VMAS). ................................
3B. COLLECTION Box MANAGEMENT SYSTEM (CBMS) ........................................
3C. ENHANCED STREET PERFORMANCE (ESP) SYSTEM .....................................
3E. CARRIER EMERGENCY ALERT.. ...................................................................
3E. DISTRIBUTION AND TRANSPORTATION NETWORKS ........................................
4. SERVICE
4A.
MANAGEMENT
.............................................................................................
SERVICE INDICATORS.. ...............................................................................
ON-DEMAND PICKUP AND REDELIVERY SERVICES.. ......................................
5. CONCLUSION
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2
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ACCOUNTABLE MAIL.. .................................................................................
4B. ADVANCE..
4C.
4D.
APPLICATIONS
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I
AUTOBIOGRAPHICALSKETCH
My name is Jeffery W. Lewis.
Commission
previously
I provided testimony
in conjunction
before the Postal Rate
with the Classification
Reform I case,
Docket No. MC95-1.
5
I began working for the Postal Service as a part-time flexible letter carrier in
6
1974. Presently I serve as an Operations
7
Headquarters
8
since 1992. I am currently responsible
9
enhancing
Specialist at Postal Service
in Delivery Policies and Programs (DPP).
on-street
performance
I have held this position
for providing program leadership
and functional
10
Confirmation
11
I was assigned the functional
12
the Delivery Confirmation
13
infrastructure
14
delivery unit processes
15
program development
16
functional
17
which is the formal name for the information
18
scanners addressed
19
USPS-T-22.
I represented
20
pre-qualified
proposed
21
the recommendation
in
program support for the Delivery
program.
lead on both DPP’s street management
program because the programs
will share common
and are the front end of many technology-based
and tools.
changes in
I began serving on the Delivery Confirmation
team in April of 1996. I participated
requirements
efforts and
of the Mobile Data Collection
system that uses the hand-held
direct testimony,
on the MDCD technical
review team that
MDCD vendors, analyzed vendor proposals,
for contract award.
of
Device (MDCD) system,
in Postal Service witness Treworgy’s
Operations
in the development
and made
I am currently a co-chair of the Delivery
ii
1
Confirmation
2
activities.
Previously,
Advisory Group and heavily involved in field implementation
I helped coordinate
the Delivery Point Sequencing
the national implementation
(DPS) program.
program manager for delivery automation
Management
planning
Department
and management
Before coming to DPP, I was a
in the Automation
Implementation
from 1990 to 1992. In that assignment,
support for the field implementation
of
I provided
of the letter mail automation
program.
9
Before working in Operations,
I served in the Special Projects Department
10
1988 to 1990. There, among other assignments,
11
Industry-Postal
12
in the Finance Department
13
I received a Master of Business Administration
14
Washington
15
Administration
Service Worksharing
Universjty.
Project.
I participated
in the Joint
From 1982 to 1988 I held positions
at Postal Service headquarters.
degree from the George
I also have a Bachelor of Science degree in Public
from George Mason University.
III
from
1. PURPOSEOF TESTIMONY
My testimony
describes
Postal Service Operations’
of the Mobile Data Collection
information
objectives
Device (MDCD) system.
regarding the use
I am providing this
to rebut United Parcel Service witness Luciani’s proposal to attribute
the costs of the MDCD system solely to Priority Mail and Standard B Mail. My
testimony
will show that the Postal Service does not intend to use the MDCD
system solely for Priority Mail and Standard B Mail. Operations,
other functional
organizations,
intends to use the MDCD system to enhance
our services and our management
2. BROAD PERSPECTIVE
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The Postal Service designed
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capacity,
and communications
13
identified
requirements..
14
platform for a number of applications.
15
implementation
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defined.
Engineering
17
exploring
still other potential
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Delivery Operations.
19
The system also presents
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procedures
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Service functions
the MDCD system with architecture,
capabilities that significantly
Operations
memory
exceed today’s
intends to use the MDCD system as a
Some of those applications
Others are in the development
a,re nearing
process or are still being
has initiated the Delivery Improvement
for inventory
both
processes.
IO
already.
in addition to
Program to begin
uses for the MDCD system within the rlealm of
many other opportunities
management
to replace or enhance
and warehousing
and retail clerk operations
activities in Customer
(stamps and postal products) that I
will not address in my testimony.
longer within Operations
The Customer
Service organization
Support in the current organizational
is no
structure, so I am
not aware of their specific plans to exploit the MDCD system.
A
3. OPERATIONSMANAGEMENTAPPLICATIONS
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3A. Vehicle
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Upon deployment,
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existing Vehicle Management
a
will capture the daily assignment
9
linkage of employees
Management
Accounting
System
(VMAS)
the MDCD system will encompass
Accounting
some aspects of the
System (VMAS).
The MDCD system
of vehicles to particular routes, and thus the
and workloads to particular vehicles, and electronically
IO
transfer those data to the VMAS.
The VMAS currently captures data regarding
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the assignment
12
employees
13
Forms 4570.
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and data entry. After the deployment
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one standardized
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also relieve carrier supervisors
17
38. Collection
18
By this summer, the Postal Service will have completed
19
Collection Box Management
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technology.
21
showing this use of the MDCD on page 42. (The type of scanner shown in that
of vehicles to routes and the use of particular vehicles by specific
via time clock rings or manually keyed data from carrier-completed
The VMAS captures vehicle mileage manually via the Form 4570
of the MDCD system, carriers will have
way to key VMAS data into the system.
of a substantial
Box Management
System
This enhancement
will
amount of manual data entry.
(CBMS)
upgrades to the existing
System (CBMS) to allow use of the MDCD
The 1997 Annual Report of the Postal Service has a picture
3
1
picture will support Delivery Confirmation
as well as all the other applications
2
describe in my testimony.)
3
Since 1994, when the Postal Service introduced the CBMS, service scores have
4
increased
to record levels: from 83% pre-CBMS to the current 93%.
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managers
attribute a significant amount of the increase to CBMS. The system
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allows managers to ensure all collection
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carrier, according
a
system relies upon touch memory technology.
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devices inside mail collection boxes.
Field
boxes are “tapped,” or collected
to the schedule we present to customers.
Managers
by the
The original CBMS
place touchbutton
Carriers use touch memory wands to “read”
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the devices and record when they opened the collection boxes to retrieve the
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mail. The system has suffered from problems with the mechanical
12
touch wand, and electrostatic
13
memory buttons, inside collection boxes, and reading those barcodes with the
14
MDCD, the Postal Service will eliminate the technology-based
15
experienced
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MDCD simplifies the system data structure and makes its ongoing maintenance
17
easier than it is today.
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The MDCD system will permit a more universal deployment
of CBM:S. Senior
19
management
system too
20
expensive
21
applications.
22
Postal Service is now able to implement the CBMS nationally.
with the CBMS.
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discharge.
Additionally,
By placing barcodes,
rather than touch
problems
using a barcode-based
deemed full coverage using a one-application
and the CBMS touch memory technology
probe in the
system via the
can not support a range of
However, using the more flexible MDCD system technology,
the
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3C. Enhanced
Street Performance
(ESP) system
The MDCD will be an integral part of the planned Enhanced
(ESP) system.
Street Performance
Carriers will use the MDCD to scan barcodes that managers
place at strategic locations throughout
a delivery route. The ESP system will to
allow delivery unit managers to monitor delivery performance
Global Positioning
MDCD.
by integrating
Satellite (GPS) system data with data captured using the
The Postal Service expects to realize both service and street operation
productivity
improvements
through the use of this system.
Operations
expects to
deploy the ESP system later this year.
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3D. Carrier
Emergency
Alert
11
The data collection devices used at many of the ESP test sites during 1996 and
12
1997 also supported
13
system.
14
permit prompt assistance
15
breakdowns,
16
3E. Distribution
17
Across the country managers
use a variety of applications
18
distribution
networks,
19
integrate processing
20
managers
21
to capture vehicles’ departure
a Carrier Emergency
Carrier Emergency
Alert feature that is part of the ESP
Alert is an important safety initiative intended to
to carriers confronted
with situations such as vehicle
injury, health or public safety emergencies,
and Transportation
and transportation
behavior.
Networks
to map local mail
then match them with operating
and logistical operations
are using various hardware
or threatening
better.
configurations
plans to
Plant and delivery unit
and software applications
and arrival times at facilities in order to measure
5
and manage performance
against schedules.
system will serve as an infrastructure
software configuration
Once deployed,
the MDCD
platform with a consistent
available to address that need.
hardware
Such consistency
and
will
enable national support, and thereby facilitate broader, Service-wide
implementation
of this type of application.
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4. SERVICE MANAGEMENT APPLICATIONS
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4A. Accountable
a
The Postal Service will use the MDCD system for mail services other than
9
Delivery Confirmation
Mail
of Priority Mail and Standard B Mail. The MDCD
10
technology
will enable us to upgrade and enhance our signature-capture
11
capabilities
for accountable
12
them. This conversion
13
storage and retrieval quicker and more efficient, and reduce the workload
14
associated
15
implement this changeover
16
MDCD system.
17
4B. Advance Notification
18
The current ADVANCE
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delivery of bulk mailings. The Postal Service uses ADVANCE
20
indicators for assessing
21
underway
mails and the operational
procedures
that support
will enhance the reliability of these services, make data
with those services in delivery units. The Postal Service expects to
in early 1999, after completing
and Monitoring
System
the deployment
of the
(ADVANCE)
system provides information to mailers regarding
the
as one of the key
service provided to Standard A Mail. Plans are
to expand the system to include Periodicals
and to incorporate
the use
of the MDCD system for data capture to eliminate manual data entry
requirements.
ADVANCE
system’s automated
will also benefit from converting to the MDCD
communication
and electronic data access.
Service expects to make these revisions to the ADVANCE
The Postal
system ‘during FY
1999.
6
4C. Service
Indicators
7
For a long time the Postal Service has endeavored
a
route deliveries to businesses
9
indicators to measure “before noon” deliveries to business and the consistency
to provide scheduled
carrier
prior to 12 noon. The Postal Service is developing
10
of delivery time to both business and residential
customers.
Based upon early
11
discussions,
12
communicate
13
scenario,
14
scan when they deliver mail to the business.
15
similar to the CBMS or ESP programs.
16
data regarding
17
1998.
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4D. On-Demand
19
During 1996 and 1997, as part of the ESP system testing, the Postal Service
20
tested the use of data collection devices for two-way communications
21
on-demand
the Postal Service is likely to use the MDCD system to capture and
the data necessary to support those indicators.
managers will provide businesses
In the likely
with barcode labels that carriers will
The application will be functionally
Operations
intends to begin collecting
before noon deliveries to business customers during calendar
Pickup
and Redelivery
pick-ups and re-deliveries.
Services
to support
While there are no plans, as yet, to
initiate feasibility testing of these types of services, the Postal Service designed
both the MDCD system and the ESP system with the capacity to support this
type of enhanced
functionality.
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5. CONCLUSION
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For a long time, Operations
6
systems to better support the applications
7
unable to justify the costs of broad implementation
8
In 1995, the Postal Service stood back, took a broad view of operating
9
requirements,
has recognized
and developed
a need to develop or enhance
described above.
a platform -the
However, we were
of single application
MDCD system -
10
support a number of identified applications
11
new requirements.
12
With the deployment
13
powerful data collection
14
application will go significantly
15
The introduction
16
of the Postal Service is a significant
17
Operations
18
infrastructure
19
expand or improve the services we offer to our customers.
20
have described
21
field, our field managers
22
system to better manage various postal operations
systems.
system
that would
with room for expansion
to satisfy
of the MDCD system, the Postal Service is pliacing a
and communication
infrastructure
into delivery units. Its
beyond support of any specific product offering.
of this system into what has been a technologically
and welcome opportunity.
has been exploring and developing
to enhance
applications
barren part
Since 1995,
that will use this
our ability to manage our delivery operations
above are a start.
The applications
I have no doubt that after deployment
will discover
and
I
in the
many additional ways to use the MDCD
and improve service to all
8
1
customers.
These benefits of the MDCD system are independent
2
to customer
use of Delivery Confirmation
service.
of any related