USPS-T-l
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON,
POSTAL RATE AND FEE CHANGES,
D.C. 20268-0001
2000
Docket No. R2000-1
DIRECT TESTIMONY
OF
LINDA A. KINGSLEY
ON BEHALF OF THE
UNITED STATES POSTAL SERVICE
0
_-
TABLE OF CONTENTS
I
2
3
Autobiographical
4
I.
5
II. Processing
6
Sketch
..............................................................................
1
Operations.. ............................................................................
.2
Purpose of Testimony..
A. Letter and Card Mail Processing
.........................................................
.2
7
1. Preparation
......................................................................................
2
8
2. Equipment
.......................................................................................
3
9
3. Manual ...........................................................................................
.7
10
4. Automation
Update.. .......................................................................
.8
II
5. Description
of Future System ..........................................................
I2
B. Flat Mail Processing..
.........................................................................
9
10
13
1 Preparation
....................................................................................
10
14
2. Equipment
.....................................................................................
10
15
3. ProcessinglMailflow
16
4. Manual.. .........................................................................................
17
5. Automation/Mechanization
18
5. Description
19
.......................................................................
Update.. ..............................................
12
13
14
of Future System ........................................................
17
C. Parcels, Bundles, and Sacks.. ...........................................................
18
20
1. Parcel Processing
........................................................................
.I8
21
2. Bundle Processing
.......................................................................
.I9
22
3. Sack Processing.. .........................................................................
.21
23
4. Description
of Future System .......................................................
22
.23
24
D. Allied Operations
25
E. Delivery Operations
........................................................................
.24
26
Ill. Staffing and Complement
.......................................................................
.27
27
IV. Space Planning.. .....................................................................................
............................................................................
.32
Direct Testimony
1
2
of
3
Linda A. Kingsley
Autobiographical
4
Sketch
5
6
7
Requirements
8
the focal point for operations
9
make-up issues.
within Operations
evaluate and implement
II
proposals.
I2
make-up requirements
13
operational
14
the field for the expected
15
I have been the Manager,
Planning since January 1998. My office serves as
planning related to operational
impacts of rate and mail
and customers to
various internal and external rate and mail make-up
Specific responsibilities
include assisting in the development
for compatibility
with operational
processing,
impacts resulting from rate and mail classification
of mail
determining
cases, and preparing
changes.
I joined the Postal Service in 1985 as an Industrial Engineer Trainee in the
16
Central Region Headquarters
17
to Industrial Engineer at the North Suburban
18
Engineer,
19
sector/segmenting,
20
services.
21
where I appeared
22
witness Callies.
23
Service’s letter automation
24
Operational
We interface with pricing, finance, acceptance,
10
fly
,-,
My name is Linda A. Kingsley.
located in Chicago,
IL. I subsequently
Illinois Field Division.
I worked on methods improvements,
implementation
was promoted
As an Industrial
of
and workroom floor layouts for mail processing
and delivery
In 1989, I came to the Office of Rates at Postal Service headquarters
before the Postal Rate Commission
I presented
cost support testimony
in Docket No. R90-1 as
in that docket for the Postal
and carrier route presort discounts.
In 1992 during reorganization,
I moved to the Office of Processing
issues.
Policies
25
and Programs where I was the group leader for letter automation
We
26
coordinated
27
implement
28
Support Specialist in 1993 in the Western Area lnplant Support office in Denver CO.
29
While at the Western Area, I primarily implemented
30
processing
with other functions to develop training materials and sessions to
Delivery Point Sequencing
for Processing
across the country.
and Distribution
I became an Operations
and refined DPS and RBCS
Centers and Facilities.
I was also on two
I
temporary
2
Acting Plant Manager,
3
assignments
as Acting Manager,
Linthicum,
In-Plant Support in Reno, NV and
MD Incoming Mail Facility.
I have a Bachelor of Science Degree in Industrial Engineering
4
University of Wisconsin
- Madison and a Masters of Business Administration
5
Degree from the University of Maryland at College Park.
from the
I
,-
I
2
The purpose of my testimony
3
elements of the Postal Service’s proposals.
4
of the Postal Service’s processing
5
year, and beyond.
I specifically
6
1. Basic processes
7
2. Types and capabilities
8
3. Equipment deployments
9
10
II
I2
is to provide operational
operations
support for various
In Chapter Two, I provide an overview
for the current environment,
the test
address:
by shape;
of equipment;
and processing
changes planned through the test year
and beyond; and
4. Progress of our automation
program in response to the predicted
increases of
barcoded volume over the last three years.
In Chapter Three, Staffing and Complement
I3
they are determined
14
relate to changes in volume and productivity.
15
to ensuring sufficient workspace
16
.--
I. Puroose of Testimony
are discussed;
specifically,
in both the short and long-term, and how changes
I am not presenting
Chapter Four discusses
to sustain efficient processing
any workpapers
or Library References
how
in staffing
our approach
operations.
in this case.
2
1
2
II. Processina
-.
Operations
In this part of my testimony,
3
operations.
4
automated
5
as distinct mailstreams,
I will provide an overview of our processing
I focus on the equipment
and mechanized
and methods we use to process more mail in
operations.
Since we process letters, flats, and parcels
each one is discussed
separately.
6
7
Letter and Card Mail Processing
A.
8
1. Preparation
9
10
The focus of letter mail preparation
II
barcoded,
12
separations,
13
non-barcoded
automation
operations
compatible,
is to sort letters and cards into
and non-automation
compatible
whether trayed, bundled, or single piece (such as collection mail).
The operation where collection mail is prepared
is often referred to as “OlO”‘,
14
and encompasses
15
letters, flats and parcels get separated
16
of metered letters and flats are forwarded
17
stamped mail first gets faced and canceled.
18
mail get dumped into the feed system for the Advanced
19
(AFCS) described
20
non-letter sized pieces (over 6 l/8 inches tall, over % inch thick, or over 11 %
21
inches long), faces the piece based on the meter, stamp or Facing Identification
22
Mark (FIM)’ location, and cancels the mail. If a meter, stamp, or FIM is not
23
detected,
24
the culling and facing of mail by shape and indicia. This is where
for subsequent
further in the Equipment
handling.
Bundles and trays
directly onto sortation equipment,
Hampers of single-piece
while
collection
Facer Canceller System
section below.
This machine culls out
then the piece goes to the AFCS reject stacker.
The volume arrival profile of collection mail into the 010 operation
2s
dependent
upon the arrival of trucks at the plant from stations, branches,
26
offices, and collection runs. Due to varied distances
27
profile varies by facility, and may vary by day depending
and demographics,
is
associate
the arrival
on volume, weather, or
’ “010” refers to MODS (Management Operating Data System) operations 01 O-01 9
for volume and workhour reporting.
* FIM is the series of vertical bars to the left of the postage area on courtesy reply
(FIM A) and business reply mail (FIM C) indicating the letter is barcoded.
3
F
1
time of the week or month. The status of the outgoing
2
dictates whether the subsequent
3
clearance times (the time processing
4
outgoing operations
operations
mail preparation
are going to meet the operating
must be completed),
can be finalized until the 010 operation
6
Business Mail Entry Unit (BMEU) supplies mail at origin.
7
sources are presorted
plan’s
since none of the
is clear of volume.
Letter mail is also received from sources other than collections.
5
operation
The
At destination,
the primary
mail from mailers and mail sorted by origin postal facilities.
8
9
2. Equipment
10
Our letter processing
equipment
is geared towards the strategy of getting as
11
much letter volume as possible barcoded and sorted to Delivery Point Sequence
12
(DPS)3 or carrier route on automated
13
into bins that have to subsequently
14
allowing processing
15
l
to commence
equipment.
All letter sorting equipment
sorts
be manually swept into letter trays. Thereby,
without first setting up trays.
The Advance Facer Canceller Svstem (AFCS) - The AFCS faces, cancels, and
16
separates
letters and cards into Optical Character
17
enriched),
prebarcoded
18
script. AFCSs have received the Input Sub System (ISS) modification
19
capture and store images of script mail for the Remote Bar Coding System (see
20
RBCS below).
21
outgoing
22
processing
23
can also lift images of OCR-readable
24
efficient to first send the pieces to the OCR for attempted
25
of the 1,086 AFCSs is approximately
26
index is one mailhandler
per machine.
Letter Sortina Machines
(LSMs) - The growth in barcoded
27
l
Reader (OCR) readable (or
with FlMs A and C, and “all other”, which we usually call
to also
AFCS image lift of script mail has reduced the pressure on the
OCR operation,
thereby easing the constraints
window and allowing incoming processing
on the outgoing
to start earlier.
The AFCS
pieces; it is however, currently more
resolution.
Throughput
32,000 pieces per hour and the staffing
28
to remove almost all of the letter mechanization
29
Service’s letter automation
equipment.
letters has allowed us
As the Postal
program has matured, the value of LSMs to
’ DPS provides letters to the carrier in walk sequence of the route, thereby
eliminating the need for the carrier to case letters in walk sequence in the office.
4
1
operations
2
nationwide.
3
mail flows and improved service due to the enhanced
4
.
has greatly diminished.
Removal of letter mechanization
Multiline Optical Character
-
Only seven machines currently remain
equipment
Reader fMLOCR) -
has simplified letter
quality of automation.
Non-barcoded
letters are fed
5
through the MLOCR to obtain a postal applied barcode.
6
are deployed.
No additional
7
enhancements
since Docket No. R97-1 have been added, including a Grayscale
8
Camera, a co-directory
9
facilitates
deployments
A total of 875 MLOCRs
are planned, but several
lookup, and a co-processor.
better image capture and recognition
The Grayscale
Camera
(256 shades of gray instead of
IO
just black and white) while the co-directory
II
address matching process through redundancy.
12
improved the overall encode rate of the MLOCR and reduced the amount of mail
13
that obtains a barcode through Remote Bar Coding.
14
is approximately
IS
feeding and the other sweeping
16
.
and co-processor
augment the
These enhancements
Throughput
have
of an MLOCR
29,000 pieces per hour with a staffing index of two clerks, one
Low Cost MLOCR -
the stackers.
This machine is a result of a Delivery Barcode Sorter
17
modification
18
equipment
currently does not have a co-processor,
19
capability.
As of October 1999, 101 machines have been deployed
20
with no current plans for additional purchases.
21
to replace outdated Single Line OCRs (SLOCRs).
22
Delivery Point Bar Code (DPBC) and are no longer compatible
23
automation
24
DBCS, 37,000 pieces per hour, and the machine also is staffed with two clerks.
25
l
that enables it to function as a MLOCR (see DBCS below).
requirements.
The throughput
Remote Bar Codina Svstem IRBCS) -
co-directory,
Deployment
This
nor image lift
to the field
was targeted to sites
SLOCRs cannot apply a
with our
of the low-cost OCR is the same as a
RBCS has three distinct components:
26
the Input Sub System (ISS), the Image Processing
Sub System (IPSS), and the
27
Output Sub System (OSS).
28
(MLOCR-ISS)
29
used to “lift images” of non-barcoded
30
the back of the mailpiece and an electronic
31
to the IPSS. The IPSS is the computer system, which controls the image flows,
The ISS, which consists of a retrofitted
or a retrofitted Advanced
MLOCR
Facer Canceller System (AFCS-ISS),
letters.
A fluorescent
is
ID tag is sprayed on
image of the mailpiece
is forwarded
5
-,
I
contains the barcode result information,
2
Encoding Center’s (REC) system.
3
through the use of a Remote Computer
4
forwarded
5
computer.
6
example, 5, 9 or 1 l-digits),
7
is a retrofitted Mail Processing
8
OSS), where the fluorescent
9
accessed from the IPSS to apply the barcode to the piece.
While in the IPSS, the image may be resolved
Reader (RCR)4. If not resolved, it will be
the mailpiece is fed back through the OSS. The OSS
Barcode Sorter (MPBCS-OSS)
or DBCS (DBCS-
ID tag is read and the barcode information
11
proportion
of Transitional
12
reductions
as RCR improvements
As of November
Employees
is
RBCS is fully
1999, there were 53 RECs. The high
(TEs) at RECs allows for timely staffing
are made.
Deliverv Bar Code Sorter (DBCS) -
This machine is used for processing
14
already barcoded
15
comes in multiple configurations;
16
sortation bins. The original intent of the DBCS was solely to sequence
17
letters already sorted to the 5-digit level into the carriers
18
two passes.
19
MPBCS, the DBCS is often also used for both outgoing processing,
20
reducing the amount of barcoded
21
and for incoming primary sortation.
22
with a total of over 4,850 sorters currently operational
23
scheduled
24
into a
Once the address is resolved to the depth of sort required (for
deployed to 287 plants.
.
with the Remote
on to a REC where an operator keys the address information
IO
13
and communicates
either by the OCR, RBCS, or our customers.
letters
The DBCS
most machines have between 190 and 220
barcoded
delivery sequence
in
Due to the greater number of sort stackers compared to the
mail flowed to outgoing secondary
The DBCS deployment
to complete deployment
As the automation
workhorse,
25
better fit specific processing
26
some machines to accommodate
27
DPS. By November 2000,892
by September
Additional
operations,
is almost complete
with an additional 270
2000.
some DBCSs have undergone
needs.
thereby
changes to
stackers have been added to
the growth in delivery points and volume for
of the over 5100 total DBCSs will be retrofitted as
4 RCR is an off-line optical character recognition device that is part of RBCS. It uses
advanced recognition techniques and the additional time available because it
operates off-line to resolve script and other unresolved images. RCR currently
reduces keying work by 55 percent.
6
I
OSSs for RBCS.
2
combination
3
first article testing with 210 expected to be in operation
4
adding kits to existing DBCSs.
5
37,000 pieces per hour and the staffing index is two Mail Processor
6
l
of DBCSIOCRIISSIOSS
Carrier Seauence
in one machine.
The throughput
Bar Code Sorter (CSBCS) -
One DIOSS is currently in
by September
2000 by
for the DBCS is approximately
clerks.
This machine is located in
7
delivery units and is used for Delivery Point Sequencing.
8
sequence
barcoded
9
sequence
order in three passes.
The CSBCS can
letters and cards already sorted by carrier route into delivery
Letters are processed
one to six carrier
10
route(s) at a time because the number of bins (17 or 21) can only support a
11
limited number of delivery points and volume.
12
CSBCSs was completed
13
Throughput
14
l
The deployment
in March 1997 with no additional
is approximately
Mail Processina
This machine is a generation
to the DBCSs, with 96 bins, and is used primarily for outgoing
16
incoming primary processing.
17
for additional
18
hour, and staffed by two Mail Processor
l
planned.
19,000 pieces per hour with a staffing index of one.
Bar Code Sorter (MPBCS) -
machines.
of 3,732
deployments
15
19
--
The ultimate retrofit currently available is the DIOSS, a
priory
primary and
There are 1,369 MPBCSs deployed with no plans
Throughput
for a MPBCS is approximately
35,000 per
clerks.
Letter Mail Labelina Machine (LMLM) -This
machine applies a white label to
20
either the front of a letter to provide a barcode clear zone or to the back of the
21
letter for application
22
more mail to remain in the automated
23
opportunity
24
important if the OSS applies a barcode over graphics or writing on the letter,
25
resulting in an unreadable
26
machinable,
27
There are 360 LMLMs deployed with an approximate
28
pieces per hour and staffed by one clerk.
29
l
of a clean, readable, fluorescent
ID tag. The LMLM allows
mail stream by providing another
to put a clean, readable, barcode on the piece. This is particularly
barcode.
Pieces are also “pre-LMLMed”
when
yet too glossy for the barcode to be applied without smearing.
ID Code Sortation fICS) - Deployment
throughput
of 20,000
has begun for ICS systems on BCSs,
30
which allow sortation of the piece using the ID tag as well as the POSTNET
31
barcode.
The system provides a redundant
opportunity
for sorting the piece.
If
7
/-
I
the barcode becomes unreadable
2
If an ID tag exists, it will look up the unique tag (every piece in the national
3
system is unique for each month) in the national database
4
or barcode information
5
piece to the correct stacker based on the destination
6
database.
7
eliminate the need for the LMLM to finalize unreadable
8
results from RBCS.
9
l
Deployment
Tabbina Eauioment
for any reason, the BCS will look for an ID tag.
associated
for the delivery point
with the piece. The BCS will then sort the
is scheduled
for completion
information
from the
in December
2000 and will
POSTNET
barcode
- In an effort to continue moving the last portion of letter
10
volume to automation
and DPS, some facilities have purchased
II
equipment.
12
non-automation
13
sites currently have tabbing equipment,
14
15,000 pieces per hour, and staffing of one clerk. Labeling provisions have been
15
made for mailers who do not want their mail pieces tabbed thus keeping their
16
pieces in manual operations.
This equipment
compatible
letter tabbing
is used to place a clear tab on the letter to seal a
piece, making it automation
compatible.
which has throughput
Thirty-eight
of approximately
17
3. Manual
18
19
The volume that is still left in manual letter operations
is primarily composed
20
of pieces that are deemed to be non-machinable
21
several factors.
22
resulting in damage by the equipment),
23
certifieds from getting into the DPS mail stream), a glossy postcard (we do not want
24
to LMLM the front and the back, covering someone’s
25
stiff enclosure
26
requirement,
27
Manual letters are considerably
28
letters, as shown in the Staffing and Complement
29
on automation
The piece may be an untabbed
due to one of
booklet, too flimsy (consequently
certified mail (efforts are made to keep
message),
a letter containing
a
(disc or pencil), a piece with an aspect ratio falling outside the
or one where the mailer did not want the piece tabbed or LMLMed.
Rejects from automation
more costly to process than automation
chapter.
also end up in the manual operation.
30
may have been rejected due to an unreadable
31
g-digit barcode for DPS processing.
compatible
The pieces
barcode or due to an insufficient 5 or
For example, the street directional
(North or
8
I
South) or suffix (St, Rd, Dr) may be missing, yet is required for coding to the delivery
2
point when duplication
3
manual operations
4
automated
5
cases are staffed to sort the somewhat
6
order to meet the transportation
7
commitments.
exists in the address range.
Many of these rejects arrive in
close to clearance time in order to meet dispatches
operations
as
sweep their stackers, including the reject stackers.
uncertain volumes of automation
dispatch schedules
--
Manual
rejects in
and, ultimately, the service
8
4. Automation
9
10
Update
The volume of barcoded
letter mail has grown dramatically;
11
all letters were barcoded
12
substantial
13
barcodes comprised
14
remaining 29 percent were applied by the Postal Service with MLOCRs and RBCS.
15
The mailer share of total barcoded letters greatly exceeds our original projections.5
16
in AP 13, FY 99. Customer
growth in prebarcoded
Our corporate
letters.
incentives
88.3 percent of
have produced
As of AP 13, FY 99, mailer applied
almost 71 percent of the total letter mail barcodes.
objective continues to be that barcoded
The
letters will be sorted to
17
DPS for zones having 10 or more city routes and/or rural routes with city style
18
addressing.
19
carrier route level. Some zones with fewer than 10 routes may also receive DPS as
20
a result of local decisions.
21
Zones having five to nine routes will receive automated
sortation to the
By the end of FY 99, there were over 174,000 routes on DPS and 78 percent
22
of all 1 l-digit barcodes were sorted to DPS. Processing
23
processed
24
letter volume in automated
25
FY98.6 Of the incoming secondary
93 percent of their total incoming secondary
operations,
a three-percentage
distribution
& Distribution
plants
(sortation to the carrier)
point increase over
performed on automation,
78 percent
5 In 1989, the Postal Service projected, that in a “full-up” automated letter
environment, at least 40 percent of the barcodes would be applied by mailers, 40
percent applied by Optical Character Readers (OCRs), and the remaining 20
percent would be applied by Remote Bar Coding Systems (RBCSs).
’ This is determined at the incoming secondary level by dividing the number of piece
handlings in automated operations by the piece handlings in all incoming secondary
operations.
-
9
I
was to DPS, 4 percent to sector/segment,
2
digit. Sector/segment
3
and garden-style
4
has not yet allowed for DPS coding.
5
operations
apartments
16 percent to route, and 2 percent to 5-
sort to the ZIP+4 and are usually for high-rises
where the new encoding
software mentioned
below
Our delivery units have worked closely with plants to increase the amount of
6
DPS mail. They have worked together to identify and capture Enhanced
7
Route (ECR) letter bundles and trays to incorporate
8
DPS mail, thus eliminating
9
barcoded
Carrier
these pieces into the carriers’
the need for manual casing.
As postal barcoding of non-
ECR letters has become common practice and as the number of DPS
10
zones has increased,
the value of ECR letters continues to diminish.
The mail
II
processed
12
carrier route sortation provides no added value in these situations.
13
Service is again proposing that pricing of the ECR Basic letter continues to reflect its
14
reduced value to operations
15
Automation
16
CSBCSs.
to DPS on DBCSs needs only to be sorted to the 5-digit level, so the
when compared
to automation
ECR still has value for zones processed
The Postal
5-digit presort.
both manually and to DPS on
P
17
Looking towards the test year, the amount of DPS volume will continue to
18
increase as software to improve multi-coded
19
continues,
and ICS deployment
addresses
reduces automation
such as high-rises
rejects.
20
5. Description
21
22
program is almost fully deployed,
However, continuous
improvements
with completion
expected
23
by the Test Year.
24
technology,
25
expected to improve from the 55% achieved today to as much as 80% by 2001.
26
Improved read rates will further reduce the number of RECs, as fewer images will
27
need to be keyed for barcode resolution.
28
is planned to be reduced from a high of 55 to 40.
29
./--
The letter automation
of Future System
such as RCR, will continue to be pursued.
By September
in image recognition
The RCR read rate is
2000, the number of RECs
The addition of the Mail Cartridge System (MCS) to the DBCSs is currently
30
planned to commence
31
eliminate sweeping
near the end of FY 2001 into FY 2002. The MCS will
and second pass ledge loading for DPS processing.
10
1
B.
Flat Mail Processing
2
This portion of my testimony
3
individual flats are processed.
4
operations
is devoted to piece distribution
The processing
is covered later in my testimony,
of packages
operations
where
of flats in opening unit
under parcels and bundles.
5
1. Preparation
6
Depending
7
on the class of mail, flats destined for piece distribution
8
can originate from several different operations.
9
that are prepared
First-Class
BMEU directly to flats sorting operations.
11
that subsequently
12
and trayed before they are sent to flats sorting operations.
13
opening unit operations
14
mechanized
15
performed,
16
subsequent
17
the flats in postal containers
18
prepping operations
20
Flats obtained through collection mail and
go through the 010 operation
must also be “prepped”
piece distribution
operations.
prepping consists of unloading
operations,
are faced, canceled
(if necessary),
Flats that originate from
before they can be inducted in
Depending
on where the prepping is
containers,
separating
removing the packaging
the mail for
material, orienting,
or on ledges of the flat sorter machine.
and stacking
All of the
are performed manually and are labor intensive.
Most of the flats, with the exception
presort packages,
metered or permit flats
in flat tubs by mailers generally can be sent from the platform or
IO
19
operations
of those in mailer-prepared
receive some level of processing
carrier route
on flats sorting equipment.
21
2. Equipment
22
23
There currently are two different types of equipment
24
Service to process flats, and there are plans to begin deployment
25
early next calendar year. The three types of machines are listed below.
26
l
Multi-Position
Flats Sortina Machine (FSM 881) -This
used for processing
used in the Postal
of a third type
machine is currently the
27
primary piece of equipment
flats. There are 812 machines
28
deployed,
29
year, all of the FSM 881s were retrofitted with OCRs that can read the addresses
30
on flats. All of the FSM 881s were already equipped with barcode readers
31
(BCRs), so the new OCR modification
and each machine has four induction stations and 100 bins. This past
allows us to sort the vast majority of flats
II
I
across the FSM 881 without the use of employee
2
piece based on the address read by the OCR, but does not spray a barcode on
3
the piece. The throughput
4
hour for BCR/OCR
5
employees.
6
l
keying.
of the FSM 881 is approximately
operations,
6,500 pieces per
and the maximum staffing requirement
There are no plans to purchase additional
Multi-Position
The FSM 881 sorts the
is six
FSM 881s.
Flats Sortinq Machine (FSM 1000) -This
machine is intended to
7
process a vast majority of the 25 - 33 percent of non-carrier
8
non-machinable
on the FSM 881. Prior to the deployment
9
non-machinable
flats had to be processed
route flats that are
of the FSM 1000, the
in manual operations.
There are 340
IO
machines deployed,
II
bins. This past year, all of the FSM 1000s were retrofitted with a BCR and can
12
now sort flats using mailer-applied
13
modification
14
currently is not scheduled
15
FSM 1000 is approximately
16
maximum staffing requirement
17
purchase
18
l
and each FSM 1000 has four induction stations and 101
barcodes.
It is probable that an OCR
will be added to the FSM 1000 in the future, but deployment
additional
Automated
before FY 2002 at the earliest.
The throughput
5,000 pieces per hour in BCR operations
is six employees.
of the
and the
There are no current plans to
FSM 1000s.
Flats Sortina Machine 100 (AFSM 100) environment
This machine represents
19
first step into the future processing
that is envisioned
20
first phase deployment
21
March 2000.
22
vastly superior to those of the FSM 881 and FSM 1000. The machine has three
23
automatic feeders and can sort to 120 bins, with the possibility of future
24
expansion
2s
video coding for the OCR rejects.
26
ultimately replace the FSM 881s. the first phase of deployment
27
intended to supplement
28
flats sorting capacity.
29
100s is also planned to start at the end of FY 2001, and is intended to facilitate
30
the transition to the future flats processing
31
my testimony.
of 175 machines is scheduled
The processing
and technological
of this machine are
to more bins. It has both BCR and OCR capability,
While it is envisioned
our existing flat sorter equipment
The throughput
environment
for flats. A
to begin in St. Paul, MN in
capabilities
A second phase of approximately
a
as well as on-line
that the AFSM 100 will
is primarily
by providing needed
400 additional AFSM
that is discussed
of the AFSM 100 is approximately
later in
17,000 pieces
12
1
per hour, and the staffing is 6-9 employees
2
depending
3
4
(including
video encoding
keyers)
on the readability of the mail.
Unlike letter sorting equipment,
all three FSMs sort mail directly into flats
trays, or tubs.
5
3.
6
7
Processing
I Mailflow
As I noted earlier, the FSM 881 is the primary piece of equipment
8
processing
flats in today’s environment.
9
distribution
are machinable
Since most of the flats that require piece
on the FSM 881, field sites typically flow flats to that
10
machine first. In the BCR/OCR
11
a barcode.
If a POSTNET
12
information
read by the BCR. If a POSTNET
13
for the delivery address and the piece is subsequently
14
information
15
addresses
16
used for
mode, the reader scans the mail piece in search of
barcode is found, the piece is sorted based on the
returned by the OCR.
barcode is not found, the OCR scans
sorted based on the
Flats that contain extraneous
information
or
that cannot be read by the OCR must be keyed or worked manually.
Flats that are non-machinable
on the FSM 881 are diverted to the FSM 1000.
17
In some cases, the FSM 1000 is also utilized as an “extra FSM 881” to process
18
machinable
19
able to process a wider variety of flats, flats processed
20
to an FSM 881 for subsequent
21
volume of mail that is processed
22
flats because of a lack of FSM 881 capacity.
operations.
As noted in the equipment
Because the FSM 1000 is
on the FSM 1000 do not flow
The FSM 1000 has helped reduce the
in manual operations.
section, the staffing requirements
23
FSM 881 and FSM 1000 are identical.
24
employees
25
loading ledges.
26
employees
27
machine remain fairly constant between tours and operational
28
whether the number of pieces processed
29
for both the
At full capacity, each machine requires six
- four for induction and two for sweeping
bins, clearing jams, and/or
Each machine also has the flexibility to operate with less than six
in light volume .periods. However, the setup and pull down times per
The deployment
is 5,000 or 50,000.
of the AFSM 100 will significantly
30
flows. Although
the machinability
31
expected to be comparable
runs, no matter
specifications
impact our current mail
have not been finalized, they are
to the FSM 881. Accordingly,
as the AFSM 100s are
--
13
.-
1
deployed
2
machinable
to field sites, they will become the primary choice for the processing
of
flats, and local sites will adjust mail flows appropriately.
Plants that initially receive the AFSM 100s will try to process as many flats as
3
4
possible through that machine and will use the FSM 881s secondarily.
5
do not initially receive an AFSM 100 will continue to use the FSM 881 as their
6
primary machine for processing
7
continue to be processed
8
881s
9
will the AFSM 100’s percentage
flats. Ultimately, the volume of mail that will
on FSM 881s will vary, depending
on local site mix of
loos, and 1000s. As the number of AFSM 100s increases
in the field, so too
share of the overall flats processed.
FSM 881s will
10
be relocated to smaller sites that do not have flats sorting equipment
II
sufficient flats sorting capacity today.
12
Plants that
The shift of more incoming secondary
distribution
or lack
from manual to automated
13
operations
14
AFSM 100s. The throughput
15
than that of the FSM 881. As a result, facilities will have a greater opportunity
16
incoming secondary
17
being performed
18
mind, the Postal Service is attempting to smoothly begin the second phase of AFSM
19
100 deployment
20
incoming secondary
21
is one of the biggest changes that will result from the deployment
of the AFSM 100 is approximately
processing
right after phase one deployment
processing
2 to 3 times higher
for more zones and much of the distribution
manually in delivery units will be automated
in plants.
deployments,
23
FSMs will generally
to do
that is
With that in
is complete in order to automate
for more zones.
While all specifics have yet to be finalized, it is anticipated
22
of the
the zones that will receive incoming secondary
that with the AFSM
processing
on the
be the zones with 10 or more carrier routes.
24
4. Manual
25
26
Flats that remain in manual operations
processing)
at the plant today (other than for
27
incoming secondary
are pieces that do not meet the processing
28
specifications
29
these types of flats include rolls, lightweight
30
thickness.
31
sorting capacity results in some flats, that could otherwise
for the FSM 1000 or are rejects from that machine.
Examples of
pieces, or pieces that are not uniform in
There are also heavy volume periods where our existing shortfall in flats
be processed
on the FSM
14
1
881 or FSM 1000, being processed
2
when flats sorting equipment
3
manually in order to ensure that service standards
Decentralization
4
in manual operations.
Typically, this occurs
is at full capacity and the mail must be processed
are met.
of manual flat incoming secondary
operations
from the plant
5
to the delivery units has occurred due to FSM capacity, service, scheme training,
6
and/or space considerations.
7
majority of the incoming secondary
8
While there will undoubtedly
9
10
Very few delivery units have an FSM, so the vast
processing
at the delivery units is manual.
always be some mail in manual operations
such
as the types listed earlier, the AFSM 100 will help reduce the overall amount of mail
in manual operations
by providing needed additional
FSM capacity.
11
5. Automation/Mechanization
12
The percentage
13
of non-carrier
Update
route presort flats barcoded
to grow. At the end of FY 96, approximately
by mailers has
14
continued
43 percent of all non-carrier
15
route flats were barcoded.
16
FY 1997, with approximately
17
bearing a barcode.
18
non-carrier
19
percent and 66.8 percent, respectively.
20
and deployments
21
to the FSM 1000, there has been a reduction
22
sorters.
23
barcodes
24
However, the utilization in incoming secondary
25
when compared
26
machine capacity.
27
48 percent of their total incoming secondary
28
sorters, a 13 point increase over the same period last year (SPLY).
29
operations
30
incoming secondary
The number of barcoded flats increased
60.4 percent of all non-carrier
substantially
in
route presort flats
The rate of growth slowed subsequently,
and the percentage
of
route flats bearing a barcode ended FY 1998 and FY 1999 at 65.7
With over two-thirds
of the OCR modification
The equipment
modifications
in incoming secondary
of flat mail barcoded
to the FSM 881 and the BCR modification
in the number of flats keyed on flat
have also helped to improve the utilization of
operations
compared to prior years’ numbers.
operations
remains relatively low
to letters, and it highlights the need for additional flats sorting
In AP 13, FY 99, Processing
on the flat sorter accounted
flat volume.
and Distribution
plants processed
flat volume using the BCR/OCR
for an additional
on flat
Keying
12 percent of their total
The net result was that 60 percent of the total
15
1
incoming secondary
2
to the increase of volume on FSMs has been an increased focus due to the
3
establishment
4
improving the overall usage of flats sorting machines.
Mailer-applied
5
have contributed
volume on FSMs.
6
volume in plants was processed
on flat sorters.’
A contributor
of machine utilization targets earlier this year, in the interest of
to the increased
incoming secondary
Although the incoming secondary
7
improvement,
8
utilized in an incoming secondary
9
some other point(s) in the network.
barcodes also
numbers indicate that there is room for
it is also important to recognize that just because a barcode was not
operation
does not mean it was not utilized at
For example, a barcode may have been utilized
10
at the incoming primary level, but was not utilized at the incoming secondary
11
because the incoming secondary
12
at the delivery unit. The majority of incoming secondary
13
performed
14
the shortfall in mechanized
15
incoming secondary
flats at the delivery units could be service, depending
on the
16
mail arrival time at the plant, FSM operating window, and/or transportation
to the
17
delivery unit. Scheme training is also more difficult to maintain at the plant than at
18
the delivery unit, especially with growth in the number of deliveries.
19
discuss how the deployment
20
flat distribution
21
distribution
for that specific ZIP Code is performed
distribution
manually in delivery units in the current environment
of flats is
largely because of
flats sorting capacity. Another reason for processing
Later, I will
of the AFSM 100s will cause more incoming secondary
to move from manual to automation.
For the most part, the deployments
of the OCR on the FSM 881 and the BCR
22
on the FSM 1000 have resulted in positive improvements
23
However, two significant
24
deployments.
25
related to the makeup and preparation
26
level
processing
concerns
for processing
operations.
have surfaced as a result of these
The concerns are separate and distinct issues, but both of them are
of the mail.
The first concern is related to the OCR on the FSM 881. Field sites have
27
reported that the OCR may have trouble recognizing
28
piece when a flat contains other information
the delivery address on a mail
on the same side as the delivery
’ This is determined at the incoming secondary level by dividing the number of piece
handlings in flat sorter operations by the piece handlings in all incoming secondary
operations at plants.
16
1
address.
The OCR has difficulty discerning
2
interpret a portion of the incidental information
3
when a return address is more prominent
4
delivery address, the OCR may interpret the return address as the delivery address.
5
The presence of a barcode facilitates identification
6
the OCR discern the delivery address if the barcode was not readable for some
7
reason.
8
flats that come through FSM 881 operations
9
whether to process non-barcoded
However,
as the delivery address.
Likewise,
(e.g., font size, print quality) than the
of the address block, which helps
because not all flats bear barcodes, field sites closely monitor the
and use discretion to determine
pieces on the OCR or to key them.
10
Service has published
11
locally regarding the proper OCR standards
12
educational
13
the intended delivery address and may
articles in mailer publications
efforts or additional standards
The Postal
and has worked with mailers
for flats, but it appears more
are needed.
The other concern relates to the deployment
of the BCR on the FSM 1000
14
and the extension
I5
implementation
16
parcels being prepared as FSM 1000 flats. Because the FSM 1000 can process
17
flats up to a maximum thickness
18
definition of what may qualify as an automated
19
may reflect the physical capabilities
20
manner in which field sites are actually using the machine.
21
still considered
22
the expanded
23
processing
24
of the barcode discount to FSM 1000 sized pieces.
Since the
of Docket No. R97-1 rates, field sites have noticed a proliferation
of 1% inches, the Postal Service has expanded
flat. While this expanded
of the FSM 1000, it is not congruent
category dimensions
Generally,
processing
definition
with the
Similarly,
flat is in conflict with the standard
for a flat.
operations
contained
the
These pieces are often
parcels and are not mixed with flats during processing.
definition of an automated
of
work in accordance
in the DMM. The dimensions
with the processing
25
category dimensions
in section CO50 set
26
the maximum thickness for a flat at % inches.
27
surcharge
implemented
28
expanded
thickness
29
surcharge
and are preparing their parcels as packages
30
situation is that the pieces are paying less postage but are usually incurring more
31
handling.
As a result of the residual shape
after Docket No. R97-1, mailers have started using the
definition of an automated
Prior to the implementation
flat as an opportunity
to avoid the
of flats. The irony of this
of the residual shape surcharge,
many, if not
17
1
all, of these pieces were prepared as machinable
parcels.
As machinable
parcels,
2
these pieces were processed
3
digit. Although
4
can no longer be processed
5
cases, the strapping
6
pieces as parcels on the parcel sorters.
7
sorted manually or on Small Parcel Bundle Sorters at the BMCs to 3-digit or SCF
8
separations.
9
much of this mail would have bypassed plant operations
through the BMCs on parcel sorters and sorted to 5-
these parcels are now prepared as packages of flats, many of them
directly to 5-digit on the BMCs’ parcel sorters.
In some
material is being removed in order to process the individual
Consequently,
this has become new workload for the plants since
when the BMCs sorted it to
10
5-digit.
11
1000, and therefore
12
reasons that these parcels are not sorted on the FSM 1000 vary, but the primary
13
ones are the incompatibility
14
delivery operations.
15
larger, thinner flats. Although these pieces may be prepared as packages
16
employees
17
treat and handle them as parcels.
fly
To compound
However, in most cases the bundles are
the matter, plants generally do not sort parcels on the FSM
must sort these pieces manually to the 5-digit level. The
with the flats mail stream and the impact on downstream
It is difficult to sort and handle the smaller, thicker parcels with
in both processing
of flats,
and delivery offices, for the most part, continue to
18
6. Description
19
20
of Future System
The AFSM 100 is the first step into the flats processing
environment
beyond
21
the test year.
Ultimately, the Postal Service plans to pursue sorting flats to DPS.
22
Currently, the value of DPS flats to operations
23
While there are details yet to be resolved, it is envisioned
24
may DPS flats with different types of equipment.
25
similar to it, will be used to process and sequence
26
sorted by mailers.
27
are not likely to be included in the DPS process.
28
necessary
to place flats into DPS may be a bundle collator.
29
equipment
proves economically
30
DPS flat bundle from the AFSM with multiple packages of flats that have been
31
sorted to carrier route in walk sequence
is being reviewed and explored.
Flats that are not machinable
justifiable,
that the Postal Service
The AFSM 100, or a machine
flats that are not carrier route
on the AFSM, or similar machine,
Another piece of equipment
If this piece of
it will be used to collate, or merge, the
by mailers.
There will likely be two
18
1
significant changes for mailers as the Postal Service moves toward a DPS
2
environment
3
required to bear an 1 l-digit barcode, similar to letters.
4
carrier route sorted packages
5
Emphasis will also be on the AFSM and collator machinability
6
maximize the candidate
7
these issues with the mailing industry to provide ample time for mailers to make
8
these needed changes
9
machinability
10
sequence
Second, the flats within all
will be required to be prepared
in walk sequence.
characteristics
to
flat volume for DPS. The Postal Service intends to work on
in the near future.
(AFSM compatibility),
This highlights the long-term value of
barcoding
(required for DPS), and walk
carrier route presorting for flats.
It is anticipated
11
12
for flats. First, all flats that claim the barcode discount will likely be
that some portion of FSM 881s will be redeployed,
to smaller sites, when the second phase of AFSM deployment
most likely
commences.
13
14
C.
Parcels, Bundles, and Sacks
IS
In this part of my testimony,
16
they relate to the processing
17
year.
I will provide an overview of our operations
as
of parcels, bundles, and sacks today, and in the test
18
19
1. Parcel Processing
20
a. Equipment
For the most part, machinable
21
parcels are processed
in the Bulk Mail Centers
22
(BMCs) with the same basic equipment
that has been used for 25 years.
23
mail network consists of 21 BMCs and eight Auxiliary Service Facilities (ASFs).
24
Primarv and Secondarv
25
parcels onto slides.
26
tray sorter.
Parcel barcodes
27
machinable
parcels and have reduced manual keying requirements.
28
entering a BMC, parcel barcodes
29
counter.
30
information.
Parcel Sorters are fed by mechanized
Parcels are then manually separated
have continued
conveyors
The bulk
The
which feed
and inducted into a tilt
to assist with the sortation of
Before
are either provided by mailers or at the retail
If a barcode does not exist, the parcel sorter clerk must key the ZIP Code
and a 5-diait barcode label is aoolied to the oarcel.
19
1
Non-machinable
2
the use of mechanized
3
machinability
4
conveyors
outside parcels (NMOs) are either sorted manually, or with
sorting equipment
characteristics
at several BMCs depending
of the parcel.
to more elaborate
This equipment
on the non-
ranges from basic rolling
keying and sorting machines.
5
b. Mailflow
6
7
Non-presort
or non-dropshipped
parcels entered into the mailstream are
8
transported
to the origin BMC either directly from retail/delivery
9
plant. The origin BMC sorts the machinable
10
the destination
11
to the secondary
12
the appropriate
13
transported
14
a mail processing
15
P
units or through the
parcels on the primary parcel sorter to
BMC or, if the parcel destinates
within the same BMC service area,
parcel sorter. The secondary
parcel sorter will sort the parcels to
5-digit separation.
The 5-digit containers
of machinable
parcels are
to the delivery units either directly from the BMCs or transferred
through
plant.
NM0 parcels are processed
to the 3-digit level in the BMCs.
Mail processing
16
plants process these NMOs received from the BMCs to the 5-digit level. This
17
operation
18
(gathering
19
the volume processed.
20
is, for the most part, performed manually and requires regular set-up
of rolling stock and placarding
Parcels presorted
and dropshipped
manner as discussed
22
SCF are crossed docked to the delivery unit.
without Priority Mail Processing
25
SPBSs or manually depending
regardless
Centers.
of
in the same
Parcels presorted to 5-digits and dropshipped
The plants also process incoming and outgoing
24
26
and breakdown,
at the BMCs are processed
21
23
above.
containers)
at an
Priority Mail parcels in areas
Priority Mail parcels may be sorted on
on machinability
and/or the processing
location.
For the most part, parcels are sorted to carrier route at the delivery unit.
27
2. Bundle Processing
28
-,
29
Flat mail bundles that arrive at a mail processing
30
in flat tubs, are often sorted before they are dispatched
31
distribution.
plant in sacks, on pallets, or
or opened for piece
When pallets and sacks contain bundles made up to finer sortation
20
1
levels than the container,
2
manual or mechanized
3
piece distribution
4
dispatched
a bundle sort is required.
operation.
generally
This is accomplished
Bundles that will subsequently
are sorted into rolling containers.
in a
be opened for
Bundles that are
can also be sorted into rolling containers.
5
a. Equipment
6
. Small Parcel and Bundle Sorter (SPBS) - The Postal Service has increased the
7
8
amount of SPBS equipment
and keying stations over the last several years. The
9
SPBSs are deployed with four, five or six induction stations, and require a
10
staffing of no more than three people per induction station.
11
up to 100 separations.
12
The average throughput
13
parcels per hour per induction station.
14
Distribution
15
l
There are currently 341 machines
in the field.
The majority of the Processing
and
Centers and 19 of the 21 BMCs have SPBSs.
The SPBS Feed Svstem has been a recent addition to the SPBS.
systems consolidate
17
transferring
18
on mechanized
19
240 deployed
20
SPBS Feed System is incorporated,
21
people per crew, depending
l
deployed
of the SPBS is between 678 and 945 bundles or small
16
22
The SPBS can make
all the induction
lines into a centralized
mail from all types of mail containers
conveyors
to the induction/keying
in the field with a contract for 50 additional
Linear lntearated
network capable of
and transporting
consoles.
These feed
the contents
There are currently
systems.
When the
staffing is reduced by one-half to three
on the number of induction stations.
Parcel Sorters (LIPS) - The LIPS machines are not part of a
23
national program and are procured locally.
The configuration
and performance
24
vary based on the vendor, but the basic design consists of a feed station where
25
the piece or bundle is keyed and sent down a rolling conveyor for deposit into
26
rolling containers
or pallet boxes.
27
b. Mailflow
28
29
Bundles are processed
30
ADC bundles are transported
31
to the ADC network.
in both BMCs and mail processing
plants.
Mixed-
to the origin plant to be opened for piece distribution
Bundles at the BMC and ADC level are primarily sorted to 3-
21
1
digit and SCF separations.
2
from the BMC and mailers, for either piece distribution
3
on the presort level of the bundle.
4
plants on bundles for various operational
5
presort level, (e.g. machinable
6
and barcoded
7
flats separated
The remaining
9
operations.
11
sort 3-digit and SCF containers
Other separations
or a bundle sort depending
may be performed
at the
reasons, other than just based on the
volumes separated
from non-barcoded
The SPBS is the equipment
8
10
Plants subsequently
from non-machinable
volumes,
flats).
of choice for these bundle-sorting
operations.
sot-tation of bundles is performed with LIPS equipment
or in manual
The manual options are either dumping the bundles on a belt and
sorting to containers,
or sorting the bundles into containers
Bundle distribution
directly from the pallet.
requires manual labor for operational
12
breakdown.
This involves the collection and placement
13
for set-up.
14
dock to meet transportation.
15
operating window, the setup and breakdown
Also, at the time of dispatch, containers
set-up and
of containers
and placards
are closed and moved to the
No matter the volume received,during
a specific
must take place.
16
3. Sack Processing
17
18
Sacks arrive at plants and BMCs from customers
or bedloaded
in vehicles.
and other plants.
19
sacks may be containerized
20
with either pallet handling equipment or, if wheeled, with manual labor.
21
Containerized
22
Bedloaded
23
accomplished
24
intensive and time consuming
Containers
The
are unloaded
loads are much more efficient for unloading than bedloads.
sacks are unloaded manually and, in some cases, the unloading
with the assistance
of mechanized
conveyors.
Bedloads
is
are labor
to unload.
25
a. Equipment
26
27
and Mailflow
Sacks are sorted in the BMCs on the Sack Sorting Machine (SSM) to the
28
BMC network and, for the intra-BMC volume, to the 3-digit or SCF level. Keying or
29
automated
30
employee
places the sack into a bucket that inducts it onto the tilt tray system.
31
intra-BMC
sacks are transported
reading of the barcoded label occurs at the induction station, while the
The
to the plants for opening or further sortation in the
22
1
case of some 5-digit sacks.
2
manually.
3
parcels into the parcel sorter system in the BMCs.
4
other BMC operations
5
but mostly with manual labor. Sacks are opened in the plants and delivery units with
6
manual labor. Working sacks of parcels (sorted to BMC or MXD BMC) are opened
7
at the BMC for processing
Mechanized
Sacks, in most cases, are opened and dumped
sack dumping equipment
is performed
assists with emptying
sacks of
Sack sortation in the plants and
in some cases with mechanized
sack sorters,
on the Parcel Sorting Machines.
8
4. Description
9
of Future System
The Postal Service continues to explore enhancements
10
to the parcel and
11
sack sorting equipment
12
equipment
13
large degree, manual labor currently used for facing and keying.
14
tunnel-scanning
15
deployment
16
allow induction into the tunnel scanner one parcel at a time. The 360-degree
17
scanner will have the ability to read the barcode independent
18
the piece. This technology
19
mechanized
20
additional
21
these predominantly
reliability.
On the parcel sorters, the new technology
technology
in FY 2001.
23
processing
24
Standard
25
separations,
26
labor.
27
distribution.
28
increasing
Singulation
equipment
and
tunnel
of the orientation
of
with
For the non-machinable
sorters are being investigated,
of
will spread the parcels and
will reduce the manual labor associated
parcel sortation in the BMCs.
mechanized
will eliminate, to a
are being tested in the BMCs with the expectation
The singulation
outside volume,
to improve the productivity
of
manual operations.
There are continuing
22
29
in the BMCs with the goal of reducing labor and improving
efforts to develop and deploy robotic systems for the
of letter trays, placing particular emphasis on the bulk mail network.
Mail (A) letter trays are currently sorted at the BMCs into 3-digit or SCF
using either the Sack Sorting Machines, an NM0 sorter, or manual
MXD ADC trays are sent to the closest plant consolidation
The robotic systems will be designed specifically
productivity
center for piece
for letter trays,
and reducing damage.
In the plants, the processing
of sacks has, with the exception
30
number of sack sorters, been performed
31
Parcel and Bundle Sorters and, more recently, the Linear Integrated
of a limited
exclusively with manual labor. The Small
Parcel Sorters,
23
-.
1
were the first pieces of equipment
in the plants to reduce the labor requirements
2
bundles and parcels.
3
with the next generation
4
stations to further reduce labor hours.
5
development,
6
parcels and bundles.
7
loading and unloading of parcels, bundles, pallets, and sacks into and out of
8
containers.
Now, the focus is on advancing
the technology
for
in this area
of sorters, with barcode readers, OCRs, and video coding
Universal Transport
Systems are also in
which are designed to sort and transport trays, flat tubs, sacks,
Robotic systems are also being developed
to assist with the
9
Allied Operations
10
D.
11
Allied operations
are mail processing
operations
other than piece distribution.
12
The most important examples are cancellation,
13
platform.
14
distribution
15
Opening units, as tracked by MODS, also prepare outgoing
16
strapping trays, apply air assignment
17
transportation.
18
hung from racks, although larger containers
19
the activities required to load and unload mail from trucks, identifying
20
contents for movement to the appropriate
21
from the docks and operations.
22
Opening units sort incoming trays, bundles and sacks for subsequent
operations
and take off sleeves and straps from incoming trays and tubs.
tags if applicable,
mail by sleeving and
and containerize
for dispatch
Pouching consists of sorting bundles and small parcels into sacks
may also be used.
operation,
Some activities in allied operations,
23
performed
24
for multiple distribution
25
operation.
26
or automation,
27
opening units, pouching and the
at a piece distribution
operation.
operations,
Platform consists of
container
and moving containers
to and
such as dumping sacks, can also be
If a single person performs the activity
that person would be assigned to an allied
However, people assigned to distribution
operations,
such as the FSMs
can also perform allied activities related to their operations.
Except for the cancellation
28
these operations
29
productivities
30
monitored
31
Staffing section, allied operations
operation,
volume is not consistently
due to the difficulty of measuring the workload,
cannot be calculated.
However, allied functions
measured for
so piece
are still closely
because of their impact on service and cost. As noted below in the
are gateway and dispatch operations
that are
24
1
critical to service.
Their costs have appeared
2
our automation
3
operations
4
DPS through tabbing or LMLMing, and using different FSMs to handle pieces with
5
differing characteristics,
6
must perform.
and mechanization
8
in increased
management
9
conspicuously
Increasing
the marginal volume on
all increase the number of separations
of importance
that allied operations
to service and more visible costs has resulted
attention to allied operations.
These operations
are
located in a facility and their activities are obvious to the casual
IO
observer.
II
control.
12
means to tightly control allied operations.
13
over time because
efforts have reduced costs in distribution
much more than in allied operations.
This combination
7
more significant
The absence of a productivity
On the contrary, management
measurement
does not indicate lack of
has both the budget incentive and the
The Postal Service is looking towards advanced technology
in allied operations.
to improve
14
productivity
In the next several years, we plan to deploy
15
Robotic Containerization
16
(TMS) to replace current labor-intensive
17
will have 100 RCS robots loading letter trays and flat tubs into dispatch containers,
18
and we will begin testing a more advanced
19
well as load them.
20
within a plant. TMS has been deployed to 17 facilities with 15 more plants to come
21
on-line by FY 2001.
22
facilities.
Systems (RCS) and additional Tray Management
tray handling operations.
Systems
In FY 2000, we
robot that can unload trays and tubs as
The TMS system stages and moves most of the trays and tubs
Plans are to extend the system to most large and medium
23
24
E.
Delivery Operations
2s
The implementation
of Delivery Point Sequencing
(DPS) for letters has had a
26
significant
effect on the movement of mail from the Plants through the Customer
27
Service Offices and on to the customer.
28
office will be as late as possible, perhaps 8 am, and contains DPS letters along with
29
any late arriving Priority or Express Mail. This later dispatch time provides the
30
maximum possible incoming window at the plant for processing
31
does not delay the mail because the carriers do not need to handle DPS trays until
The last dispatch from a plant to a DPS
DPS letters, and
25
I
they load the trays into their vehicles.
However, the first dispatch for a large office
2
may be as early as midnight and contain mail that does not require sortation to the
3
carrier at the plant.
4
BMC containers
5
shipments
6
of non-DPS
7
especially the earlier ones, may drop mail at several offices, they rarely move mail
8
between offices.
9
the plant or BMC. For example, Bound Printed Matter (BPM) at the local rate might
Examples include carrier route mailings on 5-digit pallets and
of 5-digit Standard Mail parcels.
A large delivery unit may get
directly from the BMC. In between, there may be one or two dispatches
mail that must be worked in the office. Although
some of these trips,
Virtually all of the mail for an office goes between the office and
10
be dropped at a Main Post Office (MPO) for local delivery, but it would not be
11
distributed
12
the stations and branches
13
caused by the drop at the MPO is compounded
14
that is outside of the plants service area, so the plant must ship it on to the
15
appropriate
from the MPO directly to its stations and branches.
destinating
Instead, the BPM for
is trucked to the plant for distribution.
The inefficiency
if the drop at the MPO includes mail
plant(s).
Within the last four years the typical carrier reporting times have changed
16
17
from around 6 am to between 6:30 and 7:30 am. The difference
18
carrier would have spent casing letters before DPS was implemented.
19
carrier spends more time on the street delivering to more addresses.
20
emphasize
21
savings.
22
processing
23
DBCS.
24
letters have value only at non-automated
25
letters are non-automation
26
prebarcoded.
27
represents
time the
Instead, the
We
getting as many letters as possible into the DPS sort because of these
In many cases, ECR letters are transported
from the delivery unit to the
plant to be barcoded on an OCR and sorted in with DPS letters on a
The carrier route sort loses all value to operations
compatible,
in this situation.
sites (usually less than 5 carriers), if the
and at CSBCS sites if the letters are
When the carriers arrive at their cases, their immediate
28
and non-DPS
(“residual”)
29
sequence
30
flats or they may be cased separately
31
with the NALC agreement
ECR
letters into route sequence.
allow for very efficient casing.
task is to sort flats
Flats in line-of-travel
(LOT)
Residual letters may be sorted in with the
and carried as a third bundle in accordance
(see USPS-LR-I-79).
Except on curbline routes where
26
1
the carrier can stay in the delivery vehicle (unless there are parcels or accountables)
2
and easily pull from multiple bundles, at most one customer supplied carrier route
3
WSS (walk sequence
4
without first being cased.
5
sorted with the flats, or curtailed, depending
6
environment
7
need to be cased or collated.
8
bundle is eliminated
9
fourth bundle.
10
saturation)
bundle can be carried directly onto the street
If there is more than one, they are normally collated,
on the service required.
In a DPS
where the carrier carries three bundles, even one WSS bundle may
It can be taken directly to the street only if another
through casing or collating, or the carrier voluntarily
carries a
Of course, this restriction does not apply to a curbline route.
The carrier arranges
mail based on the practicalities
of the route and the mix
11
of mail to deliver.
I2
vertical flats case where it would not only take up too much space in the case
13
(usually a one inch separation
14
difficulties on the street.
15
are cases in point, and would be handled as parcels, or, possibly, collated into the
I6
flats after pull-down.
17
flats cases, with larger separations
18
business routes and routes with a large proportion of centralized
19
case of horizontal
20
cased and collated in with the flats.
21
For example, nothing that is too awkward will be sorted into a
per delivery), but would also create bundle handling
Rigid, non-uniform
in thickness,
and thick (over %“) pieces
Vertical flats cases are used for most routes while horizontal
holdouts,
for multiple delivery points, are generally
delivery.8
used on
In the
many of the small parcels and rolls (SPRs) would be
After carriers pull down their cases, they bundle, tray or otherwise
prepare
22
mail in a manner that is practical for the route, pick up the DPS letters on the way to
23
the vehicle (if not a foot route), load the delivery vehicles and proceed to the street.
24
On the street, carrier activities have also changed.
25
but, in some instances,
significant over the last ten years due to less office time,
26
travel time efficiencies,
and more work to do at each delivery point.
27
28
As mentioned
previously,
have been gradual
DPS reduces office time by saving each carrier up
to 1% hours a dav for casina letters.
a Rows of mailboxes
The changes
in apartments
This time was caotured bv reducino overtime
are a common form of centralized
delivery.
‘-.
27
1
or assistance that had been provided the carrier.’
The assistance
2
on the street delivering
3
casing mail, called “router time”.
4
remaining routes to approximately
5
This eliminated
6
3,000 to 4,000 new routes that would have otherwise
7
growing number of delivery points.
8
Small travel time efficiencies
9
been installed in new developments
might have been
part of the route, called “auxiliary assistance”,
Routes were also combined
8 hours as prescribed
about 3,200 routes outright nationwide,
or in the office
in order to adjust the
in our delivery handbooks.
and avoided approximately
been created due to the
have gradually added up. Cluster boxes have
and some older developments
converted.
IO
eliminates
II
When cluster boxes cannot be used, curbside delivery is used instead of delivery to
12
the doorstep whenever
I3
walking routes and increased the proportion of carriers with vehicles from 85 percent
14
in FY 88 to 91 percent in FY 98. The combination
15
curb boxes in the suburbs has reduced the travel time required to service groups of
16
delivery points.
17
any one day, has increased to 85 percent, so there is less travel time without useful
I8
activity at a delivery point.
-~
19
all of the travel time between the delivery points clustered
This
possible.
Motorization
in the box.
has gradually eliminated
Finally, coverage, the proportion
of motorization
many
with cluster and
of delivery points receiving mail on
Delivering mail at a delivery point is one area where carrier time has actually
20
increased.
There are a number of reasons for this. First, there were 5.6 pieces per
21
delivery in FY 98 compared
22
time. Flats by nature are more awkward to handle and, depending
23
delivery or box, may be physically more difficult to deliver.
24
implementation
25
one hour per 5000 pieces of DPS.”
26
also account for carriers spending a little more time per delivery.
to only 5.1 in FY 88. Flats volume has grown during this
on the type of
Also, DPS
allowed for additional handling costs on DPS letters, calculated
Increases in parcel deliveries
as
per route would
This is all very
g Prior to implementing DPS, many carrier routes had not been restructured to
reflect volume and delivery point growth in order to make the appropriate
adjustments after DPS implementation.
lo The conservative DAR took into account a cost may be incurred in the office or on
the street due to any possible residual handling. E.g., carriers go to a rack to pick
up their trays of DPS, verify it is their mail, and that it is in accurate walk sequence.
28
I
different from the old environment
2
carrier spends more time at each delivery point and the time can be expected to
3
vary with volume.
4
In summary, comparing
of dropping a few letters in each mailbox.
The
FY 88 to FY 98, today’s city carriers average an
5
additional 25 minutes on the street delivering 8 percent more mail to 2 percent fewer
6
delivery points, most of which are centralized
7
of routes are still foot routes.
8
points may well be even more pronounced
9
expected to increase.
IO
confirmation)
I1
necessary,
or on curbline routes - only 9 percent
This trend of increased
carrier time spent at delivery
in the future.
Adding delivery confirmation
Parcel and flat volumes are
(and future signature
to our services requires carriers to utilize barcode wands when
which adds to their workload
at the point of delivery.
12
I3
14
Ill. Staffina and Comolement
The management
expenses.
incentive system drives Postal operations
IS
to operating
16
for service performance,
17
as training and safety.
18
33/17843-55)
19
section describes the planning and analysis that supports managements
20
provide good service at an economical
described
Annual incentive payments
planning related
financial performance,
are awarded for meeting goals
and various employee
metrics such
In Docket No. R97-1, Jon M. Steele (USPS-RT-8;
the management
21
In mail processing,
22
planning effort. Customer
23
events that drive the daily processing
24
1. Collection
Tr.
activities driven by these incentives.
This
efforts to
rate.
the dynamics of the mail flow are the foundation
practices and expectations
of any
create three fundamental
schedule:
mail typically arrives at a plant during the first half of Tour 3. (The day
25
is divided into 3 tours of 8 hours each at a plant. Times vary by plant, but 1500 -
26
2300 is fairly typical for Tour 3.) Most of this mail cannot arrive any earlier
27
because businesses
28
the late afternoon and demand collection schedules
29
preference.
30
as a day after a holiday, it may justify a special or earlier collection
31
start processing
and the general public prefer to mail most of their letters in
that accommodate
their
When a sufficient volume of collection mail is available earlier, such
earlier.
in order to
-
29
1
via surface transportation
mail must be dispatched
2
local destinations
3
day’s flights.
4
expectation
5
changing sorting schemes to prepare preferential
6
that preferential
based on the public
mail will be moved expeditiously,
3. Tour 1, (e.g. 2300 - 0700), processes
mail for local delivery.
8
end of Tour 1 to local carrier locations.
9
determined
to non-
and to the airport to make the next
This both satisfies our service requirements,
7
and facilitates
mail for next day local delivery.
primarily local turnaround
and incoming
Most of this incoming volume must be dispatched
The timing of these dispatches
by travel distance and by customer requirements,
by the
is
especially
IO
business requirements,
II
several dispatches
12
available early, the unit needs working volumes to begin processing,
13
plant needs the last dispatch to be as late as possible to maximize the time
14
available for DPS processing.
15
for delivery early in the day. Frequently
there are
to the same delivery unit because some of the mail is
The time between the arrival and dispatch of collection
and the
mail is commonly
16
called the “outgoing window”,
17
and local delivery mail is called the “incoming window”.
The length of these
18
windows
on equipment,
19
area served, and volume characteristics.
20
windows
determine the peak processing
21
generally
planned to completely
22
extremely
high volume days.
23
and the time between the dispatches
can vary greatly from plant to plant depending
Operating
geographic
Together with volume, the operating
capacity required at a plant. Capacity is
process all preferential
plans are developed
of outgoing mail
mail on all but a few
for each plant to schedule the flow of mail
24
through the various processing
25
equipment
and volume arrival profiles for the mail. Staffing plans are usually
26
developed
to support the operating
27
workhours
and skills required in each time period.
28
,-~
2. Near the end of Tour 3, outgoing or originating
operations
plan’s
in the plant based on the available
“average” week and specify the
For each day of the week, the volume and composition
29
estimated,
30
will arrive in any particular half-hour.
of the mail are
but on any specific day, it is inherently difficult to predict how much mail
Large mailings can arrive unexpectedly
and
30
1
trucks bringing mail can occasionally
2
breakdowns.
Uncertainties
have two major effects on staffing plans.
First, volume fluctuations
3
be badly delayed due to weather or
greatly affect some operations
4
success in processing.
The gateway operations
5
cancellation,
6
there is the least knowledge
7
the mail through so that other operations
8
out to be heavier than projections
9
operations,
- platform, opening units,
even the OCRs to some extent - receive mail first each evening when
of the nights total volume.
can begin processing.
there may not be any opportunity
schedule,
through the operating
II
causing mail to miss critical dispatches.
Other operations
especially
They must be staffed to get
If the volume turns
and mail is delayed getting through the gateway
10
12
that are critical to
to recover later. The effects cascade
delaying the changeover
are key to making dispatches
letter case distribution,
to incoming processing
on time. Manual case
13
distribution,
14
Manual letter cases process non-machinable
I5
operations.
They have a relatively short processing
16
opportunity
to sort and dispatch this type of mail on time. The platform is doubly
17
critical, both as a gateway getting mail into the building and then getting mail back
18
out of the facility.
Second, fluctuations
19
or
falls increasingly
into this category.
mail and rejects from automated
window and represent the last
in daily mail volume make it difficult to detect actual
20
changes
in volume over longer periods (monthly).
It can take several months to
21
confirm that a real increase in volume is not just an unusual number of high volume
22
nights occurring together.
23
delivery or more delivery points.
24
to the mail composition
25
be a bit longer, but sort schemes usually need not change and there will be little
26
impact on the allied activities that move mail between sorting operations
27
docks.
28
businesses
29
possibly new delivery units that must be reflected in sort schemes and
30
transportation.
31
takedown,
Delivery volume growth can be due to more pieces per
If it is a pure volume increase without any changes
or delivery area, it is relatively easy to handle.
Sort runs will
and the
If instead volume growth is due to growth in possible deliveries (i.e. more
and households)
there will soon be changes in carrier routes and
In this case of increased delivery points, the ancillary setup,
and mail movement
activities will increase in near proportion
to the
31
I
volume increase.
2
of a volume change by shape or work content, not just the magnitude.
3
Craft limitations,
overtime, casual ratio, breaks, wash-up
4
out in national and local labor agreements.
5
the APWU and NPMHU are provided in USPS-LR-I-79.
6
course, comply with all these rules.
7
Normally the complement
the cause
time, etc. are spelled
Copies of the national agreements
for
Staffing plans must, of
plan is based on the staffing plan and is developed
8
to establish job assignments
9
proper skills, grades and categories
in the proper craft (i.e. clerk or mailhandler)
(i.e. full time, part time, or casual).
10
plans must construct a capable and economical
11
consistent
12
seniority, posting, reassignments,
13
agreements.
14
mix of employees
with the
Complement
(i.e. trained and
with the contracts) to fulfill the staffing plan while complying with rules on
PTF conversions,
etc. in the same national
When there is a volume increase, the increase must first be recognized,
then
15
a new staffing plan is required and then a new complement
I6
reassigned
jobs in either the staffing or complement
17
successful
bidders leave vacancies
18
vacancies
must then be placed up for bid or reverted.
19
new assignment,
20
assignment.
21
change in volume to the time when staffing has fully adjusted to the shift. If staffing
22
changes are due to new equipment,
23
but it may still take time to learn how to best manage and staff a new type of
24
equipment
25
r‘-
To effectively plan staffing, it is important to understand
plan. Next the new or
plan must be bid. The
in their previous assignments
and those
If training is required for the
it must be provided before the person can work in the new
It can be as much as a year from initiating a staffing change due to a
the process is similar.
There is advance notice,
or mailflow.
The longer term planning process outlined above is very different from the
26
daily problems of shifting staff to meet the workload.
On a daily basis there is
27
uncertainty
28
adjusting for sick and unscheduled
29
Service supervisors
30
there is an unavoidable
31
people with less skill, and difficulty getting the timing just right given the less than
in both mail volume and the staff that will actually be present after
leave. Subject to the labor agreements,
can move personnel from operation to operation
loss in productivity
Postal
as needed, but
due to lost time in the moves, using
32
1
predictable
workload.
Employee
moves may also be required if a piece of
2
equipment
goes down in the midst of processing
3
This contrasts with the long term situation outlined above where a volume increase,
4
especially
5
improved productivity,
for an uncertain
a pure increase without any change in possible deliveries, will result in
everything
else being equal.
Our planning is geared towards processing
6
amount of time.
7
operation
while meeting service requirements.
8
uses for planning is cost per 1000 pieces.
9
NWRS (National Workhour
Reporting
mail in the most economical
One of the indicators operations
This National figure comes from the
System) cost per hour by LDC (Labor
IO
Distribution
Code), multiplied by MODS (Management
II
hours and divided by TPH (Total Pieces Handled).
Operating
Data System)
For AP 13 FY 99 the figures are:
12
13
$69.00/1000
manual flats
14
$51.68/l 000 mechanized/automated
15
$58.80/1000
16
$5.41/1000
flats
manual letters
automation
letters
17
If we can move a letter from manual processing
18
19
tremendous
savings opportunities.
20
rather than automated
21
interested
22
appropriate
to automation,
Pieces that are prepared
there are
as automated
letters are more costly to process. Operationally,
flats
we are
in sending the right rate and make-up signals for mailers to make
decisions
in light of our processing
costs.
23
24
25
IV.
Space Planning
Growth in population,
26
equipment
27
In addition, the large inventory of existing facilities must be maintained.
28
existing facilities can no longer provide adequate working conditions
29
sustain efficient operations,
30
31
require continuing
mail volumes, delivery points and processing
The ideal configuration
investment
in facilities to provide needed workspace.
or be repaired economically,
for distribution
is centralized
existing plant, utilizing existing plant space to the fullest.
When
for employees,
they must be replaced.
distribution
within an
When existing plant space
33
/-~
I
is inadequate,
the second option is to decentralize
2
existing postal space outside of the plant. The third option is to change mail flows to
3
reduce workload
4
is obtained only as a last resort. These options are described
and thus space required for the workload.
Before considering
5
some processing
decentralized
operations,
New processing
processing
7
(CFS) would be moved, and any remaining carrier functions
8
moved out. Administrative
9
plant. The processing
10
II
equipment
themselves
could be removed or rearranged
space
in more detail below.
space in the plant. For example, the Computerized
operations
into
every effort is made to increase
6
and support functions
operations
Forwarding
System
in the plant would be
might be relocated outside the
would be examined to see if any
to make better use of space.
When these actions are insufficient, the first concern is the nature of the
12
existing space outside the plant - location, transportation
access, available power,
13
square footage, dock facilities, etc. Within these practical constraints,
14
priority is to keep Incoming and Outgoing Primary Operations
15
shapes housed in the plant. Next, parts of Incoming Secondary
16
relocated to customer service facilities where employees
17
sequencing
18
parcels.
19
sequence
the first
for all classes and
processing
may be
rC
20
perform local delivery point
and manual casing for letters, and carrier route sorting for flats and
Automated
equipment,
such as DBCSs and CSBCSs used to delivery point
letters, would then be moved to the customer service facility.
Once existing space is completely
opportunities
If service can be maintained,
workload
22
3-digit service area might be moved from a crowded plant to one with more space.
23
This would occur in conjunction
24
change in processing
25
selected classes.
26
be consolidated
with appropriate
responsibility
processing
to reduce the
21
27
are examined.
exhausted,
responsibility
for a
changes to labeling lists. The
might apply to all classes of mail or to only
For example, Priority Mail processing
for a two-plant
area might
at one of the plants.
When these options still do not produce enough space, new space must be
28
obtained.
There are different kinds of space that can satisfy the same underlying
29
processing
30
for these potential facility investments.
31
physically and economically
needs, and a thorough analysis of cost and service impacts is required
Practical questions,
such as what is
possible in a crowded city environment,
may well
34
I
dominate the analysis.
2
from most desirable to least desirable:
3
However, the possibilities
can be roughly ordered as follows,
1. Expand the space at existing customer service facilities to increase local
4
delivery point sequencing
5
sorting for flats and parcels.
6
least costly way to free space at the plant.
7
and manual casing for letters, and carrier route
This is frequently
2. Expand the plant. Many of our plants, especially the newer ones, were
8
sited and designed to be expanded
9
an excellent option when available.
10
the least disruptive and
through one wall of the plant. This is
3. Build or lease an annex to the plant. Annexes
often are used for volume
II
peaks such as the fall mailing season or unusual circumstances
12
disaster recovery or Desert Storm I Desert Shield.
13
used to house some operations
14
expansion
I5
dominant consideration
I6
available in a desirable location.
17
expensive to get additional
18
building with a lease less than 5 years.
I9
that could feasibly be relocated,
20
decision.
21
expectation’that
22
temporary
23
driver.
24
require a LIPS or SPBS for economical
25
mail can be sorted and dispatched
26
units, making it an attractive candidate
27
short-term
28
they should not be confused with the long-term goal of centralized
29
distribution.
30
within the main plant whenever
of the main facility.
like
They may also be
for a new facility being built or during
In choosing operations
to relocate, the
can be the type of annex space that is actually
For example,
it can be prohibitively
power for heavy sorting equipment
In choosing
a Priority Mail Processing
Priority Mail annex.
among operations
special circumstances
For example, Priority Mail processing
in a
can drive this
might be moved in the
Center will soon replace the
A change in mail makeup can also be the
For example, there has been an increase in bundles of flats that
expedients
sortation.
In many cases, this
directly from an annex to the carrier
for relocation.
Although
these
are important when we must resort to an annex,
We retain Priority Mail, Periodicals,
possible.
and Standard
Mail (A)
35
I
4. Replace the main plant. This often occurs when the building is at the end
2
of its useful life and cannot be maintained
3
a major investment
4
by public concern over siting decisions and availability.
5
plant is built to accommodate
6
capacity for significant expansion
7
or expanded
and a lengthy undertaking
economically.
It is
that can be further delayed
Ideally, any new
space needs for the next ten years with a
in later years.
5. Build or lease a new customer service facility specifically to delivery point
8
sequence
or manually case letters, and carrier route sort flats and parcels
9
for nearby offices.
These facilities, commonly
called Delivery and
10
Distribution
Centers (DDC) and Delivery and Distribution
11
DDUs are smaller), are the least desirable alternative
12
introduce an additional
stop in the path between
Units (DDU -
because they
mailer and addressee.