Postal Rate Commission
Submitted 6/26/2006 4:26 pm
Filing ID: 49861
Accepted 6/26/2006
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268B0001
EVOLUTIONARY NETWORK DEVELOPMENT
SERVICE CHANGES, 2006
Docket No. N2006-1
RESPONSE OF THE UNITED STATES POSTAL SERVICE
TO VALPAK INTERROGATORY REDIRECTED FROM WITNESS SHAH
(VP/USPS-T1-16)
(June 26, 2006)
The United States Postal Service hereby submits an institutional response to the
following interrogatory of Valpak, filed on June 9, 2006: VP/USPS-T1-16. The
interrogatory has been redirected from Shah to the Postal Service for response. The
interrogatory is stated verbatim and followed by the response.
Respectfully submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux
Chief Counsel, Ratemaking
____________________________
Michael T. Tidwell
475 L'Enfant Plaza West, S.W.
Washington, D.C. 20260–1137
(202) 268–2998; Fax –5402
[email protected]
RESPONSE OF THE UNITED STATES POSTAL SERVICE
TO INTERROGATORY OF VALPAK
REDIRECTED FROM WITNESS SHAH
VP/USPS-T1-16.
Please refer to your response to VP/USPS-T1-5(a).
a. Does the “existing product cost methodology used by Finance for production of
the Cost & Revenue Analysis report” contain data which can be used to compare
costs for facilities of different sizes. That is, could the data be used to ascertain
how unit costs change as plant size increases? If so, please describe such data,
and state whether you or the Postal Service has used the data for any such
comparison.
b. Does the Postal Service have data that show productivity trends for plants of
different sizes? If so, please indicate what the productivity trends were for
small, medium and large facilities “on the basis of a 7-year history at different
facilities.”
RESPONSE:
a. Please see witness Bozzo’s responses in Docket No. R2006-1 to VP/USPST12-5-7.
b. Yes. The attached charts show the annual average productivities by facility
size groups based on possible deliveries for FY1999-FY2005. The data are
obtained from Docket No. R2006-1, USPS-LR-L-56.
Response to VP/USPS-T1-16b
Manual Flats Average Productivity
0.70
0.60
TPH/HR (000s)
0.50
0.40
0.30
0.20
0.10
0.00
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 3
Response to VP/USPS-T1-16b
Manual Flats Average Quarterly Volume
10
9
8
TPH (millions of pieces)
7
6
5
4
3
2
1
0
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 4
Response to VP/USPS-T1-16b
Manual Flats Volume Index
120
100
TPH, 1999 = 100
80
60
40
20
0
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 5
Response to VP/USPS-T1-16b
Manual Letters Average Productivity
0.90
0.80
0.70
TPH/HR (000s)
0.60
0.50
0.40
0.30
0.20
0.10
0.00
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 6
Response to VP/USPS-T1-16b
Manual Letters Average Quarterly Volume
40
35
TPH (millions of pieces)
30
25
20
15
10
5
0
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 7
Response to VP/USPS-T1-16b
Manual Letters Volume Index
120%
100%
TPH, 1999 = 100
80%
60%
40%
20%
0%
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 8
Response to VP/USPS-T1-16b
Cancellation Average Productivity
5.00
4.50
4.00
TPH/HR (000s)
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 9
Response to VP/USPS-T1-16b
Cancellation Average Quarterly Volume
60
TPH (millions of pieces)
50
40
30
20
10
0
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 10
Response to VP/USPS-T1-16b
Cancellation Volume Index
110%
105%
TPH, 1999 = 100
100%
95%
90%
85%
80%
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 11
Response to VP/USPS-T1-16b
AFSM 100 Average Productivity
2.50
TPF/HR (000s)
2.00
1.50
1.00
0.50
0.00
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 12
Response to VP/USPS-T1-16b
AFSM 100 Average Quarterly Volume
60
TPF (millions of pieces)
50
40
30
20
10
0
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 13
Response to VP/USPS-T1-16b
AFSM 100 Volume Index
250%
TPF, 2001 = 100
200%
150%
100%
50%
0%
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 14
Response to VP/USPS-T1-16b
Barcode Sorter (D/BCS) Average Productivity
12.00
10.00
TPF/HR (000s)
8.00
6.00
4.00
2.00
0.00
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 15
Response to VP/USPS-T1-16b
Barcode Sorter (D/BCS) Average Quarterly Volume
600
TPF (millions of pieces)
500
400
300
200
100
0
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 16
Response to VP/USPS-T1-16b
Barcode Sorter (D/BCS) Volume Index
160%
140%
120%
TPF, 1999 = 100
100%
80%
60%
40%
20%
0%
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 17
Response to VP/USPS-T1-16b
OCR Average Productivity
9.00
8.00
7.00
TPF/HR (000s)
6.00
5.00
4.00
3.00
2.00
1.00
0.00
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 18
Response to VP/USPS-T1-16b
OCR Average Quarterly Volume
80
70
TPF (millions of pieces)
60
50
40
30
20
10
0
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 19
Response to VP/USPS-T1-16b
OCR Volume Index
120%
100%
TPF, 1999 = 100
80%
60%
40%
20%
0%
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 20
Response to VP/USPS-T1-16b
FSM 1000 Average Productivity
1.20
1.00
TPF/HR (000s)
0.80
0.60
0.40
0.20
0.00
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 21
Response to VP/USPS-T1-16b
FSM 1000 Average Quarterly Volume
14
12
TPF (millions of pieces)
10
8
6
4
2
0
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 22
Response to VP/USPS-T1-16b
FSM 1000 Volume Index
120%
100%
TPF, 1999 = 100
80%
60%
40%
20%
0%
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 23
Response to VP/USPS-T1-16b
SPBS Average Productivity
0.35
0.30
TPF/HR (000s)
0.25
0.20
0.15
0.10
0.05
0.00
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 24
Response to VP/USPS-T1-16b
SPBS Average Quarterly Volume
10
9
8
TPF (millions of pieces)
7
6
5
4
3
2
1
0
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 25
Response to VP/USPS-T1-16b
SPBS Volume Index
200%
180%
160%
TPF, 1999 = 100
140%
120%
100%
80%
60%
40%
20%
0%
1999
2000
2001
2002
2003
2004
2005
FY
Smallest 33%
Middle 33%
Largest 33%
Page 26