Shrinking the Infrastructure

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Webinar 6Expanded EXFCPresented byDelores
KilletteVice President, Consumer Affairs
andDavid WilliamsManager, Processing
Operations Friday, November 7, 2008
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EXFC Expansion
Agenda 1. Overview 2. Sample Design and
Methodology 3. Pilot Test Results
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EXFC Expansion Overview
? Changes to EXFC in FY 2009 ? Coverage expanded
to 891 ZIP Codes Additional 428 ZIP
Codes Represents 99 of Single Piece First Class
volume ? Reflect Modern Service
Standards Includes Four and Five Day Service
Standard Impacts Alaska, Honolulu and Caribbean
ZIP Code list located on CKM website under
Other Educational Material/Resources/Report
Information http//blue.usps.gov/caweb/ckm/ckm_tt
ms_library.htm
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EXFC Expansion Sample Design and Methodology
? Changes to EXFC in FY 2009 ? New kits
introduced on October 4 21 kits 3 flat kits, 2
postcard kits, 16 letter kits ? Key
Characteristic Changes Additional Flat
kit Stamped percentage 38.2 to 53.3 Metered
volume decreased 61.8 to 46.7 Handwritten
percentages increased 19 to 23.7 Kit
descriptions located on CKM website under Other
Educational Material/Resources/Report Information
http//blue.usps.gov/caweb/ckm/ckm_ttms_library.ht
m
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EXFC Expansion Sample Design and Methodology

• Increased test mail volume
• Increased overnight volume for PCs with increased
  coverage and origin-destination ZIP Code pairs
• Additional two and three-five day destinating
  volume for all PCs

Service Standard Destinating Volume Target per PCCurrent EXFC System Destinating Volume Target per PCExpanded EXFC System
Overnight 4,785 pieces 4,785 pieces
Two-Day 1,500 pieces 2,285 pieces
Three-to-Five-Day 1,500 pieces 2,685 pieces
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EXFC Expansion Area Overview
Area of New ZIP Codes Overnight Volume Added Two-Day Volume Three-Five Day Volume Added
Capital Metro 16 10 13 8
Eastern 76 25 21 16
Great Lakes 35 16 12 8
New York Metro 11 10 6 9
Northeast 32 20 23 22
Pacific 15 14 21 12
Southeast 46 23 24 13
Southwest 63 26 26 13
Western 134 30 40 19
Nation 428 20 21 14
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EXFC Expansion Pilot Results

• Description of Column Contents
• EXFC (463) The official FY08 Q4 results for the
  established 463 ZIP Codes (without any Expansion
  ZIP Code results)
• New ZIP Codes (428) The results for mailpieces
  that originated and/or destinated in one of the
  new 428 ZIP Codes
• All ZIP Codes (891) The pilot results of
  mailpieces that originated and destinated in any
  of the 891 ZIP Codes
• Difference The results of all 891 ZIP Codes
  minus the results of EXFC 463

• Current EXFC versus Pilot Test Performance
• July 1, 2008 September 30, 2008

Service Standard EXFC Codes (463) New ZIP Codes (428) All ZIP Codes (891) Difference (All 891EXFC 463)
Overnight 96.7 94.0 96.2 - 0.5
Two-Day 94.2 88.9 93.1 - 1.1
Three-Day 92.9 86.4 91.7 -1.2
Pilot Test results located on CKM website
http//blue.usps.gov/caweb/ckm/ckm_ttms_report_exf
c_pilot_menu.htm
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EXFC Expansion Pilot Results
All nine Areas experienced a score decline when
measuring all 891 3-digit ZIP Codes ? Southwest
has largest change (-0.80)
Area Overnight Results from Q4 FY 08
PC data located at http//blue.usps.gov/caweb/ckm/
ckm_ttms_report_exfc_pilot_menu.htm
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EXFC Expansion Pilot Results
All nine Areas experienced a score decline when
measuring all 891 3-digit ZIP Codes ?Western has
the largest potential change (-2.5)
Area Two Day Results from Q4 FY08
PC data located at http//blue.usps.gov/cawe
b/ckm/ckm_ttms_report_exfc_pilot_menu.htm
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EXFC Expansion Pilot ResultsThree-day Service
Standard
All nine Areas experienced a score decline when
measuring all 891 3-digit ZIP Codes ?Western
has the largest potential score change (-2.23)
Area Three-Day
Results from Q4 FY08
PC data located at http//blue.usps.gov/ca
web/ckm/ckm_ttms_report_exfc_pilot_menu.htm
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EXFC Expansion Results
Final Zero Bundle Results ? 23 verified zero
bundles in core EXFC ZIP Codes of 28,263 bundles
inducted ? 23 verified zero bundles in pilot ZIP
Codes out of 2,540 bundles inducted
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EXFC Expansion
Customer Knowledge Management
Resources Service Performance scores are
located on the CKM website at http//blue.usps.gov
/caweb/ckm/ckm_ttms_report_menu.htm For
questions on Transit Time Measurement System
(TTMS) studies you may contact the TTMS team at
ckmfeedback_at_usps.gov
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Impact of EXFC Expansion on October Destinating
EXFC Performance
EXFC Expansion
Data Source EDW/TTMS November 4, 2008
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MHTS Service Gap Between Old EXFC and Expansion
EXFC October 2008
EXFC Expansion
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EXFC Expansion
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EXFC Expansion
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EXFC Expansion
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Composite National O/N EXFC Expansion Impacts
EXFC Expansion
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Composite National 2-Day EXFC Expansion Impacts
EXFC Expansion
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Composite National 3-5Day EXFC Expansion Impacts
EXFC Expansion
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Destinating Overnight MHTS EXFC Expansion Impacts
EXFC Expansion
Data Source MHTS/MIRS October 2008
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Destinating 2-Day MHTS EXFC Expansion Impacts
EXFC Expansion
Data Source MHTS/MIRS October 2008
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Destinating 3-5 Day MHTS EXFC Expansion Impacts
EXFC Expansion
Data Source MHTS/MIRS October 2008
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EXFC Service Impact Pareto Chart - Overnight
Letters
EXFC Expansion
Last Mile Failure Point Impact 1.76 Points
Data Source IBM Root Cause Failure Analysis
Final Quarter IV FY 2008
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MHTS Service Predictor
EXFC Expansion
Collection Factor MHTS Service Last Mile Factor On-Time
EXFC Overnight Letters





Delivery Unit Processing
Origin Processing
Destination Processing
Delivery
Transport to Delivery Unit
Transport to Destination
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Old EXFC Impacts for Letters October 2008
EXFC Expansion
Data Source IBM Root Cause Failure Analysis
Final Quarter IV FY 2008
MHTS service from MIRS October 2008
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EXFC Expansion Impacts for Letters October 2008
EXFC Expansion
Data Source IBM Root Cause Failure Analysis
Final Quarter IV FY 2008
MHTS service from MIRS October 2008
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Last Mile Impacts
EXFC Expansion

• Get mail in DPS automate volumes
• Connect rejects / rework volumes from DPS
• Reduce At Risk volumes - machine and operator
  quality
• Dispatch trucks on time 0400 0900
• Connect hot case - timely customer service
  distribution

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Expansion EXFC Impacts on Total EXFC Expansion
MHTS Failures
EXFC Expansion
Data Source MHTS/MIRS October 1 30, 2008
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What If Overnight Flats were at 96.50
On-Time?October 2008
EXFC Expansion
Mail Shape Old EXFC ZIPs EXFC Expansion ZIPs Total EXFC
Letters 96.54 93.80 96.06
Flats 89.79 85.75 89.10
Total 96.04 93.21 95.55
What If Flats were at 96.5 On Time? 96.54 93.99 96.09
Data Source EDW/TTMS November 5, 2008
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EXFC Service Impact Pareto Chart Overnight Flats
EXFC Expansion
Last Mile Failure Point Impact 3.22
Data Source IBM Root Cause Failure Analysis
Final Quarter IV FY 2008
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Key Actions
EXFC Expansion

• Collection box management process in place
• Standardized mail flows in place for all mail
• Operating plan and 24 hour clock adherence
  discipline for all mail
• High levels of machine and operator method
  quality
• Service responsive transportation
• Timely customer service distribution

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Questions?
Service.Webinars_at_usps.govDo you have questions
about any of the presentations?Do you have
suggestions to make them more informative?Do
you have ideas for new presentations?WE WANT
TO HEAR FROM YOU!
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Next Week
Friday, November 14, 2008 at 1100 a.m.
ETFirst-Class Mail Measurementand Operational
Impacts Presented by Tom DaySenior Vice
President, Intelligent Mail Address Quality
andDavid WilliamsManager, Processing
Operations Have a good weekend!