Overview

AM Standard Operating Procedure

AM SOP Overview 2

NationalCased Letters (pcs)

4,000,000,000

5,000,000,000

6,000,000,000

7,000,000,000

8,000,000,000Q

2F

Y02

Q3

FY

02

Q4

FY

02

Q1

FY

03

Q2

FY

03

Q3

FY

03

Q4

FY

03

Why Do Anything? - Volume Trends

AM SOP Overview 3

NationalCased Flats (pcs)

4,000,000,000

5,000,000,000

6,000,000,000

7,000,000,000

8,000,000,000

9,000,000,000Q

2F

Y02

Q3

FY

02

Q4

FY

02

Q1

FY

03

Q2

FY

03

Q3

FY

03

Q4

FY

03

Why Do Anything? - Volume Trends

AM SOP Overview 4

NationalDPS %

60%

63%

66%

69%

72%

Q1

FY

02

Q2

FY

02

Q3

FY

02

Q4

FY

02

Q1

FY

03

Q2

FY

03

Q3

FY

03

Q4

FY

03

Why Do Anything? - Volume Trends

AM SOP Overview 5

NationalOEI/SEI % SPLY

-12%

-7%

-2%

3%

8%

Q1FY02

Q2FY02

Q3FY02

Q4FY02

Q1FY03

Q2FY03

Q3FY03

Q4FY03

Why Do Anything? – Productivity Trends

AM SOP Overview 6

Why Do Anything? – Carrier Office Summary

Continuous volume decline

Increase in DPS

Failure to capture down time in the office

– Declining OEI trend

– Increased usage of street hours

– Declining SEI

AM SOP Overview 7

Why Do Anything? – Created From Necessity

Situation

– Unstable Mail Flows and Processing Expectations

– Carriers Waiting on Mail from F1 and F4

– Declining Workload

– Erratic Leave Times

– Expanded Street Times

– Leave Early for Street, Return at Scheduled Time

Summary: Create Consistency Via Standardization to Eliminate Chaotic Environments

AM SOP Overview 8

Strategy Development - Introduction

The purpose of this strategy is to standardize management processes and integrate IOP into the management of carrier AM office procedures

To provide a training guide with a step by step process utilizing:

– DOIS

– TACS

– MSP

– Policies & Procedures

Develop the business case to stabilize routes

AM SOP Overview 9

Strategy Development – Remove the Barriers

Stabilize Mail Flows & Processing Expectations

– Create IOP Contracts

– Establish Correct Start Times

Stabilize Carrier Leave Times

– Leave at Scheduled Time

– Document Work Hours Based On Workload

Stabilize Carrier Street Times

– Leave and Return at Scheduled Times

Summary: Create Consistency Via Standardization To Eliminate Chaotic Environments

AM SOP Overview 10

Strategy Development – Critical Path for F2B

Program is Responsibility of:

– POOM / MCSO

– Postmaster / Station Manager

Procedures / Methods are:

– Visual

– Quantifiable

Create:

– Daily Accountability

– Operational Responsibility

AM SOP Overview 11

Strategy Development – Critical Path for F2B

Management Actions to Exercise Rights and Responsibilities

– M39

– M41

– F21

– ELM

Standardize Methods

– AM SOP

AM SOP Overview 12

Strategy Development – Critical Path for F2B

Core Elements

– Define Plant Requirements – IOP Contracts

– Spread/Count 100% Committed Flats to Carrier Case

– Set Carrier Reporting Time

– Sequence A.M. Carrier Procedures

Identify and Track:

– Straight Time Pivoting & Office Assistance

– Stand-By Time by Cause

AM SOP Overview 13

Strategy Development – Plant Responsibility

Processing

– DPS - 85%

– CR Flats - 80% Automated

– STD ‘A’ Isolated

Create IOP Contract

– Identify/correct exceptions

– Integrated Operating Plan – Daily Tracking

– Reports by day, week, & YTD for DPS, Flats, & Transportation

AM SOP Overview 14

Strategy Development – Delivery Units

Efficient Office Layout

Standardize Sequence Of Daily Events

– Vehicle Check

– Nixie/Forwards

– Accountable Mail

– Miscellaneous

Ensure Accuracy Of DOIS Data

AM SOP Overview 15

Strategy Development – Delivery Units

Standardize Clerical Functions

Reporting Times

– Mail Receipt - Prep – Spread

– Increase Flexibility

– Route Structure Will Support Appropriate Complement

– 80% Mail Available - 100% Flats

Prioritize Flats - For Carrier Case Distribution

Count Volume – Use DOIS Ensuring Accurate Data

AM SOP Overview 16

Set Carrier reporting time

LATE TARDY

– EAL < 8 hour increments

– Secure timecards

– F21 section 142.11 Time & Attendance Manual - Upon arrival, employees are to clock in at the scheduled reporting time and report to their work station ready to work

Strategy Development – Delivery Units

AM SOP Overview 17

Strategy Development – Flats Office Time

AM SOP Overview 18

Strategy Development – Delivery Units

80% of the carrier’s mail should be at the carrier case prior the carrier arrival-M-39 sec 141.122.

100% caseable flats prior to carrier reporting times.

CASE FLATS FIRST

Observe workroom floor activities

Identify, address, correct and document inefficient/time wasting procedures

Communicate current day’s expectations

Review carrier’s request for OT and assistance

AM SOP Overview 19

Strategy Development – Delivery Units

DOIS is to be used as the tool to provide ongoing trend analysis to ensure proper route structure and MUST have accurate data

– Evaluate daily work hours using projection reports

– Provides the historical data needed to determine route adjustment

– Provides the means to actually perform the route adjustment

AM SOP Overview 20

Strategy Development – Delivery Units

Review previous day variances in carrier agreed-upon return time and or end tour using the:

– 1813, 1017A/B, DOIS & TACS reports

Ensure accountable clerk is scheduled to avoid delay of carriers, MDCD scanners should be provided at this time

Utilize rolling carts by accountable clerks Observe loading procedures to ensure

– Loading is on street LDC

– Parcels sequenced into the vehicle on street time to facilitate timely delivery

– Parcels are NOT part of an office function

AM SOP Overview 21

Strategy Development – Critical Path for F2B

Identify Under-Time To Primary Route

– Straight Time

– Office Assistance

– Pivoting

Stand-By OPN 354 Coded By Cause

Document (DOIS/TACS) All Straight Time Not On Primary Route

AM SOP Overview 22

Strategy Development – Site Selection

Pre-Inspection TOP (Top Office Performer) Audit conducted in initial AM SOP site by Eastern Area Inspection Team - Nov. 02

Office failed TOP Audit - 81 overall / 36 delivery

AM SOP Overview 23

Strategy Development – Site Selection

Numerous Causes/Concerns

Mail Arrival Problems

Clerk Inefficiencies

Carrier Inefficiencies

Management Inefficiencies

Poor FLASH Performance Issues

Eastern Area Inspection Cancelled - Office Not Ready $$$$

AM SOP Overview 24

Initial Results – Performance Improvement

TOP Audit - Improved from 81 overall / 36 delivery score to 97 overall / 98 delivery score

LDC 21

– PRE -0.7% to PLAN, -4.8% to SPLY AP02 FY 03

– POST -3.6% to PLAN, -8.3% to SPLY AP06 FY03

OEI

– PRE 0.8% to PLAN, 5.5% to SPLY AP02 FY03

– POST 3.7% to PLAN, 9.7% to SPLY AP06 FY03

AM SOP Overview 25

Initial Results - Outcomes

4.5 Routes reduced

5 Vehicles eliminated

5 Positions excessed

Base reduced 30 hours

Scheduled BT changed from 06:30 to 07:00 to 07:30 after RI

AM SOP Overview 26

Communicating the Strategy

Process

– Area - NBA’s

– PC - Local Presidents

– Manager - Stewards

– Supv - Carriers

Discuss AM SOP

Process - Events - Timelines

AM SOP Overview 27

Communicating the Strategy - Internal

Office management to Carriers- driven by use of standard operating procedures to direct the sequence of actions & events within the office

Training for Customer Service & Plants

– PCES

– PC Staff

– Plant & Customer Service Managers

– Operations Managers & Supervisors

AM SOP Overview 28

Communicating the Strategy - External

Management Organizations - NAPS, NAPUS, League of Postmasters

Overview program with NBA’s, local presidents, stewards

AM SOP Overview 29

Strategy Implementation

AM SOP Initiative - Operational Responsibility

– Owner - POOM/MCSO

– Co-trainers - MOP/MGR DP

– Oversight - Field coordinators (4)

Not a support program

AM SOP Overview 30

Strategy Implementation – Site Selection

Criteria for ‘Alpha’ & ‘Beta’ sites

– DOIS site with 20-50 city carrier routes

– DPS & FSM processing

– Overtime > 10%

– Marginal budget performance

– Identified inefficiencies

AM SOP Overview 31

Strategy Implementation – Alpha Roll-Out

One site per PC

50 day timeline, start to finish

Start - July 14, 2003

Completion - September 2, 2003

Consists of 445 city routes

AM SOP Overview 32

Strategy Implementation – Beta Roll-Out

One site per POOM / MCSO

50 day timeline, start to finish

Start - August 12, 2003

Completion - September 30, 2003

Consists of 2082 city routes

AM SOP Overview 33

Alpha Site Results

Start times

– 11 sites changing to later carrier begin tour due to identified mail arrival profile (by :30 to 1:30)

Time clocks

– All sites now securing badges

Downtime

– Operation 354 used along with reason for downtime (documented 2 to 10 hrs per day average)

AM SOP Overview 34

Alpha Site Results

Floor layout

– All sites changed floor layouts (197 routes moved)

– All sites reduced casing equipment (133 pieces of cased eliminated)

– Floor configuration changed

– Eliminated safety hazards

Transportation

– 7 sites made transportation changes

AM SOP Overview 35

Alpha Site Results

Delivery Point Sequence

– Twelve sites indicate increased DPS percentage from 1.2 to 15.5% with 2 sites at 85%

– Four sites exceeding 80% DPS

DOIS Indicators

– Eleven sites increased Total Workload Effectiveness AP following implementation

AM SOP Overview 36

Alpha Site Results

Mail flow / F4

– Reduction in F4 work hours

– 80% of mail is being provided to the carrier prior to their begin tour

– IOP team focus is on separation of pref from standard mail

AM SOP Overview 37

Alpha Site Results

Route / work hour adjustments

– Thirteen sites made immediate minor/negotiated adjustments involving the elimination of 15 routes plus work hour / route status reductions

– One site absorbed 800 new growth deliveries

– Formal Inspections and/or additional minor adjustments planned for spring

AM SOP Overview 38

Summary

Establish Core Competencies For Sites

– Transportation Stability

– IOP Effectiveness

– Office & Street Work Hour Trend

– Office & Street Effectiveness (DOIS)

– Downtime Report

– OEI / SEI

– Late Leaving / Returning Routes

AM SOP Overview 39

Summary

Stabilize Route Structure

– Formal Inspections

– Special Inspections

– Minor Adjustments

Present Business Case

– To NALC

– To Individual Carrier

Conduct Joint Reviews