How to Read
Our Annual Report
2000 Highlights
Letter from
the Postmaster General/CEO
2000 Year
in Review
Delivering
the Future
The Governors
of the Postal Service
Audit Committee
Financial
Section
How to Read
Our Financial Statements
Quick
Find index
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2000 Annual Report
- page 15 of 70
Breakthrough Productivity:
The Key to Cost Control
Our breakthrough has begun. The year 2000 was marked
by sustained and significant increases in total factor productivity.
Overall, productivity grew by 2.5 percent over 1999, the best results
since 1993. Our success in building a culture of operational excellence
has been the primary contributor to this success, helping us to
drive billions of dollars of costs out of our system over the past
two years to compensate for revenue that, while growing, has not
matched expectations.
We are formalizing this approach through our Breakthrough Productivity
Initiative. We have completed a comprehensive review of activities
and transactions, and we are moving to centralize support functions,
eliminate duplication and reduce administrative staffing.
Significant savings will come from more efficient paperwork and
purchasing practices. We are already seeing results through centralized
telecommunications and supply contracts. We will also reduce transportation
costs by using more ground transportation and better deploying the
contract capacity we have—while still maintaining service standards.
We are reducing steps in the distribution and handling of mail,
too.
The lion’s share of these reductions will come from dramatic, breakthrough
productivity in our processing system. We will reduce costs through
everything from machine utilization to standardization of processes,
to staffing and scheduling, to resource management. It means tracking
mail throughout the system, benchmarking, measuring performance
and understanding the costs of every activity.
Breakthrough productivity is a multi-year approach to remaining
successful through the immediate challenges of a rapidly changing
communications marketplace.
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