FSS_Workshop.Box 7 30 07

Slide 1:
United States Postal Service Logo in the far left top corner.
Has the heading:  Flats Sequencing System Overview
The words included are:
Presented by: <Insert Name Here>
Image Information:
Flats Sequencing System.

PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Thank you for joining us for today’s FSS Workshop.
My name is <NAME> and I am <TITLE>.
In today’s workshop I plan to spend the next 45 to 50 minutes providing you with an overview of the Flats Sequencing System, or what we refer to as FSS.
At the end of the session I will open up for questions and answers.  
End of Slide 1.



Slide 2:
United States Postal Service Logo in the far left top corner.
Has the heading: Agenda
The words included are:
(checkbox used for bullet)Background
(checkbox used for bullet)Flats Strategy
(checkbox used for bullet)Flats Sequencing System (FSS) at a Glance
(checkbox used for bullet)Deployment Timeline
(checkbox used for bullet)FSS Equipment & Processing Strategy
(checkbox used for bullet)Mailing Industry Impacts
(checkbox used for bullet)Conclusion & Questions
Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
The agenda for today’s workshop will cover:
(bullet)Background – Why the USPS is investing in FSS.
(bullet)Flats Strategy – How we plan to proceed.
(bullet)Flats Sequencing System (FSS) at a Glance – I’ll share what the machine looks like including a brief video of live operations.
(bullet)Deployment Timeline – the schedule and thinking behind  development and deployment of FSS.
(bullet)FSS Equipment & Processing Strategy – I’ll introduce some new support equipment and walk you through the processing strategy for FSS
(bullet)Mailing Industry Impacts – what we need to start thinking about in the world of FSS  
(bullet)Conclusion & Questions – lastly, I’ll wrap-up and provide time for follow-up questions
End of Slide 2.



Slide 3:
United States Postal Service Logo in the far left top corner.
Has the heading: The Strategic Transformation Plan 
The words included are:
“Reduce the cost of meeting universal service obligations by focusing on major cost drivers, especially delivery operations.  Fully capture improvements from existing equipment and technology and target new investments to further drive productivity gains.”
Image Information:
Cover Image:September 2005 Strategic Transformation Plan 2006–2010 at the far left.
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
The Strategic Transformation Plan is the United States Postal Service’s blueprint for the future.
The Postal Service’s basic mission is to provide high-quality, affordable, universal service.  
The Transformation Plan describes the strategies that will improve the value of the mail and the strategies that will assist us in sustaining a financially stable enterprise– providing affordable, and reliable universal mail service. 
One of those strategies– is to “Reduce the cost of meeting universal service obligations by focusing on major cost drivers, especially delivery operations.  Fully capture improvements from existing equipment and technology and target new investments to further drive productivity gains.”
Flats Sequencing System is the new technology investment that will focus on the cost drivers in delivery operations.
End of Slide 3.



Slide 4:
United States Postal Service Logo in the far left top corner.
Has the heading: What is Flat Mail?
There is a series of images:
One image:
Mailbox with a large envelope and a cartoon hand holding it, going  to put it in the mailbox.
The word 'Large Envelopes' below the one image.

Three images:
ESPN Magazine
O, The Oprah Magazine [1-year subscription]
Time Magazine
The word 'Magazines' below the three images.

One image:
Newspapers

One image:
Catalogs
The word 'Catalogs' below the one image.

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Before discussing the specifics of today’s workshop, let me begin by reviewing what a “FLAT” is, and what “SEQUENCING” mail involves.
There are three general shapes of mail that we process – letters, flats, and parcels.
The technology I will be discussing today is focused on the processing of flat-shaped mail.
Flat-shaped mail consists of large envelopes, catalogs, circulars, and magazines.
End of Slide 4.



Slide 5:
United States Postal Service Logo in the far left top corner.
Has the heading: What is Delivery Point Sequencing
The words included are: 
(checkbox used for bullet)Technology Places Mail Pieces into Exact Order of Delivery
(checkbox used for bullet)USPS Has Sequenced Letters Since 1993
(bullet)Over $5 Billion Annual Savings
(checkbox used for bullet)Flats Sequencing System (FSS) Will Replicate for Flats What we do Today for Letters
 
Image Information:
At the far right is an overview image, taken from a plane, of a subdivision.
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Delivery Point Sequencing is all about using machines to automatically sort mail into the precise order in which it is delivered by a letter carrier.
In the case of letters, we have been using high speed sorters to automatically sequence mail since 1993.
We currently have over 8,000 machines performing delivery point sequencing for over 80 percent of our letters, or nearly 120 billion pieces each year. 
The benefits have been substantial.  We are avoiding costs of over 5 billion dollars annually from this automation effort.
We have yet to implement delivery point sequencing for flat-shaped mail. Today’s manual process for sequencing flats is very time consuming and expensive.   Flat mail is currently sequenced manually, one piece at a time by a letter carrier into a sorting case.  After the mail has been sorted into the case, it is then manually removed and placed in containers.
Our research and development efforts over the past several years have now changed this, and we have technology for flats that will allow us to replicate what we have done for letters.
End of Slide 5.



Slide 6:
United States Postal Service Logo in the far left top corner.
Has the heading: Annual Flats Volume 
The words included are: 53.2 Billion Flats FY 2006 (RPW)

Image Information:
In the middle of the page is a pie chart.
Blue:   Standard Mail 75%
Red:    Periodicals 17%
Yellow: First-Class Mail 8%
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
We process over 50 billion pieces of flat mail annually.  This is about one-quarter of the overall 212 billion pieces of mail we receive each year.
The Postal Service’s flat mail volume exceeded 53 billion pieces in fiscal year 2006.
When we look at how this pie of flat mail volume is divided, we see that Standard flats account for 75% of the volume, Periodical flats account for 17%, and First-Class flats account for only 8%.
End of Slide 6.



Slide 7:
United States Postal Service Logo in the far left top corner.
Has the heading: Delivery Handling of Flats Today
The words included are:
53.2 Billion Flats

Image Information:
In the middle of the page is a pie chart and other images and words:
Red:    80%
There is an red arrow pointing from the red 80% to an image:
A person placing mail in slots with the words 'Needs Casing 
By Carrier'.  Next to that image is a bracket and it is pointing to the words 'FSS Target Volume' after it.

Yellow (this color and pie slice is slightly raised up): 20%
There is an red arrow pointing from the yellow 20% to an image:
A mail jeep.
Above the mail jeep is the word 'Saturation'.

PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Of our more than 53 billion flats a year, 20% are saturation mail, while the other 80% require manually sequencing by a letter carrier. 
This 80% that is manually sequenced is the target volume for the Flats Sequencing System.
End of Slide 7.



Slide 8:
United States Postal Service Logo in the far left top corner.
Has the heading: USPS Salary & Benefits:  $52.9 Billion
The words included are:
Source: 2006 Annual Report

Image Information:
There is a pie chart and the chart can color are as follows 9from right to left):
Red:         Delivery 43%
Light Blue:  Vehicle Services 2.4%
Pink:        Maintenance 6%
Dark Green:  Customer Service 16%
Dark Blue:   Other Functions 9%
Blue Black:  Support 0.9%
Yellow:      Mail Processing 22%

PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
To further explain why we are investing in flats sequencing technology, we need to look at how our costs are currently attributed in the USPS.
Total operating costs for the Postal Service are $71.7 billion annually (source: 2006 Annual Report).
Salaries and benefits are nearly $53 billion a year, and of the salaries and benefits– when we look at how this cost pie is divided, we can see that the highest cost function, in red, is Delivery– it makes up the lion’s share of our salaries and benefits costs– 43%.
This is where we must focus our attention as an organization in targeting strategies to achieve significant cost reductions.
Adding two million new delivery points against a base of 124 million delivery points yearly, makes delivery the single greatest function to add cost pressure to the organization.  
That is where we are growing, and where our cost will continue to rise. 
End of Slide 8.



Slide 9:
United States Postal Service Logo in the far left top corner.
Has the heading: Managing Delivery Costs
The words included are:
(checkbox used for bullet)Successful Cost Management Over the Last 10 Years 
(checkbox used for bullet)Will Continue to be Largest Cost Center
(bullet)Continued Delivery Point Growth 
(checkbox used for bullet)Ease Rate Pressure by Aggressive Cost Reductions

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Looking at our delivery strategy, the Postal Service has exercised successful cost management over the last decade thanks to programs such as delivery point sequencing of letters.
We recognize, though, that Delivery will continue to be the largest cost center due to continued network growth of two million new delivery points a year.
Our strategy is to ease the rate pressure on customers by implementing aggressive cost reduction programs like FSS.
End of Slide 9.



Slide 10:
United States Postal Service Logo in the far left top corner.
Has the heading: Flats Sequencing Benefits
The words included are:
(checkbox used for bullet)Minimize Carrier In-Office Time
(bullet)Substitute Technology for Manual Carrier Casing 
(checkbox used for bullet)Benefit From Street Opportunities
(bullet)Carriers Start Street Delivery Earlier
(bullet)Consistent Delivery Times
(bullet)Manage Growth 
(bullet)Optimize Routes
(checkbox used for bullet)Other Benefits 
(bullet)Delivery Day Visibility
(bullet)Capture Real Estate Opportunities
(bullet)Manage Vehicle Fleet

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
In addition to substituting the manual casing of flats with technology– there are many other benefits from Flats Sequencing.
By reducing in-office time we will be able to benefit on the street enabling carriers to start street delivery earlier– thus enabling consistent delivery times.  Sequencing flats will permit us to consolidate delivery routes and assist us in managing growth, this provides a greater opportunity for optimizing routes-- enabling a more efficient and predictable delivery environment.    
Other benefits include: Delivery Day Visibility – production control systems in FSS will go hand-in-hand with the Intelligent Mail Barcode strategy and Surface Visibility, and capture more information about the mail– providing more information to our mailers.
Capture Real Estate Opportunities - can be realized by looking at the future of casing equipment– potentially reducing the footprint and our delivery unit floor space needs– ultimately reducing our needs in customer service facilities  
Manage Vehicle Fleet will be realized by our ability to absorb growth, adding less routes and ultimately purchasing fewer delivery vehicles.
End of Slide 10.



Slide 11:
United States Postal Service Logo in the far left top corner.
Has the heading: FSS Flats Strategy
The words included are:
(checkbox used for bullet)Letters and Flats Sorted Separately
(bullet)DPS Letter Sorting Continues
(bullet)Flats Sequencing in Delivery Point Order
(checkbox used for bullet)Saturation Mail Continues
(checkbox used for bullet)Reengineer Our Processes for Handling “Residual Volumes”

Image Information:
At the far right is an image of a box with mail in it.
At the far right is an image of a plastic box with mail in it.
At the far right is an image of a person thumbing through a stack of mail that is in a plastic box.
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
So, the game plan is to sort letters and flats in separate automation streams: delivery point sequence for letters will continue, and FSS will sequence flats in a separate stream.
Regarding questions about saturation mail, Saturation Mail will continue to be taken to the street bypassing any processing!
Lastly, we are reengineering our processes to more efficiently handle residual volumes.  
End of Slide 11.



Slide 12:
United States Postal Service Logo in the far left top corner.
Has the heading: FSS Flats Strategy

Image Information:
There are four images and they are as follows, from left to right:
A image of a mail person putting mail in slots and it has the word 'TODAY' above that image.  There is a red arrow pointing to the left and it has an image of a plastic box with mail in it and the word 'TOMORROW' above it.

A image of a mail office building and it has the word 'TODAY' above that image.  There is a red arrow pointing to the left and it has an image of trays that has plastic boxes with mail in it, being loaded or unloaded from a mail jeep and the word 'TOMORROW' above it.

PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Sometimes a picture is worth a thousand words, so here is a good way to visualize the FSS strategy.
The goal is to move from today’s world where carriers must manually case flats, to tomorrow’s world where FSS automation sequences flats and places it in a verticalized fashion, in street trays, for ease of reading and handling by the letter carrier.
Essentially, the flat mail will bypass any manual handling in the delivery unit and once prepared at the FSS processing facility it will be ready to load directly onto trucks, transported to the delivery unit– and ready to load in the  delivery vehicle for street delivery.
End of Slide 12.



Slide 13:
United States Postal Service Logo in the far left top corner.
Has the heading: FSS at a Glance
The words included are: Flats Sequencing System
Image Information:
There is a image in the middle of the page of a Flats Sequencing System.
There are arrows pointing to different parts of the machine, with words telling what each part is.
It is as follows (from left - at the bottom of the machine, to right - the far left side):
Tray Staging
Dolly Induction Subsystem
Mail Prep Subsystem
Integrated Tray Converters
Automatic High Speed Feeders
Carousel-style Sorter
 
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Shown here is the Flats Sequencing System– this system will sort flat mail into the precise order in which it is delivered.
It is a large, integrated system consisting of several major components.  Combined, these various components can sequence flat mail at 16,500 pieces per hour.  It is this throughput that makes the system so valuable when compared to how we currently sequence flat mail—manually.
The key components include:1) automatic high speed feeders, 2) a dolly induction system, 3) carousel sorter, 4) tray staging, 5) integrated tray converters, and 6) a standalone mail prep sub-system.
What’s important to understand is the FSS machines are equipped with a self-contained staging and material handling system; at the end of pass-one sorting an automatic sweep occurs and all trays are returned to the feed area in correct order for immediate pass-two sequencing.  At the end of the run, mail is automatically swept, placed into street trays, and discharged onto mail transport equipment that will be dispatched to the dock, and ultimately loaded onto trucks destined for the delivery units.  
End of Slide 13.



Slide 14:
United States Postal Service Logo in the far left top corner.
Has the heading: Deployment Timeline
The words included are:
(checkbox used for bullet)Prototype – Indianapolis IN			Apr 2006
(checkbox used for bullet)BOG Approval 100 Production FSS Machines	
Dec 2006
(checkbox used for bullet)Pre-production Install – Dulles P & DC	
Sept 2007
(checkbox used for bullet)Pre-production – Live Operations		
Nov 2007
(checkbox used for bullet)Production First Article			
Jul 2008 
(checkbox used for bullet)Phase 1 Deployment Begin			
Oct 2008 
(checkbox used for bullet)Phase 1 Deployment End			
Oct 2010

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
The overall development and deployment timeline of FSS is a multi-phase approach:
A prototype machine– roughly ½ the size of the production machine was successfully tested in Indianapolis, Indiana, in the spring of 2006.  This proof of concept test demonstrated that the FSS technology is able to successfully sequence flat mail in a live environment.  
In December 2006, the Postal Service Board of Governors approved Phase-One of production deployment– 100 FSS machines.
Prior to the roll-out of the production systems, a pre-production FSS is in the process of being installed at the Dulles VA Processing & Distribution Center in Northern VA.  This pre-production operation will sequence flats for nine delivery units for next year.  Working with this machine will allow us to test the equipment, further develop processes and methods, and gain valuable operating experience– we will apply the knowledge we gain from the Dulles experience to our production phase.  The production phase– 100 FSS machines, will begin October of 2008 and is expected to take about two years to deploy.
End of Slide 14.



Slide 15:
United States Postal Service Logo in the far left top corner.
Has the heading: Phase 1 Deployment – 100 Systems
The words included are:
(checkbox used for bullet)29 Districts
(checkbox used for bullet)32 Processing Facilities (FSS Locations)
(bullet)27 Existing Processing Centers
(bullet)5 New Facilities 
(checkbox used for bullet)2 - 5 Systems per Facility
(checkbox used for bullet)1,500 Zones 

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
This is how the Phase-One deployment breaks out geographically. 
The 100 FSS will be deployed to 32 processing facilities and sequence flats for 29 Districts– over 1,500 zones.  Each of the 32 facilities will have a minimum of two, and up to five FSS machines.
The Phase-One deployment strategy leveraged existing postal-owned facilities that either have space available for the machines, or can be expanded to accommodate the machines.
The five new facilities are facility projects that were in the planning stages– additional space was incorporated to include the required space for the FSS machines.  Future facility projects will include FSS as part of the expected equipment set.   
End of Slide 15.



Slide 16:
United States Postal Service Logo in the far left top corner.
Has the heading: Phase 1 FSS Deployment Sites
Table:
Table has 16 rows and 4 columns:
Row 1:
Column 1:  
(Header)Area
Column 2:  
(Header)Districts
Coulmn 3:
(Header)# FSS
Coulmn 4:
(Header)Plants / Facility


Row 2:
Column 1:
NYM
Column 2:
Northern NJ
Coulmn 3:
4
Coulmn 4:
NJ BMC


Row 3:
Column 1:

Column 2:
Long Island NY
Coulmn 3:
3
Coulmn 4:
Mid Island NY P & DC

Row 4:
Column 1:

Column 2:
Central NJ
Coulmn 3:
3
Coulmn 4:
Trenton NJ P & DC


Row 5:
Column 1:
NE
Column 2:
Boston
Coulmn 3:
3
Coulmn 4:
Northwest Boston P & DC


Row 6:
Column 1:

Column 2:
Massachusetts
Coulmn 3:
4
Coulmn 4:
Middlesex Essex P & DC


Row 7:
Column 1:

Column 2:
Connecticut
Coulmn 3:
5
Coulmn 4:
Springfield BMC


Row 8:
Column 1:

Column 2:
SE New England
Coulmn 3:
3
Coulmn 4:
Providence RI P & DC


Row 9:
Column 1:
EA
Column 2:
Columbus
Coulmn 3:
3
Coulmn 4:
Former Columbus P & DC  


Row 10:
Column 1:
SE
Column 2:
South Florida
Coulmn 3:
5
Coulmn 4:
New Miami Facility Project


Row 11:
Column 1:

Column 2:
Atlanta
Coulmn 3:
2
Coulmn 4:
Atlanta AMC


Row 12:
Column 1:

Column 2:

Coulmn 3:
2
Coulmn 4:
North Metro GA P & DC


Row 13:
Column 1:

Column 2:
Central Florida
Coulmn 3:
4
Coulmn 4:
Orlando P & DC


Row 14:
Column 1:
WE
Column 2:
Colorado / Wyoming
Coulmn 3:
5
Coulmn 4:
Denver P & DC


Row 15:
Column 1:

Column 2:
Arizona
Coulmn 3:
5
Coulmn 4:
New West Valley (Phoenix) Facility Project


Row 16:
Column 1:

Column 2:
Mid America
Coulmn 3:
2
Coulmn 4:
Kansas City P & DC
End of Table.	

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
The next two slides identify the specific locations where the Phase-One, 100 FSS machines will be deployed.
The deployment strategy is to target locations that have the highest potential for savings.  Therefore, we’ve focused our attention on plants serving delivery units with the highest flat volumes and the highest number of flats per delivery point.
Concentrating FSS machines in fewer plants and districts rather than spread them across a large number of plants and districts improves deployment and operating efficiency and helps reduce deployment costs.
Finally, we’re deploying a minimum of two machines per site.  This not only helps deployment efficiency, but it is also a smart move from a maintenance and operations management perspective, and provides for redundancy. 
End of Slide 16.



Slide 17:
United States Postal Service Logo in the far left top corner.
Has the heading: Phase 1 FSS Deployment Sites
Table:
Table has 16 rows and 4 columns:
Row 1:
Column 1:  
(Header)Area
Column 2:  
(Header)Districts
Coulmn 3:
(Header)# FSS
Coulmn 4:
(Header)Plants / Facility


Row 2:
Column 1:
PA
Column 2:
Los Angeles
Coulmn 3:
2
Coulmn 4:
Herb Peck Annex


Row 3:
Column 1:

Column 2:
Sacramento
Coulmn 3:
3
Coulmn 4:
Sacramento P & DC

Row 4:
Column 1:

Column 2:
Bay-Valley/San Francisco
Coulmn 3:
4
Coulmn 4:
San Jose P & DC


Row 5:
Column 1:

Column 2:
Sierra Coastal
Coulmn 3:
4
Coulmn 4:
Van Nuys Main Office


Row 6:
Column 1:

Column 2:
Santa Ana
Coulmn 3:
5
Coulmn 4:
New Aliso Viejo Facility Project


Row 7:
Column 1:

Column 2:
San Diego
Coulmn 3:
2
Coulmn 4:
New Perris DPC Facility Project


Row 8:
Column 1:
CM
Column 2:
Greensboro
Coulmn 3:
2
Coulmn 4:
Raleigh P & DC


Row 9:
Column 1:

Column 2:

Coulmn 3:
2
Coulmn 4:
Greensboro P & DC 


Row 10:
Column 1:

Column 2:
Northern VA
Coulmn 3:
4
Coulmn 4:
Dulles P & DC


Row 11:
Column 1:

Column 2:
Richmond
Coulmn 3:
4
Coulmn 4:
New Richmond Facility Project


Row 12:
Column 1:

Column 2:
Capital
Coulmn 3:
2
Coulmn 4:
Curseen-Morris P & DC


Row 13:
Column 1:
GL
Column 2:
Greater Indiana
Coulmn 3:
2
Coulmn 4:
Indianapolis MPA

Row 14:
Column 1:

Column 2:
Northern IL
Coulmn 3:
3
Coulmn 4:
Palatine P & DC


Row 15:
Column 1:

Column 2:

Coulmn 3:
2
Coulmn 4:
Carol Stream P & DC


Row 16:
Column 1:

Column 2:
Central IL
Coulmn 3:
2
Coulmn 4:
Fox Valley P & DC

Row 17:
Column 1:

Column 2:

Coulmn 3:
2
Coulmn 4:
South Suburban P & DC

Row 18:
Column 1:

Column 2:
Southeast MI
Coulmn 3:
2
Coulmn 4:
New Royal Oak Facility Project
End of Table.	

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
This is a continuation of the Phase-One site specific deployment schedule.
End of Slide 17.



Slide 18:
United States Postal Service Logo in the far left top corner.
Has the heading: New Equipment – Flat Trays
The words included are:
Prototype Trays – Under Development
Table:
Table has 10 rows and 3 columns:
Row 1:
Column 1:  
(Header)Tray Type
Column 2:  
(Header)Contents
Coulmn 3:
(Header)Where used

Row 2:
Column 1:  
Automation Compatible Tray (ACT)
16”x16.25”x10.4”
Column 2:  
(bullet)Mail to be sequenced
Coulmn 3:
(bullet)Mail preparation

Row 3:
Column 1:  

Column 2:  
(bullet)12” mail
Coulmn 3:
(bullet)Automated  Induction (ai)

Row 4:
Column 1:  

Column 2:  

Coulmn 3:
(bullet)ITC output


Row 5:
Column 1:  
Rigid Captive Tray
(RCT)
19” x 13.75”x 12”

Column 2:  
(bullet)1st pass & 2nd pass in process mail
Coulmn 3:
(bullet)Sorter outputs

Row 6:
Column 1:  

Column 2:  
(bullet)Sequenced mail
Coulmn 3:
(bullet)In process tray staging

Row 7:
Column 1:  

Column 2:  
(bullet)9” mail
Coulmn 3:
(bullet)ITC Input

Row 8:
Column 1:  
Street Tray
17.83”x12.125”x6”
Column 2:  
(bullet)Verticalized mail for carrier
Coulmn 3:
(bullet)ITC output dispatch


Row 9:
Column 1:  

Column 2:  
(bullet)15” mail
Coulmn 3:
(bullet)Dispatch

Row 10:
Column 1:  

Column 2:  

Coulmn 3:
(bullet)Mail Carrier
End of Table.	

Image Information:
At the far right is six images, 2 in one row, 2 in the next, and 2 in the next, as follows:
Empty Plastic Green crate.
Plastic Green crate with mail inside it.

Empty Plastic Blue box.
Plastic Blue box with mail inside it.

Empty Shallow Plastic Yellow box.
Shallow Plastic Yellow box with mail inside it.

PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Now I will begin to introduce you to some of the new equipment that we’ll see emerge with the FSS system.
Automation Compatible Trays (ACT) – the green tray is familiar as we are currently using this tray in our Automatic Induction (ai)/ AFSM-100 program.  Flat mail will be preped into the ACTs at the Stand Alone Mail Prep stations.  The trays will automatically be placed on dollies for induction into FSS machines via the Dolly Induction unit
Rigid Captive Tray (RCT) – the blue trays serve as output bins in the FSS sorter.  These trays never leave the sorting machine.   The rigid captive tray has a unique bar code which functions as a license plate for tracking through the system. 
Street Tray – the yellow street trays are used to transport sequenced, “verticalized” flat mail from the plant to the delivery units.  The street tray is ergonomically designed and holds about 15” of flats.
End of Slide 18.



Slide 19:
United States Postal Service Logo in the far left top corner.
Has the heading: New Equipment - FSS Street Tray
The words included are: Prototype – Under Development
Image Information:
In the middle of the page is an image of a yellow plastic box holding mail inside it.
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
This is a close-up picture of a yellow street tray– as you can see the street tray contains “verticalized” flats, about 15” of mail.
These are the trays that hold the output sequenced flat mail from the FSS machine and are transported to the delivery unit (bypassing any manual sortation) and will be loaded directly into the delivery vehicles. 
Each tray will also have its own unique bar-coded label.
End of Slide 19.



Slide 20:
United States Postal Service Logo in the far left top corner.
Has the heading: New Equipment - Dolly
The words included are:
Prototype – Under Development

Image Information:
There is an image of a dolly with six green crates that has mail inside the crates, stacked in the dolly.
There is an image of a green crate with mail inside it, under the dolly image.
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Dollies:  A dolly is a new piece of mail transport equipment used to transport ACTs between the Stand-Alone Mail Prep (SAMP) unit and the FSS machine.
Each dolly will have a unique Surface Visibility (SV) license plate and will hold 12 ACTs. 
End of Slide 20.



Slide 21:
United States Postal Service Logo in the far left top corner.
Has the heading: New Equipment - Transport
The words included are:
Carrier Automation Street Tray Rack (CASTR)
Prototype – Under Development

Image Information:
There is an image of a dolly with twelve yellow crates that has mail inside the crates, stacked in the dolly.
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Another new piece of mail transport equipment being introduced with the FSS system is the Carrier Automation Street Tray Rack (CASTR).
The CASTR will be utilized for transporting the yellow street trays of sequenced “vertalized” flats from the FSS machine and, ultimately from the plant to the delivery unit.  
CASTR loading is a function of the FSS machine.  Each CASTR will have a unique Surface Visibility license plate and will hold 12 street trays.  The empty street trays are automatically exchanged for full ones. 
The CASTR acronym will soon become a familiar term throughout the Postal Service. 
End of Slide 21.



Slide 22:
United States Postal Service Logo in the far left top corner.
Has the heading: New Equipment – Vehicle Stowage & Retrieval
The words included are:
Vehicle Stowage & Retrieval System
Prototype – Under Development
Image Information:
In the middle of the page, there is an image of trays that has plastic boxes with mail in it, being loaded or unloaded from a mail jeep.
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
A new Long Life Vehicle (LLV) Stowage and Retrieval System will be deployed for vehicles servicing the FSS sites.
Four different prototype stowage and retrieval systems are being tested in the Northern Virginia District.  The units are designed to provide ergonomic solutions / tools for loading, organizing, conveyance and presentation of mail to the letter carrier.
The stowage and retrieval systems will provide efficient staging and a solution for managing containers of mail inside the carrier vehicle.
Testing will continue to take place during the pre-production operation in Dulles and a final design is expected in July 2008.
End of Slide 22.



Slide 23:
United States Postal Service Logo in the far left top corner.
Has the heading: FSS Processing Strategy
The words included are:
(checkbox used for bullet)17 Hour Run Day (Operating Window)
(checkbox used for bullet)280,500 Sequenced Pieces Per Day Per Machine
(checkbox used for bullet)1st and 2nd Pass are Run Consecutively
(checkbox used for bullet)Each Zone Will be Run Once a Day
(checkbox used for bullet)One Dispatch Per Day Per Zone (other than FCM)
(checkbox used for bullet)FCM May Not be in DPS based on FSS Operating Window and Mail Availability

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
FSS sequencing operations will begin early in the operating day – each FSS machine will sequence mail for approximately 17 hours on an average day.  This translates to about 280,500 sequenced flats per day, per machine. 
The FSS two-pass process is different from our DBCS letter two-pass process.  With FSS, the first and second pass are run consecutively and each zone will only be run once per day, and the expectation is one dispatch per zone per day, other than FCM.
Each machine can serve 40 to 50 carrier-routes per run.
FSS is principally targeting Standard and Periodical mail.
Depending on the window and mail availability, FCM may not be in DPS.
End of Slide 23.



Slide 24:
United States Postal Service Logo in the far left top corner.
Has the heading: Mailing Industry Impacts
The words included are:
1.  Increase Customer-Applied Delivery Point Barcodes
2.  Improve Address and Barcode Readability 
3.  Evolving Standards for Machinability 
4.  Standard Address Placement
5.  Match Mail Preparation Requirements to Processing Needs
6.  Changes in Entry Points and Critical Entry Times

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Now that we understand a little about the FSS system, let’s talk about some of the impacts on you, members of the mailing industry. 
Our systems and yours are interdependent and we are working closely with mailing industry representatives through the Mailers Technical Advisory Committee (MTAC) to craft solutions that result in the lowest combined costs. 
As we move from a manual process to automated sequencing of flats, we will need to implement changes in flat mail design, addressing, barcoding, mail preparation, entry points and critical entry times.  
We will look at each of these impacts in a little more detail. 
End of Slide 24.



Slide 25:
United States Postal Service Logo in the far left top corner.
Has the heading:  Increase Customer Applied Delivery Point Barcodes
The words included are:
(bullet)Transition from 9-Digit to 11-Digit
(bullet)Move From 11-Digit to Intelligent Mail Barcode
(bullet)Intelligent Mail Barcode is Available Now for Flats 

2007 Flat Barcode Analysis Barcode sampling results - January 2007

Image Information:
Under the bulleted text above is an image of a barcode.

Right next to the bulleted text above is an image of a pie chart and it is as follows (from right to left):
White: (arrow pointing to words to color)No Barcode 7%
Red:    11-digit 60%
Blue:   9-digit 33%
Black:  (arrow pointing to words to color)5-digit <1%
End of Pie Chart.

PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
One important strategy is to increase the number of customer applied Barcodes.  
In January 2007, a Barcode analysis test was conducted in Northern VA, the results indicate that 93% of the flat mail has a Barcode.  Sixty percent of the flats sampled had an 11-digit barcode and 33 percent had a 9-digit barcode.   
For the future success of flats sequencing we need to transition from 9-digit to 11-digit Barcodes, and move from an 11-digit to the Intelligent Mail Barcode.
The Intelligent Mail Barcode is available now for flats.
End of Slide 25.



Slide 26:
United States Postal Service Logo in the far left top corner.
Has the heading: Improve Address and Barcode Readability
The words included are:
(checkbox used for bullet)Standard Destination Address Block
(checkbox used for bullet)Address Construction Improvements
(bullet)Font Size, Horizontal and Vertical Character Spacing, and Extraneous (to the address) Information
(bullet)Barcode Location
(checkbox used for bullet)Reduce OCR Return Address Reading Conflicts
(checkbox used for bullet)CASS Certification™ Requirement
(checkbox used for bullet)DPV™ Requirement
(checkbox used for bullet)MOVE Update Requirement

Image Information:
At the far right is an image of a barcode.
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Even though machines sort on the barcode, when one is present, overall address readability is essential; such as font size, clear zone and line spacing.  In today’s environment– not all flats are prepared with barcodes, and recent testing on barcode quality identified that barcodes may be smeared and unreadable. 
Additionally, our letter carriers must be able to read the address information, and future enhancements such as Postal Automated Redirection System (PARS) will also require an OCR readable address. 
In order to claim automation discounts, the address to which you are mailing must have the primary street number validated through CASS (Coding Accuracy Support System) certification, which now also includes Delivery Point Validation. 
The Postal Service offers support in ensuring that your mail piece design and address construction meets our requirements and recommendations. Contact your district Business Mail Acceptance office to locate the Mail-piece Design Analyst nearest you.
End of Slide 26.



Slide 27:
United States Postal Service Logo in the far left top corner.
Has the heading: Evolving Standards for Machinability
The words included are:
(checkbox used for bullet)Automation Flats
(bullet)Flexible
(bullet)Rectangular
(bullet)Uniformly Thick
(checkbox used for bullet)Polywrap Standards 

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Recently, we have taken steps to make sure our flats are more compatible within today’s automated processing environment– as we move into an FSS environment, we may need to make additional revisions.
In order to maximize throughput on the machine and to enhance the productivity of carriers, we have made some adjustments in the definition of automation flats and the standards for polywrap. 
One substantial change is that flats must be flexible, so cardboard boxes and hard plastic DVD cases no longer qualify for flat rates. 
Polywrap standards were modified to eliminate “blocking”, a situation where the pieces are fused to one another. Obviously, when blocking occurs it is impossible to feed the flats on automated equipment. 
Evolving standards reflect changes in operations and the marketplace.  Standards for mail-pieces that align with our processing systems are important as they will create a more efficient mail system so that the overall cost of using the mail is as low as possible.
End of Slide 27.



Slide 28:
United States Postal Service Logo in the far left top corner.
Has the heading: Standard Address Placement
The words included are:
(checkbox used for bullet)Orient Address Location for Carrier Street Handling 
Implement MTAC Workgroup 101 Results

At the far left there is a box drawn that is green and it has the following:
Two address labels shown vertically and 2 thin arrows pointing up to them and it has the words 'Can face left or right'.

Directly next to the green box drawn above is another green box drawn and it has the following:
One address label shown horizontally and 1 thin arrow pointing up to it and it has the words 'Can be left or right justified, or centered.'.

Directly below both of the boxes that are drawn and is another green box drawn and it has the following:  
One address label, upside down, shown horizontally and 1 thin arrow pointing to it and it has the words 'Address orientation restrictions will be determined by the USPS (e.g., cannot read
upside down when  at the top) based on the needs of delivery.'and at the far right side of this green box is an think arrow pointing to the edge of the box and the words 'Bound edge on right '.

At the far right there is a yellow box with the following words inside it:
(bullet)This could represent the front cover or back cover of the mail piece.  
(bullet)Customer address and optional delivery endorsement can appear anywhere in the address zone (top third above the dotted line) when the bound edge is aligned to the right.
(bullet)Customer number, source code and messaging can appear anywhere on catalogs.

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
In an FSS environment all flats are output from the FSS machine with the bound edge on the same side, and the addresses must be placed in a manner to increase the ability to locate and see the address block when the flats are “verticalized,” or placed standing up.  Standard orientation of the address location is essential for the letter carrier street handling– particularly now that carriers will no longer handle, orient, and sort each flat.
MTAC Workgroup #101 surveyed a cross section of mailers and developed a recommendation on standard address placement for FSS that would meet the major needs of most mailers.  
The address can appear on either the front or back cover of the mail piece so that when the flat is viewed with the bound edge on the right, the address is located at the top. It can be perpendicular or parallel to the bound edge, final fold or longest edge.  However, the address may not read upside down when viewed as shown.   
Look for the specific proposed requirements in the near future in a Federal Register and we welcome your input on these proposals. 
End of Slide 28.



Slide 29:
United States Postal Service Logo in the far left top corner.
Has the heading: Match Mail Preparation Requirements to Processing Needs
The words included are:
(checkbox used for bullet)Shift from CR-RT Presort to FSS Scheme Sort for FSS Zones
(checkbox used for bullet)Evaluate the Preparation of FSS Bundles on Pallets, Each With One or Multiple Set of FSS Schemes
(checkbox used for bullet)Evaluate Non-compensated FSS Scheme Bundles– Secured by One or Two Straps
(checkbox used for bullet)Target the Use of APPS for the CR-RT and 5-Digit (Non-FSS), 3-Digit, and ADC Bundles to the Greatest Extent Possible
(checkbox used for bullet)Promote Co-palletization
(checkbox used for bullet)Promote Co-mailing 
(checkbox used for bullet)Continue to Promote the Drop-shipment of Flats Deep into the USPS System

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
Another MTAC Workgroup (#115) is looking at feasible options for preparation and entry of flat mail in an FSS environment. 
The goal of this group is to look at optimum mail preparation that will reduce handlings and costs both for you and for the Postal Service. 
Flats for FSS zones will no longer have a need for pieces to be prepared separately by carrier-route, but would benefit from the development of FSS Schemes which can result from two to three zones being combined for a single run on FSS.   
The MTAC workgroup is also exploring options for multi-scheme pallets of non-compensated bundles, which would reduce the time required to prepare the mail to be fed into the machine.  These proposals would continue to promote the practices of co-palletization and co-mailing.
The drop-shipment of flats deep into our system continues to be an important cost reduction strategy. 
End of Slide 29.



Slide 30:
United States Postal Service Logo in the far left top corner.
Has the heading: Changes in Entry Points and Critical Entry Times
The words included are:
(checkbox used for bullet)The Postal Service is Optimizing the Co-location of FSS, APPS, and AFSM 100 Machines Where Space Allows
(checkbox used for bullet)Objective is to Consolidate the Entry of Flats to Facilitate More Efficient Processing Through the Use of APPS and the FSS Equipment
(checkbox used for bullet)Evaluate Critical Entry Times (CET) for Flats

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
We understand that additional entry points drive up your costs. Therefore, where space allows, we are striving to co-locate all types of flat sorting equipment with the FSS machines. There is an expectation that as volume is consolidated on FSS and APPS machines for a larger geographic area, entry points for flats should not increase and may in fact decrease.
Current Critical Entry Times (CET), especially for Periodicals are under review.  The CET, preparation of FSS mail and upstream processes will directly impact the flats DPS percentage.  Striving for the highest DPS% is our objective.  
CETs cannot be evaluated independently– the postal legislation signed into law by President Bush on December 20th requires the Postal Service to establish service standards and a measurement system for each market-dominant product.  CETs not only play a role in DPS%, they establish a “start-the-clock” for any service measurement system.
End of Slide 30.



Slide 31:
United States Postal Service Logo in the far left top corner.
Has the heading: Summary – Flats Supply Chain Vision
The words included are:
(checkbox used for bullet)Drive Down Costs Through Automation
(checkbox used for bullet)Enable Future Growth
(checkbox used for bullet)Improve Processing Performance and Service
(checkbox used for bullet)End-to-End Visibility
(checkbox used for bullet)Create Lowest-Combined-Cost System

Image Information:
PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
In summary, our investment in FSS is to expand our strategy to drive down costs by replacing manual labor with automation technology. 
This will enable us to:
Absorb future growth in delivery. 
Improve our processing performance and service.
Provide you end-to-end visibility and information about the mail.
And, create the lowest-combined-cost system for the Postal Service and our customer.
End of Slide 31.



Slide 32:
United States Postal Service Logo in the far left top corner.

The words included are:
There is the words 'Thank You', that are in three D.
Directly under that is the word 'Questions', that is also in three D.

Image Information:
Over the word 'Questions' is a cartoon image of a pair of hand, clapping.

PCC (Us Postal Service Postal Customer Council) Logo in far right corner.
End of Image information. 

Notes:
At this point I have time for a few questions. 
End of Slide 32.