(Module 1) Flats Sequencing System (FSS) Overview Workshop-in-a-Box


Slide 1:
PCC (US Postal Service Postal Customer Council) Logo in far left corner.
United States Postal Service Logo in the right top corner.
Has the heading:  Flats Sequencing System (FSS) 
The words included are:
Insert Name Here
Insert Title Here
Insert Date Here
PCC Workshop-in-a-Box 
End of text information.

Image Information:
At the far right middle is a snapshot of a Flats Sequencing System.
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 XX 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.



Slide 2:
United States Postal Service Logo in the far left top corner.
Has the heading: Agenda 
The words included are:
(square used for bullet)Flats Sequencing System (FSS) at a Glance
(bullet)FSS Video
(square used for bullet) Background & Flats Strategy
(square used for bullet) Deployment Timeline
(square used for bullet) FSS Equipment & Processing Strategy
(square used for bullet) FSS Program Status & Results
(square used for bullet) Mailing Industry Impacts
(square used for bullet) Conclusion & Questions
End of text information.

Notes:
The agenda for today’s workshop will cover:
(square bullet) Flats Sequencing System (FSS) at a Glance–I’ll share what the machine looks like including a brief video of  FSS, later in the presentation I’ll go more in depth on the functionality of FSS.
(square bullet) Background – Why the USPS is investing in FSS.
(square bullet) Flats Strategy – How we plan to proceed.
(square bullet) Deployment Timeline – the schedule and thinking behind development and deployment of FSS.
(square bullet) FSS Equipment & Processing Strategy – I’ll introduce some new support equipment and walk you through the processing strategy for FSS.
(square bullet) FSS Program Status & Results - We have a year of experience operating the FSS and I will bring you up to date on the program. 
(square bullet) Mailing Industry Impacts – what changes are on the horizon and what we need to start thinking about in the world of FSS?  
(square bullet)Conclusion & Questions – lastly, I’ll wrap-up and provide time for follow-up questions.
(square bullet)
End of Slide 2.



Slide 3:
United States Postal Service Logo in the far left top corner.
Has the heading: Flats Sequencing System Overview   
End of text information.

Image Information:
Two Images.
Image 1:
At the middle is a snapshot of a Flats Sequencing System that has round circles pointing to different parts of the machine.  The circles are as follows, starting from left to right, going up and down:
Tray Staging
Dolly Induct
Flats Sorting Machine
Integrated Tray Converter
Feeders / Auto-Induction
End of Image 1.
Image 2:
A snapshot of a Stand-Alone Mail Prep with a round circle with the words inside the circle as follows:
Stand-Alone Mail Prep
End of Image 2.
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.
A little later in the presentation I’ll describe how mail flows through the FSS system in more detail.  Note to presenter:  This sentence can be eliminated if you do not present the module on the FSS system.
FSS video – show FSS video (2 ½ minutes) – for a copy of the video contact Cathy Moon of the FSS Project Office at: cathy.l.moon@usps.gov 
End of Slide 3.



Slide 4:
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.” 
End of text information.

Image Information:
At the far left is a snapshot of the cover of the Strategic Transformation Plan 2006 - 2010.
End of Image information. 

Notes:
Background and Flats Strategy
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.  
I think it’s important to begin with pointing out how the FSS program fits the strategies outlined in the Strategic Transformation Plan.  
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 4.



Slide 5:
United States Postal Service Logo in the far left top corner.
Has the heading: USPS Salary & Benefits: $54 Billion  
End of text information.

Image Information:
At the middle is a snapshot of a pie chart.  The chart is as follows, showing colors and text:
Red = Delivery 43% 
Light Blue = Vehicle Services 2.4% 
Pink = Maintenance 6% 
Turquoise = Customer Service 16% 
Blue = Other Functions 9% 
Dark Blue = Support 0.9% 
Yellow = Mail Processing 22% 
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 $80.1 billion annually (source: 2007 Annual Report).
Salaries and benefits are $54 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 142 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 5.



Slide 6:
United States Postal Service Logo in the far left top corner.
Has the heading: What is Flat Mail? 
End of text information.

Image Information:
At the middle is 4 images with text under them and they are as follows, starting left to right:
Image 1:
Cartoon hand putting a large envelope in a mailbox.
Text under image:
Large Envelopes
Image 2:
Assortment of 5 magazines covers.
Text under image:
Magazines 
Image 3:
Assortment of Newspapers
Text under image:
Newspapers
Image 4:
Assortment of Catalogs 
Text under image:
Catalogs 
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 FSS technology sequences flat-shaped mail in delivery order.
Flat-shaped mail consists of large envelopes, catalogs, circulars, newspapers and magazines. 
End of Slide 6.



Slide 7:
United States Postal Service Logo in the far left top corner.
Has the heading: What is Delivery Point Sequencing? 
The words included are:
Technology Places Mail Pieces into Exact Order of Delivery. 
End of text information.

Image Information:
An aerial shot of a subdivision.
End of Image information. 

Notes:
Before we go any further I think it’s important to ensure that everyone is clear what we mean by delivery point sequencing.

Simply stated—delivery point sequencing or what we refer to as DPS is using technology to sort mail in the precise order in which a letter carrier delivers their route. 
End of Slide 7.



Slide 8:
United States Postal Service Logo in the far left top corner.
Has the heading: Let’s Take a Step Back. 
End of text information.

Image Information:
An old time snapshot of an elderly woman standing on her front porch, waiting as the mailman goes through the mail to give to her.
End of Image information. 

Notes:
To further explain–let’s take a step back in time.

Prior to automation, preparing mail for delivery was purely a manual process.

Now I’ll take a minute to walk you through the process that was in place before automation.  
End of Slide 8.



Slide 9:
United States Postal Service Logo in the far left top corner.
Has the heading: Manual Sequencing for Delivery.
End of text information.

Image Information:
A snapshot of a mail clerk putting mail in the carrier case slots.
End of Image information. 

Notes:
Before we used automated equipment to sequence mail it was sequenced manually by each letter carrier for each route.

Looking at this picture–this is a typical delivery case and each of the slots on the carrier case is a delivery point (stop), or delivery address–the delivery stops on the case are positioned in delivery order, or the way a carrier delivers their route.  The route order starts on the bottom left and the last stop is on the top right.

I’d also like you to note that this carrier case operation takes up 120 square feet.  I am going to come back to that point later in the presentation. 
End of Slide 9.



Slide 10:
United States Postal Service Logo in the far left top corner.
Has the heading: DPS Letters 
End of text information.

Image Information:
A snapshot of stacks of carts with mail in each cart.
End of Image information. 

Notes:
This picture identifies a typical delivery unit today—the letter mail is sorted in delivery order by automated equipment replacing the manual sequencing process that was performed by a letter carrier.

The letter mail arrives at the delivery unit in trays for the carrier’s route.  It is sequenced for delivery and is staged by the back door so a carrier can take it directly to the street bypassing any handling within the delivery unit.  
End of Slide 10.



Slide 11:
United States Postal Service Logo in the far left top corner.
Has the heading: Letter Mail Technology (City) – DPS Trend 
End of text information.

Image Information:
A snapshot of a chart for the DPS Letter and Cased Volume History (City Delivery).
The chart goes as follows:
At the far left, the percents are:
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Under the chart it goes from 1993 - 2008 YTD
The words 'Fiscal Year' is under the years.
There is a red line coming from the 100.0 percent with the words 'Cased Letters' under it and the line goes to a box with these words inside it:
(square bullet) USPS Has Sequenced Letters Since 1993
(square bullet) Resulting in Over $5 Billion Annual Savings
End of red line.
There is a green line going to 0 to 89% with the words 'DPS Letters' above it. It goes from the years 1993 - 2008.
End of green line.
End of Image information. 

Notes:
Let’s take a look at the impact of letter automation over time.

We have been using high speed sorters to automatically sequence mail since 1993.
We currently have over 8,000 machines supporting the delivery point sequencing of letters for over 89 percent of our letters, or nearly 120 billion pieces each year. 

(Click here for build)

The benefits have been substantial.  We are avoiding costs of over 5 billion dollars annually from this automation effort.
Presenter notes: this is a build slide. 
End of Slide 11.



Slide 12:
United States Postal Service Logo in the far left top corner.
Has the heading: Annual Flat Volume 
The words included are:
52 Billion Flats 
FY 2007 (RPW) 
End of text information.

Image Information:
At the middle is a snapshot of a pie chart.  The chart is as follows, showing colors and text:
Red = Periodicals 17% 
Blue = Standard Mail 75% 
Green = First-Class 7% 
Yellow = Other 1%
End of Image information. 

Notes:
Now let me set the stage for flats sequencing.
We process over 52 billion pieces of flat mail annually.  This is about one-quarter of the overall 212 billion pieces of mail we receive each year.  Keep in mind that there are 3 times more letters than flats.

It’s important to understand how flat mail classes differ from letters, as a result of the difference we are able to implement a somewhat different operating strategy for flats than what we have in place for letters.  I’ll discuss the FSS processing strategy a little later. 

When we look at how this pie of flat mail volume is divided, we see that Standard Flats account for 75% of the volume, Periodicals account for 17%, and First-Class accounts for only 7%.
The 1% other is Priority Flats and Package Services. 
End of Slide 12.



Slide 13:
United States Postal Service Logo in the far left top corner. 
Has the heading: Replicate Letter Mail Success for Flats.
End of text information.

Image Information:
A snapshot of a person driving a mail truck showing in the left outside mirror.
End of Image information. 

Notes:
We now have technology for flats that will allow us to replicate what we have done for letters.
You’ll hear more about the FSS equipment in a minute.
I think it’s important to describe the overall benefits of the FSS program.
Presenter notes:  this is a build slide (the mail truck moves in the mirror)
End of Slide 13.



Slide 14:
United States Postal Service Logo in the far left top corner.
Has the heading: FSS Benefits. 
The words included are:
(square used for bullet) Substitute Technology for Manual Labor 
(square used for bullet) Manage Delivery Growth
(square used for bullet) Reduction in Future Delivery Vehicles
(square used for bullet) Reduction in Facility (Delivery Unit) Space Needs
(square used for bullet) Improve Processing Performance and Service
(square used for bullet) End-to-End Visibility
(square used for bullet) Create Lowest-Combined-Cost System
End of text information.

Image Information:
At the far left is an image of a dollar sign on top of paper money.
End of Image information. 

Notes:
In addition to substituting the manual casing of flats with technology– there are many other benefits from Flats Sequencing.  Sequencing both letters and flats greatly expand the benefits to the USPS, well beyond labor savings.
The FSS program 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.   
Managing our Vehicle Fleet will be realized by our ability to absorb growth, adding fewer routes and ultimately purchasing fewer delivery vehicles.
Reduction in delivery unit space needs 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.  
Other benefits include: Processing Performance Improvements and End-to-End 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. 
End of Slide 14.



Slide 15:
United States Postal Service Logo in the far left top corner.
Has the heading: FSS Deployment Timeline.  
The words included are:
There is a table.
Table has:
6 Rows
2 Columns.
Table:
Row 1:
Column 1: (header) Prototype – Indianapolis IN 
Column 2: Apr. 2006

Row 2:
Column 1: (header) BOG Approval 100 Production FSS Machines 
Column 2: Dec. 2006 

Row 3:
Column 1: (header) Pre-production Install – Dulles P&DC 
Column 2: Sept 2007 

Row 4:
Column 1: (header) First Production FSS – Install & Test 
Column 2: July – Oct. 2008 

Row 5:
Column 1: (header) Phase 1 Deployment Begins 
Column 2: Oct. 2008  

Row 6:
Column 1: (header) Phase 1 Deployment Ends – 100 FSS 
Column 2: Oct. 2010 
End of table.
End of text information.

Notes:
The overall development and deployment timeline of FSS is a multi-phase approach:
A prototype machine roughly ½ the capacity 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 has been installed at the Dulles VA Processing & Distribution Center (P&DC) in Northern VA.  This pre-production operation is sequencing flats for nine delivery units, and working with this machine for the last year has allowed us to fully test the equipment, further develop processes and methods, and gain valuable operating experience–we will apply the knowledge we gained 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 15.



Slide 16:
United States Postal Service Logo in the far left top corner.
Has the heading: Phase 1 Deployment – 100 Systems. 
The words included are: 
(square used for bullet) 28 Districts
(square used for bullet) 32 Processing Facilities (FSS Locations)
(bullet) 27 Existing Processing Centers
(bullet) 5 New Facilities 
(square used for bullet) 2 - 5 Systems per Facility
(square used for bullet) 1,800+ Zones 
End of text 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 28 Districts–over 1,800 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 16.



Slide 17:
United States Postal Service Logo in the far left top corner.
Has the heading: Phase 1 FSS Deployment Sites. 
The words included are:
There is a table.
Table has:
15 Rows
4 Columns.
Table:

Row 1:
Column 1: (header) Area
Column 2: (header) Districts 
Column 3: (header) # FSS 
Column 4: (header) Plants / Facility – FSS Location 

Row 2:
Column 1: (header) NYM 
Column 2: Northern NJ
Column 3: 4 
Column 4: New Jersey Bulk Mail Center (BMC) 

Row 3:
Column 1: (header) Blank
Column 2: Long Island NY 
Column 3: 3 
Column 4: Mid Island NY Processing & Distribution Center (P&DC) 

Row 4:
Column 1: (header) Blank
Column 2: Central NJ 
Column 3: 3 
Column 4: Trenton NJ P&DC 

Row 5:
Column 1: (header) NE 
Column 2: Boston 
Column 3: 3  
Column 4: Northwest Boston P&DC 

Row 6:
Column 1: (header) Blank
Column 2: Massachusetts 
Column 3: 4 
Column 4: Middlesex Essex P&DC 

Row 7:
Column 1: (header) Blank
Column 2: Connecticut 
Column 3: 5 
Column 4: Springfield MA BMC 

Row 8:
Column 1: (header)
Column 2: SE New England
Column 3: 3 
Column 4: Providence RI P&DC 

Row 9:
Column 1: (header) EA 
Column 2: Columbus 
Column 3: 3 
Column 4: Former Columbus OH P&DC  

Row 10:
Column 1: (header) SE 
Column 2: South Florida 
Column 3: 5 
Column 4: New South Florida Logistics & Distribution Center (L&DC) (Miami) 

Row 11:
Column 1: (header) Blank
Column 2: Atlanta 
Column 3: 4 
Column 4: Atlanta BMC 

Row 12:
Column 1: (header) Blank
Column 2: Central Florida 
Column 3: 4
Column 4: Orlando P&DC

Row 13:
Column 1: (header) WE 
Column 2: Colorado / Wyoming 
Column 3: 5 
Column 4: Denver P&DC 

Row 14:
Column 1: (header) Blank
Column 2: Arizona 
Column 3: 5 
Column 4: New West Valley (Phoenix) 

Row 15:
Column 1: (header)
Column 2: Mid America
Column 3: 2 
Column 4: Kansas City P&DC
End of table.
End of text information.

Notes:
The next two slides identify the specific locations where the Phase-One, 100 FSS machines will be deployed.
The deployment strategy targeted 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 17.



Slide 18:
United States Postal Service Logo in the far left top corner.
Has the heading: Phase 1 FSS Deployment Sites. 
The words included are:
There is a table.
Table has:
Table has:
19 Rows
4 Columns.
Table:

Row 1:
Column 1: (header) Area 
Column 2: (header) Districts 
Column 3: (header) # FSS 
Column 4: (header) Plants / Facility 

Row 2:
Column 1: (header) PA 
Column 2: Los Angeles 
Column 3: 2 
Column 4: Herb Peck Annex (Los Angeles) 

Row 3:
Column 1: (header) Blank
Column 2: Sacramento  
Column 3: 3 
Column 4: Sacramento P&DC 

Row 4:
Column 1: (header) Blank
Column 2: Bay-Valley/San Francisco 
Column 3: 4
Column 4: San Jose P&DC 

Row 5:
Column 1: (header) Blank
Column 2: Sierra Coastal 
Column 3: 4 
Column 4: Van Nuys Main Office 

Row 6:
Column 1: (header) Blank
Column 2: Santa Ana 
Column 3: 3 
Column 4: Aliso Viejo CA DPC 

Row 7:
Column 1: (header) Blank
Column 2: Blank
Column 3: 2 
Column 4: Anaheim CA Processing & Distribution Facility (P&DF) 

Row 8:
Column 1: (header) Blank
Column 2: San Diego 
Column 3: 2 
Column 4: Moreno Valley DDC (Perris CA) 

Row 9:
Column 1: (header) CM 
Column 2: Greensboro 
Column 3: 2 
Column 4: Raleigh NC P&DC 

Row 10:
Column 1: (header) Blank
Column 2: Blank
Column 3: 2 
Column 4: Greensboro NC P&DC 

Row 11:
Column 1: (header) Blank
Column 2: Northern VA 
Column 3: 4 
Column 4: Dulles VA P&DC 

Row 12:
Column 1: (header) Blank
Column 2: Richmond 
Column 3: 4 
Column 4: New Richmond VA Facility Project 

Row 13:
Column 1: (header) Blank
Column 2: Capital 
Column 3: 2 
Column 4: Curseen-Morris P&DC (Washington DC) 

Row 14:
Column 1: (header) GL 
Column 2: Greater Indiana 
Column 3: 2 
Column 4: Indianapolis Mail Processing Annex (MPA) 

Row 15:
Column 1: (header) Blank
Column 2: Northern IL 
Column 3: 3 
Column 4: Palatine P&DC

Row 16:
Column 1: (header) Blank
Column 2: Blank
Column 3: 2 
Column 4: Carol Stream P&DC 

Row 17:
Column 1: (header) Blank
Column 2: Central IL 
Column 3: 2 
Column 4: Fox Valley P&DC

Row 18:
Column 1: (header) Blank
Column 2: Blank
Column 3: 2 
Column 4: South Suburban P&DC 

Row 19:
Column 1: (header) Blank
Column 2: Southeast MI 
Column 3: 2 
Column 4: Michigan Metroplex (Royal Oak)
End of table.
End of text information.

Notes:
This is a continuation of the Phase-One site specific deployment schedule. 
End of Slide 18.



Slide 19:
The words included are:
Questions.
End of text information.

Notes:
We will accept questions about this module at this time.
End of Slide 19.