PCC Workshop FSS Module 1

Slide 1:
United States Postal Service Logo in far left 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

Presenter notes:  The overall FSS Workshop-in-a-Box presentation is 44 slides and divided into modules that can easily be merged or modified based on the target audience and the time allotted for presenting.  Extensive information on the FSS program is included—presenters can scale the material to fit their individual needs. 
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:
(bullet)Why FSS
(bullet)What is FSS
(bullet)FSS Program Status
(bullet)FSS Redirection  
End of text information.

Notes:
The agenda for today’s workshop will cover:
Background – Why the USPS is investing in FSS. How we plan to proceed with managing flats.
Flats Sequencing System (FSS) at a Glance – I’ll share what the machine looks like and the functionality of FSS.
FSS Program Status & Results -  We have experience operating the FSS and I will bring you up to date on the program. 
FSS Redirection – With volume declines we analyzed equipment needs at each site to ensure all machines are fully utilized. 
Conclusion & Questions – lastly, I’ll wrap-up and provide time for follow-up questions

Presenter notes:   Agenda slide will need to be modified if all four modules are not presented.
End of Slide 2.



Slide 3:
United States Postal Service Logo in the far left top corner.
Has the heading: USPS Salary & Benefits: $53.6 Billion 
End of text information.

Image Information:
At the middle is a snapshot of an pie chart.  The chart is as follows, showing colors and text:
Red = Delivery 43% 
Light Blue = Vehicle Services 2.4% 
Orange = Maintenance 6% 
Dark Green = Customer Service 16% 
Dark Blue = Other Functions 9% 
Black = Support 0.9% 
Yellow = Mail Processing 22% 
End of Image information. 

Under the image is the words:
Source: 2008 Annual Report
End of under the image words.

Notes:
To 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 $75 billion annually (source: 2008 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 149 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 3.



Slide 4:
United States Postal Service Logo in the far left top corner.
Has the heading: Managing Delivery Costs  
The words included are:
(square used for bullet)Incremental Cost Improvements Over the Last 10 Years 
(square used for bullet)Delivery Will Continue to be Largest Cost Center
(square used for bullet)Continued Delivery Point Growth 
(square used for bullet)Strategy for Addressing the Increasing Burden on our Infrastructure 
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:
Over the past 10 years we have reduced costs in our delivery operations, but Delivery will continue to be our largest cost center because of the continued growth in delivery points.  

So the organization developed a strategy to address the cost burden from the growing infrastructure. 
End of Slide 4.



Slide 5:
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:
At the middle is a snapshot of a clock being stretched back.
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 5.



Slide 6:
United States Postal Service Logo in the far left top corner.
Has the heading: Before 1960 – Manual Casing  
End of text information.

Image Information:
At the middle is a snapshot of a rows and rows of cases and clerks sorting mail.
End of Image information. 

Notes:
In the period of manual casing, each facility had rows and rows of cases where clerks manually sorted mail. A mailpiece could require sorting multiple times within the facility in order to be broken down to the carrier route level. Clerks had to memorize the streets that were on each carrier’s route in order to perform this last sortation. 

Once the mail was taken to the local post office, the letter carrier performed the final sort to sequence the mail for delivery.  
End of Slide 6.



Slide 7:
United States Postal Service Logo in the far left top corner.
Has the heading: Era of Mechanization 1960s – 1980s  
The words included are:
Technology Places Mail Pieces into Exact Order of Delivery 
End of text information.

Three Images.
Image 1:
At the middle is a snapshot of a group of clerks sorting mail.
End of Image 1.
Image 2:
At the far right top is a snapshot of a clerk entering a numeric code.
End of Image 2.
Image 3:
At the far left bottom is a snapshot of a clerk coding a destinating mail.
End of Image 3.
End of Image information. 


Notes:
With mechanization we entered a new era with our Letter Sorting Machines or LSM’s which allowed a crew of 17 to sort 36,000 letters per hour. The 12 keyers produced 3,000 pieces per hour compared to a manual sort rate of 700-900 pieces per clerk, per hour. 

Letters were automatically dropped in front of the clerk at a rate of 1 per second and the employee entered a numeric code to represent the destination. 

Mechanization still required clerks to memorize schemes in order to have the ability to code the destinating mail.
End of Slide 7.



Slide 8:
United States Postal Service Logo in the far left top corner.
Has the heading: Era of Automation   
End of text information.

Image Information:
At the center is a snapshot of workers sorting letters and at the far right corner is the year 1993.
Directly below that snapshot is a series boxes with arrows pointing to a mailtruck and they are as follows:
Box 1:
Has the words:
AFCS
At the right of this box is a red arrow pointing to the next box.
Box 2:
Has the words:
MLOCR 
At the right of this box is a red arrow pointing to the next box.
Box 3:Has the words:
BCS 
At the right of this box is two red arrows pointing to the next box.
Box 4:
Has the words:
DBCS
CSBCS
At the right of this box is a red arrow pointing to the mailtruck.
End of Image information. 

Notes:
The 90’s brought the era of automation which reduced the manpower required to sort letters. Additionally, the speed of processing increased dramatically over the mechanized operation and the employee operating the machine did not need to have scheme knowledge to process the mail. For comparison to manual and mechanization operations, realize that automation processed nearly 40,000 pieces per hour with just 2 employees. 

The technology translated a 9-digit ZIP+4 code into an 11 digit barcode utilizing the street address information, which allowed us to sequence the letter mail. 

Flats were still processed using mechanization until about 2000.

AFCS = Advanced Facer Canceller System
MLOCR = MultiLine Optical Carrier Reader
BCS = BarCode Sorter
DBCS = Delivery BarCode Sorter
CSBCS = Carrier Sequence BarCode Sorter  
End of Slide 8.



Slide 9:
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 thinks 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 9.



Slide 10:
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 an mail clerk putting mail in slots of the carrier case.
End of Image information. 

Notes:
Before we used automated equipment to sequence mail it was sequenced manually by a 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 in on the top right.

I’d also like you to note that this carrier case operation takes up 120 sq ft, I am going to come back to that point later in the presentation.  
End of Slide 10.



Slide 11:
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 pictures 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 carriers route, it is sequenced for delivery and is staged by the back door so a carriers can take it directly to the street bypassing any handling within the delivery unit.   
End of Slide 11.



Slide 12:
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 - 2009 YTD
The words 'Fiscal Year' is under the years.
There is a red line coming from the 100.0 percent going to a box with these words inside it:
(bullet)USPS Has Sequenced Letters Since 1993
(bullet)Resulting in Over $5 Billion Annual Savings
End of red line.
There is a green line going to 0 to 90.4% with the words 'DPS Letters' above it. It goes from the years 1993 - 2009.
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 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 and a mail truck showing in the left outside mirror.
End of Image information. 

Notes:
We now have we 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.  
End of Slide 13.



Slide 14:
United States Postal Service Logo in the far left top corner.
Has the heading: Annual Flat Volume  46.6 Billion Flats  FY 2008 (RPW)
End of text information.

Image Information:
At the center is a series of images in two rows
Row 1:
From left to right:
Image 1:
Cartoon hand putting a large envelope in a mailbox.
Image 2:
Assortment of Newspapers
Text under image:
Newspapers
Image 3:
Magazine Cover of Miles Kimba lthat are flats.
Image 4:
Magazine Cover of Oriental Trading that are flats.
Image 5:
Magazine Cover of Potpourri that are flats.
Row 2:
From left to right:
Image 1:
William-Sonoma Catalog Cover that are flats.
Image 2:
Stoney Creek Catalog Cover that are flats.
Image 3:
Snapshot of magazines that are flats.
Image 4:
Snapshot of magazines that are flats.
End of Image information. 

Notes:
Let me set the stage for flats sequencing
We process over 46 billion pieces of flat mail annually.  This is about one-quarter of the overall 200 billion pieces of mail we receive each year.  Keep in mind that there are 3 times more letters than flats.  
End of Slide 14.



Slide 15:
United States Postal Service Logo in the far left top corner.
Has the heading: Annual Flat Volume  46.6 Billion Flats  FY 2008 (RPW)
End of text information.

Image Information:
At the middle is a snapshot of an pie chart.  The chart is as follows, showing colors and text:
Red = Periodicals 20% 
Blue = Standard Mail  73%  
Yellow = STD/Catalogs 7%
End of Image information. 

Notes:
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.
When we look at how this pie of flat mail volume is divided, we see that Standard flats account for 73% of the volume, Periodical flats account for 20%, and First-Class flats account for only 7%.  
End of Slide 15.



Slide 16:
United States Postal Service Logo in the far left top corner.
The words included are:
Questions  
End of text information.

Notes:
If presenting additional modules- eliminate this slide and merge in the next module.

When merging the presentations the opening slide of module may include the background graphics of subsequent slides.  To remove the background graphics go to:

Select <Format>
Click <Background >
Check the box <Omit background graphics from master>
Click <Apply> (do not click Apply to All)
End of Slide 16.