III. Improve Service

Service improvement strategies are concentrated in two broad areas — the speed and reliability of end-to-end mail delivery across all product lines and the quality of customer service provided at all customer contact points. An additional dimension to service is the Postal Service's continuing responsibility to safeguard the mail, protect customer information, and maintain its commitments to the nation and to the individual communities it serves.

1. Provide Timely, Reliable End-To-End Service
During 2006 end-to-end service scores declined in the first three months and rebounded through the rest of the year. The rebound was achieved by the aggressive implementation of process controls that targeted a few persistent problem areas — equipment performance, weekend operations, flats processing, and delivery late in the day. Overall, the Postal Service's annual end-to-end performance scores fell below its targets for the year. However, four of the six Quarter IV service scores surpassed targets, helping set up a strong start for 2007.

To improve end-to-end performance, the Postal Service is working closely with mailers to improve address quality and enhance the ability to track mail throughout the mail value chain. New service measurement approaches are being developed to create a more transparent system. Better quality addressing will increase the amount of mail processed by automation to provide faster, more reliable service. It will also reduce the amount of undeliverable-as-addressed mail, much of which must be handled manually.

Service for remittance mail showed continued improvement. The 2006-1 Phoenix-Hecht Postal Survey reported an average 1.2 nationwide workhour improvement since last year (a "nationwide workhour" measures time for non-local remittance mail to reach its destination). This survey is a statistically valid measure of First-Class Mail remittance mail performance. Conducted since 1968, it reports total float time in the same manner that a remittance processing customer would experience it. Over the past decade, six workhours have been cut from the float. The report also says that strong remittance mail performance appears to be slowing conversion to electronic payment. These service gains are the result of more focus on remittance mail processing, increased dialog with the remittance industry, and standardization of best practices.

Data Analysis, Process Control Driving Service Improvement
The introduction of process controls and Integrated Operating Plans proved valuable this year. The benefits will only expand as highly-disciplined process management moves deeper into operations. 24-Hour Clock indicators, explained in the previous chapter, are improving efficiency and effectiveness across functions.

From Headquarters functions to workroom-floor operations, last year was marked by an intense focus on the use of data to improve operations. Internal use of intelligent barcodes that allow tracking of individual mailpieces helped identify bottlenecks and quality problems. Equipment operating reports provided in-depth data about utilization, performance, and sort quality. 24-Hour Clock indicators identified distribution processes that were not meeting operating plans and not making necessary handoffs. The start up of Surface Visibility scanning allowed managers to identify containers of mail loaded on the wrong transportation or delivered to the wrong facility. Data was integrated and applied to an extent never done before.

Use of CONFIRM to seed letter and flat mail and track mail flows grew rapidly in 2006. The Postal Service is using CONFIRM data in a continual process to refine how mail moves through operations. CONFIRM barcodes identify each mailpiece so that equipment can automatically report the location of a particular mailpiece as it is processed. Together with a wealth of other new tools and systems data, managers have access to quick, in-depth analysis, strengthening local oversight and accountability.

After Quarter I, reviews were conducted to identify areas of opportunity and best practices. Performance was made more visible through ongoing tracking and communication of results compared to goals. Field units were ranked and high performers were recognized. Teams provided support for standardizing best practices to improve underperforming units. Internal communications increased awareness of new analytical tools and highlighted managers who were achieving breakthrough service performance by their aggressive and innovative use of data.