1425-fss Mtac Update08 06 08

®

Flats Sequencing System Update Mailer Technical Advisory Committee (MTAC) August 6, 2008 Cathy Moon FSS Project Office

Agenda



Deployment Status



Flat Mail Volume Update



Pre-Production FSS Operation



Production FSS Dulles P&DC



FSS Optimization

FSS Deployment Timeline Prototype – Indianapolis IN

Apr 2006

BOG Approval 100 Production FSS Machines

Dec 2006

Pre-production Install – Dulles P & DC

Sept 2007

First Production FSS Installation

May 2008

First Production FSS Testing

Sept 2008

Phase 1 Deployment Begin

Oct 2008

Phase 1 Deployment End

Oct 2010

Flat Volume 2006 – 2007 Comparison RPW

2006

2007

Flat Volume – 54 Billion

Flat Volume – 52 Billion

Flat Volume Trend 1995 - 2007

60.0

50.0

Billions

40.0

30.0

20.0

10.0

0.0 Volume

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

39.4

42.4

44.3

52.5

52.6

54.7

55.7

51.6

51.0

51.9

53.4

53.2

51.8

FY 2008 vs. SPLY Flat Volume Comparison Total Flat Volume Oct 2007 - June 2008 - SPLY Comparison

6,000,000

5,000,000

-14.5 -8.9 -10.7

4,000,000

-10.6

-7.8

-10.7

0 )

-16.6

-12.3 -11.6

( s c ie P

3,000,000

2,000,000

1,000,000

-

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

FY 2007

5,831,920

5,188,039

3,941,061

4,423,839

4,029,330

4,610,545

4,374,478

4,213,254

3,686,106

FY 2008

4,985,502

4,727,329

3,521,277

3,950,168

3,715,010

3,843,851

3,908,920

3,694,561

3,257,217

Diff

(846,418)

(460,710)

(419,784)

(473,671)

(314,320)

(766,694)

(465,557)

(518,693)

(428,889)

(14.5)

(8.9)

(10.7)

(10.7)

(7.8)

(16.6)

(10.6)

(12.3)

(11.6)

% Change

YTD - FY 2008 SPLY Comparison FY 2008 YTD Flat Volume vs. SPLY (Oct - June)

RPW

45,000,000

FY 2008 YTD Total Flat Volume Decline

-11.3%

40,000,000

-11.3

35,000,000

30,000,000

( s c ie P

0 )

-13.0 25,000,000

20,000,000

15,000,000

10,000,000

-2.3 5,000,000

0

-15.4 First Class

Periodicals

Standard

Total Flats

FY 2007

3,171,121

6,598,839

30,068,573

40,298,572

FY 2008

2,682,523

6,447,841

26,173,352

35,740,051

Northern VA

Dulles Pre-production Status

Installation Complete

Oct 2007

Integration / Machine Testing

Nov 2007

Live Mail Ramp-up

Dec 2007

Field Pre-Test/Test

Feb /Apr 2008

Full Machine Ramp Up

May 2008

Dulles: Pre-production FSS

Dulles Operational Ramp-up  Bellview Branch  Burke Branch  Culpepper Post Office  Engleside Branch  Fairfax Post Office  McLean Post Office  Reston Branch  Reston Annex  Sterling Post Office  Falls Church – Aug 6th

DPS Flats

FSS Delivery Results

FSS Delivery Results

Dulles 1st Production FSS System

Installation Complete

Jul 2008

Integration / Machine Testing

Aug 2008

Live Mail Ramp-up

Sep 2008

(Move Pre-Production Zones)

Acceptance Test

Sep 1 –Oct 10 2008

Production FSS – Dulles P&DC

Production FSS – Dulles P&DC

FSS Opti mi za tion

Flats Optimization 

Incremental Improvements to Processes



Reduce Variation



Remove Activities that Have no Value to the Organization & Customers



Improve Customer Satisfaction



Standardization

Flats Optimization

Conclusion