Minutes of the Mailers Technical Advisory Committee December 12, 1996 Welcome - John Wargo John Wargo opened the meeting and introduced William Henderson, Chief Operating Officer. Remarks - Bill Henderson Mr. Henderson noted that mailing volumes were strong and that the financial report was positive for the last accounting period. He expressed appreciation for MTAC's help in moving through the reclassification process. He referred to a recent meeting of the top 700 USPS executives. At the meeting they reaffirmed their commitment that service remains the first priority across the Postal Service organization. He took a moment to recognize the outstanding contributions made by the MTAC chairperson, Yvonne Reigle, noting her special leadership in establishing implementation teams for reclassification reform, and commending her on the MTAC organization changes that resulted in more flexibility and responsiveness. Mr. Henderson presented Ms. Reigle with a special caricature illustrating her tenure as chairman, noting that it would be signed by MTAC members. Remarks - John Wargo Mr. Wargo continued the special recognition part of the agenda by presenting plaques to outstanding outgoing members who had made notable contributions to MTAC's recent accomplishments: Charles Pace for outstanding efforts in the Periodicals area, and Ted Russell for his work in helping develop the national account program. He also expressed a special appreciation for the chairperson's service, noting that Yvonne Reigle was especially valuable because of her ability to recognize the broad range of customer needs and to develop rationale that supported those needs which has helped USPS management in making policy decisions. He praised Ms. Reigle for her ability to work within the unique framework of the USPS, being neither a private company nor a federal agency. Mr. Wargo introduced William Dowling, Vice President, Engineering, who discussed progress in implementing a more effective flats sorting system, the FSM-1000. FSM-1000 Deployment and Future William Dowling Mr. Dowling announced that a sorting device had been developed that could handle virtually any flat, especially some of the problem pieces that the current system, FSM-881, could not easily sort: very small pieces, newspapers, polywrapped items, and flimsy materials. He explained that the key technology change had been the elimination of a mechanical "finger" that helped propel pieces through the system. In response to a question from a member, he noted that the equipment could handle pieces in any dimension configuration within specs, in a smooth curve from minimum size to maximum size. Mr. Dowling noted that the FSM-1000 was similar in throughput volume to the current machine, but that it could handle smaller pieces (4" x 4" versus 6" x 6"), thinner pieces (.007 inches thick versus .009) without any stiffness requirement, and considerably thicker and heavier pieces (1.25 " thick, up to 6 pounds). On the maximum side, the new equipment only adds .75" to the length, but this allows the majority of newspapers to be included. He explained that, although almost everything passes through the sorter without problems, some tabloid newspapers with a single fold and no stapling or tabbing sometimes causes jams. And although all polywraps move easily through the system, when bar code readers are added, it is necessary that the polywrap be taut against the bar code label. Installation was already under way, with 26 machines currently in the field, with 102 total expected to be installed by June of 1997. Mr. Dowling said that the Board of Governors had approved an additional 240 FSM-1000 sorters, which were on order and full installation of all 342 machines was planned for completion by August 1998. He added that the same bar coder that had been successful on the FSM-881 was being tested on the FSM-1000 with positive results, with reading rates of 95%. After Board approval, which is anticipated, the bar code readers should begin appearing on equipment as early as fall 1997. In response to a question from a member, he added that there were no plans to test the optical character recognition system now being attached to the FSM-881. On other subjects, he said that there were no plans to co-mingle parcels in the FSM-1000 system, and that the FSM-881 would remain a valuable part of the process for at least the next five years. The criteria for placing this equipment is derived from a careful study of the mail flow across the entire USPS system. Fall Holiday Mailing Season Recap Nick Barranca Mr. McGee expressed appreciation for Mr. Dowling's presentation and introduced Nick Barranca, Vice President, Operations Support, who provided a brief report on the holiday mailing season preparations. Mr. Barranca presented a series of charts that showed past performance, volumes, problem areas and other circumstances that affect mail delivery during the peaks of the holiday season. He noted that, at the end of the last fall season, there was a complete analysis of operations, including a look at circumstances apparently beyond management control such as weather that adversely affected air transport capabilities. Looking for ground transportation alternatives in the affected geographical areas is part of this year's operations plan, he said. Field management is provided with detailed analysis of last year's operations, looking at customer needs by area and product, on the premise that customers may well have similar needs this year. Both local management and management at the national level have developed plans for adding infrastructure, some of which is firm, some conditioned on developing needs. On the service side, Mr. Barranca pointed out that one statistic had improved greatly in the last few years. Vans failed percentage had dropped from an average 35% to less than 5% during most of the current year. When that percentage climbs to as much as 10% on occasion, the trouble can usually be traced to a few BMC's with very specific problems. Turning to some minor problems in parcels, some of the delays can be traced to specific equipment failures at specific BMC's. The management response is to make network changes that send parcels around these bottlenecks, until the equipment can be repaired. On the delivery side, the numbers show that delays were substantially below last year's, in spite of increased volume in general. Delays reported on the delivery side relate to whether mail moves within the operating plan, which assumes mail arrives at a particular time and moves through the system at a specific rate. Mr. Barranca explained that, starting in early December, there would be an increased focus on managing transportation and tracking priority service. Delivery units that contribute to delayed parcels and delayed priority volume would be identified rapidly, to give management early warning of any problem areas. The operations centers are geared to respond to customer inquiries and to provide proactive support to solving problems. Mr. Barranca shared the results of a national customer survey that revealed that 97% scored customer service as good, very good or excellent. Mail equipment rated 92%. He added that most of the survey result was more positive that in the last two years. He closed by assuring the MTAC that the same analysis of operations was occurring that had been done during the previous two years, and that adjustments were being made to keep service during the peak period as high as possible. Next Mr. McGee introduced Joseph Harris, Manager, Planning and Support Systems. ADVANCE Joseph Harris Mr. Harris, noting that ADVANCE measures performance for Standard A non-automated mail, said that participation was increasing on a daily basis. New software was in the testing stage that would allow some quality assurance, improve the accuracy of the information, eliminate the current dependency on CC-mail by moving much of the process to a web site. A major impact will come from the web site, perhaps even allowing users to get real-time information. Part of the improvement relies on the addition of a new computer system which will start installation after the first of the year, and which should improve feedback times to users. In response to questions from the members, Mr. Harris explained that the new software and computer installation might enhance the ability to enter real time arrival information through a bar code process. He also noted that automated letters would not be part of the ADVANCE system. Mr. Harris noted that there were two objectives to the new ADVANCE system: First, to provide a better planning tool by providing more rapid access through the web page; the second, to provide a measurement of performance on the part of the USPS. To participate, Mr. Harris added, call (800) 458 3181. Following are additional questions from the members: Are you aware of Mail.Dat, and could you integrate the data requirements to participate in ADVANCE into Mail.Dat? Yes, we are aware of Mail.Dat. We were invited to the early planning sessions of Mail.Dat and gave our requirements to the group responsible for the data format. Why are we not able to get delivery performance information for the New York Area in the last few months? The New York Metro Area was selected as our Beta test site for the new software. In order to properly test the system, it was necessary to deactivate the current software; thus reducing the number of delivery units to about eight test sites. When we release the new software, you will experience a temporary reduction in delivery unit coverage; however, we will notify you of our plans and their impact on delivery unit coverage. I am having a problem with the timeliness of data transmission from the delivery unit, especially for when the mail arrived. A delivery unit should enter the date the mail arrived on the day that it does arrive, and should transmit that information to the Area Office on the same day so it will be available to you through RIBBS the following morning. Is there any way to reduce the "eight days in advance" requirement for the submission of data files/mail pieces to the NCSC? We are exploring ways to reduce the requirement by two days in order for the NCSC to process and transmit the information to the Area Offices at least 3-5 days before the requested first in-home delivery date. The preliminary guidelines would be the (1) electronic transmission of the data files through RIBBS or Compuserve (the Internet will be available early next year), (2) the mail piece must have reached the NCSC and, (3) Day 6 prior to the first in-home date cannot be a Saturday or Sunday. Drop Ship Appointment System Maurice Curtis Mr. McGee introduced the final speaker of the meeting, Maurice Curtis, Operations Specialist, Operations Support, who discussed the Drop Ship Appointment System. He explained that the current appointment system allowed a 30-day advance notice down to a 24-hour notice, and included standing appointments, and appointments relating to drop and pick, palletized load, bed loaded, and perishable. The system allows mailers to negotiate better transportation and logistics for mailings, and allows the USPS to create better operating plans. Problems include customers blocking out an excessive number of appointments (which affects the ability of other customers to obtain appointments), and the other irregularities that include no shows, and appointments canceled on short notice. In addition, documentation problems arise when drivers do not have appropriate appointment information. Finally, there have been some concern that drivers will not help unload a bed loaded appointment even though they are required. Mr. Curtis listed some improvements and changes, including an increase in reporting capabilities, and the ability of the system to accept the ADVANCE program. Customers can now reschedule appointments with greater ability. In the future, he said, there will be improvements in the batch system, which allow larger mailers to process a greater number of appointments at the same time. Mr. Curtis shared some statistics, which showed that the basic numbers were up slightly across the board, but that there was a clear indication that drop shipments were finding their way to the SCF level, the five digit zip, and moving out of the BMC area. He also pointed out that a little over half of all appointments were related to palletized shipments. He noted that a total of 604,964 appointments were made and completed in 1996. Closing Remarks Yvonne Reigle Ms. Yvonne Reigle closed the meeting, expressing thanks to Alan Kline, chairman of the finance committee, for working out a dues reduction for members, making dues $500 per annum. She also voiced her appreciation for the staff and committee members who had supported her during her term. MTAC First-Class Mail Subcommittee Meeting Minutes December 11, 1996 1. Delivery to the Mailbox by Outside Providers Jim Campbell and Mike Motley, representatives from GAO, who work with the House and Senate oversight committees that deal with Postal activities reported on what kind of an impact there would be if the Private Express Statutes were either changed to some degree or eliminated in total. The report focused on four areas: (1) history and the current status of Private Express Statues and its enforcement; (2) the development in recent years of private letter delivery by private carriers or alternate delivery firms; (3) evaluation of the financial impact on the Postal Service if there were changes in the statutes; and (4) what have foreign countries done with regard to changing their monopolies as well as universal service activities Other issues of consideration for this report included: (1) What's the main basis of a monopoly to begin with, why in fact did you have it? (2) Universal service uniform rate, are those the kind of things you want to hold on to? (3) What's the impact of an outside organization looking at changes in Postal rates like the Postal Rate Commission, if you were to open the Postal Service to greater competition? (4) What's the impact of all this on all the stakeholders, not only the Postal Service but the American public and the competitors? The report provides numerous estimates of the impact on not only the 32 cents rate, but all the other rates. It was assumed that attributable costs would be reduced commensurate with the volume reductions, which is the assumption used in ratemaking. The results of this report basically state that if you were to change the Private Express Statutes, the likelihood or the greatest impact would be on Priority Mail. 2. Status of Move Updating and FASTforward The Postal Service announced that there will be an extension of the transition period for the implementation of the Move update requirement - July 1st - by which everyone must have completed and be in compliance with the Move update requirement. Additional information on this is provided in the December "Mailroom Companion," and the December 5th Postal Bulletin. Regarding FASTforward, currently there are 183 users who have applied for and received the licensing agreement from the Postal Service. Approximately 50 of those have completed the self- certification process, and testing with a couple of manufacturers has begun. A fee structure for retrofitting machines with FASTforward has not been determined. 3. Priority Mail Task Force Update Work on the Priority Mail redesign continues. Solicitations are out on the street and are now in the process of being reviewed. Implementation design of the network is being worked on internally. The Postal Service objective related to Priority mail redesign is directly related to getting a two-day product that will be able to penetrate the entire Continental United States. A final decision is scheduled for February. 4. EXFC Quarterly Update The overnight scores are 91 percent for Quarter IV in comparison to 87 percent. Two and three-day scores were 80 and 83, respectively, with no change from same period last year. There is internal discussion going on related to two and three-day issues. Historically, it has been noted that as First-Class scores improve, two and three-day scores are tied to it and continue to improve. Currently this is not happening, and the Postal Service is looking at how to improve the two and three-day scores. Approximately 50 percent of First-Class mail has an overnight delivery standard. The remaining portion is divided equally between a two and three-day delivery standard. In addition, it was requested that issues for the March MTAC meeting be related to the new work group process, i.e., a work group on the two and three-day scores. Minutes to MTAC Parcel Meeting December 11, 1996 Lloyd Karls, Industry Chair Richard Sherrill, Postal Chair 1. Ashley Lyons discussed Reclass They are set to go to BOG on Jan 6 Are in process of compiling data If approved would go to PRC in mid-January Barcode discount is being considered Test year is'97, but is up to BOG 10 cent surcharge can't be discussed 130 inch issue can't be discussed Costing data is not shared with anyone prior to submission to BOG Surveys to mailers may be shared. Ashley will follow up 2. John Mulkay gave a BMC update BMCs are doing well Some problems with appointments Please call John if you have problems Reclass has caused some problems. Caused Holiday mail to start 5 weeks early $162M spent in projects at BMCs this year Some stated that this year was not as good as last 3. Rick Glickman discussed barcodes Some technical issues have not been resolved The first series of tests have been completed on high induction system There are two functional types of barcodes: (1) routing code (2) parcel i.d. Engineering is suggesting the 128 barcode Hope to complete test this month Past presentations are available by contacting Rick Is barcode discount in this rate case? Not known There is not the infrastructure within the USPS for a 2D barcode at this time. The state of the art is just now reaching point of reading parcel post. Rick will look into the IBIP 2D barcode issue Discussion on the size of the barcodes and the amount of real estate they take up. 4. Phil Parizino gave an update on the Parcel Subcommittee meeting. 5. Julie Rios gave an update on Track and Trace Testing started in the end of October There are several test customers. After the first of the year, there will be more test customers. Julie showed examples of the delivery confirmation label Discussed costing/pricing issues of whether the mail is accepted through retail or not. TNT is working on delivery confirmation and signature capture. May '97 there should be a decision on TNT. Minutes to MTAC Parcel Working Group Tuesday December 10, 1996 Phil Parizino, Industry Chair Richard Sherrill, Postal Chair 1. Rick Glickman was not present (you can read his comments from the MTAC Parcel meeting from the 11th, from the following printed message, from a telecon held on 12/16/96, and the attached presentation) "We're still conducting operational testing of the bar codes we recommended earlier this year/. Assuming things go OK in these tests, we plan to issue the spec in it's final form after that (early 1997). Based upon what we've seen so far, the only change we might make to the draft we've circulated previously is to have nominal x-dimension of 15 mils (as opposed to a range of 15-20 mils). With the 0.75" height, we were having some troubles reading some of the codes. Since we don't want to increase the height to 1" (which would make the problem go away), and there wasn't a similar problem at 15 mils (it's all related to aspect ratios), we can just stick with 15 mils +/- some tbd tolerance. No other news to report at this time. I hope to issue the final specs no later than March." On the 12/16/96 telecon Rick stated that he hopes on have the barcode issue resolved within a couple of months and then to start operational testing. This would involve some mailers and a BMC. Implementation would still be at least a year away. On the issue of impact printers, Rick stated that the issue was a quality assurance of the barcode. Some impact printers are not properly maintained and therefore do not produce a quality barcode. 2. Scott Bombaugh spoke on ABE (Automated Barcode Evaluator). This device checks for items such as: Width between bars, calibration standards, height calibrations. Datamax Corp has a model for app $4,000. 3. Ed Ruiz discussed conditions at the BMCs The BMCs are having good volume this mailing season 2-3 BMCs have had problems, but these are being corrected There have been problems with appointments due to customers not keeping their scheduled times. Ed suggested calling your BMC manager if you are having problems. Some present said they called the National Control Center and were told to call their BMC. Some present said they were having delays of 9-10 days. Some present said they called their NAM whenever they had problems. Some present said that the mailers needed to make sure they applied labels correctly, apply correct barcodes, and if problems arise, then to present specific data to the postal service so that they can investigate. Ed stated that reclass had had an effect on the mailing season. Ed offered to help in any way he could. Please contact him if necessary. It was suggested a rep from delivery and/or the control center speak at the next meeting. Addressing and ZIP+4 Subcommittee Three Digit Realignments Bob Munley began the meeting with a discussion of the three digit area realignments which are currently under review at Headquarters. He added that there may be more proposals received from field operations. The proposals under review include the area around Fort Lauderdale, Clearwater and Saint Petersburg, and Atlanta. These realignments will impact existing three digit areas; there are no plans at this point to activate any new three digits. Bob added that the realignments of 1996 were very successful with no service impact being recorded by field operations. He also stressed that a key element in successful implementation of changes is an active communication plan in keeping customers informed about the change and the implementation date. Small Mailers Issues This is a workgroup, led by Dan Goodkind of MASA and Sharon Coruzzi of the USPS, which is trying to ensure that very low volume mailers have the right information to make a decision on how to prepare mailings, e. g., whether or not it is cost- effective to purchase ZIP+4 coding software based on the volumes that they mail. The materials developed by this group will help educate the mailer, as well as postal employees who have contact with mailers, on the best practices solution for their situation. One member suggested that incorporating the information into the Business Partners Directories might also help spread the reach. Loop Mail Chris Rebello described situations where loop mail can occur. This is essentially when MLOCRs may apply the barcode for the return address on the mailpiece instead of that of the intended recipient. This occurs when address block or no barcodes have been applied to the mailpiece by the mailer. Some of the problem may be related to a recent expansion of the read area and more sensitive gray-scale readers which are now being used on Postal Service OCRs. Several members provide suggestions like changing font size, using a cursive or italic type, or using a screen in the return address area to help eliminate the problem. Members also suggested that OCR alignments may also need to be checked and corrected. They suggested contacting Operations Support if the location of the problem MLOCR can be determined. Mailers are concerned because this mail being inadvertently returned to sender may result in the deletion of valued customers from the address file. Mailers may identify loop mail by the presence of two barcodes (one in the address block) on the mailpiece or the lack of endorsement for the reason the mailpiece has been returned (e.g. no "Return to Sender" markings). Members also question whether the film on window envelopes may also contribute to the problem. This may be an issue needing referral to a workgroup. Ancillary Service Endorsements Rocky Matthews revealed the results of the Federal Register notice on changes to the ancillary service endorsements. Overall, approximately 20 comments were received and they were generally favorable towards the changes. The final rule will be published in January and implementation is scheduled for July 1, 1997. There will be a six month transition period. After the transition, the use of invalid endorsements will result in Address Service or Return Service being provided as appropriate. Rocky added that Forwarding Service has been added as an option. Members raised concerns about the timing of the implementation against their need to prepare to meet the Move Update requirement date. They questioned how soon mailpieces bearing these endorsements could appear. One member also voiced concern about the proposal to allow First Class mail to be discarded at the mailers request. Alternative Placement of Service Endorsements Susan Hawes touched on the fact that possible changes to the placement of the service endorsements are being worked through the Move Update IRT group. The proposed changes include the current placement, below or to the left of the postage area and above the address block. There will be a 6 month test of the possible changes to run concurrent with the changes in endorsements. The training and awareness campaigns will be meshed together. Members expressed concern about the number of lines which would appear in the address block. The electronic only endorsement has languished due to the lack of resolution on the treatments of pieces which always result in a returned mailpiece. This issue was also a possible workgroup issue. Use of Default Codes for High-density Addresses Peter announced that the file of addresses where the Postal Service will require secondary (apartment/suite) numbers has been posted on RIBBS. It consists of 962,000 addresses where delivery point sequencing is already in place for letter sized mail. Mailers may use this file to evaluate the impact of this requirement on their address records and determine the number of addresses where they currently lack secondary information. Members questioned the impact on Periodicals who currently have no Line of Travel requirement. However, the value of exact addresses to ensure timely delivery service cannot be disputed. NYC Apartment Numbering Project Gus Katsanis from the New York Metro area discussed the Key program. In July 1998, mailers will need to use a four digit "Key" number when mailing to residential customers in Manhattan--three digit prefixes 100, 101 and 102. Currently New York has gathered name and address data for 70% of the residential customers in multi-unit buildings. In mid 1997, the Postal Service will begin offering matching services which will provide Key numbers to mailers for their addresses impacted by this program. Postal Service directories are being altered to allow the assignment of the proper ZIP+4 Code and Delivery Point Barcode when Key numbers are present, so that all mail can be properly sequenced. The Postal Service will also be looking for carriers in New York to provide feedback when a key number is omitted from a change of address order. This will allow the proper updating of the key file as well as the National Change of Address data files. Members questioned what information the change of address services will return, apartment numbers if provided or key numbers only. This question has not been fully resolved. Members also questioned what the notification plan to residential customers would be and about plans for ongoing reinforcement of the need to use the key number data. Changes to Delivery Point Barcode Extraction Rules Paul Bakshi mentioned that the Postal Service will be asking mailers to change the way delivery point barcode information is created. This is related to both the New York Key project and the need to have secondary unit information in multi-unit buildings. The calculations would rely on the last two digits of the secondary number. The Postal Service is currently finalizing the algorithm which will be used to calculate delivery point codes in situations where the numbers are not strictly numeric. These changes will be relatively transparent to the user of address matching software, as the changes will be included in the normal CASS testing process. AMS Update Susan Hawes also provided some information about the use of address quality improvement processes offered by the Postal Service. The increase in the use of these product during FY 96 demonstrates the need for improved address quality by both mailers and the Postal Service. They include: National Change of Address service - 2.9 billion address corrections provided to mailers. 700 million more than 1995. Address Change Service - 112.5 million address corrections provided. 5 million more that 1995. 2160 mailers participating. 500 more than 1995. Move Verification Letters - 16.5 million printed and mailed. MoversNet WWW page- 10,000 hits a week. Address Element Correction Service - 13 million addresses corrected. Delivery Sequence File - 4.9 billion addresses matched and validated. 2.3 billion more than 1995. Almost 100% growth. Locatable Address Conversion System - more than one million records added. Currently 3.1 million address links (old to new) in file. USPS WWW ZIP+4 lookup page - averaging 15,000 to 20,000 hits a day. MTAC Periodicals Subcommittee December 11, 1996 Howard Schwartz, Industry Chair Bob Kooken, Postal Chair INTRODUCTION Howard opened the meeting by welcoming all participants to the MTAC Periodicals subcommittee session. Howard then introduced Anita Bizzotto who was asked to respond to the last meetings key issue. AUTOMATION BRM/CRM KEY ISSUE Anita announced that issue concerning non-complying reply mail pieces in Periodicals has been resolved and is covered in detail in the December 5, 1996 Postal Bulletin (copy attached). Anita said that the purpose was to correct non automation compatable pieces rather than penalize mailers at the point of origin. RATES AND CLASSIFICATION SERVICE CENTER CONCERNS Howard asked Bill Judd, Judds Inc., to lead the discussion regarding current issues or rumors concerning potential changes to the structure of the five Rates and Classification Service Centers. Howard asked the Industry group to prepare a formal list of services that we currently receive and find to be invaluable. It is the intent of Industry, to present a formal list of those service to the Postal Service which should be taken into consideration prior to any structure changes. MTAC membership is concerned that the level of service and expertise currently enjoyed by the industry not be jeopardized by structure changes. PALLET LABEL AND MAKEUP FIELD ISSUES Howard next introduced John Rombola, Northeast Area Periodicals Service Coordinator, to give examples of recent labeling and pallet makeup problems commonly found in field. Discussion focused on labeling problems either caused by software or input errors that result in mail being mishandled and can result in service delays. A copy of the label examples are attached. John urged the group to periodically review pallet makeup and compare the label to ensure that the pallet is properly prepared. PERIODICALS FOCUS GROUP REPORT Tom Tully, National Chair for the Periodicals Focus Groups announced that he and all current area Industry chairs have been re-elected for the 1997 term. Tom said that it has been reported that service during the fall mailing season was down. Tom spoke of some areas receiving delivery service 2 to 6 days longer than normal. Tom also discussed an Industry request to clarify if periodicals are entitled to receive the Destination Delivery Unit (DDU) discount for those carrier routed periodicals currently dropped shipped at SCF's where the secondary carrier route distribution is being performed for that particular delivery office. Anita Bizzotto is currently reviewing this with operations and will advise. She will also assist in obtaining a listing of DDU ZIPS that qualify for this discount, if any. Joyce McGarvy, Crain Communications asked Tom if he has heard if there has been any replacement for the Publication Watch, we are under the impression that the replacement Press program, will not be implemented. The industry requires a program that will track and respond to service related issues and currently the Publication Watch program has not proved to be a valuable tool for mailers. We therefore ask for an update on Press or its replacement. POLICY, REQUIREMENTS AND METHODS (PRM) UPDATE ON AMC DIRECTORY AND OTHER ISSUES. Bill Strong, from The Strong Group reported on the PRM workgroup meeting held December 10, 1996. Bill Carleton, Manager, AMC Operations, spoke about the efforts being taken to complete the Air Mail Center (AMC) information guide. He said that he will check where Alice Van Gorder is on her progress with the guide. We now understand that Alice has been reassigned and we have not be advised of a replacement. Bill Strong also announced that the PRM workgroup has planned an AMC field trip to the O'Hare AMC on February 22, 1997. Signed: ------------------------------- Date:--------------- Howard Schwartz Chair Standard Mail Subcommittee Meeting December 11, 1996 Industry Chair: Daniel J. Minnick Postal Chair: Tim Reeter Replacement of EX3C With ADVANCE In response to questions raised during the day, Pat McGee provided explanation of the Postal Service's position regarding the announced discontinuance of EX3C and replacement by ADVANCE. Mr. McGee offered that the USPS no longer felt that the information provided by EX3C and EX2C was not actionable and, therefore, represented about $6 million of incurred costs with no appreciable benefit. He further explained that ADVANCE could provide delivery information that was a fair representation of the mailing delivery to be supported with periodic EX3C verification. He indicated that the Postal Service did not see any value in having aggregate delivery information for Standard Mail. Several in the audience asked about the Postal decision including: - if aggregate results were not of interest, why preserve the First-Class program (EXFC)? - industry testing had shown there were sharp discrepancies between EX3C and ADVANCE. - how would ADVANCE represent a mailing when less than half the involved offices reported? - how ADVANCE could be valuable since it did not measure "to the door"? - if, as stated, $2 million for 2C subscriptions, then was the probable $2 million net for 3C too much for monitoring performance for over 65 billion pieces of mail? Mr. Minnick solicited comments from interested parties after the session. Standard Mail Focus Groups - Report Ruthie Ewers shared how communications and product exposure were greatly enhanced by Focus Groups. As Southeast/Southwest Industry Chair, Ms. Ewers enthusiastically expressed her personal commitment and desire for continuing industry and Postal support for Focus Groups as the singular most important means of getting the word to the masses. She did raise an issue that had come from her Focus Group: why is the "tap test" pertinent when a legitimate barcode has been reapplied to the face of the window envelope? This was acknowledged as over-zealous behavior by the involved Postal Acceptance employees and would be resolved immediately. Many thanks to Ruthie for her dynamic, hard-hitting and humorous remarks. Return Rates for Third-Class Mail Pieces Ashley Lyons sent a note stating that no new action since his last report. Problem Created by Having Less than 200 Non-Barcode Pieces Per Destination Entry Point Cheryl Beller provided a solution for the inefficiency that Classification Reform's creation of essentially three subclasses had fostered within segmentation for Destination Entry. Ms. Beller said that a notice would be published indicating that the eligibility minimum (such as 200) would be applied per "job" as long as all of the "job" was entered at one physical location. This should essentially resolve the issue. Ms. Beller also answered two implementation issues: - Would "fletter" rules relax so more than 10% no-CR/No-barcode could be in a palletized mailing? - Would MxBMC pallet rules relax so more than 10% could exist in a mailing? Ms. Beller said that neither of those scenarios were being considered for change. Update On Proposed "Return to Current Resident" Service Rocky Matthews reported that it was technically feasible to place "mailer criteria" within the ACS system to initiate a return of the mailpiece to the "current resident" after the change-of-address processing had been completed. However, the existing ACS system is maxed-out. Therefore, this process could not be implemented until at least early `98. However, Mr. Matthews is initiating discussions to get procedure, pricing and protocol in place by the technical availability date. Possible New Service - Notification of Delivery Duplicates Rocky Matthews also responded to a suggested new service that would enable carriers to identify and communicate the existence of a duplicate mailpiece within a specific days mail. Mr. Matthews was concerned as to the practicality of such a venture. With automation processing more and more mail directly into delivery sequence, the carrier is denied the opportunity to identify duplicates without bringing them back from the street. What is a duplicate; how would a carrier distinguish between a mailpiece where the same name is a duplicate versus where the mailer intentionally put two pieces into that address on the same day? Mr. Minnick solicited participation in a Task Group for this issue, with Chris Rebello as Leader. You may contact Mr. Rebello at 719-531-2188, or Mr. Minnick at 847-517-5683. CustomerPerfect! - Overview Bob Scanlon presented an overview of the Postal Service's new process quality program. Based upon the criteria used to judge for the Baldrige Award, CustomerPerfect! is a continuous cycle of needs identifications, goal setting and review which through time closely ties process performance to customer needs. Classification Reform Implementation Many thanks to Charley Howard, Dan Goodkind, and the Standard Mail Subcommittee for their insight and diligence in exposing and educating the Postal Service to the serious impact created by the elimination of the Three-Digit Carrier Route Trays. That traying level has been reinstated. However, the change did not include the Three-Digit Carrier Route sacks. Joe Schick described two scenarios where over a thousand "unnecessary" sacks were created in a single string of one mailing. This could mean nearly 100,000 "air" sacks per week out of one of his company's facilities each week. Mr. Minnick asked that more data be collected so that full analysis can be made at the December MTAC meeting. ------------------------------ Daniel J. Minnick, Industry Chair MAILERS' TECHNICAL ADVISORY COMMITTEE ENGINEERING & TECHNOLOGY/TRANSPORTATION SUBCOMMITTEE Industry Chair: Joe Lubenow Postal Chair: Becky Brentlinger PIEX - Rick Graff Centralized debiting is a postage payment option the USPS intends to offer to current CTAS customers. Rosemary Hamel reported that pilot testing with Deluxe Check and the American Management Association is going very well and that this new option will be available for nationwide use by mid-July. Advantages include no need for advance positioning of funds with the USPS, detailed electronic reporting similar to CTAS, and best use of funds. For more information, contact Gwen Gesswein at 202/268-2359. A new project to be pilot tested from July through October is a Postal Payment Card, a private label credit card for use only by business mailers and only for postal services. The business partner of the USPS for this is NationsBank. While the terms are not finalized, it is expected that three days after a mailing, on average, the debit would appear against the mailer's account at the bank. For more information on this attractive payment option, call Dick Curran at 202/268-2884. The Graphic Communications Association's Mail.dat specification has been published, and three major postal software vendors have incorporated the capability in their current product releases. Copies of the specification are available from GCA at 703/548-2867. Mail.dat is an extension of previous GCA standard files that have been used by industry to support mail production and distribution planning. Rosemary Hamel of USPS reported that the Direct Link pilot program, intended to show how Mail.dat can also support mailing documentation and postage payment, is on schedule for testing beginning in late July. Steven Mapp from the Direct Link team demonstrated a PC-based information viewer for Mail.dat, showing different views of the data as it would be used by the mail owner, mail preparer, BMEU/DMU, and entry post office. Discussion followed on the value of such software to user communities and possible product opportunities for the USPS and private industry. Containers and Transportation - Rick Kropski Rick Kropski reported on industry needs for an electronic version of the Form 8125 used in drop shipping. Cheryl Beller and Kyle Pasternak said that the USPS is working toward this goal. Additional work group discussion covered pallet regulations, including the maximum pallet stack of three pallets, and the need to band pallet stacks. Pallet load integrity for pallets of trays is a major concern, and ideas on stabilizing pallets of trays were presented, with field studies to follow. Until these issues are resolved, some lettershops may bedload mail in trays rather than use pallets. A related concern is that presort regulations do not allow three-digit carrier route trays or sacks, which can cause many five-digit carrier route containers with as few as ten pieces of mail. On a separate issue, Rick reported that digest-size catalogs of 5 3/8" by 8 3/8" and similar dimensions will be allowed to be processed as automated flats, if all other requirements are met. These catalogs had been excluded from the "fletter" category of mailpieces which can be either letters or automated flats, but after a meeting with John Ward, will now be included in this category on a six-month test basis. For the industry, this provides a way to avoid preparing these pieces as automated letters, requiring tabbing and traying, and instead to continue preparing them as packages on pallets, subject to the 10% limit on residual mail. Industry representatives contended these pieces were sometimes processed on flat sorters already, based on analysis of delivery patterns. The test allows a 5 3/8" length as oriented on the flat sorter as long as the piece is at least 7 «" in height, it was later clarified. Previously the length had to be at least 6" at this height range. After the six-month test period is concluded, the Postal Service will determine whether the extension to the size range of automated flats can be continued. According to Rick Kropski, an estimated 1.7 billion pieces are potentially affected. The test pieces still must meet requirements for barcode placement and readability and flat mail machineability. The question was raised why this new option was being offered now rather than earlier, since some printers had discouraged their customers from continuing to produce the affected sizes. Part of the answer is the modification to the Model 881 flat sorters to accommodate digest size pieces, which is being installed in second half of 1996. In response to further inquiries, this test does not require prior application by mailers of filling out paperwork. Further questions may be directed to Sherl Johnson at 202/268-5185. Postage Meter Issues - The Postal Service was not able to comment at this time. Peter Moore requested an ad hoc work group on digital encryption issues related to USPS proposed two-dimensional barcoded postage indicia. Several MTAC members agreed to participate. Envelope manufacturers expressed concern about this issue. Operational Impacts of Classification Reform - Bob Sheehan, Rose Barcellona, Gary Litwinowicz - This presentation covered a number of areas as follows: Network Realignment: Bob Sheehan said that the major changes include the elimination of SDC and state/mixed states sortation, the advent of three-digit scheme sortation for automated letters, the assignment of concentration centers for standard mail residue, the updating of transfer hubs for Periodicals, new labeling lists, and the availability of the PASSPORT software for electronic ordering or self-printing of barcoded tray labels. Transportation: The main changes here include the revision of schedules to match new arrival times, and the replacement of the path from SDC to P&DC locations by a path from ADC to P&DC sites. This will result in deeper drop shipment penetration. Mail Transport Equipment: Comparing MTE availability from July 1995 to July 1996, and including equipment both in the field and in storage, Paul Seehaver cited the following statistics: MM trays up from 45 to 59 million EMM trays up from 9.5 to 15.3 million Flat trays up from 3.9 to 8.3 million Half size trays up from 15.4 to 19.8 million Pallets holding steady at 2.6 million Paul said that the Postal Service can get more equipment if needed on six weeks notice. Mailers expressed concerns about having to assemble the cardboard trays. Paul said some mailers prefer assembled trays, but on the other hand these take more space, so others prefer new unassembled trays. A mixture of both types is available, but the Postal Service cannot guarantee that mailers can always get only the type that they prefer. Processing and Distribution Center Operations: Rose Barcellona discussed the impact of receiving more trays, rather than packages and sacks. The USPS intends to eliminate the mechanized LSM equipment by 1998, since it requires 18-20 people to operate, while automated machinery uses only 2-3 people. Classification reform, according to Rose, will generate 19.1 billion additional delivery point barcoded mail pieces. The corollary to this is fewer pieces needing to go through the OCR equipment. Rose discussed the advantages of three-digit scheme sort, and reported that the Postal Service is also working on a five-digit scheme sort. While both of these help mailers attain 150 piece minimums for rate eligibility for automated letters, the five- digit scheme sort is more difficult to implement. This is because different five-digit ZIP codes are processed at different facilities. If mailers use an outdated scheme, service could be impacted, much more so than would be the case with an obsolete three-digit scheme. Furthermore, deployment of equipment such as new carrier sequence bar code sorters will create frequent changes in the five-digit schemes. Rose presented an Equipment Deployment table showing amounts of automation equipment currently and what is expected in the next 18 months: CURRENT FUTURE TOTAL MLOCR (multi-line OCR) 837 38 875 RBCS (remote bar coding) 47 98 145 MPBCS (bar code sorters) 1369 0 1369 AFCS (facer/cancellers) 913 42 955 FSM-881 (flat sorters) 812 0 812 FSM-1000 (new flat sorters) 0 102 102 SPBS (small parcel/bundle sorters) 187 45 232 DBCS (delivery bar code sorters) 2372 978 3350 CSBCS (small bar code sorters) 1859 1285 3144 Totals 8396 2588 10984 Bulk Mail Center Operations: Bob Sheehan discussed the effects of receiving more pallets and many more trays of mail. Studies of BMC capacity have been completed, and expansions have been planned for Philadelphia and Jacksonville, with others on the way. Air Mail Center Operations: An AMC capacity study is also under way, being carried out by Jim Cunningham. An increase in "scan where you band" capability is in process. Delivery Operations: Bob Sheehan said this area would be one of the main beneficiaries of classification reform, with increased delivery point sequencing volumes, cost reductions, and enhanced capacity for other products. Deliver America - Oscar Avant Oscar reported on the Deliver America program, which has the goals of seeking new revenue and mitigating the effects of electronic diversion of current mail. The program calls for kiosks, which are actually consumer shopping stations, to be placed in high traffic locations such as post offices, libraries, and airports. Market testing with 8-10 catalogers is being carried out in locations including Atlanta and Philadelphia from now until the end of 1996. If the program is successful, other locations, including some international placements such as in Japan, will be forthcoming. # # #