® flats sequencing system (fss) november 20, 2008 rosa fulton phil fabrizio
TRANSCRIPT
®
Flats Sequencing System(FSS)
Flats Sequencing System(FSS)
November 20, 2008November 20, 2008November 20, 2008November 20, 2008
Rosa FultonRosa Fulton
Phil FabrizioPhil Fabrizio
AgendaAgenda
FSS Pre-production / Production
Flat Volume Update
Phase 1 Capacity Review
● Forecasting for Change
Flats Track – National Postal Forum 2009
Pre-production & Production Program UpdatePre-production & Production Program Update
Dulles P &DCDulles P &DC
Dulles FSS StatusDulles FSS Status
Preprod FSS Install & Operational Complete
1st Production FSS Install & Ramp-up Complete
Production Pre-Test In-progress
Acceptance Test Nov 24th
2nd Production FSS Installation In-progress
3rd Production FSS Installation Nov 2008
Dulles Operational Ramp-upDulles Operational Ramp-up
Production FSS Seven Sort Schemes
● 10 Delivery Units
● 19 Zones
Sort Scheme Zones
Reston Annex 20191, 20194
Fairfax Main 22030, 22035, 22038
Sterling MainReston Main
20164, 2016720190, 20195
McLean 22101, 22109
BurkeCulpeper
22009, 2201522701
Alexandria – Belle ViewAlexandria – Engleside
2230722309
Falls Church 22040, 22043, 22046
Preproduction FSS Four Sort Schemes
● 3 Delivery Units
● 4 Zones
Sort Scheme Zones
Arlington - South 22204
Arlington – North 22207
Manassas 20109
Manassas 20110
FY 2008 SPLY Comparison FY 2008 SPLY Comparison
RPWMonthly - Total Flat VolumeFY 2007 / FY 2008 - Comparison
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Pie
ces
(000
)
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 3,763,803 4,287,702 4,060,164
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 3,483,190 3,672,144 3,806,478
Amount Change (846,418) (460,710) (419,784) (473,671) (314,320) (766,694) (465,557) (518,693) (428,889) (280,613) (615,558) (253,686)
Percent Change (14.5) (8.9) (10.7) (10.7) (7.8) (16.6) (10.6) (12.3) (11.6) (7.5) (14.4) (6.2)
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
First Class Periodicals Standard Total Flats
2007 4,080,168 8,664,060 39,042,289 52,410,240
2008 3,462,942 8,466,043 34,107,189 46,610,045
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Piec
es (0
00)
FY 2008 Total Flat Volume & Volume by ClassComparison to SPLY
-15.1
-11.1
-2.3
-12.6
FY 2008 SPLY Comparison FY 2008 SPLY Comparison
FY 2008 YTD Total Flat Volume Decline
-11.1%FY 2008 YTD Total Flat Volume Decline
-11.1%
RPW
Decline-5.8
Billion Flats
Decline-5.8
Billion Flats
FY 2008 SPLY Comparison FY 2008 SPLY Comparison
RPW
20
25
30
35
40
45
50
55
60
Flats Yearly Volume Trend2001-2008
Flat Vol. Billions 58.2 57.8 51.7 52.4 53.9 53.8 52.4 46.6
2001 2002 2003 2004 2005 2006 2007 2008
Lowest Volume Since 1997Lowest Volume Since 1997
Flat Volume 2006 – 2008 Comparison Flat Volume 2006 – 2008 Comparison
2006 2007 2008
53.8 Billion 52.4 Billion 46.6 Billion
Flat Volume Decline-1.4 billion
Flat Volume Decline-5.8 billion
-2.6% -11.1%
Zones Required to Support 100 FSS
1,300 1800 2400+
Original FSS Capacity ModelOriginal FSS Capacity Model
Capacity ReviewCapacity ReviewCapacity ReviewCapacity Review
Baseline Model - 2006
Recast Model with 2007, then 2008 Data
Candidate Zone Criteria for 32 FSS Sites
8,943 Zones Expanded to 12,460 Zones
Sweet Spot Focus on 2,484 Zones
FSS Scheduler Activities for 100 FSS
Capacity Scenario Based on 2008 Actual Data
What If - Sensitivity AnalysisWhat If - Sensitivity AnalysisWhat If - Sensitivity AnalysisWhat If - Sensitivity Analysis
Applied Volume Loss Sensitivities
● Possible Incremental Declines
Scenarios Performed
● Over-deployment Risks Identified
● Implementation Scheduling Impacts
Modeled Loss Scenarios for all 32 Sites
Identified Low, Medium and High Risk Sites
Identified Reaction Timelines
Next StepsNext Steps
Due Diligence Trigger Points
Deeper Dive Highest Risks
Developed an Early Warning System
Identified Alternate (Phase 1A – 2) Sites
Last Resort - Redeploy, if/when Necessary
National Postal Forum 2009 PlanningNational Postal Forum 2009 Planning
National Postal Forum
®
®
Flats Track Proposal – NPF 2009 Flats Track Proposal – NPF 2009
Combine Periodical Track, Printer Track and Flats Symposium into One Flats Track
Target Workshops to Support all Flat Mailers
Total of 12 Workshops
Certificate Program
● Participants Required to Attend a Total of 4 Workshops and the Tuesday General Session to Receive Certificate
NPF 2009 - Flats TrackNPF 2009 - Flats Track
Workshop # 1 2 3 4 5 6
WorkshopTitle
USPSFlats
Strategy
AddressingStandardsfor Flats
(Includes IMB)
Future Prep& Entry for
Flats
Co-mailCo-Pallet
Co-Binding
The Skinnyon
Slim Jims
Future of
Catalogs
TargetAudience
Periodical Mailers Periodical Mailers Periodical Mailers Periodical Mailers
Catalog Mailers Catalog Mailers Catalog Mailers Catalog Mailers Catalog Mailers Catalog Mailers
Printers Printers Printers Printers Printers Printers
Proposed Workshops
Workshop # 7 8 9 10 11 12
WorkshopTitle
Building YourPeriodical Business
Optimizing Postage
Savings, Small Volume
Periodicals
PeriodicalPricing
Managing Postal
Budget & Cost Reduction
Opportunities
Nuts & Boltsof
Periodicals
Printers Expand into
Mailing10 Steps to
Success
TargetAudience
Periodical Mailers Periodical Mailers Periodical Mailers Periodical Mailers Periodical Mailers
Printers
Flats Track Proposal – NPF 2009 Flats Track Proposal – NPF 2009
Finalize Workshop Descriptions
Finalize Speakers
Finalize Format of Each Workshop
Next StepsNext Steps
ConclusionConclusion