® letter automation history bill galligan senior vice president, operations mtac meeting january...
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Letter Automation History
Bill GalliganSenior Vice President, Operations
MTAC MeetingJanuary 31, 2008
Agenda – Letter Automation HistoryAgenda – Letter Automation History
Four Decades of Change
DPS Today
Next Steps
1960s – 1970s - Mechanization1960s – 1970s - Mechanization
• MPLSM• Mark II facer cancellers
ZIP Code
• Presort mandatory for 2nd & 3rd class mail
• Central Forwarding System (CFS)
• Discounts for presorted 2-C
• Discounts for presorted & CR-RT 3rd class mail
1963
19781967
1979
ZIP Code • Discounts offered for pre-sorted FCM
1963
1960
1976
1970
934 MPLSM deployed CFSMark II facer canceller
1980s – Mechanization & Early Automation1980s – Mechanization & Early Automation
• AMS organization instituted• SLOCR Phase 1 (applied 5-
digit barcode)• BCS Phase I
• MLOCRs (applied 9-digit barcode)• MPBCS• Mark II converted to Micro-marks• Micro-mark Alhambra Mod• ACS• CFS II
• CASS (optional)• Corporate Automation Plan• Pre-barcode discounts• Carrier in-office time exceeds ½
workday
1982
1981 1987
• ZIP + 4 Code instituted• Work-share discounts for FCM -
presort & ZIP + 4 Barcodes
1983
1988
• CR-RT discounts for FCM
• CLASS
1989
• M-36 Cancellers
1984 1986
• SLOCR Phase II (applied 5-digit barcode)
• SLOCR Multi-line conversion (applied 9-digit barcode)
• BCS Phase II• NCOA
BCS SLOCR MLOCR
1990s – Automation & Barcode Sorting1990s – Automation & Barcode Sorting
1992
1991 1993 1995
1990
• Office of Automation Integration
1994 1996 1998
1997 1999
• MLOCR/ISS (applied 11-digit barcode)
• WABCR• DBCS• Delivery point barcode• RBCS 2 pilot sites• MASS certification• 1st tabbing requirements
• RBCS 25 sites / 17 contactor RECs
• MPBCS / OSS• AFCS• Sector segment• CASS (required)
• AFCS / ISS• Delivery point sequencing
• AMS II• RBCS Phase 2• RECs converted to USPS
• Reclassification: bundles to trays• CR-RT only in non-DPS zones• RBCS 120 plants / 55 RECs
• DPS for High-rise• CSBCSs• Recognition programs
• RCR• HWAI• HIP• RIP
• Decommission MPLSMs• REC consolidations
• Move Update• FastForward
a
JOHN DOE987 BLOSSOM RDATLANTA GA 30302-4567
XYZ COMPANY1234 PEACH TREE STATLANTA GA 30303-3421
BULK RATE
U.S POSTAGE PAID
Washington, DC
PERMIT NO. 56
JOHN DOE987 BLOSSOM RDATLANTA GA 30302-4567
XYZ COMPANY1234 PEACH TREE STATLANTA GA 30303-3421
BULK RATE
U.S POSTAGE PAID
Washington, DC
PERMIT NO. 56
Remote Encoding Center Delivery Barcode Sorter (DBCS)Advance Facer Canceller System (AFCS)
2000s Automation & Standardization2000s Automation & Standardization
2002
2001 2003 2005
2004 2006 2008
2007 2009
• DIOSS• DBCS-EC• Planet codes• Confirm• MERLIN
• WFOV
• PARS• Last MPLSM
decommissioned
• Move Update for standard mail• REC decommissioning (8 RECs
remain)• DQI – Phase II (high-rise & handwritten
encode improvements)
• Intelligent Mail Barcode• CASS Cycle M
•SuiteLink
• CASS / MASS Cycle L • DPV• LACSLink
• eUARS• Eliminated CR-RT
2000
• DQI – improve encode rates
• DSMART
• BDS• NCOA Link• ID code sort
MERLINDelivery Input/Output Subsystem (DIOSS) Biohazard Detection System (BDS)
• PARS Phase II• MLOCR Replacement
DPS TrendDPS Trend
DPS Letter and Cased Volume History (City Delivery)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008YTD
Fiscal Year
Per
cent
Cased Letter %
DPS Letter %
85.99%
Cased Letters
DPS Letters
• FY 2007 USPS Sequenced 130 Billion Letters
• Resulting in Over $5 Billion Annual Savings
DPS Today & ImpactsDPS Today & Impacts
DPS Letters
Non-DPS
DPS Letters 86%Non-DPS
Letters 14%
Key Impacts of Non-DPS
1. Operational Processes
2. Technology Capabilities
3. Mail Piece Characteristics
Next StepsNext Steps
DPS Letters
Non-DPS
DPS Letters 86%
Non-DPSLetters 14%
Technology
• DQI Phase II
High-rise
Handwritten
• AFCS 200
Mail Piece Characteristics
• Letter Size Booklets & Folded Self Mailers
Federal Register Notice of Intent: February 2008
• Automation & Machineable Letter Standards
Federal Registers FY 2008
• Value Stream Mapping
• Define, Measure, Analyze, Improve, Control (DMAIC)
• Operational Industrial Engineers
Standardization / Continuous Improvement
ConclusionConclusion