7013 1090 0002 4435 9622...1st pir vs pre amp 1st pir vs approved ($984,057) ($68,757) losing...

April 25, 2014

Mr. Mark Dimondstein President American Postal Workers Union, AFL-CIO 1300 L Street, NW Washington, DC 20005-4128

Dear Mark:

Certified Mail Tracking Number: 7013 1090 0002 4435 9622

As information, enclosed is a copy of the First Post implementation Review for Mansfield, Ohio, Customer Service Mail Processing Center (CSMPC) Area Mail Processing (AMP).

In accordance with the Non-disclosure Agreement February 11, 2013 the Postal Service is providing both redacted and unredacted copies of the PIR.

If there are any questions, please contact Rickey Dean at extension 7 412.

Sincerely,

Patrick M. Devine Manager Contract Administration (APWU)

Enclosures

(CA2014-351)

Type of Distribution Consolidated: Orig & Dest

Facility Name & Type: Mansfield CSMPC

Street Address: 200 Diamond Street

City: Mansfield

State: OH 50 Facility ZIP Code: 44901

District: Northern Ohio Area: Eastern

Finance Number: 384851

Current 30 ZIP Code(s): 448,449

Miles to Gaining Facility: 81.5

EXFC office: Yes

Plant Manager: Kathleen Michaels

Senior Plant Manager: Troy Seanor

District Manager: Melvin Anderson

Facility Name & Type: Cleveland P&DC Street Address: 2400 Orange Avenue

City: Cleveland

State: OH 50 Facility ZIP Code: 44101

District: Northern Ohio

Area: Eastern Finance Number: 381670

Current 3D ZIP Code(s): 440-441

EXFC office: Yes Plant Manager: Troy Seanor

Senior Plant Manager: Troy Seanor

District Manager: Melvin Anderson

Approval Date: October 21, 2011

Implementation Date: Jul-01-2013

PIR Type: 1st PIR

REDACTED

Date Range of Data: Jul-01-2013: Dec-31-2013

Processing Days per Year: 310 Bargaining Unit Hours per Year: 1,742

EAS Hours per Year: 1,819 Date of DAR Factors/Cost of Borrowing/

New Facility Start-up Costs Update May 7, 2010

Date & Time this workbook was last saved: I 04-02-2014 13:05

Area Vice President: Vice President, Network Operations:

Area AMP Coordinator: NAI Contact:

Joshua Colin

David E Williams

Bob Roseberry

Doris Billingslea/Daniel Mahnke

PIR Data Entry Page

Flnl!:nca Numi::~ttr: Cvu0nt SCF ZIP C:ode{s):

TlfPII: of nt .. tri?1"m'"'' Ccn!H.llidated:

Numll~~:r:

SCF ZIP Code(s):

!mn!Amil!nt:;J!titul DatE~:

lSl~!~J:Ar;tJ,rry~

Plant M:~n:ut"'

Dil:>tr!ct

~!!ltlG FAC!Ltf:t

P!tU'lt MII'U!I(U!Ir:

Comm,nts: ______________ _

'~-------------------------

Executive Summary Last Saved: April 2, 2014 Date Range of Data:

Losing Facility Name and Type: Street Address:

City:

State:

Current SCF ZIP Code(s):

Type of Distribution Consolidated:

Gaining Facility Name and Type: Street Address:

City: State:

Savings/Costs

Function 1 Workhour Savings

Non-Processing Craft Workhour Savings (less Maint!Trans)

PCES/EAS Workhour Savings

Transportation Savings

Maintenance Savings

Space Savings

Total Annual Savings

Total One-Time Costs

Total First Year Savings

Staffing Craft Position Loss

Service

FCM Service Performance (EXFC & PFCM 0/N)

FCM Service Performance (EXFC & PFCM 2 Day)

FCM Service Performance (EXFC & PFCM 3 Day)

Customer Experience Measurement Overall Satisfaction Residential at PFC level

Customer Experience Measurement Overall Satisfaction Small Business at PFC level

1st PIR vs Pre AMP 1st PIR vs Approved

($984,057) ($68,757)

Losing Current Qtr Gaining Current Qtr

96.24% 96.14%

94. 95.96%

87.08% 85.28%

PIR Type: 1st PIR Jul-01-2013 - Dec-31-2013

from Workhour Costs ~ Combined

from Other Curr vs Prop

from Other Curr vs Prop

from Transportation HCR and Transportation PVS

from Maintenance

from Space Evaluation and Other Costs

from Space Evaluation and Other Costs

from Staffing-Graff

from Service Performance & CSM

from Serv1ce Pelformance & CSM

from St;nvice Performance & CSM



PIR Executive Summary

Combined Losing and Gaining Facility Data: PreAMP Proposed 1st PIR

Function 1 Workhour Costs $77,870,851 $73,549,125 $73,633,413 Non-Processing Craft Workhour Costs

$2,112,144 $1,922,426 $2,565,914 (less Maintenance & Transportation)

PCES/EAS Workhour Costs $10,028,027 $9,170,594 $8,606,623 Transportation Costs $15,071 '140 $15,958,538 $15,084,654

Maintenance Costs $21 ,695,556 $20,481 ,652 $22,042,835 Space Savings $0 $0 $0

Total Annual Cost $126,777,718 $121,082,335 $121,933,439

Total One-Time Costs $0 $915,300 $984,057

Total First Year Costs $126,777,718 $121,997,635 $122,917,496

Staffing

Craft Position Total On-Rolls 1,455 1,341 1,260 PCES/EAS Position Total On-Rolls 98 91 75

1st PIR vs Pre-AMP Approved AMP

Function 1 Workhour Savings $4,237,438 ($84,288) $4,321,726 Non-Processing Craft Workhour Savings ($453,770) ($643,489) $189,719 (less MainUTrans)

PCES/EAS Workhour Savings $1,421,404 $563,971 $857,433 Transportation Savings ($13,513) $873,884 ($887,397)

Maintenance Savings ($347,279) ($1 ,183) $1,213,904 Space Savings $0 $0

Total Annual Savings $4,844,279 $5,695,383

Total One-Time Costs ($984,057) ($68,757) ($915,300)

Total First Year $3,860,222 $4,780,083

Staffing Craft Position Loss 195 81 114

PCES/EAS Position Loss 23 16 7

PIR Executive Summary

Summary Narrative Last Saved: April 2, 2014

Losing Facility Name and Type: Mansfield CSMPC Current SCF ZIP Code(s): 448,449


Gaining Facility Name and Type: Cleveland P&DC Current SCF ZIP Code(s): 440-441

BACKGROUND

The Mansfield OH P&DF is a postal owned facility that processes originating and destinating operations for service areas 448-449. In addition to processing operations, the Mansfield facility is the Main Post Office and houses a retail unit, box section, and Business Mail Entry Unit (BMEU). The building also houses the Federal Building, and the site includes a Vehicle Maintenance Facility. The Mansfield facility is approximately 81.5 miles south west of the Cleveland OH P&DC.

This AMP relocated the 448-449 originating and destinating operations from Mansfield to Cleveland. The PARS/CFS mail is processed at the Cleveland OH Processing and Distribution Center.

FINANCIAL SUMMARY

The projected financial impacts identified with this first 6-month PIR study for this consolidation of processing operations are

Total Annual Savings $4,844,279 Total One-Time Costs ($981 ,057) Total First Year Savings $3,860,222

Combined Losing and Gaining Facility Data: Pre AMP Proposed 1st PIR

Function 1 Workhour Costs $77,870,851 $73,549,125 $73,633,413 Non-Processing Craft Work hour Costs

$2,112,144 $1,922,426 $2,565,914 (les1> Maintenance & Transportation)

PCES/EAS Wor1<hour Costs $10,028,027 $9,170,594 $8,606,623 Transportation Costs $15,071,140 $15,958,538 $15,084,654

Maintenance Costs $21,695,556 $20,481,652 $22,042,835 Space Sav1ngs $0 $0 $0

Total Annual Cost $126,777,718 $121,082,335 $121,933,439

Total One-Time Costs $0 $915,300 $984,057

Total First Year Costs $126,777,718 $121,997,635 $122,917,496

The annualized projected cost (1st PIR vs. Pre-AMP identified with the 6-month PIR is that the AMP is not meeting the projected savings of 5,695,383.

• LDC 36 costs were higher as a result of relocating 23 DBCS machines and removing 4 AFCS machines. APBS 3 was also installed at the Cleveland FSS Annex during this time period.

• LDC 38 exceeded proposed savings due to increased overtime because of a shortage of employees

PIR Summary Narrative

CUSTOMER SERVICE IMPACTS

National Distribution and Labeling List changes were submitted as appropriate for lists L002, L005 & L201 and published in PB 22365 on June 13, 2013.

EXFC scores to Mansfield have been lower since the implementation of the AMP. The Northern Ohio District is evaluating processes to improve service to improve service to this area.

STAFFING

Projections from the AMP study forecasted a net reduction of 114 craft employees with Mansfield losing all114 positions and Cleveland remaining the same. Mansfield eliminated the proposed 114 positions and Cleveland eliminated 81 positions during this timeframe.

EAS staffing in Mansfield showed a reduction of 7 employees. This was in line with the proposed staffing. Cleveland EAS staffing was proposed to remain the same after the AMP but actually reduced by 16 positions.

The staffing impacts on management-to-craft ratios are summarized below.


The staff1ng impacts on management-to-craft ratios are summarized below.

1 Craft= F1 + F4 at Losing; F1 only at Gaining

All affected employees that were reassigned to other Postal facilities were subject to processes outlined in the National Labor Agreements.

TRANSPORTATION

Transportation Savings Variance: $873,884 (PIR vs. Proposed)

The proposed AMP-driven transportation expenses were expected to increase the budget by $887,397 annually. During the after-AMP period, the Transportation deficit* was actually less at ($13 ,513) due to the reduction and combination of truck routes.

*The cost for routes# 44838 and 44882 was estimated (Proposed =PIR), because these HCR contracts have not been finalized. Route# 45022 has cancelled two trips since the AMP, which has reduced the cost. Route# 44025, 440M5, and 44290 were not included in the original AMP.

MAINTENANCE

Maintenance Savings Variance: ($1 ,561, 183) (PIR vs. Approved)

LDC 36--Mail Processing Equipment-($673,782) variance: During this time period and in addition to daily routes, local maintenance had to move 23 machines in automation (including four from Mansfield), remove four AFCS, and support the installation of APBS-3 at the AMC. Some of automation required a subsequent head change and all of automation required realignment.

LDC 38--Building Service-($690,532) variance: To avoid grievance awards/cost, Cleveland is under Article 12 (to provide landing spots for Akron AMP'd employees), which prohibits hiring. Therefore, the overtime-desired list must be exhausted, due to the mandated short staffing.


Additionally, extra labor was required to move offices and prepare the workroom floor for AMP construction/installation activities.

SPACE EVALUATION AND OTHER COSTS

One-Time Cost Variance: $68,757 (PIR vs. Approved)

The switchgear substation installed to increase plant power capacity cost $362,950 more than originally estimated by the FSO. Savings were seen from reduced employee relocation and mail processing equipment relocation expense.


Service Performance and Customer Satisfaction Measurement Last Saved: April 2, 2014

Losing Facility: Mansfield CSMPC District: Northern Ohio

PIR Type: Implementation Date:

1st PIR 07/01/13

Gaining Facility: -:-C;,.:..Ie::..,v,.,:;e..;.;:la;.;.;..n;.::d:::::-P;-;&;.;,;:D:...C;:;.._ ________ _ District: Northern Ohio

(15) Notes: _____________________ _

Satisfaction Measurement (CSM) became Customer Experience Measurem• . Data reflects most recently completed quarter available in CEM.

Overall Satisfaction (Overall Experience)

Satisfaction with Receiving (Experience with receiving)

Satisfaction with Sending (Experience with sending)

Satisfaction with most frequently visited PO (Experience with most frequently visited PC

Satisfaction with most recent contact with USPS (Experience with most recent contact '

Likely to recommend the USPS

PIR Service Performance and Customer Satisfaction Measurement

I --~-~-~~-- -- -- l Combined Facilities


Workhour Costs - Combined Facilities Last Saved: April2. 2014

PIR Type*: ~.;,:;·,.,:,.:• ~C:~~·~~IR~,ccolucc~cc. ~sccis-cooccn-co"""· ._,d"foc=Fw=PIR

Date Range of Data: Jui...(I1-.201J to Oec..J1·2_0_13 __ _

PIR Workhour Costs- Combined Facilities

P!R Workhour Costs - Combined Facilities

P!R Workhour Costs- Combined Facilities

(27)NOTES'----------------------------------------------------------------------------------------------------------------------------------------------------

·-:~J~··

P!R Workhour Costs ~ Combined F acWties

Losing Facility: Mansfield CSMPC

Type of Distribution Consolidated: O~g & Oest

Workhour Costs -Losing Facility Last Saved: Apr~ 2. 2014

PIR Type•: ~;;:;;'PiR""';;;;i>;;;;;;;;;;t;;;;<<;<,,,,, PIR

Date Range of Data: ~ to

P!R Workhour Costs- Losmg

P!R Workhour Costs- Losmg

P!R Wori<:hour Costs- Losing

Gaining Facility: _::C::cle:.:v.::e=la:_:_nd::_:_P&=D::.C::_ _______________ _


Workhour Costs - Gaining Facility Last Saved. April2. 2014

11

12

PIR Type•: ~:.s~[Coi;;m,:~a;;;;;:;;ozOdlo;F<i<

Date Range of Data: Jul-01-2013 to Dec-31~2013

PIR Workhour Costs ~ Gaining

P!R Worl<hour Costs· Gaining

PIR Workhour Costs~ Gaining

(27)NOTES'==============================================================================================================================================

PIR Workhour Costs- Gaining

[ Other Workhour Move Analysis I

PIR Other Workhour Costs

PIR Other Workhour Costs

I Distribution to Other PIR Worksheet Tabs I

PIR Other Wori<hour Costs

P IR Other Workhour Costs

Staffing -Craft Last Saved: April2, 2014

PIR Type: 1st PIR Data Extraction Date: 09/24/13


Craft Positions

Data from both finance numbers based on local knowledge Webcoins for 384856 only includes AMP clerks, not total

Gaining Facility: Cleveland P&DC

Craft Positions

r----------------~----------------~ 1 (23) 1 (24) 1 ~ 1st PIR vs Pre AMP ~ 1st PIR vs Proposed ~

Total Craft Position Loss:L_,_~9: ____ j _____ 81·-·-J (Above numbers are carried forward to the Executive Summary)

Finance #: 384851

Finance#: 381670

PIR Staffing -Craft

Staffing - PCES/EAS Last Saved: April 2, 2014

PIR Type: 1st PIR

Losing Facility: Mansfield CSMPC Finance# _3_84-"8'-"5-'-1 ____ _ Data Extraction Date: 9/24/2013

PCES/EAS Positions (2)

PIR Staffing PCES/EAS

Gaining Facility: Cleveland P&DC Finance# __ 3_8_16;..;7..:0 ____ _ Data Extraction Date: 9/24/2013

PCES/EAS Positions

r----------------,-------------,-------------, j Total PCES/EAS 1 c37

) 1 c3

a) 1

j Position Lossj 23 j 16 j ~----------------~--------·----~--~---·------~ (Above numbers are carried forward to the Executive Summary)

PIR Staffing- PCES/EAS

Transportation - PVS Last Saved: April2, 2014

Losing Facility: Mansfield CSMPC Finance Number: ...:3..::.8...:..48::.;5:...;1~-----

(11) Total 1st PIR vs Pre AMP Transportation-PVS Savings: $239,451 (This number added to the Executive Summary

1st PIR PIR Type: __ ___:_::::..:...:._:_ __ _

Date Range of Data: Jul-01-2013 -to- Dec-31-2013

Gaining Facility: Cleveland P&DC Finance Number: 381670

~~~-----------

(12) Total 1st PIR vs Proposed Transportation-PVS Savings: $312,163 (This number added to the Executive Summary)

(13)Notes: __________________________________________________________________________________________________ __

PIR Transportation- PVS



Data of HCR Data File:

Transportation - HCR Last Saved: April2, 2014

PIR Type: 1st PIR

CT for Outbound Dock:

PIR Transportation HCR - Losing

Change Analysis 1st PIR vs Pre AMP I 1st PIR vs Proposed

Notes: Rts. 44838 (lines 15, 16) & 44882 contracts notfinali:?ed, ~stirnlJtecl_fiR~ost:::ProQosed Cost. Rt. 45022 Cincinnati HCR has cancelled two trips since AMP; therefore, reduced cost. Rts. 44025, 440M5, 44290 were not included in original AMP.

PIR Transportation HCR - Losing


Transportation - HCR Last Saved: April 2, 2014

-----------------------------------------------Type of Distribution Consolidated: Orig & Dest CET for Inbound Dock:

Date of HCR Data File: CET for Cancellations:

PIR Type: 1st PIR

CETforOGP: ------CT for Outbound Dock:

PIR Transportation HCR - Gaining

Notes:

Summary HCR Losing & Gaining (13) J (14)

Losing

Gaining

(13) Total 1st PIR vs Pre AMP Transportation-HeR Savings: (from losing and gaining facilities)

1st PIR vs Pre AMP

$225,937 $0

(14) Total 1st PIR vs Proposed Transportation-HeR Savings: (from losing and gaining facilities)

1st PIR vs Proposed

$i,i86,i>47' $0

Total Transportation

(15)

1st PIR vs Pre AMP

HCR ($225.937) PVS $239,451

(15) Total 1st PIR vs Pre AMP Transportation (PVS & HeR): (This number carried forward to the Executive Summary)

(16) Total 1st PIR vs Proposed Transportation (PVS & HeR): (This number carried forward to the Executive Summary)

(16)

1st PIR vs Proposed

{$1.186,!>4'1) $312,163

PIR Transportation HCR- Gaining

MPE Inventory Last Saved: April 2, 2014

Data Extraction Date: ____ _ PIR Type: 1st PIR Date Range of Data: Jul-01-2013 --to-- Dec-31-2013

Losing Facility: Mansfield CSMPC Gaining Facility: Cleveland P&DC

(10) Notes:

The DBCS relocation cost was $9,279, which was transportation. It did not include installation by local maintenance.

Carried to Space Evaluation and

Other Costs

PIR MPE Inventory

LDC 36

Maintenance Last Saved April 2, 2014


Workhour Activity

Maintenance Stockroom and S

Grand Total

$

$

$

$

$

$

(2)

Proposed Costs

0 $

0 $

721,053 $

0 $

0 $

721,053

208,952

0

930,005

(3)

1st PIR Costs

(4) Variance 1st PIR to

(5) Variance 1st PIR to

(11) 1st PIR vs Pre AMP- Maintenance Savings:

(12) 1st PIR vs Proposed- Maintenance Savings:

PIR Type*: _1_sc_t P:_I:_R _____ _

Date Range of Data: Jul-01-2013 Dec-31-2013


Workhour Activity

Grand Total

$347,279

$1,561,183

----------------------------------------------

';d (8) (9) Variance 1st

Proposed 1st PIR PIR to Pre Costs Costs AMP

8,479,659 $ 9,153,441 1,021,655 $

3,197,321 $ 2,891,894 112.697

3,478,248 $ 4,168,781 690,532

1,189,814 $ 851,965

211,141 $ 157,718

16,558,183 17,223,799 1,510,55&

(These numbers carried forward to the Executive Summary)


(10) Variance 1st

PIR to Pre

673,782

690,532

667,616

(13) Notes: Increased maintenance cost was due to: 1) Equipment installation because of AMP OSL floor design changes, and 2) Increased overtime because of Article 11 (Akron) hiring restictions.

*Data in PIR columns is annualized for First P!R

PIR Maintenance

(1)

Distribution Changes Last Saved: Apri12, 2014

Losing Facility : Mansfield CSMPC PIR Type: 1st PIR

Type of Distribution Consolidated: Orig & Dest Date Range of Data: Jul-01-2013 --to-- Dec-31-2013

Place a "X" next to the DMM labeling list(s) revised as result of the approved AMP.

DMM L001 DMM L011

X DMM L002 DMM L201

DMM L003 DMM L601

DMM L004 DMM L602

X DMM L005 DMM L603

DMM L006 DMM L604

DMM L007 DMM L605

DMM L008 DMM L606

DMM L009 X DMM L607

DMM L010 X DMM L801

Identify the date of the Postal Bulletin that contained DMM labeling list revisions.

(2l 12/13/2012 PB22352, 6/14/2012 PB22339

Was the Service Standard Directory updated for the approved AMP?

(3)

(4) Drop Shipments for Destination Entry Discounts

FAST Appointment Summary Report NASS

Facility Name Total No-Show Late Arrival Open

Month Losing/ Gaining Facility Code Schd Count % Count % Count %

Nov '13 Losing Facility 448 MANSFIELD N/A

Dec '13 Losing Facility 448 MANSFIELD N/A

Nov '13 Gaining Facility 440 CLEVELAND 841 249 29.61% 325 38.64% 0 0.00%

Dec '13 Gaining Facility 440 CLEVELAND 688 201 29.22% 284 41.28% 0 0.00% -·

(5J Notes:

Closed Unschd Count % Count

592 70.39% 61

487 70.78% 59

PIR Distribution Changes

Customer Service Issues

Losing Facility: Mansfield CSMPC 5-Digit ZIP Code: _4:_:4.::.90::_1:__ _____ _

Data Extraction Date:---------

1. Collection Points Number picked up before 1 p.m.

Number picked up between 1-5 p.m.

Number picked up after 5 p,m,

Total Number of Collection Points

2. How many collection boxes are currently designated for "local delivery"?

3. How many "local delivery" boxes were removed as a result of AMP?

4. Delivery Performance Report

% Carriers returning after 1700

Last Saved: April2, 2014

c-o J

Col

5. Retail Unit Inside Losing Facility (Window Service Times) 6. Business (Bulk) Mail Acceptance Hours

7. Can customers obtain a lo<::al postmark in accordance with applicable policies in the Postal Operations Manual? Yes

8. Notes:


9. What postmark is printed on collection mail?

,-··~ -·- - -·-·- J ''l¢1r!Wallllll

PIR Customer Service Issues

Space Evaluation and Other Costs Last Saved: April 2, 2014

Date: ________ _

1. Affected Facility

Facility Name:~:;:.:;;;;.:::.:;:o...::;.;;,;.;;:,...:::.....,.---------------------Street Address:~=-=:;;:::,=:..::..c===.,---:"7.::::-;----------------City, State ZIP:====----='---"-"=------------

2. One-Time Costs

Enter any one-time costs: _ _.$;.;.7..;.15"",o;:;,;o"'o'--- $962,950 $247,950 (These numbers shown below under One-Time Costs section.)

3. Savings Information

Space Savings ($): ___ $;...o __ _ $0 $0


4. Did you utilize the acquired space as planned? Explain.

5. Notes: Actual switchgear cost of $962,950 was $362,950 higher than original estimate ($600,000).

Employee Relocation Costs

Mail Processing Equipment Relocation Costs (from MPE Inventory)

Facility Costs (from above)

Total One-Time Costs


Pre-AMP: FY 2012

$60,300 ($51 ,021)

$715,000 $247,950

$915,300 $984,057 $68,757 PIR costs carried forward to Executive Summary)

Range of Report

Gaining Facility: ..::C:.:cle:..:v..:;e::.::la::.:nc::d...:.P..::&:::;D:..::C=-------

PIR: FY 2013

PIR Space Evaluation and Other Costs

7013 1090 0002 4435 9622...1st pir vs pre amp 1st pir vs approved ($984,057) ($68,757) losing...

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