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1
FY02 ASA Presentation
Provide Mail Services
Presented by:
James V. Spears
Team Members:
Angela MiltonTracy Niksich
Office of Research ServicesNational Institutes of Health
18 November 2002
2
ASA Template - 2002
Customer Value Proposition
Team Leader
Provide Mail Services
DS5: Management of Postal Accounting System
Discrete Services
Service Group
DS3: Process and Dispatch Outgoing Mail
Customer Intimacy Sustain
DS1: Process and Deliver Incoming Mail
DS2: Perform Mail Directory/Locator Service
DS6: -------------Not Used------------------------
DS4: Process/Deliver Inter-Office Mail
Product Leadership Harvest
James Spears
Operational Excellence Growth
Service Strategy
Team Members Angela MiltonTracy Niksich
Receive, process and deliver mail to provide users with a timely, accurate, and convenient service to distribute information that complies with U.S. Government and USPS standards.
3
Customer Perspective
4
DS1: Customer Segmentation Process and Deliver Incoming Mail
MAIL STOPS BY BUILDING
0
50
100
150
200
250
300
350
10
31
NS
C (6
001 E
xecutiv
e b
lvd)
Rklg
II (6701 R
ockle
dge D
rive)
EP
N (6
130 E
xecutiv
e b
lvd)
EP
S (6
120 E
xecutiv
e b
lvd)
6116 E
xecutiv
e b
lvd
36
50
13
1 10401 F
ern
wood rd
2 D
em
ocra
cy P
laza (6
707 D
em
ocra
cy b
lvd)
12
Tra
ilers
Rklg
I (6705 R
ockle
dge D
rive)
49
30
6700-B
Rockle
dge D
r.8 45
6 2 6100 E
xecutiv
e b
lvd
40
9 6011 E
xecutiv
e b
lvd
4 14
37
6B
Info
rmatio
n W
ay
NS
A (3
01 N
. Sto
nestre
et a
ve.)
5 41
22
6006 E
xecutiv
e b
lvd
6101 E
xecutiv
e b
lvd
Federa
l (7550 W
isconsin
ave.)
60
1 D
em
ocra
cy P
laza (6
701 D
em
ocra
cy b
lvd)
15 Q
trs18T
5 R
esearc
h C
ourt (5
RC
)5413 W
. Cedar ln
.6610 R
ockle
dge D
r.A
TC
(8717 G
rovem
ont c
ircle
)G
DC
-Ware
house (1
6050 In
dustria
l rd.)
KW
C (9
610 M
edic
al C
ente
r dr.)
Navy (8
901 W
isconsin
ave.)
Park
5 (1
2420 P
ark
law
n d
r.)T
win
bro
ok I (5
640 F
isher ln
.)W
illco b
ldg (6
000 E
xecutiv
e b
lvd)
3 11
16
21
28
29
38
61
62
64
82
10A
15K
16A
28A
5415 W
. Cedar ln
.6001 M
ontro
se R
d6010 E
xecutiv
e b
lvd
8424 H
elg
erm
an c
t.9101 O
ld G
eorg
eto
wn rd
.A
MS
BS
A (9
190 W
isconsin
ave.)
CO
DC
(12300 T
win
bro
ok p
kw
y)
CO
MM
DIA
Fire
house
Gara
ge
Gate
way (7
201 W
isconsin
ave)
NO
HIC
Tw
inbro
ok II (1
2441 P
ark
law
n d
r.)V
isio
nW
IN
Building
Sto
ps
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Mail Stops Cumulative Percentage
80.7%
5
DS1: Customer Segmentation Process and Deliver Incoming Mail
• 21% NIH buildings (18 of 85) accounted for 80% of all mailstops
• 32 buildings account for only one mailstop each
• mailstops are not evenly distributed among buildings
•The average number of mailstops per building is 13.3
6
DS1: Customer Segmentation Process and Deliver Incoming Mail
• Fewer mailstops per building means that mail delivery is more time consuming than if the mailstops were distributed among fewer, larger buildings
• Mail comes to NIH from around the world
•impossible to formally document the primary sources of mail.
7
% of Total Directory Mail Generated, By Month
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
DS2: Customer Segmentation Perform Mail Directory / Locator Service
8
• The volume of directory mail stays proportionate with the volume of first class mail
• On a monthly basis, any differences in directory mail generation by different first class mail types (e.g. FedEx bills, Christmas cards, etc.) cancel each other out
• Directory services are only performed after the incoming mail volume has been processed for delivery and does not increase variable costs
DS2: Customer Segmentation Perform Mail Directory / Locator Service
9
DS3: Customer Segmentation Process and Dispatch Outgoing Mail
IC Ranking by Postage Expenses
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Acct.
-18
Acct.
-55
Acct.
-54
Acct.
-56
Acct.
-11
Acct.
-24
Acct.
-20
Acct.
-16
Acct.
-17
Acct.
-14
Acct.
-23
Acct.
-33
Acct.
-38
Acct.
-8A
cct.
-5A
cct.
-26
Acct.
-13
Acct.
-10
Acct.
-49
Acct.
-22
Acct.
-27
Acct.
-19
Acct.
-2A
cct.
-47
Acct.
-25
Acct.
-30
Acct.
-42
Acct.
-3A
cct.
-12
Acct.
-48
Acct.
-32
Acct.
-29
Acct.
-9A
cct.
-41
Acct.
-28
Acct.
-52
Acct.
-37
Acct.
-21
Acct.
-51
Acct.
-1A
cct.
-6A
cct.
-4A
cct.
-39
Acct.
-35
Acct.
-50
Acct.
-40
Acct.
-45
Acct.
-36
Acct.
-46
Acct.
-53
Acct.
-34
Acct.
-44
Acct.
-7A
cct.
-15
Acct.
-31
Acct.
-43
0%
20%
40%
60%
80%
100%
120%
Postage Expenses Cumulative Percentage
79.8%
10
DS3: Customer Segmentation Process and Dispatch Outgoing Mail
• 16% of NIH postage accounts (9 of 56) accounted for 80% of all postage used
• 55% of NIH postage accounts (31 of 56) accounted for only 3% of all postage used
• Outgoing mail has priority only after all incoming mail has been dispatched for delivery at 12:30 p.m.
• All Outgoing mail is processed daily before USPS pick-up.
11
DS4: Customer Segmentation Process and Deliver Inter-Office Mail
MAIL STOPS BY BUILDING
0
50
100
150
200
250
300
350
10
31
NS
C (6
001 E
xecutiv
e b
lvd)
Rklg
II (6701 R
ockle
dge D
rive)
EP
N (6
130 E
xecutiv
e b
lvd)
EP
S (6
120 E
xecutiv
e b
lvd)
6116 E
xecutiv
e b
lvd
36
50
13
1 10401 F
ern
wood rd
2 D
em
ocra
cy P
laza (6
707 D
em
ocra
cy b
lvd)
12
Tra
ilers
Rklg
I (6705 R
ockle
dge D
rive)
49
30
6700-B
Rockle
dge D
r.8 45
6 2 6100 E
xecutiv
e b
lvd
40
9 6011 E
xecutiv
e b
lvd
4 14
37
6B
Info
rmatio
n W
ay
NS
A (3
01 N
. Sto
nestre
et a
ve.)
5 41
22
6006 E
xecutiv
e b
lvd
6101 E
xecutiv
e b
lvd
Federa
l (7550 W
isconsin
ave.)
60
1 D
em
ocra
cy P
laza (6
701 D
em
ocra
cy b
lvd)
15 Q
trs18T
5 R
esearc
h C
ourt (5
RC
)5413 W
. Cedar ln
.6610 R
ockle
dge D
r.A
TC
(8717 G
rovem
ont c
ircle
)G
DC
-Ware
house (1
6050 In
dustria
l rd.)
KW
C (9
610 M
edic
al C
ente
r dr.)
Navy (8
901 W
isconsin
ave.)
Park
5 (1
2420 P
ark
law
n d
r.)T
win
bro
ok I (5
640 F
isher ln
.)W
illco b
ldg (6
000 E
xecutiv
e b
lvd)
3 11
16
21
28
29
38
61
62
64
82
10A
15K
16A
28A
5415 W
. Cedar ln
.6001 M
ontro
se R
d6010 E
xecutiv
e b
lvd
8424 H
elg
erm
an c
t.9101 O
ld G
eorg
eto
wn rd
.A
MS
BS
A (9
190 W
isconsin
ave.)
CO
DC
(12300 T
win
bro
ok p
kw
y)
CO
MM
DIA
Fire
house
Gara
ge
Gate
way (7
201 W
isconsin
ave)
NO
HIC
Tw
inbro
ok II (1
2441 P
ark
law
n d
r.)V
isio
nW
IN
Building
Sto
ps
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Mail Stops Cumulative Percentage
80.7%
12
DS4: Customer Segmentation Process and Deliver Inter-Office Mail
• 21% NIH buildings (18 of 85) accounted for 80% of all mailstops
• 32 buildings account for only one mailstop each
• Inter-Office mail is processed separate from incoming mail when processed for delivery
• Inter-Office mail cannot be tracked by source as Inter-Office mail lacks a return address
• All Inter-Office mail is processed daily
13
DS5: Customer Segmentation Management of Postal Accounting System
IC Ranking by Postage Expenses
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Acct.
-18
Acct.
-55
Acct.
-54
Acct.
-56
Acct.
-11
Acct.
-24
Acct.
-20
Acct.
-16
Acct.
-17
Acct.
-14
Acct.
-23
Acct.
-33
Acct.
-38
Acct.
-8A
cct.
-5A
cct.
-26
Acct.
-13
Acct.
-10
Acct.
-49
Acct.
-22
Acct.
-27
Acct.
-19
Acct.
-2A
cct.
-47
Acct.
-25
Acct.
-30
Acct.
-42
Acct.
-3A
cct.
-12
Acct.
-48
Acct.
-32
Acct.
-29
Acct.
-9A
cct.
-41
Acct.
-28
Acct.
-52
Acct.
-37
Acct.
-21
Acct.
-51
Acct.
-1A
cct.
-6A
cct.
-4A
cct.
-39
Acct.
-35
Acct.
-50
Acct.
-40
Acct.
-45
Acct.
-36
Acct.
-46
Acct.
-53
Acct.
-34
Acct.
-44
Acct.
-7A
cct.
-15
Acct.
-31
Acct.
-43
0%
20%
40%
60%
80%
100%
120%
Postage Expenses Cumulative Percentage
79.8%
14
DS5: Customer Segmentation Management of Postal Accounting System
• 16% of NIH postage accounts (9 of 56) accounted for 80% of all postage used
• 55% of NIH postage accounts (31 of 56) accounted for only 3% of all postage used
15
Customer Satisfaction (Poll)
• 20.4% rate of return (224 of 1100)
• The range of the rating scale was from A (excellent) to E (poor) in order to keep the grading system familiar to respondents
• Scoring was done on the collegiate system (e.g. A=4.0, B=3.0, etc.)
• The overall mean score (excluding N/A responses) of 3.0 is equal to a “B” (very good)
16
Customer Satisfaction (Poll)
Mean Score by Question
0.00
1.00
2.00
3.00
4.00
Question Number
Mea
n Sc
ore
17
Customer Satisfaction (Poll)
Poll Analysis By Question: Percent “C” (Acceptable) or better
93%
79%
99%96%
68%
94%
82%
95%
88%91%
97% 98% 99% 98% 97%
91%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Question Number
Percent "C", or Better
18
Customer Satisfaction (Poll)
Poll Analysis By Question: Percent “C” or better
0%
20%
40%
60%
80%
100%
120%
1 2 2a 2b 2c 3 4 5 6 7 8 9 10 11 12
Overa
ll0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Percent "C" or Better Mean Score
Percent "C" or Better vs. Mean Score by Question
19
Customer Satisfaction (Poll)
Poll Analysis:
• Low scores given for Question 2 were nearly all related to Question 2c (per their comments)
• Many complaints from Question 2c were due to a misconception among some employees concerning positional mail
• Complaints from Question 4 were primarily concerned with slower delivery of poorly addressed interoffice mail (e.g. see following slide)
20
Customer Satisfaction (Poll)(cont.)
21
Customer Satisfaction (Poll)Poll Analysis:
• The lower than average mean score (2.68) for Question 6 was not unexpected, this is the most difficult mail type to process to intended recipient
• The 88% “C” or better for Question 6 shows that most of our customers understand that this mail is difficult to process and they feel that we are doing an acceptable to excellent job with it
22
Reduce Customer Complaints Regarding MissortsCOMPLAINTS: MISSENT MAIL
0
5
10
15
20
25
30
35
40
45
sorter error not properly endorsed by recipient sorter forwarding error
Error Type
# o
f C
om
pla
ints
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Per
cen
t
# of Missorts Cumulative Percent
22%
5%
73%
23
Reduce Customer Complaints Regarding Missorts
• There is no source pattern to the complaints as they are addressed immediately with corrective action and verified continuously for several weeks to be certain the problem is solved
24
Internal Business Process Perspective
25
Block Diagram: Provide Mail Services
ProcessMail
DriversDeliver
Incomingand
InterOfficeMail
Processand
DispatchOutgoing
ManagePostal
AccountingSystem
DeliveryDriversReturn
withOutgoing
Discrete Services for MCSB:
• Are sequential in nature
• Cannot be performed out of order
• Must all be performed on a daily basis
26
• Our Service Group completed Five deployment flowcharts for Five discrete services
• Production of the deployment flowcharts, and verification by sorters confirmed that management’s perception and understanding of the process workflow was correct and complete.
• MCSB Management monitor every step of the work-flow process for standards compliance
Conclusions from Discrete Services Deployment Flowcharts
27
Process Measures
List process measures for each discrete service
• DS1-1: Time of day at route midpoint• DS1-2: Error Rate from Random Samplings • DS2: Error Rate from Random Samplings • DS3: Error Rate from Random Samplings • DS4: Error Rate from Random Samplings • DS5: Dollar savings vs. Postal OMAS
statement
28
Process Measure Results
Findings from process measures data:
DS1: Process and Deliver Incoming Mail• Control Charts showed that the driver
delivery times were consistently within normal variation when regular drivers were present
• Random Samplings from clerk sortation showed a 1.06% initial error rate for September.
DS2: Perform Mail Directory/Locator Service• Random samplings showed no clerk look-
up errors
29
Process Measure Results
Findings from process measures data:
DS3: Process and Dispatch Outgoing Mail• Random Samplings of meter-stamped
outgoing mail showed a 0.21% error rate for September. All errors were from one day. Cause of error was failure to apply oversize surcharges where needed
DS4: Process and Deliver Inter-Office Mail• Random samplings of inter-office mail
showed no clerk sortation errors.
30
Process Measure Results
Findings from process measures data:
DS5: Management of Postal Accounting System
• $8,748,000 savings vs. OMAS statement by disputing unauthorized charges from USPS and other sources since 1992.
31
Learning and Growth Perspective
32
Turnover:• Turnover is expected to become an issue
for MCSB in the near term• Turnover will be less of an issue in the
longer term, due to increased outsourcing of duties within MCSB
Sick Leave:• MCSB has the lowest sick leave usage of
any Service Group in the study, despite having one employee on long-term sick leave during the whole of the study period. This is due to high morale and dedication to duty within MCSB
Conclusions from Turnover, Sick Leave, Awards, EEO/ER/ADR Data
33
0
10
20
30
40
50
60
70
80
14 3 9 31 8 17 43 38 36 33 41 12 30 32 28 18 29 21 39 20 16 24 27 40 35 5 23 42 19 4 34 15 37 25 26 1 2 10 11 13 7
Average Hours of Sick Leave Used(Oct 2001 - June 2002)
Service Group Number
Av
era
ge
Ho
urs
34
Awards:• By giving awards where deserved and
spreading them fairly between Management and Clerk employees, MCSB has created a high-morale environment
EEO Complaints:• MCSB EEO complaint average was based
on only one complaint. This was due to the termination of an employee who was trying to avoid this management action.
Conclusions from Turnover, Sick Leave, Awards, EEO/ER/ADR Data
35
ER:• MCSB ER average is higher than the
MCSB ADR average, due to the fact that MCSB counsels employees and provides numerous opportunities for reform before taking corrective action
ADR:• MCSB ADR average was higher than
would normally be expected due to the efforts of two employees who were trying to avoid progressive corrective action and eventually, termination.
Conclusions from Turnover, Sick Leave, Awards, EEO/ER/ADR Data
36
• All major skills and abilities required by MCSB are present among current employees
• MCSB is currently short by six positions. It is expected that these positions will be filled through outsourcing
• Since 850,000 sq ft of NIH lab space is expected to be created over the next three years, MCSB must be prepared to constantly reexamine its’ needs and to amend the current mail services contract, as needed
• MCSB must continue to promote safety / security awareness, teambuilding, and computer skills through the use of available training classes to keep employee skills up-to-date
• MCSB must begin to analyze options for replacing it’s Pitney-Bowes Paragon® postage machines to ensure best value for NIH
Analysis of Readiness Conclusions
37
Financial Perspective
38
Unit Cost Measures
Analysis:
• “Process / Deliver Incoming Mail” – Cost per hour is relatively stable, but dependent on set wage rates
• “Mail Directory / Locator services” – No direct variable costs associated
• “Process and Dispatch Outgoing Mail” – No direct variable costs associated
• “Process / Deliver Inter-Office Mail” – No direct variable costs associated
39
Unit Cost Measures
Analysis:
• “Manage Postal Accounting System” –Postage costs by IC must be tracked to
•properly attribute time and costs
•accurately assess IC’s for next Fiscal Year
•ensure accurate USPS billing
40
Asset Utilization Measures
Productive hours per FTE 1840
Number of FTE Positions 30
Total Productive Hours Available 55,200
Productive Hours Spent per task Pct Down Time Hours Downtime
Process * Deliver Inter-Office Mail 7,176 13% 0% 0
Manage Postal Accounting System 2,760 5% 0% 0
Process * Dispatch Outgoing Mail 12,144 22% 0% 0
Process * Deliver Incoming Mail 27,600 50% 1% 276
Mail Directory * Locator Services 5,520 10% 0% 0
Totals 55,200 100% 0.50% 276
Asset Utilization 99.50%
MCSB ASSET UTILIZATION
41
Asset Utilization Measures Analysis:
Idle Capacity:
•The daily weekday period between 5:00 p.m. and 7:00 a.m. (14 hours), and Saturday-Sunday, represents the weekly operational Idle Capacity.
•This idle capacity is not marketable.
• The operation is not staffed during this period.
• due to security concerns, the area must have restricted access
42
Asset Utilization Measures
Analysis:
Non-Productive Capacity:
• Standby time is minimal
• Due to the flexibility of our operation there is no waste of time resources.
• Rework due to sorting errors is very small.
• Scheduled Maintenance occurs only during those times when equipment is not expected to be in use
43
Unique Financial Measures
Reduce Dollar Amount of USPS (OMAS) Billing Errors:
• MCSB records from the last 10 years show that $8,748,000 has been recovered, to date, from the USPS and other sources as a result of MCSB-initiated billing inquiries
• Results from the careful record keeping and management of the postal accounting system by MCSB
44
Unique Financial Measures
POSTAL OVERCHARGES RECOVERED BY NIH
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Year
Yea
rly
Fu
nd
s R
eco
vere
d
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Cu
mu
lati
ve F
un
ds
Rec
ove
red
Amount Cumulative Amount
45
Conclusions and Recommendations
46
Conclusions from FY02 ASA
Major Findings:
• Deployment flowcharts confirmed that management’s perception and understanding of the process workflow was correct and complete
• Process perspective studies show that delivery times are consistent within normal variation when regular delivery drivers are present
47
Conclusions from FY02 ASA
Major Findings:
• Random samplings showed no or low error rates for the process perspective of DS 1 - 4
• DS 5, Management of the Postal Accounting System has been very effective in preventing waste
48
Conclusions from FY02 ASA
Major Findings:• MCSB is prepared for the near term with
regard to employee skills• MCSB has high morale and dedication, as
evidenced by having the lowest sick leave usage rate in the group studied
• MCSB must be prepared to constantly re-examine its’ needs and to amend the current mail services contract, as needed in order to meet needs created by future growth
49
Conclusions from FY02 ASA
Countermeasures begun:
• MCSB has begun contacting those respondents to our poll who showed concern over mail forwarding. MCSB representatives will explain the rules and regulations concerning positional mail and mail forwarding
• MCSB is preparing a fact sheet on positional mail to be distributed to all mailstops at a future date
50
• That MCSB move forward with its educational campaign to explain about positional mail and forwarding
• That MCSB continue to monitor delivery driver standards to ensure consistency of delivery both on and off campus
Recommendations
51
• That MCSB continue to take random samplings of work that forms our discrete services to ensure quality and compliance with standards
• That MCSB continue to review the USPS OMAS billings and recover funds where NIH has been billed in error
Recommendations
