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Bay-ValleyKim R. Fernandez
District Manager Customer Service & Sales
Bay-ValleyBay-Valley
VisionMissionValue
BAY-VALLEY DISTRICT BAY-VALLEY DISTRICT VISIONVISION
Be the premier provider of service and value as
defined by our customers.
“A great place to work, and the right place to do
business”
BAY-VALLEY DISTRICTBAY-VALLEY DISTRICTMISSIONMISSION
• Providing affordable quality services and products for our
customers.
• Inspire employees through clear communication to achieve breakthrough performance and
profitability.
BAY-VALLEY DISTRICTBAY-VALLEY DISTRICTVALUEVALUE
• Excellence • Courtesy• Integrity
• Trustworthiness• Efficiency
Bay-Valley Circle of SuccessBay-Valley Circle of Success
DLT
Expectations
ToolsTrainingResources
Performance & Compliance
SuccessOpportunities
Bay-Valley Circle of Success
Strategic/Tactic/Process/Compliance Flow
District Leadership Team (DLT)
Strategies
Local Leadership Team (LLT)
Tactics
SOM, KOM SUPERVISORS
IMPLEMENTATION
Results
DLT Strategies Kim R. Fernandez
District Manager Customer Service & Sales
Rick J. BlancasSenior Plant Manager
Bay-Valley District
Service Strategies
Bay-Valley District
TOP 5 NATIONAL
RANKING
ACHIEVE
FY 09 SERVICE STRATEGIES
SERVICE STRATEGIES
SERVICE UP
ServiceFY 09 Target
FY 09YTD Gap
NationalRanking
EXFC 1-day 98.0 96.47 1.53 17
EXFC 2-day 96.5 95.75 .75 3
EXFC 3-day 95.0 93.04 1.96 27
DCPM-R Surface 98.0 96.30 1.70 16
DCPM-R Air 95.0 91.96 3.04 32
Express 98.0 96.94 1.06 9
SERVICE STRATEGIES
SERVICE UP
ServiceFY 09 Target
FY 09YTD Gap
NationalRanking
CSM 740.0 544.4 195.6 69
WTIL 95 84 11 45
SERVICE STRATEGIES – Market Dominant Products
SERVICE UP
Service FY 09 TargetFY 09YTD Gap
Presort 1-Day 98.0 80.14 17.86
Presort 2-day 96.5 89.28 7.22
Presort 3-day 95.0 84.23 10.77
Presort 4-day 95.0 77.10 17.90
FCM Parcels 1-day 98.0 80.68 17.32
FCM Parcels 2-day 96.5 89.57 6.93
FCM Parcels 3 to 5-day 95.0 81.43 13.57
SERVICE STRATEGIES – Market Dominant Products
SERVICE UP
Service FY 09 TargetFY 09YTD Gap
Standard 3-day 95.0 90.50 4.50
Standard 4-day 95.0 58.82 36.18
Standard 5-day 95.0 77.78 17.22
Periodicals 95.0 68.06 26.94
SERVICE STRATEGIES – Market Dominant Products
SERVICE UP
Service FY 09 Target
Package Svcs – Del Con – All Stds 97.0
End to End 97.0
Intra BMC 97.0
1st Enroute 97.0
Cost Strategies
Bay-Valley District
STRATEGY
ACHIEVE
%
Plan
YTD
%
SPLY
Target
Current
%
SPLY
Current
GAP
TOE 2.4% -7% -3.7% $9,853,680
Non-Personnel Plan
-2.9% -4.8% -9.6% 0
FY 09 COST STRATEGIES
COST DOWN
$ Achieve Non personnel plan
$ Travel Reduction (Line 3D, 3E, 3K)
$ Reducing POV$ Only Necessary Travel – Utilizing Meeting Place$ Limit/Eliminate Off-Site Meetings
$ -0.6% to Plan YTD $ -10.2% to SPLY YTD
$ Supplies & Service ( Lines 31-39)$ Monitoring by finance number – managing the sites that are overrunning$ Only necessary expenditures
$ -2.7 % to Plan YTD$ -21.6% to SPLY YTD
COST DOWN
FY 09 DISTRICT COST TACTICS
FY 09 District COST TACTICS
Miscellaneous Expenses (Line 44) $ Monitoring financial counts – manage the sites
that are not in compliance
$ Monitoring Excess Stock Inventory – manage the sites that are not in compliance
$ Monitoring financial overages and shortage (AIC 247 & 647) – manage the sites that are not in compliance
$ -64.2% to Plan YTD$ -79% to SPLY YTD
COST DOWN
Higher Level
$ Manage Vacancies
$ Manage Unauthorized Details
$ Current PerformanceCurrent Performance$ Baseline PP 24$ Reduction to Baseline - 4.2%
COST DOWN
FY 09 District COST TACTICS
FACILITY OPTIMIZATION
# SitesAnnual Cost Avoidance
Sale Price
FY 09 Sites ClosedMare Island Sta., Vallejo NPU, Concord NPU 3 $214,776 *
FY 09 Site SoldSaratoga Village Sta. 1 $85,000 2M
Current Savings 4 $299,776 2M
Pending Site ClosuresMartinez Pacheco Branch
Oakland ISF (release building) 2 $1,860,080 *
Under Consideration for ClosureParkmoor Sta., Berkeley NPU 2 $801,367 *
Under Consideration for SaleDanville Lot, Hayward Bradford Lot, Berkeley DDU Lot 3 $75,000 N/A
Grand Total 12 $3,036,223 2M
$ Right Sizing Facilities for Operational Needs
STRATEGY
ACHIEVE
%Plan
YTD
% SPLYTarget
% SPLY
YTD
WKHR
GAP
Work Hour Plan
FN 1 2.8% -18.3% -17% 66,087
FN 2B 3.8% -10.0% -7.8% 175,685
FN 3A 3.3% -9.9% -7.7% 10,515
FN 3B -0.2% -7.5% -9.2% 0
FN 4 1.8% -14.9% -12% 21,745
Support Functions -0.1% -2.8% -4.7% 0
FY 09 COST STRATEGIESCOST DOWN
FY 09 COST STRATEGIES
STRATEGYActual YTD
Last 4 Weeks
% SPLY YTD
MINIMIZE OT
FN 1 OT 6.29% 1.61% -37.6%
FN 2B OT 6.77% 4.56% -32.6%
FN 3A OT 6.28% 2.25% -45.2%
FN 3B OT 1.83% .24% -72.9%
FN 4 OT 5.25% 2.74% -42.8%
COST DOWN
Operational Strategies
Bay-Valley District
Bay-Valley Operational Strategies
Scheduling and Staffing (All Operations)
Tour Realignment• Plants Completed
– 528 People Migrated– OT Reduction
PIV Reduction• Reduce Higher Level• Bid Realignment
PVS Trip Reduction • 27 Trips South
• 27 Trips North
Bay-Valley Operational Strategies
Scheduling and Staffing (All Operations)
Route Reduction• 157 Routes Eliminated• F2C Work hour reduction to SPLY
― WK 25 -7.6% MTD -12.3% YTD -7.9 %
» - 381,832 work hours to SPLY
— Performance to Plan— WK 25 7.2% MTD 5.7% YTD 4.7%
Hours Per Route• WK 25 7.92 MTD 7.99 YTD 8.24
Bay-Valley Operational Strategies
Manual Volume Reduction
• FY 08 Flats 33.03% Letters 7.72%• YTD Flats 28.19 Letters 6.83%• MTD Flats 26.32% Letters 6.59% • WK 25 Flats 26.54% Letters 6.15%
• Reduction of Collection Boxes• 173 Removed• LDC 27 -3.4% SPLY YTD
– Performance To Plan -2.6% YTD
• DPS Improvement•FY 08 YTD 89.53%•FY 09 YTD 92.76%
• Rural Route Counts» In Progress
Bay-Valley Operational Strategies
People Strategies
Bay-Valley District
FY 09 PEOPLE STRATEGIES
STRATEGY
ACHIEVE
FY 09 March
YTD
%
SPLYNational Ranking
VOE 70% 64.2 1.3 34
MVA Target 8 10.23 -14.2 47
OII Target 4 5.06 -9.5 39
FY 09 PEOPLE STRATEGIES
Right People In The Right Place At The Right Time
o Manage ORNAo Effective Management of Productive Hours
o Align Resources to Earned Workloado Use of Complement Tools – CSV, CCM, MPSOM, MPES, CSAW
Growth Strategies
Bay-Valley District
Strategy
February YTD
% Plan
February
YTD
%SPLY
Plan
GAP
Achieve Revenue Plan -7% -7.4% -25,601,234
FY09 GROWTH STRATEGIES
FY09 GROWTH STRATEGIES
StrategyYTD
Participation
Total Leads YTD
Total Revenue
YTD
Revenue % to
Target
Maximize Business Connect to drive leads for BDT sales
91.43% 2,475 $1,859,470 30.83
Maximize Customer Connect to drive leads for BDT sales
46.25% (Carriers)
420 $1,396,927 53.62
Maximize Rural Outreach to drive leads for BDT sales
15 Rural Carriers
21 $280,268 No target
Bay-Valley District
Service
People
Growth
Cost
LLT TACTICSLLT TACTICS
Bay-Valley District
Bay-Valley TacticsBalwant Grewal, Sam Vasquez
Toya Jackson, Ed KimbleLLT Co-Chair
Service Tactics
Bay-Valley
SERVICE TACTICS
Eliminate Last Mile Failures
Improve Flat Performance
Improve Quality
Improve Scanning Performance
Improve WTIL
Achieve Operating Plan (24-hour clock)
SERVICE UP
SERVICE TACTICS
3M Process
Reduce Missent Volume to Delivery Offices
Perform PM Audits
Monitor Pivoting
Monitor OOS rate
ELIMINATE LAST MILE FAILURES
SERVICE TACTICS
2M Process
Reduce Missent Volume to Delivery Offices
Address AFSM At-Risk Volumes
Establish Flats Improvement Team
IMPROVE FLAT PERFORMANCE
SERVICE TACTICS
PAARC
Daily QC checks – Auto, AFSM, APPS, Manual, Containerization, Dispatch
Address – DSMART, eMIRS
IMPROVE QUALITY
SERVICE TACTICS
Preventable Failures
Proper Scanning
IMPROVE SCANNING PERFORMANCE
SERVICE TACTICS
Staffing and Scheduling
Alert System
Alternate Access
Wait Time In Line (WTIL)
Commercial First-Class Mail
Periodicals
Standard Mail
Package Services– Includes Single Piece Parcel Post,
Media Mail, Bound Printed Matter, Library Mail
NEW SERVICE MEASUREMENT
Market Dominant Products
SERVICE TACTICS
COMMERCIAL FCMTreat as Collection MailIOP Agreement with BMEUSecure BMEU hand-off procedure
STANDARD MAILMail Flow Color Code Adherence
PERIODICALS Operating plan compliance
Dispatch & logistics compliance
Cost Tactics
Bay-Valley
FN 1 (less than 1%)
F3A (less than 1%)
F3B (less than 1%)
FN 2B (3%)
FN 4 (2%)
COST DOWN
FY 09 COST TACTICS
ACHIEVE OT TARGETS
OT Tactics
Minimize NSD OT
Minimize Pre-Tour & Post Tour OT
Realign Bids to have right people in the right place at the right time
– Earned Workload– Bid Management
COST DOWN
FY 09 COST TACTICS
Manual Volume Reduction
$ TARGETS$ 20% Flats$ 5% Letters
Last 4 Wks Performance 26.43% Flats
6.49% Letters
COST DOWN
FY 09 COST TACTICS
Manual Volume Reduction Tactics
$ Proper Volume Recording
$ Back flowing
$ Gatekeeper for Manual Operations
COST DOWN
FY 09 COST TACTICS
COMPLEMENT MANAGEMENT
Migrate Complement to Meet Financial ChallengesCOST DOWN
F1 Excessing 120 clerks
Migrate LDC 10 Employees to meet 22:1 ratio
F3A Projected Excessing 6 clerks, 6 drivers
F3B Projected Excessing 60 LDC 37, 38 & 39 Employees
Route Reduction & Carrier Migration to Reduce Complement
Re-position F4 through CSV Earned Validated Through 1994
Process
People Tactics
COMPLEMENT MANAGEMENT TACTICS
Manage current complement
Utilize CCM, MPSOM & MPES Tools
Manage PTF’s to prevent maximization
Manage Efficiencies and Productivities
Bid Management
Realign Bids and complement to the workload
Current 1994
Pivoting
Ensure the correct skills are on the bids
COMPLEMENT MANAGEMENT TACTICS
ORNA
Manage Medicals
Utilize Push Reports
Ensure medicals are timely
Ensure Job Offers match medicals
Manage Non-Productive
Manage DRAC process
Utilize DAT Coordinator
Growth Tactics
• Business Connecto TARGETSLevel 24’s - 3 activities per monthLevel 22 and below – 2 activities per month
– Community• Chamber of Commerce• Lyons, Rotary• Emerging Markets• Community Networking Presentations• Customer Appreciation• PCC
Growth Tactics
• Customer Connect
o TARGETOne lead per zip code per month
– Roll outs – 96 Offices YTD – 100% as of Jan FY 09– Qrtly Meetings– SBS Office visits and Stand Ups
Growth Tactics
• Rural Reach
– Roll outs – 39 Offices YTD – 100% as of Jan FY 09
– SBS Office visits and Stand Ups
Growth Tactics
TOP 5 NATIONAL
RANKING
ACHIEVE
FY 09 PEOPLE STRATEGIES
