National Postal Forum

April 12, 2010

National Postal Forum

®

Introductions

Presenters:Joe Schick, Director Postal Affairs

Quad Graphics

Joe.schick@qg.com

Krista Finazzo, Manager Operational Requirements & Integration

US Postal Service

kfinazzo@usps.gov

2

Agenda

Background What led to proposed optional prep

Develop, evaluate, test and results

Description of bundle and pallet prep Next steps – target timeline Summary Questions & Answers What more with flats… an update on Deflection

3

Background – Industry Collaboration

Mailer Technical Advisory Committees have engaged in many efforts with flats over the past decade: Flat Mail Prep Optimization

Changes to sortation rules Alternatives on presort levels

AFSM 100 Auto Induction Tested Automation Compatible Trays (ACT) Developed “Auto-Ready” pallet concept

4

5

Current Flats Environment

Automated Flats Sorting Machine (AFSM 100)•Automated Tray Handling Systems

(ATHS)•Automatic Induction (AI)

Automated Package Processing System (APPS)

•Flat Bundle Sorting

Upgraded Flats Sorting Machine (UFSM 1000)•Auto Flats Feeder•Manual Keying

Background – Industry Collaboration

More recently through MTAC and IDEAlliance initiatives, teams explored: Flat Mail Prep and Entry in an FSS

Environment Tested concepts on bundle preparation Tested various container preparations Modeled FSS schemes Explored bundle securing parameters Developed foundation for Automated

Flats Preparation (AFP)

6

What led to Optional FSS Flats Prep?

“Identify areas of impact to the USPS and customers associated with preparation and entry of flats in an FSS environment including the lowest combined cost model.”

Joint USPS/Industry Charter:

7

Past - Present - Future

TODAY

TOMORROW

Flats Sequencing System

What led to Optional FSS Flats Prep?

FSS program impacts: Flats preparation How mail is presented and scheduled for entry

Collaborative process – mail owner to USPS Worked with various industry groups to develop

various preparation concepts for the entire supply chain process – from design idea to delivery Mail owners, service providers, consolidators and

technical experts Desired result: Least impact to industry while

capturing greater efficiency for postal operations

10

Evaluated Concepts

Used industry data to test and model concepts for different components of flats mail preparation: Bundle preparation Containerization Presort parameters Destination entry

11

Modeling Exercise

What would FSS pallets look like today?

Volume and thickness of flats has changed since earlier modeling of bundles and pallets in 2007

Pallet prep same as 5-digit/5-digit schemes today

Test Plan included real “address lists” for destinating Dulles FSS site

Using specific ZIP Codes processed on FSS

Using real mailpiece characteristics and volumes

12

Test plan included:

Bundle and pallet counts Current presort rules for comparison ‘Artificial’ Labeling List data to identify FSS schemes Presort software that used label list to make up bundles and pallets Specified bundle heights for each presort processing

Testing process was to: Run presort for all Dulles VA 3-digits (201, 220-223, 226 and 227) Roll up data for non-FSS 5-digits using today’s rules Prepare individual FSS sort plan pallets (e.g. 1 to 4 5-digit ZIP

Codes per Dulles sort plans) Prepare an all FSS ZIP Codes pallet based on site

FSS Presort Test Plan

13

FSS schemes:

FSS sort plans mirror 5-digit and 5-digit scheme sort plans During test, Dulles had 49 FSS sort plans

19 sort plans with 1, 5-digit ZIP Code 20 sort plans with 2, 5-digit ZIP Codes 8 sort plans with 3, 5-digit ZIP Codes 2 sort plans with 4, 5-digit ZIP Codes

Test results: Periodicals had few FSS sort plan pallets Pallet counts remained same, or less for PER and STD mailings FSS scheme pallet (all sort plans at a site) has potential

Presort Test Plan Results

14

Test Concepts and Model Results

Discovered pure FSS sort plan pallet can flow directly to the bundle prep operation and bypass APPS processing

Determined potential pallet levels: Pure FSS (single sort plan scheme)

Pure FSS (multiple sort plan schemes)

Combined FSS and non-FSS

15

Optional FSS Pallet Preparation

FSS Single Sort Plan Scheme Pallet Containing one or more ZIP Codes sorted

on FSS at the same time Equivalent to 5-digit/5-digit scheme pallet

Pallet sent directly to FSS preparation area for loading Automation Compatible Trays

16

Optional FSS Pallet Preparation

FSS Multiple Sort Plan Schemes Pallet Contains mail for all FSS sort plans processed

at the facility Equivalent to an SCF pallet May require separate FSS and non-FSS

pallets at the facility

Pallet sent to an APPS for bundle distribution

Pallets can “go to the head of the line” for APPS processing

17

Optional FSS Pallet Preparation

Combined FSS bundles and non-FSS bundles on the same pallet No separation of mail by automation machine type (FSS, AFSM

100, etc) Equivalent to a 3-digit or SCF pallet

Pallet sent to an APPS for bundle distribution

18

FSS Bundle & Pallet Parameters

Defined and developed parameters: Bundle

Optimal bundle height of 3”, 4”, 6” Replaces CR piece minimum for packaging purposes

Container Content determined by FSS scheme & destination FSS ZIP Codes

Presort Driven by FSS Label List and sort plan contents

Entry Destination entry, at minimum, should not change

from today and may contract with optimized network

20

Optional FSS Bundle Preparation

Combine all 5-digit flat mailpieces for a sort scheme into the bundle Carrier route and 5-digit Create bundles of uniform height:

e.g. 3”, 4”, or 6” Place on appropriate pallet level

21

FSS Flat Mail Prep – Next Steps

New MTAC workgroup #134 Workgroup: “Implement Optional FSS Presort Parameters” Align under the “Optimization of Preparation & Entry”

focus area Engage software vendors and production manufacturers

Charter of new workgroup: Develop and implement presort parameters to support defined

(optional) FSS prep Identify timing of software updates as relates to FSS deployment Communicate timing & FSS Label List Target timeline to complete: May 2010

22

Next Steps – Summary

Develop presort software parameters Publish presort business rules for software

vendors to code Implement Optional FSS prep Communicate FSS label list schemes Leverage alternatives to increase bundle and

pallet scheme density (e.g. comail, copal) Continue development efforts to automate

bundle preparation

23

24

Resources

Check out these links…

Check out these links…

What’s required to earn a certificate? Attend any five workshops of the Optimizing

Preparation & Entry or Flats Track for Periodicals, Catalogs and Printers

How do I get my certificate? Register for your certificate on the National Postal

Forum Website www.npf.org Answer the three true/false questions for each of

the five sessions you attended Certificates will be mailed upon certification

25

Certificate Program

True or False:

1. At this time, FSS flat mail preparation is optional?

2. Carrier route and 5-digit flat mailpieces, for FSS ZIP Codes, can be combined into the same bundle?

3. A separation (bundles and pallets) between FSS & non-FSS ZIP Codes will be required in all FSS locations?

26

Certificate Program

TRUETRUE

FALSEFALSE

TRUETRUE

For additional information and an opportunity to discuss specific issues in a smaller setting, be sure to attend the Peer-to-Peer Roundtable discussions – located in the Delta Ballroom

When – Tuesday, April 13th

Time – 7:30 am to 9:00 am

Pre-registration required – space is limited

Register in advance or at main NPF Information Booth

Peer-to-Peer Roundtable

MEET WITH OTHERS IN THE SAME BUSINESS, EXCHANGEIDEAS ON TOPICS OF COMMON INTEREST, AND BUILD A NETWORK!

DEFLECTION…What’s the deal with Droop?

28

Deflection – Why is it important?

Deflection, also known as “droop” or “flimsiness” is a critical attribute of flat mailpieces.

When a mailpiece is too flimsy, it:

Cannot survive rigors of high-speed automation

sorting equipment

Leads to jams and mailpiece damage

Is more difficult to handle in delivery operations

29

History of Deflection Standards

Deflection standards in effect since early 1990’s

Maximum allowed droop was initially 1-3/4” or 2-3/8” Dependent on mailpiece thickness

In 2007, deflection increased to 4” for pieces longer than 10”

Mailings were mostly carrier route bundles Typically volume bypassed flats processing so impact of increased deflection not initially apparent

Shift to more automation revealed processing problems Significant increase in mailpiece damage and machine jams

Increased difficulty in handling

Federal Register to revise standards in December 2008

30

Revised Deflection Standard

Delayed implementation, originally set for May 2009

Now, revised standards go into effect June 07, 2010

See Domestic Mail Manual (DMM) 301.3

Flats must be flexible and meet maximum deflection

Maximum deflection for automation flat-size mailpieces that are:

10 inches or longer

– Must not droop more than 3 inches vertically at either end

Less than 10 inches

– Must not droop more than 2 inches less than ½ the length vertically at either end

31

32

1. Place mailpiece on a flat, straight-edge surface with length perpendicular to edge of surface and extend mailpiece 5 inches off edge of surface. Test square-shaped bound flats by placing the bound edge parallel to the edge.

2. Place a flat 12-inch ruler (or other similar flat object 12 inches or longer) on top of mailpiece with length parallel to edge of surface and as close to edge as possible so the 5-pound weight does not extend past the edge.

3. Place a certified 5-pound weight on center of the ruler to hold the mailpiece in place.

4. Determine the vertical deflection in inches.

Deflection Test Method

Design Alternatives

33

Increase paper basis (cover) weight Adjust or set minimum page count Alter binding method Insert half sheet or bind-in card Insert bound-in stiffener along stitched spine Quarter-fold larger or tabloid style flats Other options???

Deflection - Summary

Revised standards effective June 07, 2010 Price consequences deferred until Oct 03, 2010 Begin to evaluate mailpieces now Apply test method Consult with local USPS BME Manager or

Mailpiece Design Analyst for assistance prior to mailing, or if a mailing fails deflection test

Explore alternatives to reduce risk

34