2010 Comprehensive Statement on Postal Operations - USPS.com

Chapter 3: Operations
Standardization and Network
Optimization
Lean Six Sigma
Standardization continues to play a major role in improving service
and efficiency in all operations and support activities. Lean Six
Sigma (LSS) tools such as value stream mapping are used to
simplify and standardize processes. Best practices are documented
and shared throughout the organization to create a culture of
continuous improvement. Lean management efforts target process
variability and help identify non-value activities. Over 800 continuous
improvement initiatives have been identified in mail acceptance,
operations, transportation, and service improvement.
New field operation industrial engineers are playing an important
role in the expansion of continuous improvement. An additional
2,200 employees have completed LSS training, with 450 earning
certification as LSS Executive, Green Belt, or Black Belt by leading
key initiatives.
Earlier this year, the Postal Service received two awards at the
International Quality and Productivity Center Lean Six Sigma Summit.
As part of its commitment, the organization is providing training at
all management levels to foster an environment where data-driven
decisions lead to improved performance, positive financial gains, and
improved teamwork and employee commitment.
Resource Optimization
COMPLEMENT MANAGEMENT
Managers continue to improve their use of data to better align
staffing with changing workload. There were 583,908 career
employees at the end of <strong>2010</strong>, which is 39,220 fewer than last year.
There were also 87,779 noncareer employees. Reductions occurred
in bargaining and nonbargaining categories and managers continue
to plan for steady employee attrition by repositioning employees
based on current and future resource requirements.
Approximately 75 million work hours were saved in <strong>2010</strong>. This is in
addition to 115 million hours reduced the previous year, 50 million
hours in 2008, and 36 million hours in 2007. Over four years, the
Postal Service achieved a total reduction of 276 million work hours,
the equivalent of 157,000 full-time employees.
In customer service operations, scheduling improvements were
the lead factor in saving 18 million work hours. In city delivery,
1,108 routes were eliminated, in addition to pivoting open routes
and managing work hour variances, which contributed to savings of
16 million work hours. The number of delivery vehicles and related
support costs were also reduced.
Mail Volume and Work Hour Reductions Change from 2009
-10.6%
-10.1%
-6.1%
-6.0%
-3.5%
-3.8%
-2.2%
-0.6%
-12% -10% -8% -6% -4% -2% 0%
Mail Volume
Mail Processing
Customer Services
City Delivery
Rural Delivery
Postmasters
Other
Average all Functions
NETWORK OPTIMIZATION
The Postal Service continuously monitors and adapts its processing
and transportation networks to changing customer mailing patterns
and mail volume fluctuations. For example, the volume of stamped
Single-Piece First-Class Mail, which requires a high degree of
processing, declined. In the same period, presorted First-Class
Mail volumes decreased 3.8 percent. Ongoing adjustments to such
changes are essential to maintaining optimal performance.
In December 2009, the Postal Service provided Congress with an
annual update of the Network Plan, as required by the Postal Act.
The plan highlighted three integrated elements of the optimization
effort: closure of airport mail centers (AMCs), consolidation of
redundant mail processing operation, and transformation of the bulk
mail center (BMC) network. Two of the three efforts were completed
in <strong>2010</strong> and the third — consolidation of redundant mail processing
operations — is an ongoing effort.
The last AMC was closed in <strong>2010</strong>, with operations relocated to
other facilities. The other 12 AMC locations were reclassified
as processing centers or customer/retail units. AMC closures
reflect the shift of more mail from air to surface transportation,
which can substantially reduce costs without compromising
service performance.
Consolidation of outgoing and/or incoming processing operations
is considered when service objectives can be met and operational
efficiency improved. Following Area Mail Processing (AMP)
guidelines, 37 new AMP feasibility studies were initiated this year,
and 35 AMP consolidations were implemented for total savings of
over $99 million.
Transformation of BMCs into network distribution centers (NDCs)
was completed in <strong>2010</strong>. The transition to the reconfigured NDCs is
an excellent illustration of the potential of consolidating networks.
NDCs process surface mail at fewer facilities and optimize ground
transportation. In addition to producing service gains, especially for
Periodicals, the changes reduce costs by improving mail preparation,
<strong>2010</strong> <strong>Comprehensive</strong> <strong>Statement</strong> on Postal Operations | 19