2010 Comprehensive Statement on Postal Operations - USPS.com

The <strong>2010</strong> Annual Performance Report and 2011 Annual Performance Plan
Strategic Goal: Improve Service
<strong>2010</strong> Results and 2011 Goals
SINGLE-PIECE FIRST-CLASS MAIL
Service for all three categories of Single-Piece First-Class Mail
was affected by unusually severe weather-related issues, including
severe flooding in the Northeast and Midwest, and record-breaking
snowfalls throughout the country. Successive snowstorms in the
Northeast and Mid-Atlantic states were so severe that the federal
government was shut down for an unprecedented 4-1/2 days. For
all categories, performance recovered in the second half of <strong>2010</strong>,
resulting in record performance for Quarters 3 and 4. Details on the
measurement system are below.
Improvements over 2009 were mainly due to an increase in process
improvements and actionable data at all levels of operations including
equipment performance, mail flows, and transportation. They
include extensive process controls, strict adherence to dispatch and
transportation schedules, and aggressive efforts to root out errors
and reduce process variability.
Consistent with continuous improvement, the 2011 targets have
been increased. The Postal Service has reached record levels of
service performance and further improvements will be incremental,
driven by more effective use of data about mail in process from
Intelligent Mail and increased automation, such as the Flats
Sequencing System. Managers will also continue to use Lean Six
Sigma, value stream mapping, and other tools to uncover new
opportunities to improve service predictability and reduce variability.
To better understand the implications of these results, the
following table highlights that most Single-Piece First-Class Mail
has an overnight service commitment, and only a small percent is
beyond 3-Day:
Service
Standard
<strong>2010</strong> Volume
(millions)
Share of total Single-
Piece First-Class Mail
Overnight 11,830.4 56.71%
2-Day 4,647.1 22.28%
3-Day 4,333.3 20.77%
4-Day 49.5 0.24%
5-Day 1.2 0.01%
Single-Piece First-Class Mail / Overnight
<strong>2010</strong> Plan <strong>2010</strong> Result 2011 Plan
96.6% 96.36% 96.65%
Overnight was delivered 96.36 percent on-time within the service
standard. This is one-quarter of one percentage point below the
target. Performance was superior to the score of 96.2 percent
achieved in 2009. This level of service was maintained despite
significant weather impacts and work hour reductions. Consistent
with continuous improvement, the 2011 target increases to
96.65 percent.
Single-Piece First-Class Mail / 2-Day
<strong>2010</strong> Plan <strong>2010</strong> Result 2011 Plan
94.1% 93.71 94.15%
2-Day was delivered 93.71 percent within the service standard in
<strong>2010</strong>, which is 0.4 percent below the target and slightly better than
2009 performance.
Because more transportation is required for 2-Day service, weather
in the first two quarters had a more pronounced impact than it had
with Overnight. The target for 2-Day increases to 94.15 percent for
2011.
Single-Piece First-Class Mail / 3-, 4-, and 5-Day
<strong>2010</strong> Plan <strong>2010</strong> Result 2011 Plan
92.8% 92.44 92.85%
92.44 percent of 3-, 4-, and 5-Day was delivered within the service
standards in <strong>2010</strong>, roughly 0.4 percent below the target, while
superior to 2009 performance.
The impact of the weather had a greater impact on 3–5 Day than on
the other categories. The target for 2011 is 92.85 percent.
EXPRESS MAIL, PRIORITY MAIL, AND PARCEL SELECT
On-time and scanning performance for these services are included
in the corporate goals. Express Mail, Priority Mail, and Parcel Select
are competitive products. Service objectives and performance for
competitive products are not reported publicly.
Service Measurement System Details
Single-Piece First-Class Mail. Performance of Single-Piece
First-Class Mail has long been the most visible signal of service
proficiency for both consumers and commercial customers. Single-
Piece First-Class Mail, generally used by consumers and small
businesses, is entered into the mailstream in small quantities at
Post Offices or collection boxes. All elements of postal operations
influence the desired outcome of timely, reliable delivery. Address
management programs, processing systems, transportation and
distribution procedures, and many other factors affect results.
Additional factors include distance, workload variability, and weather.
On-time performance for Single-Piece First-Class Mail is measured
by combining data for letters and flats from the External First-Class
Mail Measurement System (EXFC) and Single-Piece First-Class Mail
parcel performance for the first time in <strong>2010</strong>. Parcel performance
<strong>2010</strong> Performance Report and 2011 Performance Plan | 3