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Mail Network Optimization Project

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Presentation on theme: "Mail Network Optimization Project"— Presentation transcript:

1 Mail Network Optimization Project

2 Mail Network Optimisation project focuses on postal (mail) business,
which account above 50% of the department’s revenues India Post’s revenues Percent Mail Revenue Rough estimates in percent 100% = INR 5,862 crore International mail Ordinary and registered mail Speed post Postal receipts SB & Financial services

3 SCOPE Scope of the project "Get the core right"
Optimise India Post’s mail network from collection to delivery Standardise processes with focus on quality improvement and reduction in complexity Establish an effective performance manage-ment structure using KPIs and regular reviews SCOPE "Modernise the look and feel" Improve India Post's appearance to make it more trustworthy and reliable for customers Broad approach to upgrade processing facilities and improve working conditions for employees Make staff and customers proud of being associated with India Post

4 Project Roadmap All India 2012 Roll-out 2011 Geographical reach
Priority cities "Wave 1" "Wave 2" "Wave 3" Scenario-based design and pilots Scenario- based design Speed Post & International mail First class Second class Product range Approach particularly reflects strong need for immediate tangible impact

5 Recognition of the efforts
Effort of India Post in implementing MNOP awarded with e-Governance award

6 National Award for e-Governance

7 MNOP and Speed Post operations

8 Objective Reach a new level of excellence in speed post handling
Educate each user in the system the overall perspective and the importance of his/her role in achieving excellence and meeting the commitments to customers Adopt standard practices in operations across all handling units Bring in transparency by generating viable and transaction specific MIS to improve the monitoring process

9 What excellence is aimed at?
Maximize next day delivery of articles within and across cities Bring in reliability to the service Provide efficient after sales service through increased visibility for the articles passing through the system Enhancing the look and feel

10 What are the changes? Optimising the processing centres – introduction of sorting hubs Standardising the equipments Realigning the layout in processing centres to improve handling processes Stringent commitment to cut off times in bag closing processes

11 Introduction of sorting hubs
Bag handling process rationalised through introduction of sorting hubs to reduce the number of bags handled bring in cost effectiveness achieve scalability 89 SPCs identified as sorting hubs on the national network that can close bags to each other; These are specialised processing centres Intra circle hubs introduced to handle mail pieces within the circle Booking interfaces not reduced POs are mapped to hubs Overall expedited processing, transit and delivery time, reduced sorting complexity (back-routing to a small fraction of mail notwithstanding)

12 Rationalising booking and delivery
Booking and delivery processes are through POs POs to segregate articles as TD or NTD only and close two bags to parent sorting hub or IC hub(if available) 89 SPCs which are now sorting hubs are optimised as exclusive processing centres BNPL centres handle articles from bulk customers with large volumes MBCs, RMS units and OSAs(collection agents) also book articles Post offices also accept BNPL articles and maintain accounts of customers subject to certain restrictions in payment processing

13 Introduction of assembly line functioning in hub
Revising layouts Sample of new layout Introduction of assembly line functioning in hub

14 Standardising equipments
Sorting Cages Roller containers Bag cutter and stool Tray trolleys

15 Commitment to cutoff times to improve D+1
Receipt from PO Cut-off to ensure flight connectivity Receipt of items from other cities Cut-off for POs 1 Non-TD sorting TD sorting (from own POs) TD sorting (from Rest of India) 2 3 Rationale Sort rest of India volumes before outgoing flight Sort TD from own POs while “waiting” for flight receipts Sort TD from rest of India after receipt from incoming flight

16 Performance monitoring through KPI analysis
What does it do? 1a Transit analysis within city Measures speed and reliability of processing of Speed Post articles from booking to delivery 1 D+X reports 1b Transit analysis across city 1c Time per leg of transit within city 1d Time per leg of transit across city 2a Scans compliance in the entire network Measures for each processing step whether articles got scanned as prescribed 2 Scan com-pliance reports 2b Scan analysis per leg of transit within city 2c Scan analysis per leg of transit across city 3a Percent of F-scans in SpeedNet vs. F-scans in IPS1 Measures for international inbound article the efficiency of movement at every step before merger with Speed Post 3 Inter-national reports 3b Percent of F-scans in IPS vs. D-scans in IPS 3c Share of SpeedNet Delivery scans vs. IPS F-scans (TBD) 4a Articles processed per hour per FTE Supports achieving better D+x and scan performance 4b Staff absenteeism 4c Share of bags without bag labels 4 Support-ing KPIs 4d Share of articles not processed in SpeedNet 4e Share of articles closed after cut-off time 4f Share of missorted articles 4g Share of articles with missing pin codes 4h Share of articles not dispatched same set

17 Impact of MNOP on Speed post

18 Distribution of delivery %
Observe that D+1 improved from to percent Observe a marked increase in D+2 percentage from to percent Observe that together D+1 and D+2 account for 87% of the articles D+x performance of Hyderabad for artciles addressed to Bangalore for the month of July 2014

19 Improvement in D+1 % D+1 percentage
Trend in D+1 percentage achievement of Kolkata SPC between September 2012 and July 2014 D+1 percentage Observe the improvement in D+1 for articles from Kolkatta to major cities

20 Improvement in D+X score
Improvement in D+X score at Kolkatta SPC between Sept 2012 and July 2014 Observe the improvement in TD and NTD score Notice that both target and achievement in TD and NTD performance are reduced

21 Improved visibility through MNOP

22 Visibility on transit time
New transit analysis tool helps identify bottlenecks efficiently

23 Supporting KPIs help Study of supporting KPIs help reduce errors in article handling

24 Flight KPI This is an indicator of the use of best alternative for air transit

25 Improvement in visibility
Study of end-to-end tracking helps in improving the visibility, thereby providing accurate tracking data to customers




29 Lab Exercise 14/02/2014 YRM, PTC, Mys-10, PA-ADP

30 Speed MNOP URL
All the concerned offices are provided with user ids and password Note : PTCs can make use of the following username and password .Username :ptcmysore Password :ptcmys123* 14/02/2014 YRM, PTC, Mys-10, PA-ADP

31 MNOP and first class Mail

32 Network Existing mail offices classified into L1 and L2 offices to handle first class unregistered and registered mail 89 L1 offices and 244 L2 offices identified Post offices mapped to L2 office or L1 office

33 Mail flow process for I class mail
Post Office Post Office Post Office Post Office Level-1 mail office Level-1 mail office Level-2 mail office Level-2 mail office Level-2 mail office Level-2 mail office Post Office Post Office Post Office Post Office Post Office Post Office Post Office Post Office Permitted only under same circle

34 Sorting pattern Post offices prepare two kinds of bags
A TD bag containing unregistered mail A NTD bag containing unregistered mail A TD bag containing registered mail A NTD bag containing registered mail POs to retain station articles L2 offices close bags to parent L1 office and mapped delivery Post offices L1 offices close bags to each other The bags handled are treated as due bags



37 Network redesign for Second class mail

38 86 L1 and 241 L2 offices identified
Existing mail offices handling second class mails reclassified as L1 and L2 offices 86 L1 and 241 L2 offices identified Post offices to close one bag containing both TD and NTD articles to mapped L1 or L2 offices POs to place the following bags in M bag first class TD and NTD bags for both unregistered and registered mail Second class bag

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