1. Overview AM Standard Operating Procedure

2. AM SOP Overview2 Why Do Anything? - Volume Trends

3. AM SOP Overview3 Why Do Anything? - Volume Trends

4. AM SOP Overview4 Why Do Anything? - Volume Trends

5. AM SOP Overview5 Why Do Anything? – Productivity Trends

6. AM SOP Overview6 Why Do Anything? – Carrier Office Summary Continuous volume decline Increase in DPS Failure to capture down time in the office – Declining OEI trend – Increased usage of street hours – Declining SEI

7. AM SOP Overview7 Why Do Anything? – Created From Necessity Situation –Unstable Mail Flows and Processing Expectations –Carriers Waiting on Mail from F1 and F4 –Declining Workload –Erratic Leave Times –Expanded Street Times –Leave Early for Street, Return at Scheduled Time Summary: Create Consistency Via Standardization to Eliminate Chaotic Environments

8. AM SOP Overview8 Strategy Development - Introduction The purpose of this strategy is to standardize management processes and integrate IOP into the management of carrier AM office procedures To provide a training guide with a step by step process utilizing: –DOIS –TACS –MSP –Policies & Procedures Develop the business case to stabilize routes

9. AM SOP Overview9 Strategy Development – Remove the Barriers Stabilize Mail Flows & Processing Expectations –Create IOP Contracts –Establish Correct Start Times Stabilize Carrier Leave Times –Leave at Scheduled Time –Document Work Hours Based On Workload Stabilize Carrier Street Times –Leave and Return at Scheduled Times Summary: Create Consistency Via Standardization To Eliminate Chaotic Environments

10. AM SOP Overview10 Strategy Development – Critical Path for F2B Program is Responsibility of: –POOM / MCSO –Postmaster / Station Manager Procedures / Methods are: –Visual –Quantifiable Create: –Daily Accountability –Operational Responsibility

11. AM SOP Overview11 Strategy Development – Critical Path for F2B Management Actions to Exercise Rights and Responsibilities –M39 –M41 –F21 –ELM Standardize Methods –AM SOP

12. AM SOP Overview12 Strategy Development – Critical Path for F2B Core Elements –Define Plant Requirements – IOP Contracts –Spread/Count 100% Committed Flats to Carrier Case –Set Carrier Reporting Time –Sequence A.M. Carrier Procedures Identify and Track: –Straight Time Pivoting & Office Assistance –Stand-By Time by Cause

13. AM SOP Overview13 Strategy Development – Plant Responsibility Processing –DPS - 85% –CR Flats - 80% Automated –STD A Isolated Create IOP Contract –Identify/correct exceptions –Integrated Operating Plan – Daily Tracking –Reports by day, week, & YTD for DPS, Flats, & Transportation

14. AM SOP Overview14 Strategy Development – Delivery Units Efficient Office Layout Standardize Sequence Of Daily Events –Vehicle Check –Nixie/Forwards –Accountable Mail –Miscellaneous Ensure Accuracy Of DOIS Data

15. AM SOP Overview15 Strategy Development – Delivery Units Standardize Clerical Functions Reporting Times –Mail Receipt - Prep – Spread –Increase Flexibility –Route Structure Will Support Appropriate Complement –80% Mail Available - 100% Flats Prioritize Flats - For Carrier Case Distribution Count Volume – Use DOIS Ensuring Accurate Data

16. AM SOP Overview16 Set Carrier reporting time LATETARDY –EAL < 8 hour increments –Secure timecards –F21 section 142.11 Time & Attendance Manual - Upon arrival, employees are to clock in at the scheduled reporting time and report to their work station ready to work Strategy Development – Delivery Units

17. AM SOP Overview17 Strategy Development – Flats Office Time

18. AM SOP Overview18 Strategy Development – Delivery Units 80% of the carriers mail should be at the carrier case prior the carrier arrival-M-39 sec 141.122. 100% caseable flats prior to carrier reporting times. CASE FLATS FIRST Observe workroom floor activities Identify, address, correct and document inefficient/time wasting procedures Communicate current days expectations Review carriers request for OT and assistance

19. AM SOP Overview19 Strategy Development – Delivery Units DOIS is to be used as the tool to provide ongoing trend analysis to ensure proper route structure and MUST have accurate data –Evaluate daily work hours using projection reports –Provides the historical data needed to determine route adjustment –Provides the means to actually perform the route adjustment

20. AM SOP Overview20 Strategy Development – Delivery Units Review previous day variances in carrier agreed-upon return time and or end tour using the: –1813, 1017A/B, DOIS & TACS reports Ensure accountable clerk is scheduled to avoid delay of carriers, MDCD scanners should be provided at this time Utilize rolling carts by accountable clerks Observe loading procedures to ensure –Loading is on street LDC –Parcels sequenced into the vehicle on street time to facilitate timely delivery –Parcels are NOT part of an office function

21. AM SOP Overview21 Strategy Development – Critical Path for F2B Identify Under-Time To Primary Route –Straight Time –Office Assistance –Pivoting Stand-By OPN 354 Coded By Cause Document (DOIS/TACS) All Straight Time Not On Primary Route

22. AM SOP Overview22 Strategy Development – Site Selection Pre-Inspection TOP (Top Office Performer) Audit conducted in initial AM SOP site by Eastern Area Inspection Team - Nov. 02 Office failed TOP Audit - 81 overall / 36 delivery

23. AM SOP Overview23 Strategy Development – Site Selection Numerous Causes/Concerns Mail Arrival Problems Clerk Inefficiencies Carrier Inefficiencies Management Inefficiencies Poor FLASH Performance Issues Eastern Area Inspection Cancelled - Office Not Ready $$$$

24. AM SOP Overview24 Initial Results – Performance Improvement TOP Audit - Improved from 81 overall / 36 delivery score to 97 overall / 98 delivery score LDC 21 –PRE -0.7% to PLAN, -4.8% to SPLY AP02 FY 03 –POST -3.6% to PLAN, -8.3% to SPLY AP06 FY03 OEI –PRE 0.8% to PLAN, 5.5% to SPLY AP02 FY03 –POST 3.7% to PLAN, 9.7% to SPLY AP06 FY03

25. AM SOP Overview25 Initial Results - Outcomes 4.5 Routes reduced 5 Vehicles eliminated 5 Positions excessed Base reduced 30 hours Scheduled BT changed from 06:30 to 07:00 to 07:30 after RI

26. AM SOP Overview26 Communicating the Strategy Process –Area-NBAs –PC-Local Presidents –Manager-Stewards –Supv-Carriers Discuss AM SOP Process - Events - Timelines

27. AM SOP Overview27 Communicating the Strategy - Internal Office management to Carriers- driven by use of standard operating procedures to direct the sequence of actions & events within the office Training for Customer Service & Plants –PCES –PC Staff –Plant & Customer Service Managers –Operations Managers & Supervisors

28. AM SOP Overview28 Communicating the Strategy - External Management Organizations - NAPS, NAPUS, League of Postmasters Overview program with NBAs, local presidents, stewards

29. AM SOP Overview29 Strategy Implementation AM SOP Initiative - Operational Responsibility –Owner - POOM/MCSO –Co-trainers - MOP/MGR DP –Oversight - Field coordinators (4) Not a support program

30. AM SOP Overview30 Strategy Implementation – Site Selection Criteria for Alpha & Beta sites –DOIS site with 20-50 city carrier routes –DPS & FSM processing –Overtime > 10% –Marginal budget performance –Identified inefficiencies

31. AM SOP Overview31 Strategy Implementation – Alpha Roll-Out One site per PC 50 day timeline, start to finish Start - July 14, 2003 Completion - September 2, 2003 Consists of 445 city routes

32. AM SOP Overview32 Strategy Implementation – Beta Roll-Out One site per POOM / MCSO 50 day timeline, start to finish Start - August 12, 2003 Completion - September 30, 2003 Consists of 2082 city routes

33. AM SOP Overview33 Alpha Site Results Start times –11 sites changing to later carrier begin tour due to identified mail arrival profile (by :30 to 1:30) Time clocks –All sites now securing badges Downtime –Operation 354 used along with reason for downtime (documented 2 to 10 hrs per day average)

34. AM SOP Overview34 Alpha Site Results Floor layout – All sites changed floor layouts (197 routes moved) –All sites reduced casing equipment (133 pieces of cased eliminated) –Floor configuration changed –Eliminated safety hazards Transportation –7 sites made transportation changes

35. AM SOP Overview35 Alpha Site Results Delivery Point Sequence –Twelve sites indicate increased DPS percentage from 1.2 to 15.5% with 2 sites at 85% –Four sites exceeding 80% DPS DOIS Indicators –Eleven sites increased Total Workload Effectiveness AP following implementation

36. AM SOP Overview36 Alpha Site Results Mail flow / F4 –Reduction in F4 work hours –80% of mail is being provided to the carrier prior to their begin tour –IOP team focus is on separation of pref from standard mail

37. AM SOP Overview37 Alpha Site Results Route / work hour adjustments –Thirteen sites made immediate minor/negotiated adjustments involving the elimination of 15 routes plus work hour / route status reductions –One site absorbed 800 new growth deliveries –Formal Inspections and/or additional minor adjustments planned for spring

38. AM SOP Overview38 Summary Establish Core Competencies For Sites –Transportation Stability –IOP Effectiveness –Office & Street Work Hour Trend –Office & Street Effectiveness (DOIS) –Downtime Report –OEI / SEI –Late Leaving / Returning Routes

39. AM SOP Overview39 Summary Stabilize Route Structure –Formal Inspections –Special Inspections –Minor Adjustments Present Business Case –To NALC –To Individual Carrier Conduct Joint Reviews