**Minutes of the**

**Mailers\' Technical Advisory Committee**

**June 10-11, 1998**

**L\'Enfant Plaza Hotel**

**Washington, D.C.**

**Welcome**

Joe Schick, Industry Vice Chair, called the meeting to order and
welcomed the members.

**Recognition**

Art Porwick, USPS Vice Chair, welcomed new members Joan Bender
(representing the General Services Administration (Government), Ralph
Malmros (National Association of Perishable Shippers), and Joel Thomas
(National Association of Presort Mailers).

Mr. Porwick presented plaques to retiring members, and expressed
appreciation for long and loyal service to MTAC: Joan Rau-Frisbee
(Federal Government), Norman Leiberg (National Association of Perishable
Shippers) and Ed Meszaros. He noted that Mr. Meszaros had been a member
for almost 25 years and had represented the Parcel Shippers Association,
the Financial Stationers Association, the US Chamber of Commerce and the
National Association of Perishable Shippers.

John Wargo welcomed the MTAC members and announced that the scheduled
appearance of the Postmaster General would be postponed because he had
been called to testify before a congressional committee.

Mr. Wargo also noted that the MTAC annual report had been published and
distributed to USPS management and the member associations. He added
that the Postmaster General had commended the MTAC for the report, which
demonstrated that reports and recommendations generated by MTAC were
being included in the management agenda of the Postal Service.

After a brief administrative discussion, including comments on
delinquent member dues, work group meeting scheduling, member hotel
accommodations and MITS access, an Operations Update was provided by
Nick Barranca.

**Operations Update \-- Nick Barranca, VP, Operations Support**

Mr. Barranca updated the briefing delivered at the last MTAC meeting. He
noted that resources would be allocated to stabilize the delivery
process. For First Class and Priority mail, that would begin with a
focus on commercial air hubs and the performance and efficiency of
commercial carriers, and adding dedicated flights to reduce delivery
variability (such flights have been established between major west coast
cities, a number of central cities, and hub and spoke operations are
being developed to bring more mail into the dedicated service areas).
The dedicated flights will offset the negative performance factors
related to commercial air carrier focus on moving passengers, sometimes
to the detriment of the mail movement.

Priority Mail Processing Centers are being established (ten currently in
operation on the East Coast) to improve the reliability of the premier
two-day delivery product to the point where it can be guaranteed. Moving
Priority into these PMPCs will relieve space pressures in other
facilities.

Concerning periodicals, the USPS is working with MTAC to identify
factors which hinder timely delivery, and there are a number of issues
in process including encouraging operations plan compliance, looking at
combining periodicals with other classes of mail, development of a
dedicated surface pref network and direct support from Headquarters
directing field managers

to become involved with periodical mailers to address current problems.

The current rate case will affect Standard B mail, and the Postal
Service has identified about 4,000 Zip Codes that may feel the impact of
the incentives of R-97. A review is presently

underway to determine what resources are available and required to
respond to mail entering the system further downstream.

Statistics show that Standard A mail has grown about 8 percent, but the
inventories of delayed deliveries have remained below both the 1996 and
1997 levels. Careful surveillance has continued, and customers are
contacted at the rate of about 200 a week to identify issues important
to these customers. The issues have been nominal, mainly relating to
delivery. Resolution of problems identified is monitored to insure
prompt response.

A planning group was established with the goal of eliminating
variability of in-home delivery dates. The groups was diverse, including
operations and marketing managers, field managers and others, and began
by looking at the macro aspects of complement, resources and resource
requirements, space and equipment needs. Appropriate actions included
increasing staff levels well ahead of attrition through retirement. The
group would also look at the potential impact of R-97 with regard to
increased mixed product submission made deeper in the system.

Customers were consulted to identify problems related to entry points,
delivery problems, sites that might cause customer concern, and actions
which might improve fall mailing season service. Field managers were
consulted to elicit opinions on specific needs, including complement,
resources, equipment, space and processes, including contingencies that
might involve other facilities. The planning group agreed that a formal
Fall Plan was required that would be site specific, and would be cased
on a cluster approach to operations.

Information sharing will enable a customer to plan entry into the system
to receive timely delivery. The DSAS will provide the basis of that
information service that will be available on a daily basis. Adverse
conditions (weather, outside impacts, system overloads) will be included
in the planning information. The Fall Plan is well advanced and
implementation is scheduled for July.

Mr. Barranca concluded by noting that the system is in good condition,
customer concerns are at a minimum, the Fall Plan includes augmented
resources (equipment, space, complement) and an improved information
process, and there will be a high level focus on performance.

**Financial Update \-- Richard Porras, VP, Controller**

Mr. Porras noted that there were rosy net income projections being put
forth outside the Postal Service that might, in fact, be mitigated by
factors falling in place during the last quarter. He compared the
financial results of AP 9, which showed a increase in operating revenue
of almost 5 percent (but an increase in expenses of over 8.3 percent),
and a net loss of \$56 million versus a profit in AP 9 SPLY of \$80
million.

Looking at a year-to-date picture, net income is up slightly (up \$106
million), but the comparison is affected by a lump sum payment of wages
in December of FY 97 that artificially reduced expenses during the last
quarter \-- this year those wage expenses will hit the books on a
monthly basis.

The financial statements, at the moment, look good \-- solid revenue and
volume growth, apparent balanced increases in revenues and expenses,
numbers almost across the board that are better than budget. The
potential fly in the ointment is the budgeted monies for special
programs mainly in the Headquarters area (about \$1.5 billion total for
the programs, about \$400 million not yet spent) and the continued
slightly higher level of wages compared to the last year. The trend in
expense increase has been steadily up since AP5 and a continuation of
the trend in AP 10-12 would make it impossible to match the expense
level of 1997.

Mr. Porras stated that the major increases in volume appeared in the
Priority Mail category (up almost \$400 million or 15 percent), and in
Standard A (which increased 19% following a 1997 increase of 15%). He
predicted that third class mail could well exceed first Class mail in
physical volume within three or four years. Overall volume growth is
slightly lagging the 1997 rate. Parcel Post is clearly surging ahead.

In summary, Mr. Porras suggested that AP losses would probably continue
to reduce the final net profit for the year. Factors include the lump
sum wage payment that artificially reduced 1997 expenses in the final
quarter; the positive impact of the UPS strike; major program
investments that constitute additional expense not budgeted in 1997
(Priority Mail redesign, associate office infrastructure, corporate call
management and point of service improvements), and a FY '97

Workers\' Compensation expense reduction that is not expected to occur
this year.

Finally, Mr. Porras stated that the higher level of AP expenses for the
last quarter will reduce the net income from the current \$1.4 billion,
but the net income will remain positive.

**Year 2000 Briefing \-- Richard Weirich**

Mr. Weirich explained that the Postal Service Year 2000 team had
identified about 600 projects (from individual equipment to complete
information systems mainly internal to the Postal Service), which have
been prioritized based on potential impact. The projects have been
grouped into about 100 \"releases,\" which may be multiple equipment and
systems with commonality. All are managed on a national basis. Whenever
possible, local \"solutions\" are being converted to the national
standard.

The work, which has been going on for several years, will intensify
between now and the first quarter of FY 1999. By the second quarter,
most of the maintenance will be complete, with only a handful of special
situation remaining for final action. Some of the solutions are required
before the witching hour on December 31, 1999 (including some address
management programs). Work will be completed and full testing of system
made before any such failure date.

The Postal Service is working with customer and stakeholders to keep all
interested parties fully informed, including an FAQ section on the USPS
web site, and a data exchange page. Technical assistance may be
available for key customer systems. There will be a major presentation
at the Postal Forum.

Mr. Weirich suggested that MTAC form a working group to address
contractor software compliance, early maintenance and testing, and other
related issues.

**MAIL.DAT Direct Link \-- Larry Goodman, Manager, BCSS**

Mr. Goodman explained his specific charge within the Postal Service
which is to implement the best business practices and technology
available to streamline the way mail is accepted from large customers
and to add value in the process. The Postal Service is engaging in a
program

identified as the Electronic Business Partnership, in concert with the
mailing community, to move into a totally electronic mailing
environment.

During the past year, the Postal Service has been involved with piloting
two applications both dealing with streamlining the process of accepting
the mail. The Direct Link pilot has involved

four pilot sites with primary emphasis on Standard A and Periodical
mailings. The MEI (Mailer Enterprise Integration) pilot uses in-line
scales, scanners, and automated equipment at the end

of a mailer's production line to compare a tray of mail to an electronic
mainfest and accept the tray based on the results. Additionally, MEI
extends functionality by automating the transportation assignment of the
mail. Both of these pilots, Direct Link and MEI, together, make up the
program called Electronic Business Partnership.

There are five basic components that comprise the Electronic Business
Partnership:

1.  Electronic Documentation - to capture mailing data and dramatically
    reduce paperwork.

2.  Electronic Verification - to better manage and improve the mail
    acceptance and verification

process.

3.  Electronic Transportation Management - to optimize transportation to
    ensure better service.

4.  Electronic Postage Payment - to manage your postal funds more
    closely and track expenses nationally and by local mailings.

5.  Electronic Access to Information - to allow for the review of the
    status of a mailing and provide for a reconciliation of accounts.

A transition period of about six months will allow the Postal Service to
perform an evaluation of the Architecture required to support the
Electronic Business Partnership and to prepare for an internal
investment analysis to support the national rollout of the application.

**Implementation of ABE \-- Larry Brennan, Mail Advertising Service
Association Intl**

Mr. Brennan explained that MASA had conducted relatively informal tests
of ABE equipment, with the cooperation of some MASA members. A private
concern accepted a contract to design a standard test with a test deck
of 6 different samples of print technologies. The tests are going to
various environments (DMU and BMU) at random and anonymously. The Postal
Service is cooperating by conducting the tests when requested and the
test results are being provided to the USPS as the testing progresses.

If the results are positive, MASA will endorse the ABE machinery. If
not, the Postal Service has indicated a willingness to step back and
reconsider the use of ABE.

**Flats Automation Update \-- Bill Dowling, VP, Engineering**

Mr. Dowling discussed the transition from manual distribution
processing, which has matured in the last sixteen years using the FSM
881 (now 812 installed) to system that adds barcode recognition as
transition to an automated process. An optical character reader retrofit
on the

FSM 881 is in process.

The FSM 1000 is the machine that has been designed to perform both
automated distribution

and barcode reading. Unlike the FSM 881, the FSM 1000 can handle most
poly and has no requirement for rigidity (except for the larger pieces).
By September 1998, a hundred Bar Code Readers for these 342 machines
should be in operation.

Three suppliers are competing to improve a Next Generation Flat Sorting
Machine that should displace the FSM. The depth of sort and the
separations will be increased, and they are all compatible with robotics
now in use or planned. The new machines will not require tabbing, and
should stack mail better, a requirement for delivery sequencing.
Delivery should begin in late 1999 and be mainly completed by the end of
the year 2000.

Although the capability for sequencing flats does not exist, the Postal
Service is committed to pursuing development of machines that will
provide that capability. Pieces would then have to have a delivery point
barcode. Prototype development is just beginning. Successful development
of delivery Point Sequencing for flats would enable the equipment to
identify a mail piece just before delivery and make this information
available to the mailer.

**Administrative Announcements**

Mr. Schick announced the 1999 meeting dates:

**January 19-21**

**April 20-22,**

**July 20-22**

**October 19-21**

Mr. Porwick discussed the Postal Forum, noting that there will be
general sessions related to the rate case, the Year 2000 process, and
the awards session will be expanded to include a mailer\'s "Mailing
Excellence Award." MTAC will sponsor another

session, and prizes were solicited.

The meeting was recessed until the following day at 8:00 a.m.

**Minutes of the**

**Mailers\' Technical Advisory Committee**

**June 11, 1998**

**L\'Enfant Plaza Hotel**

**Washington, D.C.**

Joseph Schick, Industry Vice-Chair, called the meeting to order and
expressed appreciation to Dee Adona for her support in organizing the
MTAC meeting, and for keeping the machinery running smoothly during the
meeting.

**USPS Rate Case Briefing \-- John Ward, VP, Marketing Systems**

Mr. Ward began with an overview of the Postal Rate Commission
recommendation to the Board of Governors. The recommendation was the
smallest increase in recent history, only 2.9% on average, and included
an expansion of worksharing discounts. The average is based on a
weighted calculation, looking at the entire volume structure of the
Postal Service. The growth products of the Postal Service Priority Mail,
Standard A and Parcels) were protected. The rate proposal included
significant investments in infrastructure and service improvements
(Priority Mail Network, delivery confirmation, call centers). Finally,
the structure of the proposal process, including its openness and
participation by customers and stakeholders, has reduced the incidence
of contentious litigation.

Mr. Ward commented that the original strategy of the Postal Service was
to keep the increase in First Class exceptionally low, with modest
increases in the competitive products. Minor setbacks to the strategy
involved the higher DMBC rates and higher Standard A pound rate.
Finally, the CEM provided a discount for consumer barcoding.

Comments from customers (208 letters) that were submitted to the Board
focused on a delay in implementation, recommending January.

In retrospect, Mr. Ward said the low increase was a positive strategy,
and the near term test year allowed posting actual results. Having to
use a 2.5 ton truck to move 30 cases of documents to the Postal Rate
Commission suggests that a reform in the presentation process may be in
order.

Although some of the recommendations to delay implementation were based
on money, there is a clear need to provide a window to both the software
suppliers and the mailers to gear up for the changes. The software
companies have indicated that 30 to 35 days would be required, and
mailers have suggested a similar time period for putting the new
software in place. The Board plans to act on the proposal about June 29.
A draft of the final notice is being released in the Federal Register
currently, in an effort to elicit additional comment before the decision
is made.

Historically, Mr. Ward noted that circumstances have become much more
gentle in the last ten years. During the R-87 rate case, operating from
deep deficits, resulted in a very defensive strategy in developing the
rate proposal and double-digit increases were common. Major litigation
and contention existed, partly as a result of the closed process. There
was little or no communication with customers. Implementation was
immediate.

Today, there is a profit-based process resulting in very low proposed
increases. There is much greater communication, far less contention and
litigation, and implementation is controlled and reasonable.

Next steps include the preparation of an assessment and recommendations
for the Board. The decision on implementation is the entire Board\'s
responsibility and they are aware of the sentiment in various quarters.

**[Communications Committee Report - Thomas Roylance]{.underline}**

Mr. Roylance reported that the Committee had been working to improve
dissemination of information, especially changes in MTAC, from the
established committees to the work groups. There is a new orientation
packet and the first new member orientation was held during the meeting
week. If there are communications problems related to MTAC committees or
work groups, members should let the Committee know.

**[Working Group Reports]{.underline}**

**[Capital Spending Work Group \-- Joseph Schick]{.underline}**: The
work group tries to identify areas where capital spending is
appropriate, especially in the information systems and mail tracking
area. The work group is in the process of preparing a position paper
that will provide rationale for a capital expenditure plan based on the
needs of both the customers and the Postal Service. The work group
should finish its work by the Fall Postal Forum.

**[USPS/Industry Exchange Program \-- Jack Widener]{.underline}**: The
goal of the program was to give managers in both the Postal Service and
in the mailers\' companies the opportunity to experience the routine and
exceptional challenges of the opposite side. The simple exchange of
managers was not as workable as originally envisioned. The work group is
now looking at developing a combination academic program linked with
some on-site practical experience for each manager. An academic
institution, to be selected by July 1, will prepare a detailed plan
which, if approved, should be initiated in the fall.

**[Presort Optimization Work Group \-- Joe Lubenow]{.underline}**: A
Federal Register notice should be published in July concerning two
issues. The first involves a multiple 5-digit pallet (LOO-1) that would
allow mailers, when a valid SCF pallet cannot be made up, to mix certain
zip codes, to be determined and published by the Postal Service, A
second issue involves mail that goes to offshore destinations (e.g.,
Alaska, Guam, Puerto Rico) that currently has no DBMC drop ship
discount. A change in procedure will be recommended, although no
discount would apply, that would allow such mail to be included on the
appropriate destination pallet or sack that would bring it closest to it
normal forwarding location (e.g., Seattle for Alaska mail).

**[Form 8125 - Rick Kropski]{.underline}**: The proposed Form 8125 has
been published in the Federal Register and has been placed on RIBBS for
information and comment. Once that process is complete, the form should
be placed in use.

**[Drop Ship Appointment System (DSAS) Enhancements \-- Rick
Kropski]{.underline}**: The work group has invited the Postal Service to
meet and discuss the fall planning issues. Their focus has been on the
DSAS and some positive results have come from work group suggestions.
Specifically the work group targeted appointment availability,
eliminating pallet restrictions at the SCF, timeliness and accuracy of
appointment close out information, adjustment of BBM threshold capacity
and accessible information about potential overloads and delays. The
Postal Service has instituted some changes, including a request for
piece shape information, nomenclature changes to enhance vehicle and
mail class identification, and there is a separate appointment system
for Standard B with increased slots available. A new information system
platform will be adopted, which will be PC-based to enhance Internet
access.

**[FSM 1000 - Richard Funck]{.underline}**: This new work group was
established to respond to the new bar code discount related to the FSM
1000 capabilities. Issues that the work group will consider involve the
following. The current weight limit for flats is 16 ounces with a
7/8th-inch maximum width. The FSM 100 recommendation may be up to 1.25
inches and up to 6 pounds. There may be no rigidity requirements. The
minimum size may be 4 inches by 4 inches. Thinness has yet to be
determined, but may be reduced to 1/8 inch. Label placement will
probably not change. Although the FSM 1000 can handle most poly wraps,
the issue is complicated enough to defer it to a separate work group.

**[Trays on Pallets \-- Bob Harle]{.underline}**: This new work group is
looking at getting more mail on pallets, pallet security, proper
sortations in the field. The issue may be more how the tray is made up,
especially air space. Tray security may rely on the development of the
rigid plastic tray, which may be as much as two years away.

**[Container Tracking \-- Joe Lubenow]{.underline}**: The group has
determined that it would be difficult to obtain data relying on Postal
Service employees.

**[Unit Load Tracking \-- Joe Lubenow]{.underline}**: The group has
developed a broad definition of unit load, and the Postal Service is
looking at a broad range of RFID technology.

**[Information-Based Indicia Program \-- Joe Lubenow]{.underline}**:
IBIP is being used in beta for postage payment, using a two-dimensional
PDF 217 barcode which can handle up to 2,000 characters. Drawbacks
include the size of the indicia (2 inches by 1 inch) and the fact that
it cannot be reliably read at equipment speeds.

**[Planet Code \-- Joe Lubenow]{.underline}**: Reviewing the tracking
programs, and relating PostNet and Planet Code as tracking mechanisms,
Mr. Lubenow noted the benefits that include tracking all or specified
segments, reduced labor, system-wide performance data generation and
potential costing data derivation. Radio frequency devices extend the
tracking capability beyond the scanner limitations.

Planet Code is the inverse of Post Net in structure, contains eleven
digits of information, can be placed in the address block (at the top),
and is compatible with existing printing technology. It is readable at
equipment speeds and allows electronic data retrieval. Although rarely
used, about 325 Postal Service sites can accept Planet Code mail.

**[Information-Rich Mail Piece Barcode \-- Joe Lubenow]{.underline}**:
This new work group will look at design changes in the Planet Code. The
Planet Code has limitations that make unique mail piece identification
troublesome. Mr. Lubenow described a process of design that would
dramatically expand the information that could be contained in a Planet
Code, mainly by modifying the placement of the long and short bars in
the printing of the code. The Postal Service has evaluated the process
and determined that the new design has potential.

**[Parcel Service Improvement \-- Phil Parizino]{.underline}**: This new
group will focus on Standard A and Standard B parcels. The group has
identified a number of issues \-- tracking internal mail as a service
assessment tool; improved communications between the Business Service
Network and the Operations side of the Postal Service; identifying
service issues, and improving the communications/education of front line
delivery units (parcels are a major product that will not be affected by
electronic mail displacement).

**[Parcel Barcode Clarification \-- Julie Rios]{.underline}**: An
agreement was reached on barcode standardization, including new
specifications for the delivery confirmation barcode. Certification
procedures are being finalized which will be a one-time test for each
individual printer in a plant. For delivery confirmation, a separate
test file will be required to insure the data presentation is correct
and acceptable. There will be a de-certification process (below 95%
reliability) will ample notice time and time to correct. Mail piece
design analysts will be available to assist in developing specialized
barcodes. Parcels will not be subject to this procedure.

**[Return of Opened Parcels \-- Joseph Monastro]{.underline}**: The
final result of the long and difficult work group process regarding
opened parcels is agreement to treat each piece opened by the recipient
and redeposit in the system exactly as it is endorsed. If change service
is requested, the mailer will receive electronic notification. If return
service is requested, the piece will be returned to the mailer.

**[Parcel Reclassification Implementation \-- Tom
Namonet]{.underline}**: The work group reached compromise on a number of
reclassification issues related to OBMC/BMC presort rates,
containerization, DSCF rates related to pallet preparation, reduced
minimums for DSCF pallets and sacks, exceptions to movement of certain
5-digit sorts to BMC\'s based on local capabilities, use of pallet boxes
for DSCF and DDU rates with size limits, and flexibility is submitting
overflow pallets and sacks.

**[Address Code Enhancement \-- Joe Lubenow:]{.underline}** The group
was considering about seventeen issues. On the issue of incentives to
reach 100 percent, the barcode/OCR readers in the future may allow a
mixed pieces submission. On the issue of recipient apathy, Jim Schemmel
offered a study that identified reasons for failure of recipients to
correct addresses and steps to overcome that failure. One aspect of the
solution is to request that the carrier identify the casing location in
the plus four part of the zip code. Working against the delivery
sequence file allows identification of a codeable address. A third
issue, obtaining complete addresses from phone orders, may be resolved
through the use of various software available on the market. An issue
that was not resolved was addresses that are not deliverable because the
street address does not exist in the USPS delivery data base, even
though the physical delivery point does exist. Finally, the group
recognized that the availability of a discount for mail to default
apartment numbers may disappear in the future.

**[Increase Coding of Colleges and Universities - Thomas
Roylance]{.underline}**: Cooperation among colleges will help the work
group resolve some of the issues related to coding college addresses.
Unique zip codes, for example, are a problem. The group identified
several objectives \-- identifying current databases, identifying
workable models, dealing with unique zip codes and the use of post
office box numbers within the college environment. The work group will
try to develop a recommendation for a standardized address format,
working with the National Colleges and University Mail services
Association and the National Association of College and University
Business Officers.

**[Small Mailer Information - Dan Goodkind]{.underline}**: There is a
prototype of the small mailer brochure which is being reviewed in the
legal department. Once approved, the brochure will be printed and
distributed to MTAC members and the public.

**[Improving Standard A Catalog Mail Delivery \-- Cathy
Civiter]{.underline}**: The work group is under the new leadership of
Chris Rebello. With data from mailers, a list of the best and worst
SCF\'s has been developed and submitted to the Postal Service. Analysis
of what makes the best the best and the worst the worst is underway,
including some site visits.

**[Service Commitments \-- Cathy Civiter:]{.underline}** This new group
has a global mission of looking at what exists now and what mailers need
from the Postal Service. First Class mail alone has a service commitment
(2-3 day delivery), a service standard (92%) and an external measurement
system (EXFC). The group agreed that all other classes need to develop
these three standards. In an education session, the Postal Service
announced that progress was being made in these areas. The group has
requested a Postal Service briefing on current service standards.

**[Mail.dat \-- Dan Minnick]{.underline}**: A Users Guide is in draft
form. There is also a proposal to develop a plan to supplant the green
bar with the recently accepted viewer standard. The work group agreed
that an education program directed at Postal Service middle management
to enhance future acceptance. Finally, a recent meeting determined that
the mail.dat parameters could conform to international mail
requirements.

**[Direct Link \-- Dan Minnick]{.underline}**: Mr. Minnick referred to
the presentation by Larry Goodman about the Electronic Business
Partnership.

Improvement of Acceptance and Certification \-- Jon Wittenebel: The
objective is to simplify the acceptance process. There are sixteen
suggestions to Postal Service personnel that will be posted on the
Internet soon. The basis of the recommendations relate to training of
the detached mail unit personnel and quality mail acceptance processes
by the mailers.

**[Periodical Service \-- Paul Vogel]{.underline}**: The work group
considers the reinstitution of the SCF sack a positive result, as well
as the development of an LOO1 list, the increased attention from Postal
Service management to periodicals issues, the monitoring of performance
on a bi-weekly basis, and the expanding service networks and tracking
cluster structure. A number of other improvements are being considered.
Some of the issues include understanding the ADC network, simplifying
mail flow, reviewing DMM labeling instructions, hub analysis and
transportation, combined loads, AMC/AMF entry for periodicals, the
weekend operations. The criterion for success in the group is
measurement of improved periodical service, which is a very subjective
measurement. However, there is a more objective conceptual framework for
a periodicals information system that may provide more specific
performance evaluation.

Tom Scolack, District Manager, Greater Indiana District, and Terry Yates
presented an overview of an established process management effort in
improving periodical service. The team that was developed included
recipients of the periodicals, the mailers and the operations people
within the District. The team met weekly from November 1997 until March
1998, then monthly. Volume was tracked from the outset, when 8 percent
was deemed delivered late. Analysis of complaints, which were mainly for
untimely delivery, relied on constant tracking of about ten specific
periodicals. Causes of late delivery fell into three categories. First,
mail preparation and mislabeling (by customer and Postal Service),
reclassification changes. Second, facilities, logistics and
communications, which included poor personnel deployment partly caused
by facilities spread out over a large area. Third, internal methods \--
no standard operating procedures manual or flow charts.

The focus on problems rapidly reduced the late deliveries to the point
where the rate is currently minimal (below 3 percent), and customer
complaints dropped dramatically. Any aberration in immediately
investigated. Fixes included customer and internal education of every
aspect of periodical mailing, consolidation of some of the multiple
facilities, development of both a current SOP and flow chart, which are
updated as soon as changes occur.

Mr. Vogel commented that the process was being established in several
other cluster areas.

**[Publication Watch \-- Joanne Miller]{.underline}**: The work group
plan included a management proposal to make publication watch
electronic, retain the 10-point diagnostic checklist, and to develop a
cross-functional investigative process for complaints. The hope was that
the mailers and the management involved in the cross-functional teams
would buy into the proposal \-- but that has not happened. In both the
industry and in the Postal Service, there is a feeling that the
publication watch is not effective or appropriate. Delayed investigation
of a single complaint may not be feasible. But both the customers and
the Postal Service are amenable to seeking an alternative solution, and
have agreed to meet in the near future.

**Administrative Announcements**

Mr. Porwick announced that during the Pre-Industry Meeting, Joe Lubenow
was elected the new MTAC Vice Chair.

**Adjournment**

Mr. Schick thanked the members for their attendance and participation
and adjourned the meeting at 1:30 p.m.