**Minutes of the**

**Mailers Technical Advisory Committee**

**December 12, 1996**

**Welcome - John Wargo**

John Wargo opened the meeting and introduced William Henderson, Chief
Operating Officer.

**Remarks - Bill Henderson**

Mr. Henderson noted that mailing volumes were strong and that the
financial report was positive for the last accounting period. He
expressed appreciation for MTAC's help in moving through the
reclassification process. He referred to a recent meeting of the top 700
USPS executives. At the meeting they reaffirmed their commitment that
service remains the first priority across the Postal Service
organization.

He took a moment to recognize the outstanding contributions made by the
MTAC chairperson, Yvonne Reigle, noting her special leadership in
establishing implementation teams for reclassification reform, and
commending her on the MTAC organization changes that resulted in more
flexibility and responsiveness. Mr. Henderson presented Ms. Reigle with
a special caricature illustrating her tenure as chairman, noting that it
would be signed by MTAC members.

**Remarks - John Wargo**

Mr. Wargo continued the special recognition part of the agenda by
presenting plaques to outstanding outgoing members who had made notable
contributions to MTAC's recent accomplishments: Charles Pace for
outstanding efforts in the Periodicals area, and Ted Russell for his
work in helping develop the national account program.

He also expressed a special appreciation for the chairperson's service,
noting that Yvonne Reigle was especially valuable because of her ability
to recognize the broad range of customer needs and to develop rationale
that supported those needs which has helped USPS management in making
policy decisions. He praised Ms. Reigle for her ability to work within
the unique framework of the USPS, being neither a private company nor a
federal agency.

Mr. Wargo introduced William Dowling, Vice President, Engineering, who
discussed progress in implementing a more effective flats sorting
system, the FSM-1000.

**FSM-1000 Deployment and Future**

**William Dowling**

Mr. Dowling announced that a sorting device had been developed that
could handle virtually any flat, especially some of the problem pieces
that the current system, FSM-881, could not easily sort: very small
pieces, newspapers, polywrapped items, and flimsy materials. He
explained that the key technology change had been the elimination of a
mechanical "finger" that helped propel pieces through the system. In
response to a question from a member, he noted that the equipment could
handle pieces in any dimension configuration within specs, in a smooth
curve from minimum size to maximum size.

Mr. Dowling noted that the FSM-1000 was similar in throughput volume to
the current machine, but that it could handle smaller pieces (4" x 4"
versus 6" x 6"), thinner pieces (.007 inches thick versus .009) without
any stiffness requirement, and considerably thicker and heavier pieces
(1.25 " thick, up to 6 pounds). On the maximum side, the new equipment
only adds .75" to the length, but this allows the majority of newspapers
to be included.

He explained that, although almost everything passes through the sorter
without problems, some tabloid newspapers with a single fold and no
stapling or tabbing sometimes causes jams. And although all polywraps
move easily through the system, when bar code readers are added, it is
necessary that the polywrap be taut against the bar code label.

Installation was already under way, with 26 machines currently in the
field, with 102 total expected to be installed by June of 1997. Mr.
Dowling said that the Board of Governors had approved an additional 240
FSM-1000 sorters, which were on order and full installation of all 342
machines was planned for completion by August 1998.

He added that the same bar coder that had been successful on the FSM-881
was being tested on the FSM-1000 with positive results, with reading
rates of 95%. After Board approval, which is anticipated, the bar code
readers should begin appearing on equipment as early as fall 1997.

In response to a question from a member, he added that there were no
plans to test the optical character recognition system now being
attached to the FSM-881. On other subjects, he said that there were no
plans to co-mingle parcels in the FSM-1000 system, and that the FSM-881
would remain a valuable part of the process for at least the next five
years. The criteria for placing this equipment is derived from a careful
study of the mail flow across the entire USPS system.

**Fall Holiday Mailing Season Recap**

**Nick Barranca**

Mr. McGee expressed appreciation for Mr. Dowling's presentation and
introduced Nick Barranca, Vice President, Operations Support, who
provided a brief report on the holiday mailing season preparations.

Mr. Barranca presented a series of charts that showed past performance,
volumes, problem areas and other circumstances that affect mail delivery
during the peaks of the holiday season. He noted that, at the end of the
last fall season, there was a complete analysis of operations, including
a look at circumstances apparently beyond management control such as
weather that adversely affected air transport capabilities. Looking for
ground transportation alternatives in the affected geographical areas is
part of this year's operations plan, he said.

Field management is provided with detailed analysis of last year's
operations, looking at customer needs by area and product, on the
premise that customers may well have similar needs this year. Both local
management and management at the national level have developed plans for
adding infrastructure, some of which is firm, some conditioned on
developing needs.

On the service side, Mr. Barranca pointed out that one statistic had
improved greatly in the last few years. Vans failed percentage had
dropped from an average 35% to less than 5% during most of the current
year. When that percentage climbs to as much as 10% on occasion, the
trouble can usually be traced to a few BMC's with very specific
problems.

Turning to some minor problems in parcels, some of the delays can be
traced to specific equipment failures at specific BMC's. The management
response is to make network changes that send parcels around these
bottlenecks, until the equipment can be repaired.

On the delivery side, the numbers show that delays were substantially
below last year's, in spite of increased volume in general. Delays
reported on the delivery side relate to whether mail moves within the
operating plan, which assumes mail arrives at a particular time and
moves through the system at a specific rate.

Mr. Barranca explained that, starting in early December, there would be
an increased focus on managing transportation and tracking priority
service. Delivery units that contribute to delayed parcels and delayed
priority volume would be identified rapidly, to give management early
warning of any problem areas. The operations centers are geared to
respond to customer inquiries and to provide proactive support to
solving problems.

Mr. Barranca shared the results of a national customer survey that
revealed that 97% scored customer service as good, very good or
excellent. Mail equipment rated 92%. He added that most of the survey
result was more positive that in the last two years. He closed by
assuring the MTAC that the same analysis of operations was occurring
that had been done during the previous two years, and that adjustments
were being made to keep service during the peak period as high as
possible.

Next Mr. McGee introduced Joseph Harris, Manager, Planning and Support
Systems.

**ADVANCE**

**Joseph Harris**

Mr. Harris, noting that ADVANCE measures performance for Standard A
non-automated mail, said that participation was increasing on a daily
basis. New software was in the testing stage that would allow some
quality assurance, improve the accuracy of the information, eliminate
the current dependency on CC-mail by moving much of the process to a web
site. A major impact will come from the web site, perhaps even allowing
users to get real-time information. Part of the improvement relies on
the addition of a new computer system which will start installation
after the first of the year, and which should improve feedback times to
users.

In response to questions from the members, Mr. Harris explained that the
new software and computer installation might enhance the ability to
enter real time arrival information through a bar code process. He also
noted that automated letters would not be part of the ADVANCE system.

Mr. Harris noted that there were two objectives to the new ADVANCE
system: First, to provide a better planning tool by providing more rapid
access through the web page; the second, to provide a measurement of
performance on the part of the USPS. To participate, Mr. Harris added,
call (800) 458 3181.

Following are additional questions from the members:

**Are you aware of Mail.Dat, and could you integrate the data
requirements to participate in ADVANCE into Mail.Dat?**

Yes, we are aware of Mail.Dat. We were invited to the early planning
sessions of Mail.Dat and gave our requirements to the group responsible
for the data format.

**Why are we not able to get delivery performance information for the
New York Area in the last few months?**

The New York Metro Area was selected as our Beta test site for the new
software. In order to properly test the system, it was necessary to
deactivate the current software; thus reducing the number of delivery
units to about eight test sites. When we release the new software, you
will experience a temporary reduction in delivery unit coverage;
however, we will notify you of our plans and their impact on delivery
unit coverage.

**I am having a problem with the timeliness of data transmission from
the delivery unit, especially for when the mail arrived.**

A delivery unit should enter the date the mail arrived on the day that
it does arrive, and should transmit that information to the Area Office
on the same day so it will be available to you through RIBBS the
following morning.

**Is there any way to reduce the "eight days in advance" requirement for
the submission of data files/mail pieces to the NCSC?**

We are exploring ways to reduce the requirement by two days in order for
the NCSC to process and transmit the information to the Area Offices at
least 3-5 days before the requested first in-home delivery date. The
preliminary guidelines would be the (1) electronic transmission of the
data files through RIBBS or Compuserve (the Internet will be available
early next year), (2) the mail piece must have reached the NCSC and, (3)
Day 6 prior to the first in-home date cannot be a Saturday or Sunday.

**Drop Ship Appointment System**

**Maurice Curtis**

Mr. McGee introduced the final speaker of the meeting, Maurice Curtis,
Operations Specialist, Operations Support, who discussed the Drop Ship
Appointment System. He explained that the current appointment system
allowed a 30-day advance notice down to a 24-hour notice, and included
standing appointments, and appointments relating to drop and pick,
palletized load, bed loaded, and perishable. The system allows mailers
to negotiate better transportation and logistics for mailings, and
allows the USPS to create better operating plans.

Problems include customers blocking out an excessive number of
appointments (which affects the ability of other customers to obtain
appointments), and the other irregularities that include no shows, and
appointments canceled on short notice. In addition, documentation
problems arise when drivers do not have appropriate appointment
information. Finally, there have been some concern that drivers will not
help unload a bed loaded appointment even though they are required.

Mr. Curtis listed some improvements and changes, including an increase
in reporting capabilities, and the ability of the system to accept the
ADVANCE program. Customers can now reschedule appointments with greater
ability. In the future, he said, there will be improvements in the batch
system, which allow larger mailers to process a greater number of
appointments at the same time.

Mr. Curtis shared some statistics, which showed that the basic numbers
were up slightly across the board, but that there was a clear indication
that drop shipments were finding their way to the SCF level, the five
digit zip, and moving out of the BMC area. He also pointed out that a
little over half of all appointments were related to palletized
shipments. He noted that a total of 604,964 appointments were made and
completed in 1996.

**Closing Remarks**

**Yvonne Reigle**

Ms. Yvonne Reigle closed the meeting, expressing thanks to Alan Kline,
chairman of the finance committee, for working out a dues reduction for
members, making dues \$500 per annum. She also voiced her appreciation
for the staff and committee members who had supported her during her
term.

**MTAC**

**First-Class Mail Subcommittee**

**Meeting Minutes**

**December 11, 1996**

**1. [Delivery to the Mailbox by Outside Providers]{.underline}**

Jim Campbell and Mike Motley, representatives from GAO, who work with
the House and Senate oversight committees that deal with Postal
activities reported on what kind of an impact there would be if the
Private Express Statutes were either changed to some degree or
eliminated in total. The report focused on four areas: (1) history and
the current status of Private Express Statues and its enforcement; (2)
the development in recent years of private letter delivery by private
carriers or alternate delivery firms; (3) evaluation of the financial
impact on the Postal Service if there were changes in the statutes; and
(4) what have foreign countries done with regard to changing their
monopolies as well as universal service activities

Other issues of consideration for this report included:

1.  What's the main basis of a monopoly to begin with, why in fact did
    you have it?

2.  Universal service uniform rate, are those the kind of things you
    want to hold on to?

3.  What's the impact of an outside organization looking at changes in
    Postal rates like the Postal Rate Commission, if you were to open
    the Postal Service to greater competition?

4.  What's the impact of all this on all the stakeholders, not only the
    Postal Service but the American public and the competitors?

The report provides numerous estimates of the impact on not only the 32
cents rate, but all the other rates. It was assumed that attributable
costs would be reduced commensurate with the volume reductions, which is
the assumption used in ratemaking. The results of this report basically
state that if you were to change the Private Express Statutes, the
likelihood or the greatest impact would be on Priority Mail.

2.  **[Status of Move Updating and FASTforward]{.underline}**

The Postal Service announced that there will be an extension of the
transition period for the implementation of the Move update requirement
-- July 1^st^ -- by which everyone must have completed and be in
compliance with the Move update requirement. Additional information on
this is provided in the December "Mailroom Companion," and the December
5^th^ Postal Bulletin.

Regarding FASTforward, currently there are 183 users who have applied
for and received the licensing agreement from the Postal Service.
Approximately 50 of those have completed the self-certification process,
and testing with a couple of manufacturers has begun. A fee structure
for retrofitting machines with FASTforward has not been determined.

3.  **[Priority Mail Task Force Update]{.underline}**

Work on the Priority Mail redesign continues. Solicitations are out on
the street and are now in the process of being reviewed. Implementation
design of the network is being worked on internally. The Postal Service
objective related to Priority mail redesign is directly related to
getting a two-day product that will be able to penetrate the entire
Continental United States. A final decision is scheduled for February.

4.  **[EXFC Quarterly Update]{.underline}**

The overnight scores are 91 percent for Quarter IV in comparison to 87
percent. Two and three-day scores were 80 and 83, respectively, with no
change from same period last year. There is internal discussion going on
related to two and three-day issues.

Historically, it has been noted that as First-Class scores improve, two
and three-day scores are tied to it and continue to improve. Currently
this is not happening, and the Postal Service is looking at how to
improve the two and three-day scores.

Approximately 50 percent of First-Class mail has an overnight delivery
standard. The remaining portion is divided equally between a two and
three-day delivery standard.

In addition, it was requested that issues for the March MTAC meeting be
related to the new work group process, i.e., a work group on the two and
three-day scores.

Minutes to MTAC Parcel Meeting

December 11, 1996

Lloyd Karls, Industry Chair

Richard Sherrill, Postal Chair

1.  Ashley Lyons discussed Reclass

-   They are set to go to BOG on Jan 6

-   Are in process of compiling data

-   If approved would go to PRC in mid-January

-   Barcode discount is being considered

-   Test year is'97, but is up to BOG

-   10 cent surcharge can't be discussed

-   130 inch issue can't be discussed

-   Costing data is not shared with anyone prior to submission to BOG

-   Surveys to mailers may be shared. Ashley will follow up

2.  John Mulkay gave a BMC update

-   BMCs are doing well

-   Some problems with appointments

-   Please call John if you have problems

-   Reclass has caused some problems. Caused Holiday mail to start 5
    weeks early

-   \$162M spent in projects at BMCs this year

-   Some stated that this year was not as good as last

3.  Rick Glickman discussed barcodes

-   Some technical issues have not been resolved

-   The first series of tests have been completed on high induction
    system

-   There are two functional types of barcodes: (1) routing code (2)
    parcel i.d.

-   Engineering is suggesting the 128 barcode

-   Hope to complete test this month

-   Past presentations are available by contacting Rick

-   Is barcode discount in this rate case? Not known

-   There is not the infrastructure within the USPS for a 2D barcode at
    this time. The state of the art is just now reaching point of
    reading parcel post.

-   Rick will look into the IBIP 2D barcode issue

-   Discussion on the size of the barcodes and the amount of real estate
    they take up.

4.  Phil Parizino gave an update on the Parcel Subcommittee meeting.

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5.  Julie Rios gave an update on Track and Trace

-   Testing started in the end of October

-   There are several test customers. After the first of the year, there
    will be more test customers.

-   Julie showed examples of the delivery confirmation label

-   Discussed costing/pricing issues of whether the mail is accepted
    through retail or not.

-   TNT is working on delivery confirmation and signature capture.

-   May '97 there should be a decision on TNT.

Minutes to MTAC Parcel Working Group

Tuesday December 10, 1996

Phil Parizino, Industry Chair

Richard Sherrill, Postal Chair

1.  Rick Glickman was not present (you can read his comments from the
    MTAC Parcel meeting from the 11^th^, from the following printed
    message, from a telecon held on 12/16/96, and the attached
    presentation)

-   "We're still conducting operational testing of the bar codes we
    recommended earlier this year/. Assuming things go OK in these
    tests, we plan to issue the spec in it's final form after that
    (early 1997). Based upon what we've seen so far, the only change we
    might make to the draft we've circulated previously is to have
    nominal x-dimension of 15 mils (as opposed to a range of 15-20
    mils). With the 0.75" height, we were having some troubles reading
    some of the codes. Since we don't want to increase the height to 1"
    (which would make the problem go away), and there wasn't a similar
    problem at 15 mils (it's all related to aspect ratios), we can just
    stick with 15 mils +/- some tbd tolerance.

No other news to report at this time. I hope to issue the final specs no
later than March."

-   On the 12/16/96 telecon Rick stated that he hopes on have the
    barcode issue resolved within a couple of months and then to start
    operational testing. This would involve some mailers and a BMC.
    Implementation would still be at least a year away. On the issue of
    impact printers, Rick stated that the issue was a quality assurance
    of the barcode. Some impact printers are not properly maintained and
    therefore do not produce a quality barcode.

2.  Scott Bombaugh spoke on ABE (Automated Barcode Evaluator) This
    device checks for items such as:

Width between bars, calibration standards, height calibrations. Datamax
Corp has a model for app \$4,000.

3.  Ed Ruiz discussed conditions at the BMCs

-   The BMCs are having good volume this mailing season

-   2-3 BMCs have had problems, but these are being corrected

-   There have been problems with appointments due to customers not
    keeping their scheduled times.

-   Ed suggested calling your BMC manager if you are having problems.

-   Some present said they called the National Control Center and were
    told to call their BMC.

-   Some present said they were having delays of 9-10 days.

-   Some present said they called their NAM whenever they had problems.

-   Some present said that the mailers needed to make sure they applied
    labels correctly, apply correct barcodes, and if problems arise,
    then to present specific data to the postal service so that they can
    investigate.

-   Ed stated that reclass had had an effect on the mailing season.

-   Ed offered to help in any way he could. Please contact him if
    necessary.

-   It was suggested a rep from delivery and/or the control center speak
    at the next meeting.

**Addressing and ZIP+4 Subcommittee**

***Three Digit Realignments***

Bob Munley began the meeting with a discussion of the three digit area
realignments which are currently under review at Headquarters. He added
that there may be more proposals received from field operations. The
proposals under review include the area around Fort Lauderdale,
Clearwater and Saint Petersburg, and Atlanta. These realignments will
impact existing three digit areas; there are no plans at this point to
activate any new three digits. Bob added that the realignments of 1996
were very successful with no service impact being recorded by field
operations. He also stressed that a key element in successful
implementation of changes is an active communication plan in keeping
customers informed about the change and the implementation date.

***Small Mailers Issues***

This is a workgroup, led by Dan Goodkind of MASA and Sharon Coruzzi of
the USPS, which is trying to ensure that very low volume mailers have
the right information to make a decision on how to prepare mailings, e.
g., whether or not it is cost-effective to purchase ZIP+4 coding
software based on the volumes that they mail. The materials developed by
this group will help educate the mailer, as well as postal employees who
have contact with mailers, on the best practices solution for their
situation. One member suggested that incorporating the information into
the Business Partners Directories might also help spread the reach.

***Loop Mail***

Chris Rebello described situations where loop mail can occur. This is
essentially when MLOCRs may apply the barcode for the return address on
the mailpiece instead of that of the intended recipient. This occurs
when address block or no barcodes have been applied to the mailpiece by
the mailer. Some of the problem may be related to a recent expansion of
the read area and more sensitive gray-scale readers which are now being
used on Postal Service OCRs. Several members provide suggestions like
changing font size, using a cursive or italic type, or using a screen in
the return address area to help eliminate the problem. Members also
suggested that OCR alignments may also need to be checked and corrected.
They suggested contacting Operations Support if the location of the
problem MLOCR can be determined. Mailers are concerned because this mail
being inadvertently returned to sender may result in the deletion of
valued customers from the address file. Mailers may identify loop mail
by the presence of two barcodes (one in the address block) on the
mailpiece or the lack of endorsement for the reason the mailpiece has
been returned (e.g. no "Return to Sender" markings). Members also
question whether the film on window envelopes may also contribute to the
problem. This may be an issue needing referral to a workgroup.

***Ancillary Service Endorsements***

Rocky Matthews revealed the results of the Federal Register notice on
changes to the ancillary service endorsements. Overall, approximately 20
comments were received and they were generally favorable towards the
changes. The final rule will be published in January and implementation
is scheduled for July 1, 1997. There will be a six month transition
period. After the transition, the use of invalid endorsements will
result in Address Service or Return Service being provided as
appropriate. Rocky added that Forwarding Service has been added as an
option. Members raised concerns about the timing of the implementation
against their need to prepare to meet the Move Update requirement date.
They questioned how soon mailpieces bearing these endorsements could
appear. One member also voiced concern about the proposal to allow First
Class mail to be discarded at the mailers request.

***Alternative Placement of Service Endorsements***

Susan Hawes touched on the fact that possible changes to the placement
of the service endorsements are being worked through the Move Update IRT
group. The proposed changes include the current placement, below or to
the left of the postage area and above the address block. There will be
a 6 month test of the possible changes to run concurrent with the
changes in endorsements. The training and awareness campaigns will be
meshed together. Members expressed concern about the number of lines
which would appear in the address block. The electronic only endorsement
has languished due to the lack of resolution on the treatments of pieces
which always result in a returned mailpiece. This issue was also a
possible workgroup issue.

***Use of Default Codes for High-density Addresses***

Peter announced that the file of addresses where the Postal Service will
require secondary (apartment/suite) numbers has been posted on RIBBS. It
consists of 962,000 addresses where delivery point sequencing is already
in place for letter sized mail. Mailers may use this file to evaluate
the impact of this requirement on their address records and determine
the number of addresses where they currently lack secondary information.
Members questioned the impact on Periodicals who currently have no Line
of Travel requirement. However, the value of exact addresses to ensure
timely delivery service cannot be disputed.

***NYC Apartment Numbering Project***

Gus Katsanis from the New York Metro area discussed the Key program. In
July 1998, mailers will need to use a four digit "Key" number when
mailing to residential customers in Manhattan\--three digit prefixes
100, 101 and 102. Currently New York has gathered name and address data
for 70% of the residential customers in multi-unit buildings. In mid
1997, the Postal Service will begin offering matching services which
will provide Key numbers to mailers for their addresses impacted by this
program. Postal Service directories are being altered to allow the
assignment of the proper ZIP+4 Code and Delivery Point Barcode when Key
numbers are present, so that all mail can be properly sequenced. The
Postal Service will also be looking for carriers in New York to provide
feedback when a key number is omitted from a change of address order.
This will allow the proper updating of the key file as well as the
National Change of Address data files. Members questioned what
information the change of address services will return, apartment
numbers if provided or key numbers only. This question has not been
fully resolved. Members also questioned what the notification plan to
residential customers would be and about plans for ongoing reinforcement
of the need to use the key number data.

***Changes to Delivery Point Barcode Extraction Rules***

Paul Bakshi mentioned that the Postal Service will be asking mailers to
change the way delivery point barcode information is created. This is
related to both the New York Key project and the need to have secondary
unit information in multi-unit buildings. The calculations would rely on
the last two digits of the secondary number. The Postal Service is
currently finalizing the algorithm which will be used to calculate
delivery point codes in situations where the numbers are not strictly
numeric. These changes will be relatively transparent to the user of
address matching software, as the changes will be included in the normal
CASS testing process.

***AMS Update***

Susan Hawes also provided some information about the use of address
quality improvement processes offered by the Postal Service. The
increase in the use of these product during FY 96 demonstrates the need
for improved address quality by both mailers and the Postal Service.
They include:

National Change of Address service ¾ 2.9 billion address corrections
provided to mailers. 700 million more than 1995.

-   Address Change Service ¾ 112.5 million address corrections provided.
    5 million more that 1995. 2160 mailers participating. 500 more than
    1995.

Move Verification Letters ¾ 16.5 million printed and mailed.

-   MoversNet WWW page¾ 10,000 hits a week.

-   Address Element Correction Service ¾ 13 million addresses corrected.

Delivery Sequence File ¾ 4.9 billion addresses matched and validated.
2.3 billion more than 1995. Almost 100% growth.

-   Locatable Address Conversion System ¾ more than one million records
    added. Currently 3.1 million address links (old to new) in file.

USPS WWW ZIP+4 lookup page ¾ averaging 15,000 to 20,000 hits a day.

**MTAC**

**Periodicals Subcommittee**

**December 11, 1996**

[Howard Schwartz, Industry Chair]{.underline}

[Bob Kooken, Postal Chair]{.underline}

**Introduction**

Howard opened the meeting by welcoming all participants to the MTAC
Periodicals subcommittee session. Howard then introduced Anita Bizzotto
who was asked to respond to the last meetings key issue.

**AUTOMATION BRM/CRM KEY ISSUE**

Anita announced that issue concerning non-complying reply mail pieces in
Periodicals has been resolved and is covered in detail in the December
5, 1996 Postal Bulletin (copy attached). Anita said that the purpose was
to correct non automation compatable pieces rather than penalize mailers
at the point of origin.

**rates and classification service center concerns**

Howard asked Bill Judd, Judds Inc., to lead the discussion regarding
current issues or rumors concerning potential changes to the structure
of the five Rates and Classification Service Centers. Howard asked the
Industry group to prepare a formal list of services that we currently
receive and find to be invaluable. It is the intent of Industry, to
present a formal list of those service to the Postal Service which
should be taken into consideration prior to any structure changes. MTAC
membership is concerned that the level of service and expertise
currently enjoyed by the industry not be jeopardized by structure
changes.

**PALLET LABEL AND MAKEUP FIELD ISSUES**

Howard next introduced John Rombola, Northeast Area Periodicals Service
Coordinator, to give examples of recent labeling and pallet makeup
problems commonly found in field. Discussion focused on labeling
problems either caused by software or input errors that result in mail
being mishandled and can result in service delays. A copy of the label
examples are attached. John urged the group to periodically review
pallet makeup and compare the label to ensure that the pallet is
properly prepared.

**Periodicals Focus Group Report**

Tom Tully, National Chair for the Periodicals Focus Groups announced
that he and all current area Industry chairs have been re-elected for
the 1997 term. Tom said that it has been reported that service during
the fall mailing season was down. Tom spoke of some areas receiving
delivery service 2 to 6 days longer than normal. Tom also discussed an
Industry request to clarify if periodicals are entitled to receive the
Destination Delivery Unit (DDU) discount for those carrier routed
periodicals currently dropped shipped at SCF's where the secondary
carrier route distribution is being performed for that particular
delivery office. Anita Bizzotto is currently reviewing this with
operations and will advise. She will also assist in obtaining a listing
of DDU ZIPS that qualify for this discount, if any. Joyce McGarvy, Crain
Communications asked Tom if he has heard if there has been any
replacement for the Publication Watch, we are under the impression that
the replacement Press program, will not be implemented.

**Periodicals Focus Group Report (Continued)**

The industry requires a program that will track and respond to service
related issues and currently the Publication Watch program has not
proved to be a valuable tool for mailers. We therefore ask for an update
on Press or its replacement.

**Policy, Requirements and Methods (PRM)**

**Update on AMC DIRECTORY and other issues.**

Bill Strong, from The Strong Group reported on the PRM workgroup meeting
held December 10, 1996. Bill Carleton, Manager, AMC Operations, spoke
about the efforts being taken to complete the Air Mail Center (AMC)
information guide. He said that he will check where Alice Van Gorder is
on her progress with the guide. We now understand that Alice has been
reassigned and we have not be advised of a replacement. Bill Strong also
announced that the PRM workgroup has planned an AMC field trip to the
O'Hare AMC on February 22, 1997.

Signed: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Howard Schwartz

Chair

**Standard Mail Subcommittee Meeting**

**September 11, 1996**

**Industry Chair:** Daniel J. Minnick

**Postal Chair:** Tim Reeter

**Replacement of EX3C With ADVANCE**

In response to questions raised during the day, Pat McGee provided
explanation of the Postal Service's position regarding the announced
discontinuance of EX3C and replacement by ADVANCE.

Mr. McGee offered that the USPS no longer felt that the information
provided by EX3C and EX2C was not actionable and, therefore, represented
about \$6 million of incurred costs with no appreciable benefit. He
further explained that ADVANCE could provide delivery information that
was a fair representation of the mailing delivery to be supported with
periodic EX3C verification. He indicated that the Postal Service did not
see any value in having aggregate delivery information for Standard
Mail.

Several in the audience asked about the Postal decision including:

\- if aggregate results were not of interest, why preserve the
First-Class program (EXFC)?

\- industry testing had shown there were sharp discrepancies between
EX3C and ADVANCE.

\- how would ADVANCE represent a mailing when less than half the
involved offices reported?

\- how ADVANCE could be valuable since it did not measure "to the door"?

\- if, as stated, \$2 million for 2C subscriptions, then was the
probable \$2 million net for 3C too

much for monitoring performance for over 65 billion pieces of mail?

Mr. Minnick solicited comments from interested parties after the
session.

**Standard Mail Focus Groups - Report**

Ruthie Ewers shared how communications and product exposure were greatly
enhanced by Focus Groups. As Southeast/Southwest Industry Chair, Ms.
Ewers enthusiastically expressed her personal commitment and desire for
continuing industry and Postal support for Focus Groups as the singular
most important means of getting the word to the masses. She did raise an
issue that had come from her Focus Group: why is the "tap test"
pertinent when a legitimate barcode has been reapplied to the face of
the window envelope? This was acknowledged as over-zealous behavior by
the involved Postal Acceptance employees and would be resolved
immediately.

Many thanks to Ruthie for her dynamic, hard-hitting and humorous
remarks.

**Return Rates for Third-Class Mail Pieces**

Ashley Lyons sent a note stating that no new action since his last
report.

**Problem Created by Having Less than 200 Non-Barcode Pieces Per
Destination Entry Point**

Cheryl Beller provided a solution for the inefficiency that
Classification Reform's creation of essentially three subclasses had
fostered within segmentation for Destination Entry. Ms. Beller said that
a notice would be published indicating that the eligibility minimum
(such as 200) would be applied per "job" as long as all of the "job" was
entered at one physical location. This should essentially resolve the
issue.

Ms. Beller also answered two implementation issues:

\- Would "fletter" rules relax so more than 10% no-CR/No-barcode could
be in a palletized

mailing?

\- Would MxBMC pallet rules relax so more than 10% could exist in a
mailing?

Ms. Beller said that neither of those scenarios were being considered
for change.

**Update On Proposed "Return to Current Resident" Service**

Rocky Matthews reported that it was technically feasible to place
"mailer criteria" within the ACS system to initiate a return of the
mailpiece to the "current resident" after the change-of-address
processing had been completed. However, the existing ACS system is
maxed-out. Therefore, this process could not be implemented until at
least early '98. However, Mr. Matthews is initiating discussions to get
procedure, pricing and protocol in place by the technical availability
date.

**Possible New Service - Notification of Delivery Duplicates**

Rocky Matthews also responded to a suggested new service that would
enable carriers to identify and communicate the existence of a duplicate
mailpiece within a specific days mail.

Mr. Matthews was concerned as to the practicality of such a venture.
With automation processing more and more mail directly into delivery
sequence, the carrier is denied the opportunity to identify duplicates
without bringing them back from the street. What is a duplicate; how
would a carrier distinguish between a mailpiece where the same name is a
duplicate versus where the mailer intentionally put two pieces into that
address on the same day?

Mr. Minnick solicited participation in a Task Group for this issue, with
Chris Rebello as Leader. You may contact Mr. Rebello at 719-531-2188, or
Mr. Minnick at 847-517-5683.

**CustomerPerfect! - Overview**

Bob Scanlon presented an overview of the Postal Service's new process
quality program. Based upon the criteria used to judge for the Baldrige
Award, CustomerPerfect! is a continuous cycle of needs identifications,
goal setting and review which through time closely ties process
performance to customer needs.

**Classification Reform Implementation**

Many thanks to Charley Howard, Dan Goodkind, and the Standard Mail
Subcommittee for their insight and diligence in exposing and educating
the Postal Service to the serious impact created by the elimination of
the Three-Digit Carrier Route Trays. That traying level has been
reinstated.

However, the change did not include the Three-Digit Carrier Route sacks.
Joe Schick described two scenarios where over a thousand "unnecessary"
sacks were created in a single string of one mailing. This could mean
nearly 100,000 "air" sacks per week out of one of his company's
facilities each week. Mr. Minnick asked that more data be collected so
that full analysis can be made at the December MTAC meeting.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Daniel J. Minnick, Industry Chair

**MAILERS' TECHNICAL ADVISORY COMMITTEE**

**ENGINEERING & TECHNOLOGY/TRANSPORTATION SUBCOMMITTEE**

Industry Chair: Joe Lubenow

Postal Chair: Becky Brentlinger

**PIEX - Rick Graff**

Centralized debiting is a postage payment option the USPS intends to
offer to current CTAS customers. Rosemary Hamel reported that pilot
testing with Deluxe Check and the American Management Association is
going very well and that this new option will be available for
nationwide use by mid-July. Advantages include no need for advance
positioning of funds with the USPS, detailed electronic reporting
similar to CTAS, and best use of funds. For more information, contact
Gwen Gesswein at 202/268-2359.

A new project to be pilot tested from July through October is a Postal
Payment Card, a private label credit card for use only by business
mailers and only for postal services. The business partner of the USPS
for this is NationsBank. While the terms are not finalized, it is
expected that three days after a mailing, on average, the debit would
appear against the mailer's account at the bank. For more information on
this attractive payment option, call Dick Curran at 202/268-2884.

The Graphic Communications Association's Mail.dat specification has been
published, and three major postal software vendors have incorporated the
capability in their current product releases. Copies of the
specification are available from GCA at 703/548-2867. Mail.dat is an
extension of previous GCA standard files that have been used by industry
to support mail production and distribution planning. Rosemary Hamel of
USPS reported that the Direct Link pilot program, intended to show how
Mail.dat can also support mailing documentation and postage payment, is
on schedule for testing beginning in late July.

Steven Mapp from the Direct Link team demonstrated a PC-based
information viewer for Mail.dat, showing different views of the data as
it would be used by the mail owner, mail preparer, BMEU/DMU, and entry
post office. Discussion followed on the value of such software to user
communities and possible product opportunities for the USPS and private
industry.

**Containers and Transportation - Rick Kropski**

Rick Kropski reported on industry needs for an electronic version of the
Form 8125 used in drop shipping. Cheryl Beller and Kyle Pasternak said
that the USPS is working toward this goal. Additional work group
discussion covered pallet regulations, including the maximum pallet
stack of three pallets, and the need to band pallet stacks. Pallet load
integrity for pallets of trays is a major concern, and ideas on
stabilizing pallets of trays were presented, with field studies to
follow. Until these issues are resolved, some lettershops may bedload
mail in trays rather than use pallets. A related concern is that presort
regulations do not allow three-digit carrier route trays or sacks, which
can cause many five-digit carrier route containers with as few as ten
pieces of mail.

On a separate issue, Rick reported that digest-size catalogs of 5 3/8"
by 8 3/8" and similar dimensions will be allowed to be processed as
automated flats, if all other requirements are met. These catalogs had
been excluded from the "fletter" category of mailpieces which can be
either letters or automated flats, but after a meeting with John Ward,
will now be included in this category on a six-month test basis. For the
industry, this provides a way to avoid preparing these pieces as
automated letters, requiring tabbing and traying, and instead to
continue preparing them as packages on pallets, subject to the 10% limit
on residual mail. Industry representatives contended these pieces were
sometimes processed on flat sorters already, based on analysis of
delivery patterns. The test allows a 5 3/8" length as oriented on the
flat sorter as long as the piece is at least 7 ½" in height, it was
later clarified. Previously the length had to be at least 6" at this
height range. After the six-month test period is concluded, the Postal
Service will determine whether the extension to the size range of
automated flats can be continued. According to Rick Kropski, an
estimated 1.7 billion pieces are potentially affected. The test pieces
still must meet requirements for barcode placement and readability and
flat mail machineability.

The question was raised why this new option was being offered now rather
than earlier, since some printers had discouraged their customers from
continuing to produce the affected sizes. Part of the answer is the
modification to the Model 881 flat sorters to accommodate digest size
pieces, which is being installed in second half of 1996. In response to
further inquiries, this test does not require prior application by
mailers of filling out paperwork. Further questions may be directed to
Sherl Johnson at 202/268-5185.

**Postage Meter Issues -** The Postal Service was not able to comment at
this time. Peter Moore requested an ad hoc work group on digital
encryption issues related to USPS proposed two-dimensional barcoded
postage indicia. Several MTAC members agreed to participate. Envelope
manufacturers expressed concern about this issue.

**Operational Impacts of Classification Reform - Bob Sheehan, Rose
Barcellona, Gary Litwinowicz -** This presentation covered a number of
areas as follows:

Network Realignment: Bob Sheehan said that the major changes include the
elimination of SDC and state/mixed states sortation, the advent of
three-digit scheme sortation for automated letters, the assignment of
concentration centers for standard mail residue, the updating of
transfer hubs for Periodicals, new labeling lists, and the availability
of the PASSPORT software for electronic ordering or self-printing of
barcoded tray labels.

Transportation: The main changes here include the revision of schedules
to match new arrival times, and the replacement of the path from SDC to
P&DC locations by a path from ADC to P&DC sites. This will result in
deeper drop shipment penetration.

Mail Transport Equipment: Comparing MTE availability from July 1995 to
July 1996, and including equipment both in the field and in storage,
Paul Seehaver cited the following statistics:

MM trays up from 45 to 59 million

EMM trays up from 9.5 to 15.3 million

Flat trays up from 3.9 to 8.3 million

Half size trays up from 15.4 to 19.8 million

Pallets holding steady at 2.6 million

Paul said that the Postal Service can get more equipment if needed on
six weeks notice. Mailers expressed concerns about having to assemble
the cardboard trays. Paul said some mailers prefer assembled trays, but
on the other hand these take more space, so others prefer new
unassembled trays. A mixture of both types is available, but the Postal
Service cannot guarantee that mailers can always get only the type that
they prefer.

Processing and Distribution Center Operations: Rose Barcellona discussed
the impact of receiving more trays, rather than packages and sacks. The
USPS intends to eliminate the mechanized LSM equipment by 1998, since it
requires 18-20 people to operate, while automated machinery uses only
2-3 people. Classification reform, according to Rose, will generate 19.1
billion additional delivery point barcoded mail pieces. The corollary to
this is fewer pieces needing to go through the OCR equipment.

Rose discussed the advantages of three-digit scheme sort, and reported
that the Postal Service is also working on a five-digit scheme sort.
While both of these help mailers attain 150 piece minimums for rate
eligibility for automated letters, the five-digit scheme sort is more
difficult to implement. This is because different five-digit ZIP codes
are processed at different facilities. If mailers use an outdated
scheme, service could be impacted, much more so than would be the case
with an obsolete three-digit scheme. Furthermore, deployment of
equipment such as new carrier sequence bar code sorters will create
frequent changes in the five-digit schemes.

Rose presented an Equipment Deployment table showing amounts of
automation equipment currently and what is expected in the next 18
months:

CURRENT FUTURE TOTAL

MLOCR (multi-line OCR) 837 38 875

RBCS (remote bar coding) 47 98 145

MPBCS (bar code sorters) 1369 0 1369

AFCS (facer/cancellers) 913 42 955

FSM-881 (flat sorters) 812 0 812

FSM-1000 (new flat sorters) 0 102 102

SPBS (small parcel/bundle sorters) 187 45 232

DBCS (delivery bar code sorters) 2372 978 3350

CSBCS (small bar code sorters) 1859 1285 3144

Totals 8396 2588 10984

Bulk Mail Center Operations: Bob Sheehan discussed the effects of
receiving more pallets and many more trays of mail. Studies of BMC
capacity have been completed, and expansions have been planned for
Philadelphia and Jacksonville, with others on the way.

Air Mail Center Operations: An AMC capacity study is also under way,
being carried out by Jim Cunningham. An increase in "scan where you
band" capability is in process.

Delivery Operations: Bob Sheehan said this area would be one of the main
beneficiaries of classification reform, with increased delivery point
sequencing volumes, cost reductions, and enhanced capacity for other
products.

**Deliver America - Oscar Avant**

Oscar reported on the Deliver America program, which has the goals of
seeking new revenue and mitigating the effects of electronic diversion
of current mail. The program calls for kiosks, which are actually
consumer shopping stations, to be placed in high traffic locations such
as post offices, libraries, and airports. Market testing with 8-10
catalogers is being carried out in locations including Atlanta and
Philadelphia from now until the end of 1996. If the program is
successful, other locations, including some international placements
such as in Japan, will be forthcoming.