**Minutes of the**

**Mailers\' Technical Advisory Committee**

**August 6, 2003**

###### U. S. Postal Service Headquarters

**Ben Franklin Room**

**Washington, D.C.**

**First Day**

**Welcome**

**John Wargo, Postal Chair**

**Bob O'Brien, Industry Chair**

John Wargo called the meeting to order. He introduced the new Vice
President of Sales, Jerry Whalen, who expressed appreciation for the
opportunity to work with MTAC. Mr. Wargo then announced the retirement
of Ken Cowell, expressing appreciation for his service to the Postal
Service and as Postal Vice-Chair of MTAC. He introduced the new Postal
Vice-Chair of MTAC, Marty Emery, who noted the opportunity to serve and
participate in the continuing work of MTAC.

Bob O'Brien welcomed the returning Industry Vice-Chair, John DePiazza,
who had been recalled to military service during the Iraq war. He
announced the proposed MTAC meeting dates for 2004 as February 4-5, May
5-6, August 4-5 and November 3-4, inviting comments to be sent to the
MTAC Program Manager if there are major conflicts or problems. He added
that new MTAC representatives include:

> Rich Cicha, Continuity Shippers Association
>
> Tony Gregory, City and Regional Magazine Association
>
> Jay Gillotte, National Association of Presort Mailers

Mr. O'Brien welcomed Postmaster General John E. Potter, who briefly
addressed the meeting.

**Remarks by the Postmaster General**

**John E. Potter**

**Postmaster General, Chief Executive Officer**

Postmaster General John E. Potter, having received the final report of
the President's Commission on the Postal Service, expressed appreciation
to Jim Johnson and Harry Pierce, the co-chairs and Dennis Shea as
Executive Director for the work of the Commission. The Postal Service is
a complex organization and the assessment of the issues was challenging,
resulting in a process that was both thorough and fair. The Postal
Service views these recommendations as valuable, and is now reviewing
the Commission's Report with an expectation that all stakeholders will
have to accept change. The Commission's Report is an affirmation of the
Transformation Plan. The Postal Service will continue to make sure that
every dollar spent and everything the Postal Service pursues is
appropriate to its mission. The message the Postal Service is
communicating is that service is at an all-time high, it will be
maintained, and that efficient use of resources is viewed as the key to
continued financial success.

Commenting on Postal Service operations, Mr. Potter indicated that John
Rapp would discuss a new game plan for Corporate Automation and that the
focus on flats automation would continue. He stated that there would be
a close look at the net efficiency of the FSM 1000 sorters, which may
not be as good as first envisioned. The review will ascertain whether
there should be two or three mail streams. On the financial side, Mr.
Potter announced that a substantial amount of long-term debt (over \$6
billion) will be converted to short-term debt, a move that will greatly
reduce interest charges in the long term. The Civil Service Retirement
System legislation made that move possible.

He closed by thanking MTAC for its cooperation and support in the many
areas that affect the

mailing industry.

**USPS Financial Update**

**Richard J. Strasser, Jr.**

Mr. Strasser announced positive financial news despite a continuing lag
in the economy. Although volume and revenues are less than anticipated,
the extraordinary success of Postal Service employees at every level in
reducing expenses has resulted in a year-to-date net income of \$1.68
billion, \$560 million better than plan, even without the effects of the
Civil Service Retirement System (CSRS) legislation, Public Law 108-18.
Net income with Public Law 108-18 savings has effectively increased net
income to almost \$4.7 billion. First-Class Mail volume is down but
Standard Mail volume has increased slightly. Delivery points continued
to increase to over 140 million (an increase of 1.7 million ) and that
trend should continue next year, but at a slower rate.

A real success is reflected in productivity gains that have been nearly
triple the projection. Work hour reduction has been substantial (a
reduction of 49 million work hours through AP 11 versus a goal of 40
million for the year), and the reduction in career complement should
reach the projected 22,000 positions for this fiscal year.

According to the National Bureau of Economic Research, the economy
recovered from the recession in 2001, but unlike the typical historical
trend in which mail volume lags about two quarters behind a recovery,
this has not been reflected in household response. Employment continues
to weaken, and money that individuals may receive from refinanced home
mortgages appears to going into major purchases, like autos, and not the
consumer goods that are typically advertised in direct mail.

There is some evidence that employment will increase in the second half
of fiscal year 2004, which should support an increase in Standard Mail
volume of three or four percent. Although that is not a substantial
increase, it suggests improvement in the second half of fiscal year 2004
(during which the Postal Service financial reports will be based on the
normal calendar months). We hope for a more robust recovery at that
time. The Postal Service will be in a position to handle a major
increase in demand for services.

Following up on an earlier announcement by the Postmaster General Mr.
Strasser discussed the reasoning and economics surrounding the Postal
Service's action to convert \$6.5 billion in long-term debt to
short-term debt. This action complies with the CSRS law that requires
the use of savings generated to reduce debt. These savings will amount
to \$3.5 billion this year and \$2.6 billion next year. Although the
conversion costs a certain amount in premiums related to early payoff,
that cost will be recovered in approximately 18 months because of lower
interest rates.

During discussion, Mr. Strasser explained that the CSRS legislation
requires a report to Congress on the disposition of the savings
generated after the specified debt reduction in the first two years.
Another report due in September is the Postal Service recommendation on
what to do about the cost of military service retirement expenses.

Mr. Strasser noted that the Board of Governors has asked its audit firm
to assess what it would take for the Postal Service to comply with the
recommendation of the President's Commission for SEC type filings. He
added that the current posting of financial reports on the web on a
monthly, quarterly and annual basis is thorough, and the changes in
reporting will probably be mainly in format.

[Click here to view the presentation](../MTAC0803/RSA03ppt.ppt)

**Flats Strategy Consolidated Under Corporate Automation Plan**

**John Rapp, Senior Vice President Operations**

The corporate flats strategy, previously a separate program to advance
automation of flats, has been merged into a unified Corporate Automation
Plan Phase 2 that will include the continuation of letter mail
automation, the automation of packages and flats, material handling of
all classes and the improvement of scanning, tracking and data
management.

About 80% of all letters mailed have reached the delivery point sequence
level through automation. The goal is to bring that to the near 100%
level by enhancing OCR capabilities. New package handling equipment will
be installed to allow scanning of bar codes and automation of package
handling at the Bulk Mail Centers (BMCs). The Automated Package
Processing System (APPS) will allow rapid handling of packages, bundles
and other irregular-shape mail. Material handling equipment (including
robotics) is being refined and created to reduce the manual handling
requirements for not only mail pieces, but trays and bundles --
including equipment to do tasks like banding and unbanding trays,
sleeving and un-sleeving trays, and the use of automated heavy product
movers like tows and forklifts.

Increased and improved scanning, both active and passive, will help
mailers track not only mail, but packages, bundles, trays and pallets --
all of which will require enhanced data management systems. Data is now
being loaded into the Enterprise Data Warehouse System that integrates
many databases to provide a continuous flow of information.

Concerning flats specifically, over 80 plants are certified and using
the standardized AFSM 100 system, which increases productivity by over
400 pieces per hour (in excess of 2,000 pieces per hour per machine).
There is also a new automated tray system that will dramatically reduce
the manual handling requirements, reducing crew size by about 20%.

The Flats Sequencing System (FSS)/Delivery Point Packaging (DPP)
research and development program includes six vendors who have agreed to
participate, and proposals are due in early September. Market research
on packaging has begun (July 24). At the Flats Summit, mailers expressed
the importance of care in the effort to standardize mail piece design,
the importance of advertising response rates, and the need to continue
to support enhancements that contribute to work sharing related to
co-pallet schemes and the discount structure, bundle size and so on. In
response to other comments made at the Summit, Mr. Rapp noted that it is
too soon to speculate about costs and savings related to DPP or FSS. We
need to wait for some results from the R&D. Concerning reducing the
total complement, which has been reduced by more than 70,000 in the last
three years; there are opportunities beyond attrition to continue that
trend. Some mailers were concerned about service delays if mail was
entered farther upstream in our network. The Postal Service has
demonstrated in the last few years that we can match people and
equipment to the workload. There has been a significant improvement in
flats productivity, which has virtually doubled since fiscal year 2000,
and that efficiency will continue to improve as the new automation
equipment comes on line.

The exchange at the Flats Summit was valuable and there will be an
effort to create a continuing forum in which the Postal Service and MTAC
can share ideas and information.

During discussion, Mr. Rapp stated that the automated tray handling
system has been a prototype in operation for about a year, and the Board
recently approved procurement of the equipment for this. Asked about the
FSM 1000, he explained that the productivity is slightly above the
manual level, but the cost of maintenance and depreciation has begged
the question of whether it is really worthwhile. There will be an effort
to determine whether improvements can be implemented to make the
equipment more efficient.

Regarding the Delivery Operations Information System, it was established
about two years ago and it is just now starting to show results, after a
lengthy education process. Other developments mentioned were the use of
managed service points (carrier hand-held scanners) which has improved
street productivity, and a GPS-related communication system which is
being developed to help keep in touch with carriers.

Asked about the dramatic improvement in operations in 1992, Mr. Rapp
explained that it was the result of an aggressive downsizing, which
resulted in apparent higher productivity -- but there was a serious
downward impact on service levels the following year. This experience
was a lesson for us in that we now do everything possible to ensure that
cost reduction initiatives do not adversely impact service.

[Click here to view the
presentation](../MTAC0803/John%20Rapp%20at%20MTAC%20August%206%20manb.ppt)

**Intelligent Mail & Address Quality (IMAQ)**

**Charlie Bravo, Senior Vice President**

**Gary Reblin, Manager**

**Jim Wilson for Jan Caldwell, Manager**

The Postal Service has developed a unified internal plan for Intelligent
Mail and Address Quality. This plan supports the service's OneCode^TM^
Vision. The external plan is under development and should be published
soon. The plan focuses on uniquely identifying all mail (including
aggregates like trays, bundles and pallets) with a single code for each
mail type, developing the infrastructure to support that code, and
improving address quality. A key consideration, especially as Delivery
Point Packaging (DPP) comes about, is that address quality will have to
reach even higher levels because the carrier will not be handling
letters and flats in the office as machines will accomplish most of the
mail handling.

A Mail Technology Strategy Council has been established, with industry
representation, to look at the future of technology in printing,
scanning, tracking and tracing. There is currently a Mail Technology
Study under way that focuses on the ability of mailers to adapt to the
OneCode Vision -- capabilities, costs, pros and cons.

An important aspect of the OneCode Vision is improving address quality
-- by simplifying procedures and forms, working out alternative name
recognition, increased acceptance of Internet change of address (even if
the form is printed out and mailed because the Internet entry is
compared to the database and incorrect addresses are picked up and the
customer is asked for a correction).

Gary Reblin discussed the OneCode Vision, which applies to the different
mail types and not a single code for every type of mail. There will be
one code for letters and flats because equipment exists and is under
development to sort both types of mail. Various codes are under
consideration -- the 2D data matrix, the 2D PDF 417 and a
height-modulated four-state barcode. Code acceptability factors include
effect on error rates and read rates, size (height and length), and
number of characters. There are studies on the feasibility of
consolidating the address correction service code into the Planet Code
and the feasibility of replacing the Planet Code with a four-state code.

The same equipment will be used for parcels and bundles, and the
standardized code will rely on UCC EAN Code 128.

In developing the coding strategy, every aspect of mail processing will
be considered -- mail piece design, forms, unit loads, identifying sacks
and trays, the impact on the recognition capability and infrastructure
(changes in software/hardware), continuity (mail piece to tray to
container to trailer), the ability of the scan process to interface with
a database (which could increase the amount of information available
from a single barcode). The entire process will be carefully considered
to determine the impact on the Postal Service and the customer.

During discussion, commenting on a new barcode sticker being placed on
bundles as a package description ID, Mr. Reblin commented that the
objective is not to proliferate such codes, but to design a code that
contains all of the information required to do the entire sortation
process (including tracking ID and optional endorsement). Mr. Bravo
commented that a code standardization committee (with representatives
from marketing, engineering, information technology, the Inspection
Service and IMAQ) will review all coding proposals.

Jim Wilson addressed NCOA^LINK^ noting that the Postal Service Executive
Committee was briefed on June 16. A Federal Register announcement was
published on July 1 that explains the program, lists various products
and pricing, and sets forth timing of the various steps in the process
of replacing the old system. Additional information on the NCOA^LINK^
product can be found at [http://ribbs.usps.gov](http://ribbs.usps.gov/)
under the NCOA^LINK^ tab.

Address Management and Product Management have held a number of
teleconferences to explain the Developer Certification/Application
procedure to prospective licensees and software developers, and the
process has also been published on RIBBS. Since July 1, 18 applications
have been submitted, 9 of which have been approved and the software
development materials have been provided to approved applicants.
NCOA^LINK^ will be activated on October 1, 2003 and finalized licenses
should be available by September 1, 2003.

During discussion, asked about the absolute requirement to provide a
valid original address (with 9-digit zip code), Mr. Wilson agreed that
making a match would require a higher level of accuracy than before. It
is a reasonable tradeoff versus the value that NCOA^LINK^ brings to the
mailing community. It was observed that the limitation means that about
500 million addresses will be unavailable. The Postal Service will
continue to investigate ways to provide some service related to those
lost addresses. In context, 225 billion records were processed through
NCOA last year, "fixing" 9 billion, and the 500 million loss would come
from that latter number. Mr. Wilson assured MTAC that there would be
continuing efforts to improve the new NCOA^LINK^ service.

A list of the membership in the Mail Technology Strategy Council was
requested and it is provided as follows:

**U.S. Postal Service**

**Mail Technology Strategy Council**

Judith Auslander, Ph.D. Senior Fellow, Advanced Concepts and Technology,
Pitney Bowes

Nick Barranca Vice President, Product Development, USPS

Maynard Benjamin President, Envelope Manufacturers Association

Charles Bravo Senior Vice President, Intelligent Mail and Address
Quality, USPS

Tom Day Vice President, Engineering, USPS

Craig K. Harmon President, Q.E.D. Systems

John Jackson Program Coordinator, Envelope Product Dev., International
Paper

J P Leon Vice President, Advanced Technology, Stamps.com

Dr. David F. McQueeney Vice President, Technology, IBM Global Services

Robert Otto Vice President, Chief Technology Officer, USPS

Dr. Michael H. Scholla Senior Consultant - Medical Packaging & Fabrics,
Dupont

Joshua Smith Director, Escher Labs, Chief Scientist, Escher Group

Michael Smith Group Leader, New Ventures, MeadWestvaco

Dr. Howard Taub Director, Printing and Imaging Technologies Program,
Hewlett-Packard

Doug Tygar Professor, Computer Science and Information Management,
University of California

Other USPS Participants:

Jeff Freeman Manager, Mail Technology Strategy

Wayne Wilkerson Manager, Postage Technology Management

George Davis Chief Counsel, Corporate Law

George Wright Manager, Finance and Administration Systems

[Click here to view the presentation](../MTAC0803/MTAC72803.PPT)

**Automated Package Processing System (APPS)**

**Tom Day, Vice President**

**Engineering**

The Automated Parcel Processing System (APPS) will replace the small
parcel and bundle sorter (SPBS), which has been in use for more than a
decade. An important difference is a design feature that allows mail to
be recirculated when remote keying is required. The APPS allows OCR and
BCR scanning, and can handle a broader range of product than the
existing equipment -- providing both weight and dimensional data.
Scanning can be done from several sides of the package. It is more
efficient at "singulating" packages -- ordering them in a single file
for scanning, and the throughput is over 9500 pieces per hour (double
the previous capability). There are cushion belts that reduce the impact
forces as the packages are singulating, resulting in handling that is at
least as gentle as the SPBS.

The prototype is being tested in the Twin Cities area and results have
been sufficiently positive to go forward with procurement. Initial
deployment to 70 locations is scheduled to begin in February 2004.

During discussion, Mr. Day noted that the space requirements are similar
to the SPBS on the basis of mail volume. That is, one APPS that
processes 9,500 packages/bundles per hour, requires about the same space
as two SPBS machines that would process the same volume.

There is a special label provided by the Postal Service that
incorporates a barcode for the mixed, firm, ADC, AADC, 3-digit and
5-digit labels. This allows the equipment to recognize the barcode
versus an OCR read. The APPS can handle product as small as 3.5" x 3" x
.05" and as large as 22" x 18" x 15 " (up to 25 pounds).

Asked about readability, Mr. Day said that the address block must be
clear -- no straps, and no shrink-wrap welds (although tests have shown
that clear straps may not obscure the address block). There are some
issues related to the visibility of different kinds of polywrap
materials that must be tested.

[Click here to view the presentation](../MTAC0803/APPS.ppt)

**Flats Processing Improvement**

**Tom Day, Vice President**

**Engineering**

There are two enhancements to the AFSM100 under way -- a flat ID code
sort and an automatic tray handling system.

The flat ID code sort is a small (16-inch) module that will add ID tags
to non-barcoded flat mail. The label will be a 4-state barcode that
allows more data in a small space. The label is easy to remove. The
benefits include a reduction of images sent to the remote encoding
centers by 43%, which reduces work-hours by 1.4 million per year, and a
reduction in mis-coding errors from 2.9% to .68%. The time frame for
this improvement is as follows: Board of Governors' approval in August,
a contract by the end of the fiscal year, first tests in February 2004
and roll-out scheduled for completion by February 2005.

The automatic tray handling system collects empty tubs, applies adhesive
labels, and reloads the empty tubs for use. The current requirement for
a sweeper is eliminated (although the labels must be manually removed).
It is anticipated that the contract for this project will be negotiated
in September, with deployment beginning in October 2004, and completion
scheduled for Fall 2006.

Mr. Day announced that the wide field of view cameras (approximately
10,000 systems) will be fully deployed in November 2003 and will be
utilized on barcode sorters.

[Click here to view the presentation](../MTAC0803/MTACFICSATHS.ppt)

**Product Redesign**

**Nick Barranca, VP Product Development**

**Don O'Hara, Manager Product Redesign**

**Bob O'Brien**

The tentative schedule for the next rate increase, in 2006, is
relatively tight, and requires Product Redesign to determine which
proposals can only go forward in that omnibus case and which might be
done before then and without increasing anyone's rates (perhaps as niche
classifications or NSAs). In the near-term, for several proposals that
would take costs out of the system and do not require PRC approval, work
is proceeding on Federal Register Notices of proposed rules.

Since the May MTAC meeting, the Steering Committee has met several times
to discuss next steps. In July there was a joint meeting of all the work
groups for an update on Redesign activity over the past year, followed
by individual work group sessions to discuss those proposals identified
as high priority by the Steering Committee and the Postal Service.

The First-Class Mail group looked at shape-based rate structures,
although it is clear that a rate increase will be required to make that
work. There was also interest in looking for ways to amend preparation
and sortation rules to facilitate increased workshare savings. They also
discussed efforts to improve both business reply mail and remittance
mail processes that are underway outside the main Redesign framework.

The Periodicals work group considered a change in the rate structure
that would apply a forwarding fee to each piece forwarded or returned
(rather than the present system of averaging total Periodicals
Undeliverable as Addressed (UAA) costs across all Periodicals and
recovering these costs through piece & pound rates). They also discussed
cost-based rates, a proposal that will have different impacts on
different Periodicals mailers; it was agreed that work on this should
continue, even though some work group members may in the end oppose the
proposal. Finally, the work groups discussed whether and in what
situations time-sensitive Periodicals mail might cause additional costs,
agreeing that this should be studied and recognizing that such a study
would be difficult.

The Standard Mail work group agreed to defer any recommendations for
changes in address quality standards to reduce UAA mail until a complete
cost study can be completed. The work group briefly discussed cost-based
rates for flats and simplification of preparation requirements for small
mailers, but gave primary attention to proposals for co-palletization of
Standard, Periodicals, and BPM flats, and, for later implementation, the
co-bundling of these flats.

The Parcels/Bound Printed Matter (BPM) work group looked at the parcel
return service (which has been filed), e-VS for acceptance and
verification, "machinable" containers for small parcels, and
co-palletization of BPM catalogs with Standard Mail and Periodicals.
Finally the Address Quality work group reviewed their matrix proposal
that would provide incentives for improved address quality in several
dimensions.

Redesign has a number of studies under way -- shape-based costs, small
volume preparation for Standard Mail, and cost analyses for address
quality, small parcels and piece/bundle/container costs for Periodicals
and Standard Flats. Also, the decision to create a separate work group
for saturation Standard Mail was announced.

[Click here to view the presentation](../MTAC0803/prodrA03.ppt)

[Click here to view the presentation](../MTAC0803/MTAC%208-6-03.ppt)

**MERLIN Nears Full Deployment**

**John Sadler, Manager, Business Mail Acceptance**

The deployment of MERLIN is nearing completion, with 930 of 1,253
machines in place. Full deployment is expected by November 2003. Most of
the early technical issues have been resolved and readability has
stabilized at about 94% for both letter mail and flats (based on current
thresholds of 90% for letter mail and 80% for flats). Mail make-up
(proper preparation) and accurate payment of metered mail is averaging
99% accuracy. MTAC has interest in an expanded barcode image recognition
and that will be taken care of in the next software release in the fall.

There are several new features on the horizon:

Multi-directional flats feed capability (expected by October) will allow
reading of flats in any orientation. Merlin is not linked nationally as
far as maintenance and equipment failures, but a new national
maintenance database will provide that information (by September). A
similar national operations database will provide data on operations (by
November). Finally, the integration of address accuracy capability is
expected in the first quarter of fiscal year 2004, which should
alleviate many address quality problems.

Two new features in the planning and development stage are carrier route
walk sequencing and

PARS/Address change service.

During discussion, commenting on assessments, Mr. Sadler stated that the
60-day grace period continues in effect whenever MERLIN is initially
installed. Thereafter, when the system detects an exception, the normal
requirements will be applicable.

[Click here to view the
presentation](../MTAC0803/1105%20am%20MTACAug7.ppt)

**Minutes of the**

**Mailers\' Technical Advisory Committee**

**August 7, 2003**

###### U. S. Postal Service Headquarters

**Ben Franklin Room**

**Washington, D.C.**

**Second Day**

**Parcel Processing Field Study (WG \# 73)**

**Tom Allshouse**

The work group conducted tours of a customer facility (Brylane) and the
Washington BMC for observation and concluded that a live test of mailer
prepared parcels was the logical next step. The test was conducted at
the Cincinnati BMC on Wednesday, July 17, 2003. 42 soft parcels were
provided by the Brylane Corp. and each parcel was weighed and the
overall dimensions, including selvage length and width, were measured
and recorded. All parcels had a customer-applied barcode and were
successfully read prior to processing. 29 of the original 42 parcels
were re-inducted to provide more test results. While the test had a very
small sampling it did indicate that there are many unresolved issues
surrounding soft parcels.

Observations

1.  Only 76% of the parcels processed properly.

2.  In addition to the 24% that did not process, an additional 27% of
    the parcels received a postal applied barcode on top of the
    customer's barcode.

3.  Selvage did not provide any observable factor in processing.

4.  10% of the soft parcels had a tear in the material.

The work group felt that a comprehensive test must be conducted to
determine the effect of soft parcels in the mail processing environment
and where possible make recommendations for improvements.

[Click here to view the
presentation](../MTAC0803/805%20am%20Presentation%20to%20Steering%20Committee%20Aug%207-2003.ppt)

**Parcel Delivery Performance Measurement Effectiveness (WG \# 82)**

**Bob Fisher**

This new work group (a follow-on to an earlier work group -- Service
Assessment for DDU Drop Shipment) will look at delivery performance
measurement with regard to operations and processes and assess how the
data is used to actually improve performance. A preliminary plan was
submitted to the work group that includes identification of issues
related to service measurement and how the data is being used, and how
the Postal Service is interacting with industry on the issues involved.
Specific issues to be addressed include development of a manifest
quality indicator (comparing actual packages received and scanned in by
date of receipt versus the electronic manifest information); a new
methodology for start-the-clock (since the 8125 will be eliminated by
e-VS), and the relationship of a quality measure and how it is used in
service reporting.

Historical data is being loaded into the Electronic Data Warehouse and
reports should begin to be available in mid-October. One new report will
deal with packages not scanned, which has been an issue with mailers.

[Click here to view the
presentation](../MTAC0803/825%20am%20MTAC%20Parcel%20Service%20Bob%20Fisher.PPT)

**Design Guidelines for Flat-Size Mail (WG \# 77)**

**Joyce McGarvy**

This work group has been concerned with minimizing problems related to
the physical processing of flat-size mail on the AFSM 100, specifically
jams, misreads, and damaged mail. The work group has completed
development of a set of recommendations for improving specific aspects
of flat-size mail. These include general mailpiece dimensions and
structure, bound and unbound flats, saddle stitching, cover materials
and design, and polywrap. There is also a glossary included in the
recommendations.

The work group wanted to create a set of recommendations that would help
mailers save time and money by improving the way mail is prepared for
the AFSM 100. The intent was to present the recommendations in such as
way that either Postal Service employees or mailers will interpret any
of the recommendations as new regulations. The first draft of the
brochure is complete and being reviewed by work group members. A video
of the recommendations was shown at the Kansas City National Postal
Forum. The brochure, #178, should be available for MTAC members at the
next meeting in November.

[Click here to view the
presentation](../MTAC0803/845%20am%20MTAC%20Pres%208-7-03.ppt)

**Flat Mail Preparation Optimization (WG \# 81)**

**Joe Lubenow and Marc McCrery**

This new work group (a follow-on to the Presort Optimization work group)
will focus on procedures, processes and regulations related to flats
that will be implemented in the future (such as with APPS). In its first
meetings, the work group addressed a possible 3-digit scheme for flats
that would match mail preparation with USPS processing procedures (for
example, when two or three separate 3-digit sorts \-- Standard Mail,
Bound Printed Matter and Periodicals at various rate categories \-- are
internally combined into a single mail sort process). It can be pursued
as soon as the Postal Service has confirmed that the recently
implemented 5-digit scheme (L007) is being adopted properly by
customers.

Another issue is co-palletization of bundles of mixed classes to reduce
the number of sacks and increase the use of more finely presorted
pallets. Mailers have indicated an interest in combining mail, such as
Standard Mail, Bound Printed Matter and Periodicals, including
time-sensitive mail, in such a scheme in order to increase their
eligibility for discounts related to Periodicals pallet preparation and
enhanced drop ship penetration. But some mailers would have to determine
if the option would be beneficial. Internally, the Postal Service is
concerned that the new sort can be documented and proper fees applied.

The work group is also looking at co-packaging of Standard and
Periodical flats, for reasons similar to the co-palletization schemes
which has increased drop ship and presort discount benefits. Finally,
the work group is looking at addressing issues related to the roll-out
of APPS (including the use of pressure-sensitive labels, a modified
optional endorsement line, and improved package integrity to reduce
bundle breakage).

[Click here to view the
presentation](../MTAC0803/905%20am%20flat_mtac1.ppt)

**Flats Container Development (WG \# 71)**

**Joe Schick and John Brown**

The work group has evaluated several alternative flat tray designs and
identified issues related to the new designs. The operational impact
must be coordinated with mailers and the Flat Mail Preparation
Optimization work group, with continued testing at the Ft. Myers
facility. One issue especially important to tray integrity is creating
relatively full trays versus regulatory prep requirements. Tray contents
(less than full trays) can affect stacking and the equipment use
efficiency (partially filled trays can slow the sorting process). The
benefits include the possibility of mailers being able to automatically
fill trays off production lines, reduction of handling, less processing,
the elimination of bundles, etc. There is a potential issue if mailers
cannot create the full trays. There may be a partial solution in the way
the carrier route portion on a pallet is placed first, then add the
other sorts, but it is not a container issue related to this work group.
Finally, it will be useful for the Postal Service to become more
familiar with the current printing technologies.

[Click here to view the
presentation](../MTAC0803/925%20am%20Trayprstn%208.07.03.PPT)

**Enhancing Confirm (WG #80)**

**Martin Bernstein and Paul Bakshi**

This new work group, a follow-on to an earlier work group on Planet
Code, has established several work teams to look at pre-shipment
notification (regarding start-the-clock accuracy in the absence of the
8125 or with the consolidated 8125); scan performance (definition,
consistency and quality control); reports enhancement, training (to
include education and training for both mailers and Postal Service
employees along with a certification process); and a "futures" group
that will look at new uses for Confirm and Planet Code, the impact of
the OneCode Vision, and potential innovations and enhancements.
Concerning reports, there will be an effort to increase the actual scans
for a given mailing, and the data will remain on the web site for a
longer period of time. The training team is also working to enhance the
Confirm web site, to develop a customer guide, and to standardize
procedures.

[Click here to view the
presentation](../MTAC0803/945%20am%20MTAC%20Overview_%20Bernstein.ppt)

**Mail Irregularity Feedback (WG \# 55)**

**Joyce McGarvy and Pat Killeen**

The work group recently concluded a three-site pilot (the New Jersey
BMC, Monmouth P&DC and the Portland P&DC) test that involved 138 reports
of 152 mail irregularities. The tests looked at data collection and data
entry, issue tracking and resolution, and the efficiency of
system-to-system data exchange (e.g., between Postal One! and the ISBN).

A video will be created that includes actual cases and will be used for
training prior to the national pilot program to test the refinements
that have been developed.

Work group recommendations will include a focus on education, training
and communications; development of a resolution interface for the BMEU,
and an automated data interface with the ISBN.

Current issues to be resolved include developing effective
communications, how to identify the mail owner versus mail preparer
(since permits are the key connection), who to notify, and how to
coordinate resolution efforts within the Postal Service structure.

An expanded test will begin in October, with implementation of the
system in February 2004.

Next steps are to sunset the group after the system is deployed and
create a new work group to continue assessment of the process. The work
group has agreed that the name of the group should be changed to reflect
a more positive approach to the issue, perhaps something like "Mail
Preparation Process Improvement System."

[Click here to view the
presentation](../MTAC0803/1025%20am%20Aug%207%20MTAC.ppt)

**In-Home Delivery Instructions for Standard Mail (WG \# 78)**

**Wanda Senne and Mike Spates**

The work group has assessed the process by which mailers may request
specific delivery dates (or time windows) for time- and event-sensitive
advertising mail delivered to a destination delivery unit (DDU). This is
a voluntary service offered by the Postal Service, which makes every
effort to comply with the mailer's request but cannot guarantee such
delivery. There are options in the Domestic Mail Manual (DMM) that allow
the mailer to include disposition instructions in an optional
endorsement line (OEL) or by memorandum to the DDU if delivery cannot be
made on or before the requested delivery. The work group developed an
alternative and more efficient method for providing the instructions.
The details were discussed in the last MTAC meeting minutes and a full
description will be included in an upcoming Postal Bulletin and in the
Mailer's Companion. The work group will sunset.

[Click here to view the
presentation](../MTAC0803/1045%20am%20MTAC_08_07_03_inhome_del_2003.pps)

**First-Class Business Mail Measurement System (WG \# 83)**

**Shannon Nixon**

Since EXFC does not measure presorted First-Class Business Mail, this
new work group will develop a proposal for an inexpensive, statistically
valid service measurement system for that mail. The measurement system
will be acceptable to the Postal Service and mailers, with reports
published monthly (with weekly condition report updates). In the near
future an issues list and a detailed task list will be developed. The
work group will coordinate its efforts with the Confirm work group (WG
\# 80).

[Click here to view the
presentation](../MTAC0803/1125amWorkgroup%2083.ppt)

**MAILER'S TECHNICAL ADVISORY COMMITTEE (MTAC)**

**MEMBERS' SURVEY**

**Bob O'Brien**

Bob O'Brien presented a summary of the results and recommendations of
the recent MTAC members' survey. Note: The survey and presentation are
as follows:

**[BACKGROUND]{.underline}**

Two previous surveys of MTAC members were taken in 2001 and 2002 to
better understand membership needs and to identify actions needed to
better achieve MTAC's purpose "...to share technical information, advice
recommendations on matters concerning mail-related products and services
in order to enhance customer value and expand the use of these products
and services for mutual benefit." In continuing efforts to evaluate
program effectiveness, as well as the effectiveness of enhancements
implemented as a result of membership responses in previous years, a
2003 MTAC Program Survey was conducted in July.

**[SURVEY RESPONDENTS]{.underline}**

A total of 72 responses were received via mail.

**[SUMMARY OF FINDINGS AND OBSERVATIONS]{.underline}**

Survey questions were developed to focus primarily on three main areas
of the MTAC Program - Mission and Purpose, Process and Implementation
(Workgroups), and Program Communication and Information Distribution.

**Mission and Purpose:**

-   92% of the respondents indicated their agreement that MTAC is
    effective in identifying issues of mutual interest and importance to
    the USPS and the mailing industry.

-   68% of the respondents agreed that detailed minutes of MTAC General
    Sessions are essential.

-   A majority of the responses received (47%) agreed that Summary
    *[Highlights]{.underline}* of MTAC General Sessions are preferable
    to detailed minutes. However, 29% of respondents disagreed, which
    may indicate the need to actively increase membership awareness of
    Summary *[Highlights]{.underline}* and/or improve the content of the
    Summary.

**Process and Implementation (Work Groups):**

-   A majority of the responses received (49%) generally agreed that
    MTAC's Steering Committee ensures that the most important
    initiatives are being worked on, while 15% disagreed.

-   68% of respondents agreed that MTAC's Work Groups focus on the
    highest priority issues facing USPS and the mailing industry.

-   A majority of the responses received (40%) generally agreed that the
    process of getting a new Work Group started is about right.

-   The majority of responses received (33%) confirmed that the time
    needed to get a new Work Group started is about right.

-   The majority of responses received (41%) generally agreed that the
    number of Work Groups is about right.

-   51% of respondents agreed that findings and recommendations from
    MTAC's Work Groups are effectively implemented.

### Communication and Information Distribution:

-   Clear majorities of the respondents agreed that MTAC's General
    Session topics provide relevant and timely information (92%), and
    that MTAC news and information is effectively communicated by MTAC
    associations to their members (76%).

-   76% of respondents generally agreed that the "new" MTAC format of
    having all active Work Groups fully report on progress against
    objectives at each General Session is preferable to the old format.

-   A clear majority of respondents (88%) generally agreed that Work
    Group presentations at General Sessions promote valuable and useful
    information. However, 57% generally disagreed that these Work Group
    presentations should be "clustered by subject matter" and offered in
    separate rooms.

-   53% of respondents generally agreed that access to MTAC information
    on the MITS website is easy and convenient, yet 15% disagreed, which
    may indicate the need to review system upgrades options available.

**[RECOMMENDATIONS]{.underline}**

Overall, the collective sense of the responses received would appear to
indicate that the MTAC Program, its established directional reporting
structure, and its Work Group Concept are currently on track and
effective.

However, additional attention to promoting the availability of Summary
*[Highlights]{.underline}* in support of MTAC General Session detailed
minutes, and a review of system upgrade options to MITS is recommended.

[Click here to view the presentation](../MTAC0803/survyppt.PPT)

## Adjournment 

## 

## The meeting was adjourned at 11:00 a.m.