# Presentation: 685187

##   Service Standardsand Performance Measurement

**MTAC Workgroup 114**
**Status Report**

## Workgroup Objective

**For Market Dominant Products, Provide Industry Input/Recommendations for USPS Regarding**** **
**Service Standards**
**Service Performance Measurement**
**By September 20, 2007**
**	****	****     ****July 2007 for Service Standards**
**	****            ****Sept 2007 for Service Measurement**

## Main Workgroup (177 participants including PRC and GAO)
4 Subgroups:
First-Class Mail  (includes FCM parcels)
Periodicals
Standard Mail (letters and flats, BPM flats)
Packages (Single piece Parcel Post, BPM, Library, Media, and Standard Mail parcels)

**4 Subgroups:**
**First-Class Mail  (**includes FCM parcels)
**Periodicals**
**Standard Mail (**letters and flats, BPM flats)
**Packages (**Single piece Parcel Post, BPM, Library, Media, and Standard Mail parcels)

**Workgroup (Formed in February)**

## First-Class Mail
Tentative agreement that existing standards meet business needs
Recommendation will include 
Two service performance indicators
“% On Time” 
“Tail of the mail”
Need for review / update of service standards between continental US and non-continental US locations
Reviewing some specific groups within FCM:
Remittance Mail
Forwarded Mail

Smaller FCM Mailers Surveyed by USPS

**First-Class Mail**
- Tentative agreement that existing standards meet business needs
- Recommendation will include
- Two service performance indicators
- “% On Time”
- “Tail of the mail”
- Need for review / update of service standards between continental US and non-continental US locations
- Reviewing some specific groups within FCM:
- Remittance Mail
- Forwarded Mail
- Smaller FCM Mailers Surveyed by USPS

## Periodicals
Tentative agreement that existing standards meet business needs
Recommendation will include
Concerns regarding how changes in CETs could affect service (now and FSS)
Need for realistic service standards between continental US and non-continental US locations
Discussion of measurement started, evaluating Red Tag as interim service performance indicator until Intelligent Mail measurement is viable for Periodicals

**Periodicals**
- Tentative agreement that existing standards meet business needs
- Recommendation will include
- Concerns regarding how changes in CETs could affect service (now and FSS)
- Need for realistic service standards between continental US and non-continental US locations
- Discussion of measurement started, evaluating Red Tag as interim service performance indicator until Intelligent Mail measurement is viable for Periodicals

## Standard Mail
Tentative agreement that includes:
A matrix for destination-entered Mail (est. 75% of volume) with a range of delivery days based upon entry facility type (DBMC, DSCF, DDU) and presort (carrier route vs. non-carrier route)
A range of days for origin-entered (est. 25% of volume) based upon existing standards
Seasonality (additional delivery day Sept through December)
Recommendation will also include 
Agreement that service standards between continental US and non-continental US locations should be extended, unsure what is appropriate
That this service standard should also apply to BPM flats

**Standard Mail**
- Tentative agreement that includes:
- A matrix for destination-entered Mail (est. 75% of volume) with a range of delivery days based upon entry facility type (DBMC, DSCF, DDU) and presort (carrier route vs. non-carrier route)
- A range of days for origin-entered (est. 25% of volume) based upon existing standards
- Seasonality (additional delivery day Sept through December)
- Recommendation will also include
- Agreement that service standards between continental US and non-continental US locations should be extended, unsure what is appropriate
- That this service standard should also apply to BPM flats

## Package Services Mail
Tentative agreement that includes:
One standard for destination-entered Commercial Packages (Parcel Post, BPM packages, Library and Media Mail and Standard Packages)
A destination-entry matrix of 2 to 4 days based upon entry point (DBMC, DSCF, DDU) and
Current origin-entry standards based upon zones
Two service performance indicators
“% On Time”
“Tail of the mail”

Workgroup is proposing A different service standard for destination-entered Standard packages vs. Standard letters/flats

Retail Parcel Post – USPS surveyed retail customers

**Package Services Mail**
- Tentative agreement that includes:
- One standard for destination-entered Commercial Packages (Parcel Post, BPM packages, Library and Media Mail _and Standard Packages_)
- A destination-entry matrix of 2 to 4 days based upon entry point (DBMC, DSCF, DDU) and
- Current origin-entry standards based upon zones
- Two service performance indicators
- “% On Time”
- “Tail of the mail”
- Workgroup is proposing A different service standard for destination-entered Standard packages vs. Standard letters/flats
- Retail Parcel Post – USPS surveyed retail customers

## Other Service Standards Tasks
Workgroup will recommend an ongoing service standard review/update process that is driven by business rules, demonstrated performance, and includes industry input
Enhancements to USPS communication of service standards and accessibility of the information to mailers
Subgroups will recommend service standards and measurement for some Special Services

- Workgroup will recommend an ongoing service standard review/update process that is driven by business rules, demonstrated performance, and includes industry input
- Enhancements to USPS communication of service standards and accessibility of the information to mailers
- Subgroups will recommend service standards and measurement for some Special Services

**Workgroup Progress to Date**

## The Measurement work in process...
Workgroup supports an Intelligent Mail performance measurement system
Examining ‘Start the Clock’ and ‘Stop the Clock’ procedures
Analyzing mail types and mailflows for measurement gaps and alternatives
Industry recognizes that mail with quality issues should not be included in Performance Measurement scores but wants all data captured and used for service and system improvement
Reporting needs:
Want comparative data to be able to evaluate mailing processes
Want data that adds value to mail strategies and enhances use of mail
Measurement & Reporting work will need continuing coordination

**The Measurement work in process...**
- Workgroup supports an Intelligent Mail performance measurement system
- Examining ‘Start the Clock’ and ‘Stop the Clock’ procedures
- Analyzing mail types and mailflows for measurement gaps and alternatives
- Industry recognizes that mail with quality issues should not be included in Performance Measurement scores but wants all data captured and used for service and system improvement
- Reporting needs:
- Want comparative data to be able to evaluate mailing processes
- Want data that adds value to mail strategies and enhances use of mail
- Measurement & Reporting work will need continuing coordination

## Open Issue: Service Standards Review
USPS service standards review effort was recommended by the workgroup
Business rules documented and verified as appropriate
Transportation analysis using more sophisticated tools & technology
Mail flows and distribution process validated with PLANET Codes
Will not be complete until the end of August
Review process may be the recommended approach for on-going reviews of service standards

**Open Issue: Service Standards Review**
- USPS service standards review effort was recommended by the workgroup
- Business rules documented and verified as appropriate
- Transportation analysis using more sophisticated tools & technology
- Mail flows and distribution process validated with PLANET Codes
- Will not be complete until the end of August
- Review process may be the recommended approach for on-going reviews of service standards

## Integration with Internal USPS Preparations

**Five Project Teams Established**
- Senior Officer Sponsorship for each
- Service Standards
- Special Services
- Measurement Requirements
- Intelligent Mail
- Outreach
- Ongoing Review by Steering Committee

## Ongoing Monthly Meetings 
Requirements of New Law
USPS Program Plan
Consultation Process
Current Service Standards
Service Standard Review
Measurement Process
Reporting 

- Requirements of New Law
- USPS Program Plan
- Consultation Process
- Current Service Standards
- Service Standard Review
- Measurement Process
- Reporting

- USPS - PRC Meetings

## Next Steps
September 2007 – USPS/PRC Consultation 
October 2007 – Publish Proposed Rule on Service Standards in Federal Register for comments (30 days)
December 2007 – Publish a Final Rule on Service Standards in Federal Register

- September 2007 – USPS/PRC Consultation
- October 2007 – Publish Proposed Rule on Service Standards in Federal Register for comments (30 days)
- December 2007 – Publish a Final Rule on Service Standards in Federal Register

- Service Standard and Measurement Timeline