# Presentation: 417589

## Flats Sequencing System(FSS)

**November 20, 2008**

- Rosa Fulton
- Phil Fabrizio

## Agenda

**FSS Pre-production / Production**
**Flat Volume Update**
**Phase 1 Capacity Review**
**Forecasting for Change **
**Flats Track – National Postal Forum 2009**

## Pre-production & Production Program Update

**Dulles P &DC**

## Dulles FSS Status

| Preprod FSS Install & Operational  | Complete |
| --- | --- |
| 1st Production FSS Install & Ramp-up | Complete |
| Production Pre-Test | In-progress |
| Acceptance Test | Nov 24th  |
| 2nd Production FSS Installation | In-progress |
| 3rd Production FSS Installation | Nov 2008  |

## Dulles Operational Ramp-up

**Dulles Operational Ramp-up**

- Production FSS  Seven Sort Schemes
- 10 Delivery Units
- 19 Zones

| Sort Scheme | Zones |
| --- | --- |
| Reston Annex | 20191, 20194 |
| Fairfax Main | 22030, 22035, 22038 |
| Sterling Main
Reston Main | 20164, 20167
20190, 20195 |
| McLean | 22101, 22109 |
| Burke
Culpeper | 22009, 22015
22701 |
| Alexandria – Belle View
Alexandria – Engleside | 22307
22309 |
| Falls Church | 22040, 22043, 22046 |

- Preproduction FSS   Four Sort Schemes
- 3 Delivery Units
- 4 Zones

| Sort Scheme | Zones |
| --- | --- |
| Arlington - South | 22204 |
| Arlington – North | 22207 |
| Manassas | 20109 |
| Manassas | 20110 |

## FY 2008 SPLY Comparison 

- RPW

## FY 2008 SPLY Comparison 

**FY 2008 SPLY Comparison **

- RPW

**Decline**
**-5.8**
**Billion Flats**

## FY 2008 SPLY Comparison 

- RPW

## Flat Volume 2006 – 2008 Comparison 

| 2006 | 2007 | 2008 |
| --- | --- | --- |
| 53.8 Billion | 52.4 Billion | 46.6 Billion |
|  | Flat Volume Decline
-1.4 billion | Flat Volume Decline
-5.8 billion |
|  | -2.6% | -11.1% |
| Zones Required to Support 100 FSS |  |  |
| 1,300 | 1800 | 2400+ |

## Baseline Model - 2006
Recast Model with 2007, then 2008 Data
Candidate Zone Criteria for 32 FSS Sites
8,943 Zones Expanded to 12,460 Zones
Sweet Spot Focus on 2,484 Zones
FSS Scheduler Activities for 100 FSS
Capacity Scenario Based on 2008 Actual Data

**Baseline Model - 2006**
**Recast Model with 2007, then 2008 Data**
**Candidate Zone Criteria for 32 FSS Sites**
**8,943 Zones Expanded to 12,460 Zones**
**Sweet Spot Focus on 2,484 Zones**
**FSS Scheduler Activities for 100 FSS**
**Capacity Scenario Based on 2008 Actual Data**

## Applied Volume Loss Sensitivities 
Possible Incremental Declines 
Scenarios Performed
Over-deployment Risks Identified
Implementation Scheduling Impacts
Modeled Loss Scenarios for all 32 Sites
Identified Low, Medium and High Risk Sites
Identified Reaction Timelines

**Applied Volume Loss Sensitivities**** **
**Possible Incremental Declines **
**Scenarios Performed**
**Over-deployment Risks Identified**
**Implementation Scheduling Impacts**
**Modeled Loss Scenarios for all 32 Sites**
**Identified Low, Medium and High Risk Sites**
**Identified Reaction Timelines**

## Next Steps

**Due Diligence Trigger Points**
**Deeper Dive Highest Risks **
**Developed an Early Warning System**
**Identified Alternate (Phase 1A – 2) Sites**
**Last Resort - Redeploy, if/when Necessary **

## National Postal Forum 2009 Planning

## Flats Track Proposal – NPF 2009 

- Combine Periodical Track, Printer Track and Flats Symposium into One Flats Track
- Target Workshops to Support all Flat Mailers
- Total of 12 Workshops
- Certificate Program
- Participants Required to Attend a Total of 4 Workshops and the Tuesday General Session to Receive Certificate

## NPF 2009 - Flats Track

| Workshop # | 1 | 2 | 3 | 4 | 5 | 6 |
| --- | --- | --- | --- | --- | --- | --- |
| Workshop
Title | USPS
Flats
Strategy | Addressing
Standards
for Flats
(Includes IMB) | Future Prep
& Entry for Flats | Co-mail
Co-Pallet
Co-Binding | The Skinny
on
Slim Jims | Future 
of
Catalogs |
| Target
Audience | Periodical Mailers | Periodical Mailers | Periodical Mailers | Periodical Mailers |  |  |
|  | Catalog Mailers | Catalog Mailers | Catalog Mailers | Catalog Mailers | Catalog Mailers | Catalog Mailers |
|  | Printers | Printers | Printers | Printers | Printers | Printers |

**Proposed Workshops **

| Workshop # | 7 | 8 | 9 | 10 | 11 | 12 |
| --- | --- | --- | --- | --- | --- | --- |
| Workshop
Title | Building YourPeriodical Business | Optimizing Postage Savings, Small Volume Periodicals | PeriodicalPricing | Managing PostalBudget & Cost ReductionOpportunities | Nuts & Bolts
ofPeriodicals | Printers Expand into Mailing
10 Steps to Success |
| Target
Audience | Periodical Mailers | Periodical Mailers | Periodical Mailers | Periodical Mailers | Periodical Mailers |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  | Printers |

## Flats Track Proposal – NPF 2009 

**Finalize Workshop Descriptions**
**Finalize Speakers**
**Finalize Format of Each Workshop**

**Next Steps**

## Conclusion

**Questions?**