# Presentation: 892720

## 

Product Redesign

**Product Redesign**

## PRODUCT REDESIGN

**Why Product Redesign Now**
**What We Want to Accomplish**
**Process and Timeline**
**Steering Committee**
**Workgroups**

**Agenda**

## PRODUCT REDESIGN

**Changing Customer Needs and Capabilities**
**Prepare for Future USPS Operating Environment**
**Increasing Physical and Electronic Competition**

**Why Product Redesign Now**

## PRODUCT REDESIGN

**Products That Meet Customer Needs**
**Products That Reduce Combined USPS and Customer Costs**
**Products That Fit Future USPS Operations**
**Prices That Generate Growth in Volume and Contribution**

**What We Want To Accomplish**

## Year

**Process And Timeline**

**Year**

**  ****0****	****1****	****2****	****3**

**PRODUCT REDESIGN**

***Develop & Refine***
*** ******Proposals***
***May 01 - May 02        ***

**May 02**

**May 01**

**May 03**

**May 04**

**Cost and**
**Market Rsrch**
***Mar 02 - Sept 02***

**Prepare**
**Filing**
***Oct 02 - Feb 03***

**PRC Hearings**
***Mar 03 - Dec 03***

**Implementation**

**Notes:**
I want to talk to you today about the rate case which we filed at the Postal Rate Commission on September 24th.  
I will discuss the actual proposal itself in a moment.  But first, lets discuss the process so you can have a better understanding of what this all means.
The postal rate setting process is time-consuming.  It takes about 18 months to prepare, file, and implement an omnibus rate case.   
It took us six months of preparation to file the case.  That preparation includes over a hundred thousand pages of documents and it required a 2 and half ton truck to deliver the proposal to the Postal Rate Commission.
Now that the Postal Service has filed its request, the PRC has ten months to hear the case, including the positions of other parties.   The PRC will then submit its Recommended Decision to the Governors.
After the Commission issues its Decision, the Postal Service analyzes that Decision.  The Governors of the Postal Service then make a decision regarding the case -- they can implement the rates, seek a reconsideration by the Commission, or reject the Commission’s Decision.  Assuming the Governors decide to accept the Commission’s Decision, the entire Board can then set an implementation date. 
In this particular filing, the rates will not be implemented earlier than September 2002.  The actual date will depend upon the circumstances at that time.

## PRODUCT REDESIGN

**Joint USPS/Industry Process Throughout**
**Steering Committee: Strategic Focus**
**Workgoups: Develop & Refine Proposals**
**One Workgroup for Each Major Product  **
**One or More for Multi-Product Issues**
**Implementation Readiness Teams**
**Later in the Process, As Needed **

**Process**

## PRODUCT REDESIGN

**Joe Lubenow - MTAC Co-Chair**
**Robert O’Brien - Time Customer Service**
**Laine Ropson - Moore**
**Jack Widener - Newsweek**
**Anita Pursley - Quebecor World**
**Clarence Banks - RR Donnelley**
**Pierce Myers - PSA**
**Robert Lindsay - MPI Services**

**Joint Steering Committee: Industry Members**

## PRODUCT REDESIGN

**Anita Bizzotto**
**Nick Barranca**
**Don O’Hara**

**Joint Steering Committee - USPS Members**

## PRODUCT REDESIGN

**Provide a Process that Allows All USPS and Customers’ Views to be Considered Equally and Fairly**

** ****Steering Committee: Operating Principle**

## PRODUCT REDESIGN

**Flexible Cost-Based Presort, Preparation and Entry**
**Define Additional Worksharing Opportunities**
**Improve USPS Value (Price and Service) to Customers**
**Incentivize Mailing Practices Which Drive Costs Out of the Total System**

** ****Steering Committee: Overall Goals**

## PRODUCT REDESIGN

**First-Class - Mury Salls / Marty Emery**
**Periodicals - Val Scansaroli / Rich Arvonio**
**Standard - Anita Pursley / Linda Kingsley**
**Parcels - BPM - Charley Howard / Susan Dow**
**Parcels - Lloyd Karls / Jim Cochrane**
**Addressing - Joe Lubenow / Wayne Orbke**

**Workgroup Co-Chairs - Industry/USPS**

## PRODUCT REDESIGN

**Industry/USPS Members**
**All Segments of Industry Represented**
**Mail Intensive Customers and Moderate Users**
**Meetings Monthly or Semi-Monthly as Needed**

**Workgroups: Structure**

## PRODUCT REDESIGN

**Aggressive Timeline**
**12/01 - 4/02 - Develop Ideas and Proposals**
**3/02 - Research on Initial Proposals**
**4/02 - Research on Workgroup Proposals**

**Workgroups: Calendar**

## PRODUCT REDESIGN

**First Workgroup Meetings**
**November 29, 2001**
**Crystal City Marriott**
**1999 Jefferson Davis Hwy**
**Arlington, VA  **
**10 AM - 3 PM**

**Workgroups: Calendar**

## PRODUCT REDESIGN

**First Workgroup Meetings**
**November 29, 2001**
**Crystal City Marriott**
**1999 Jefferson Davis Hwy**
**Arlington, VA  **
**10 AM - 3 PM**

**Workgroups - Calendar**

## PRODUCT REDESIGN

**Let Us Hear From You:**
**	****Don O’Hara**
**	****1735 N. Lynn St. Rm 2043**
**	****Arlington, VA 22209-6028**
**	****703-292-3840**
**	****dohara****1****@email.usps.com**
**               **
**	****             **

**Your Input Requested**