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

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

The Postal Service announced that there will be an extension of 
the transition period for the implementation of the Move update 
requirement - July 1st - 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 5th 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

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

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.

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 11th, 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 - 2.9 billion address 
corrections provided to mailers. 700 million more than 1995.

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

Move Verification Letters - 16.5 million printed and mailed.

MoversNet WWW page- 10,000 hits a week.
  
Address Element Correction Service - 13 million addresses 
corrected.
  
Delivery Sequence File - 4.9 billion addresses matched and 
validated. 2.3 billion more than 1995. Almost 100% growth.

Locatable Address Conversion System - more than one million 
records added. Currently 3.1 million address links (old to new) 
in file.
  
USPS WWW ZIP+4 lookup page - averaging 15,000 to 20,000 hits a day.




				MTAC
		      Periodicals Subcommittee
			 December 11, 1996

Howard Schwartz, Industry Chair
Bob Kooken, Postal Chair

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.

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
			  December 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 " 
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.

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