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Evaluating and Implementing
Delivery Point Sequencing
April 18, 2013
Webinar outline
What is automated delivery point sequencing?
How is it achieved?
Evaluating automated delivery point sequencing –
Does it make sense for my operation?
Implementing delivery point sequencing
Steps towards implementation
Equipment selection
Infrastructure implications
Distribution
Training
Performance
Next Steps
2
Automated Delivery Point
Sequencing
Technological advance that will
Reduce operating costs
Improve service / induce ad mail / simplify carrier tasks / reduce errors
Other benefits: address management, new by-products
Significant operational and network impacts
Choice of hardware strategy
Network and operations implications
Implementation challenges
Serious evaluation is necessary
Initial assessment
Business case
Detailed evaluation
3
What is “Automated Delivery
Point Sequencing”?
What is automated delivery point
sequencing?
Delivery point sequencing (DPS) is
an automated process to sort mail in
the walk sequence of a letter carrier
on his/her route.
Using multiple passes, mail is sorted
to bins (stackers) in carrier route
delivery sequence.
Mail is lifted from the bins in a way
that preserves sequencing
Carriers receive the mail in trays that
are ready to ‘hit the street’
5
Benefits of delivery sequencing
6
Sort center
Secondary sort
by route
Casing
Additional
delivery sort
BEFOREAFTER
Casing
In Office
Street
Delivery
Street
Delivery
CasingIn
Office
$avings
Post Office
Additional processing step
BIN 1 BIN 2 BIN 3 BIN 4
Example: The sequencing process
in 2 sorting passes
7
Carrier 3 Carrier 2 Carrier 2 Carrier 2
Carrier 2 Carrier 3 Carrier 1 Carrier 3
Carrier 2Carrier 1Carrier 1 Carrier 1
Stop 4
Carrier 1
Stop 4
Carrier 2
Stop 4
Carrier 3
Stop 3
Carrier 1
Stop 3
Carrier 2
Stop 3
Carrier 3
Stop 2
Carrier 1
Stop 2
Carrier 2
Stop 2
Carrier 3
Stop 1
Carrier 1
Stop 1
Carrier 2
Stop 1
Carrier 3
Carrier Stop 1 Carrier Stop 2 Carrier Stop 3 Carrier Stop 4
BIN 1 BIN 2 BIN 3 BIN 4
Day D
Item
posted
Coordinating pass 1 and pass 2
8
Day d
Origin
Post
Office
Day D
Item
posted
Day D
Item
posted
Item
posted
on day d
Day D
Outgoing
sort
Transport to
destination center
day d
Day D
Transport to
destination center
Day D+1
Delivery point
sequencing
Day D+1
Deliver
Day D/D+1
Await all
incoming mail
Origin
Post
Office Origin Sort Center
Origin Sort Center
Destination
Sort Center
Destination
Post Office
Delivery point sequencing: critical
times influence the quantity of
sequencing machines
9
Run DPS
Pass 2
Run DPS Pass 1
Hold mail for
DPS Pass 1
Hold mail
for DPS
Pass 1
Bin capacity influences the number
of sequencing machines
10
10 20 30 40 100 200 300
1,3 1,3 1,3
13 26 39 52 130 260 390
130 520 1 170 2 080 13 000 52 000 117 000
1,3 1,3 1,3 1,3
Number
of Bins
Density N bins N Passes
N bins
Determining the number of mail
sequencing machines
11
Machine deployment strategies
12
Evaluating Delivery
Point Sequencing
Automated delivery point sequencing
components
Address database and updates
Route walk sequence database and updates
Updated routes
Distribution
Hardware (Machines, trays) and software (Sort plans)
Implementation – strategy and project management
DPS performance measurement: machines & people
Training (sequencing & delivery)
14
Issues affecting the success of a
delivery point sequencing program
Machinable versus Non Machinable Mail
How much of the mail cannot be processed on automated equipment
Addressing System and Address Database
Address database; address hygiene
Level of Automation
Number of sorting equipment required; % utilization
Mail mix
Levels of presort; needs to merge flows
Labor Costs and Labor Flexibility
Cost of casing - Ability to adjust routes
15
Addressing System and address
database
The national addressing system
is deficient or simply lacking
The address database does
not reconcile the address
due to address inaccuracy or
improper format
The address is incomplete or
incorrect (undeliverable as
addressed)
16
Level of automation
Total cost of equipment and
related operational requirements
Machine deployment strategy
Centralized
Distributed
Hybrid
Service standards/operating windows
Mail density/bin capacity
17
Non-machinable mail
Mail not sequenced
because its physical
and dimensional characteristics
cause it to get rejected from the
sorting equipment
Mail rejected by mail
sorting equipment
because of unreadable
addresses
18
Mail mix
In-office work
is necessary to case mail,
including:
Residual letters that could
not be sequenced by mail
sorting equipment
Flat mail (oversized envelopes)
Saturation mail (unaddressed
mail)
In-office labor hours affect total
time on the street and, thus, the
justification of the sequencing
program
19
Several machines versus
one machine
Machine
One for each sorting step
• Standard: IRV, FSM,
CSS
• Flat: FSS
• overlapping time
windows
• flexibility
• space for machines
• long Idle times
• many piles
One for all sorting steps
• Standard: 2LS
• Flat: FSS
• machine utilization
• space for machines
• short Idle times
• many piles
One for all sorting steps
and formats
• Flatsorter
• machine utilization
• one pile
• throughput rate
• transport of different
formats inside one
tray
Machine deployment strategies:
pros and cons
21
Fewer sequencing
equipment
required
Narrow processing
window for
overnight mail
Higher utilization of
sequencing
equipment
Large demands for
real estate (240
bins or more)
Equipment can be
used for other
types of sort
Reject mail
handled twice, at
plant and at post
office
Maintenance is
centralized
Less expensive
machine
More machines
required
Versatility means it
can be used for
other types of sort
Slower operation –
usually 3-pass sort
Longer operating
window
Maintenance must
be provided at
local level
Sequencing: pros and cons
22
Office time savings: time in the office manually
sequencing a route is ultimately eliminated, but not necessarily entirely
Mail processing costs: New
costs are incurred by
acquiring mail sequencing
equipment:
• The second pass of a
sequencing plan is a cost
• There is a cost associated
with underutilized machines
if, for instance, operating
windows are too tight thus
requiring more equipment
Improved efficiency: In principle, sequencing
standardizes the process of street delivery which should
lead to improved carrier’s efficiency.
• For instance, sequencing introduces a program of standardization of trays and
of the elimination of sacks
and other inefficient forms of containerization
Improved accuracy: the automated sequencing is
generally more accurate than the manual casing
Reduced equipment: by reducing the number of routes, vehicles,
carrier cases, and other equipment needed
for each eliminated route are also eliminated
Address database: This is both an asset and a liability. The address database can help improve
sequencing effectiveness and introduce new services (such as the redirection of mail), but there is
also a cost to maintain a complex database.
Implementing delivery point
sequencing
23
Steps towards implementation
24
Assessment & Evaluation
Strategy selection
Equipment selection
System architecture and databases
Implementation plan
Infrastructure and distribution implications
Training development and delivery
Performance management
Next Steps
Next Steps
25
Assessment
Business Case
Detailed Study
Initial Assessment
26
How much of an impact would a reduction in delivery
labor costs make?
What does the addressing system look like?
What is your current level of automation?
What do mail volume and mail mix look like, today and
tomorrow?
How much of the mail is machinable?
Business Case
27
A rough, conservative comparison of costs and benefits over time.
Rough estimates of
Net labor savings
Other benefits
Hardware and system costs
Training costs
Implementation & management costs
Evaluation of risks
Estimate of the return on investment
Detailed Study
28
Sequencing strategy
Distribution impacts and changes
Hardware technical requirements and capacity
Infrastructure and system changes
Address management
Training
Detailed program plan
Various subsystems required
Video encoding
Vehicle impacts
Material handling & containerization
29
> insight > action > transformation
decision/analysis partners LLC
www.decisionanalysis.net
Tel: 703 691 0380
10400 Eaton Place, Fairfax VA USA
Email:
Pierre Kacha: pkacha@decisionanalysis.net
Bernard Markowicz: bmarkowicz@decisionanalysis.net

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Webinar 2013 delivery sequencing webinar

  • 1. Evaluating and Implementing Delivery Point Sequencing April 18, 2013
  • 2. Webinar outline What is automated delivery point sequencing? How is it achieved? Evaluating automated delivery point sequencing – Does it make sense for my operation? Implementing delivery point sequencing Steps towards implementation Equipment selection Infrastructure implications Distribution Training Performance Next Steps 2
  • 3. Automated Delivery Point Sequencing Technological advance that will Reduce operating costs Improve service / induce ad mail / simplify carrier tasks / reduce errors Other benefits: address management, new by-products Significant operational and network impacts Choice of hardware strategy Network and operations implications Implementation challenges Serious evaluation is necessary Initial assessment Business case Detailed evaluation 3
  • 4. What is “Automated Delivery Point Sequencing”?
  • 5. What is automated delivery point sequencing? Delivery point sequencing (DPS) is an automated process to sort mail in the walk sequence of a letter carrier on his/her route. Using multiple passes, mail is sorted to bins (stackers) in carrier route delivery sequence. Mail is lifted from the bins in a way that preserves sequencing Carriers receive the mail in trays that are ready to ‘hit the street’ 5
  • 6. Benefits of delivery sequencing 6 Sort center Secondary sort by route Casing Additional delivery sort BEFOREAFTER Casing In Office Street Delivery Street Delivery CasingIn Office $avings Post Office Additional processing step
  • 7. BIN 1 BIN 2 BIN 3 BIN 4 Example: The sequencing process in 2 sorting passes 7 Carrier 3 Carrier 2 Carrier 2 Carrier 2 Carrier 2 Carrier 3 Carrier 1 Carrier 3 Carrier 2Carrier 1Carrier 1 Carrier 1 Stop 4 Carrier 1 Stop 4 Carrier 2 Stop 4 Carrier 3 Stop 3 Carrier 1 Stop 3 Carrier 2 Stop 3 Carrier 3 Stop 2 Carrier 1 Stop 2 Carrier 2 Stop 2 Carrier 3 Stop 1 Carrier 1 Stop 1 Carrier 2 Stop 1 Carrier 3 Carrier Stop 1 Carrier Stop 2 Carrier Stop 3 Carrier Stop 4 BIN 1 BIN 2 BIN 3 BIN 4
  • 8. Day D Item posted Coordinating pass 1 and pass 2 8 Day d Origin Post Office Day D Item posted Day D Item posted Item posted on day d Day D Outgoing sort Transport to destination center day d Day D Transport to destination center Day D+1 Delivery point sequencing Day D+1 Deliver Day D/D+1 Await all incoming mail Origin Post Office Origin Sort Center Origin Sort Center Destination Sort Center Destination Post Office
  • 9. Delivery point sequencing: critical times influence the quantity of sequencing machines 9 Run DPS Pass 2 Run DPS Pass 1 Hold mail for DPS Pass 1 Hold mail for DPS Pass 1
  • 10. Bin capacity influences the number of sequencing machines 10 10 20 30 40 100 200 300 1,3 1,3 1,3 13 26 39 52 130 260 390 130 520 1 170 2 080 13 000 52 000 117 000 1,3 1,3 1,3 1,3 Number of Bins Density N bins N Passes N bins
  • 11. Determining the number of mail sequencing machines 11
  • 14. Automated delivery point sequencing components Address database and updates Route walk sequence database and updates Updated routes Distribution Hardware (Machines, trays) and software (Sort plans) Implementation – strategy and project management DPS performance measurement: machines & people Training (sequencing & delivery) 14
  • 15. Issues affecting the success of a delivery point sequencing program Machinable versus Non Machinable Mail How much of the mail cannot be processed on automated equipment Addressing System and Address Database Address database; address hygiene Level of Automation Number of sorting equipment required; % utilization Mail mix Levels of presort; needs to merge flows Labor Costs and Labor Flexibility Cost of casing - Ability to adjust routes 15
  • 16. Addressing System and address database The national addressing system is deficient or simply lacking The address database does not reconcile the address due to address inaccuracy or improper format The address is incomplete or incorrect (undeliverable as addressed) 16
  • 17. Level of automation Total cost of equipment and related operational requirements Machine deployment strategy Centralized Distributed Hybrid Service standards/operating windows Mail density/bin capacity 17
  • 18. Non-machinable mail Mail not sequenced because its physical and dimensional characteristics cause it to get rejected from the sorting equipment Mail rejected by mail sorting equipment because of unreadable addresses 18
  • 19. Mail mix In-office work is necessary to case mail, including: Residual letters that could not be sequenced by mail sorting equipment Flat mail (oversized envelopes) Saturation mail (unaddressed mail) In-office labor hours affect total time on the street and, thus, the justification of the sequencing program 19
  • 20. Several machines versus one machine Machine One for each sorting step • Standard: IRV, FSM, CSS • Flat: FSS • overlapping time windows • flexibility • space for machines • long Idle times • many piles One for all sorting steps • Standard: 2LS • Flat: FSS • machine utilization • space for machines • short Idle times • many piles One for all sorting steps and formats • Flatsorter • machine utilization • one pile • throughput rate • transport of different formats inside one tray
  • 21. Machine deployment strategies: pros and cons 21 Fewer sequencing equipment required Narrow processing window for overnight mail Higher utilization of sequencing equipment Large demands for real estate (240 bins or more) Equipment can be used for other types of sort Reject mail handled twice, at plant and at post office Maintenance is centralized Less expensive machine More machines required Versatility means it can be used for other types of sort Slower operation – usually 3-pass sort Longer operating window Maintenance must be provided at local level
  • 22. Sequencing: pros and cons 22 Office time savings: time in the office manually sequencing a route is ultimately eliminated, but not necessarily entirely Mail processing costs: New costs are incurred by acquiring mail sequencing equipment: • The second pass of a sequencing plan is a cost • There is a cost associated with underutilized machines if, for instance, operating windows are too tight thus requiring more equipment Improved efficiency: In principle, sequencing standardizes the process of street delivery which should lead to improved carrier’s efficiency. • For instance, sequencing introduces a program of standardization of trays and of the elimination of sacks and other inefficient forms of containerization Improved accuracy: the automated sequencing is generally more accurate than the manual casing Reduced equipment: by reducing the number of routes, vehicles, carrier cases, and other equipment needed for each eliminated route are also eliminated Address database: This is both an asset and a liability. The address database can help improve sequencing effectiveness and introduce new services (such as the redirection of mail), but there is also a cost to maintain a complex database.
  • 24. Steps towards implementation 24 Assessment & Evaluation Strategy selection Equipment selection System architecture and databases Implementation plan Infrastructure and distribution implications Training development and delivery Performance management Next Steps
  • 26. Initial Assessment 26 How much of an impact would a reduction in delivery labor costs make? What does the addressing system look like? What is your current level of automation? What do mail volume and mail mix look like, today and tomorrow? How much of the mail is machinable?
  • 27. Business Case 27 A rough, conservative comparison of costs and benefits over time. Rough estimates of Net labor savings Other benefits Hardware and system costs Training costs Implementation & management costs Evaluation of risks Estimate of the return on investment
  • 28. Detailed Study 28 Sequencing strategy Distribution impacts and changes Hardware technical requirements and capacity Infrastructure and system changes Address management Training Detailed program plan Various subsystems required Video encoding Vehicle impacts Material handling & containerization
  • 29. 29 > insight > action > transformation decision/analysis partners LLC www.decisionanalysis.net Tel: 703 691 0380 10400 Eaton Place, Fairfax VA USA Email: Pierre Kacha: pkacha@decisionanalysis.net Bernard Markowicz: bmarkowicz@decisionanalysis.net