Webinar 2013 delivery operations

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Webinar 2013 delivery operations

  1. 1. Responding to Changing and Declining Volumes in Delivery Operations July 18, 2013
  2. 2. Webinar outline Identifying Opportunities for Savings in Delivery Back to Basics Recommendations to Capture Savings Short and Long term Approach The Bottom Line 2
  3. 3. The Current Situation Most major postal operations are experiencing shifts in mail streams, declines in first class mail and residual mail and non- automated, throughout the world. At the same time, the other half of the delivery equation, street delivery points are increasing along with gains in parcel post and advertising mail. The increase use of automation to finalize letters and flat mail in delivery sequence creates tremendous opportunities for work hour reduction in office operations. 3
  4. 4. 2011 2012 Total mail volume delivered 168,297,000,00 0 159,859,000,000 Drop in mail volume with respect to prior year (2,562,000,000) (8,438,000,000) Decline with respect to prior year (1.0%) (5.0%) Average mail volume delivered daily 557,275,000 529,334,000 Delivery points to residential and business addresses 151,492,000 152,146,550 Increase in delivery addresses w respect to prior year +636,530 +654,560 Average mail volume delivered per address per day 3.7 3.5 Longer Term Trends (USPS illustration) 4
  5. 5. Several processes and procedures – Short Term: Slide 6 Validate your data! Operational data is collected from the bottom up This includes work hours, regular/overtime/absences/unsch eduled absences Volumes and categories of mail – automated/handled (cased) Fuel usage Graph trends in each category Reviews of many postal operations have identified significant errors when the data collection process relies on human input rather than automated time keeping systems, where applicable, and automated machine counts. 5
  6. 6. Several processes and procedures Short Term: Slide 7 From your Data Review, identify your “Vital Few” opportunities to reduce cost Excessive work hours to budgeted/SPLY work hours Excessive overtime Excessive unscheduled absences Increased Labor tension Excessive fuel and vehicle maintenance costs Increased customer service complaints Declines in automated volumes Declines in automation quality 6
  7. 7. Several processes and procedures – Short Term: Slide 8 Develop corporate strategy to reduce delivery costs Commitment of resources SME’s Time = Money Hands on approach Set expectations for the Vital Few Management commitment Productivity increases Service increases Work hour reductions Overall reductions in operating costs 7
  8. 8. Several processes and procedures – Short Term: Slide 9 Cont. Team approach to improvement Coaching/Mentoring Goal oriented Training development and presentation 8
  9. 9. Several processes and procedures – Short Term: Slide 10 Develop Review and Assist Team(s) Subject Matter Experts from: Delivery / Plant HR/Labor Relations Transportations/Vehicles Operations Support Outside postal operations SME’s Unbiased Results motivated Best practices from all areas of postal operation 9
  10. 10. Several processes and procedures – Short Term: Slide 11 Baseline Vital Few Delivery Operations Actual work hours vs. evaluated/estimated Actual miles driven vs. base By driver/route Volumes by mail type Handled vs. automated volume Parcel post 10
  11. 11. Performance Management Questions - Slide 12 Do you measure and track delivery productivity? Office & Street By route/carrier By unit Is there a daily/weekly work hour plan for each delivery unit? Is feedback given to unit management on their performance? % to work hour plan % of Overtime used % Sick Leave Are residual/cased volumes projected for each day of the week? Are local managers involved in daily planning of workhours based upon projected volumes? 11
  12. 12. Performance Analysis Questions - Slide 13 It is important for postal operations react to changes in mail volume by determining workload requirements using budget work hour and productivity goals. The question each delivery operation should be asking – “How many workhours should we be using based upon today’s workload.” 12
  13. 13. Performance Analysis - Evaluated Route Systems - Slide 14 For those delivery operations using an evaluated route system, there are few options available to quickly respond to declining volumes. An immediate review of all overtime usage Staffing reviews The use of Sick leave reviews Street/Vehicle Management An in-depth analysis/review of your existing route measurement process Changes in casing equipment Increases in automated mail Time & Motion/Engineering studies - Office and Street 13
  14. 14. Long Term Delivery Improvement- Slide 15 Long Term Do you have analysis of cost per delivery point by unit? Are high cost delivery points reviewed to ensure maximum efficiency? Malls, etc. Centralized delivery requirement Identifying Park & Loop costs Vehicles and maintenance Accidents Slip,Trips,Falls Conversions of high cost delivery 14
  15. 15. Long Term Delivery Improvement- Slide 16 Are all routes using the most effective casing equipment and methods? Reduced cased volumes into new casing equipment Is there a corporate goal for operation standardization? Standardized Delivery Operation 15
  16. 16. Long Term Delivery Improvement- Slide 17 Proactive Supervisor training and evaluation- Difficult times require skilled managers Do you measure the skill level of your delivery managers Do you Test to ensure comprehension Have you done so recently Are your delivery manager training programs updated and current Does your training program for delivery managers support addressing poor/unacceptable performance Do you involve Human Resources/Labor Relations in the training The three “R’s” – Does your training program encourage the managers to do the right thing at the right time the right way “Inspect what you Expect” 16
  17. 17. Long Term Delivery Improvement- Slide 18 AMS/Street Management Validated AMS data to support Plant automation Are each of your delivery route certified at +99% accurate Is every delivery point is in the AMS data base The letter carrier line of travel matches the AMS data base and casing equipment labeling Does the letter carrier follow the official line of travel as defined in the AMS data base Are your supervisors visiting each letter carrier during their street activities to ensure good growth management, customer service and good safety practices 17
  18. 18. Long Term Delivery Improvement- Slide 19 Growth management Are you proactive in dealing with new construction Do you promote/require centralized delivery Have vacant/abandon homes/businesses been identified in the AMS data base Are you involved in assigning/approving new addresses 18
  19. 19. Long Term Delivery Improvement- Slide 20 Vehicle Management For your motorized routes: Does each delivery route have known Base miles/kilometer? Does each delivery unit have a daily/weekly/monthly budgeted mileage target and is it tracked? Are your vehicles maintained to ensure the best fuel usage possible? Are you using the right vehicle on each route? 19
  20. 20. Long Term Delivery Improvement- Slide 21 Increase the use of automation Ensure the accuracy of your AMS Data Base Survey the levels of cased volumes arriving at each route Complete Quality Control checks on residual volumes Review each delivery operation to ensure national guidelines and policies are in place AND being followed 20
  21. 21. The Bottom Line - Slide 22 The Bottom Line Ensure your data is correct Identify opportunities for improvement based upon “Biggest bang for your buck” Assemble qualified teams to identify performance opportunities Review operations to validate data assumption Measure management skill levels and commitment Develop and provide specific training Leadership Addressing performance Delivery skills requirements Ensure accountability Consider outside contract sources for support 21
  22. 22. 22 > insight > action > transformation

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