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Webinar 2013 delivery sequencing vslideshare

  1. 1. Evaluating and Implementing Delivery Point Sequencing April 18, 2013
  2. 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. 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. 4. What is “Automated Delivery Point Sequencing”?
  5. 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. 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. 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. 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. 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. 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. 11. Determining the number of mail sequencing machines 11
  12. 12. Machine deployment strategies 12
  13. 13. Evaluating Delivery Point Sequencing
  14. 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. 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. 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. 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. 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. 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. 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. 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. 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.
  23. 23. Implementing delivery point sequencing 23
  24. 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
  25. 25. Next Steps 25 Assessment Business Case Detailed Study
  26. 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. 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. 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. 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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