October 10, Mr. Cliff Guffey President American Postal Workers Union (APWU), AFL-CIO 1300 L Street, NW Washington, DC

Transcription

1 October 10, 2013 Mr. Cliff Guffey President American Postal Workers Union (APWU), AFL-CIO 1300 L Street, NW Washington, DC Certified Mail Tracking Number: Dear Cliff: As information, enclosed is a copy of the second and final Post Implementation Review for the Oshkosh, Wisconsin Processing & Distribution Facility (P&DF) Area Mail Processing (AMP). In accordance with the Non-Disclosure Agreement dated February 11, 2013, the Postal Service is providing both redacted and unredacted copies of the PIR. If you have any questions, please contact Rickey Dean at extension Sincerely, Patrick M. Devine Manager Contract Administration (APWU) Enclosures (CA )

2 REDACTED Type of Distribution Consolidated: Originating Facility Name & Type: Oshkosh P&DF Street Address: 1025 W 20th Ave City: Oshkosh State: WI 50 Facility ZIP Code: District: Lakeland Area: Great Lakes Finance Number: Current 3D ZIP Code(s): 549 Miles to Gaining Facility: 55 Miles EXFC office: Yes Plant Manager: Evonne L. Hraban Senior Plant Manager: Charles A. Sciurba District Manager: Steven E. Wenzel Facility Name & Type: Green Bay P&DC Street Address: 300 Packerland Dr City: Green Bay State: WI 50 Facility ZIP Code: District: Lakeland Area: Great Lakes Finance Number: Current 3D ZIP Code(s): EXFC office: Yes Plant Manager: Jeff Grendziak (A) Senior Plant Manager: Charles A Sciurba District Manager: Steven E. Wenzel Approval Date: July 26, 2013 (Deviation) Implementation Date: Jan PIR Type: Final PIR Date Range of Data: Jan : Processing Days per Year: 310 Bargaining Unit Hours per Year: 1,742 EAS Hours per Year: 1,819 Dec Date of HQ memo, DAR Factors/Cost of Borrowing! May?, 2010 New Facility Start-up Costs Update f Date & Time this workbook was last saved: :39 Area Vice President: Vice President, Network Operations: Area AMP Coordinator: NAI Contact: Jacqueline Krage Straka David E. Williams Nancy Schoenbeck Jug S. Bedi!Barbara Brewington PIR Data Entry Page

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4 Executive Summary Last Saved October Date Range of Data PIR Type: Final PIR Jan Dec Losing Facility Name and Type: Street Address: City: State: Current SCF ZIP Code(s): Type of Distribution Consolidated; Gaining Facility Name and Type: Street Address: City: State: Originating Green Bay P&DC Savings/Costs Final PIR vs Pre AMP Final PIR vs Approved Function 1 Workhour Savings Non-Processing Craft Workhour Savings (less Maint!Trans) PCES/EAS Workhour Savings Transportation Savings Maintenance Savings Space Savings from Workhour Costs - Combined from Other Curr vs Prop from Other Curr vs Prop from Transportation HCR and Transportation PVS from Maintenance from Space Evaluation and Other Costs Total Annual Savings Total One-Time Costs ($733,036) $1,779,000 from Space Evaluation and Other Costs Total First Year Savings Staffing Craft Position Loss from Staffing-Craft Service Losing Current Qtr Gaining Current Qtr First-Class Mail Service Performance (EXFC 0/N) 92.78% 97.41% from Setvice Performance & CSM First-Class Mail Service Performance (EXFC 2 Day) 97.26% 96.44% from Setvice Performance & CSM First-Class Mail Service Performance (EXFC 3 Day) Customer Experience Measurement Overall Satisfaction Residential at PFC level Customer Experience Measurement Overall Satisfaction Small Business at PFC level 93.12% 93.98% 91.78% 86.25% from Setvice Performance & CSM from Setvice Performance & CSM from Setvice Performance & CSM 3 PIR Executive Summary

5 Combined Losing and Gaining Facility Data: Pre AMP Proposed Final PIR Function 1 Workhour Costs $18,668,474 $18,011,213 $15,619,553 Non-Processing Craft Workhour Costs (less Maintenance & Transportation) $897,444 $808,332 $774,454 PCES/EAS Workhour Costs $2,225,326 $2,033,887 $1,967,533 Transportation Costs $11,205,768 $11,377,550 $11,331,573 Maintenance Costs $6,836,753 $6,393,105 $6,375,689 Space Costs $0 $100,000 $0 Total Annual Cost $39,833,765 $38,724,085 $36,068,803 Total One-Time Costs $0 $2,512,036 $733,036 Total First Year Costs $39,833,765 $41,236,121 $36,801,839 Staffing Craft Position Total On-Rolls PCES/EAS Position Total On-Rolls Final PIR vs Pre-AMP Final PIR vs Proposed (Approved) AMP Approved AMP Function 1 Workhour Savings $3,048,921 $2,391,660 $657,262 $122,989 $33,877 $89,112 Non-Processing Craft Wor1<hour Savings (less Maint!Trans) PCES/EAS Workhour Savings $257,793 $66,354 $191,440 Transportation Savings ($125,805) $45,976 ($171,781) Maintenance Savings $461,064 $17,415 $443,648 Space Savings $0 $100,000 ($100,000) Total Annual Savings $3,764,962 $2,655,283 $1,109,680 Total One-Time Costs ($733,036) $1,779,000 ($2,512,036) Total First Year Savings $3,031,926 $4,434,283 ($1,402,356) Staffing Craft Position Loss PCES/EAS Position Loss ( 1) 4 (5) 4 PIR Executive Summary

6 Summary Narrative Last Saved: October 1, 2013 Losing Facility Name and Type: Oshkosh P&DF Current SCF ZIP Code(s): 549 Type of Distribution Consolidated: Originating Gaining Facility Name and Type: Green Bay P&DC Current SCF ZIP Code(s): Background: The Lakeland District, with assistance from Great Lakes Area, has completed the final (12-month) Post Implementation Review (PIR) of the Oshkosh, WI Area Mail Processing (AMP) project. The final PIR projects a full year savings and determines whether the Postal Service increased efficiency by consolidating originating mail processing operations from the Oshkosh, WI P&DF to the Green Bay, WI P&DC. The transfer of the SCF 549 originating volumes to Green Bay was completed in October of Financial Summary: PIR vs. Pre-AMP PIR vs. Pro12osed Total Annual Savings: $3,764,962 $2,455,283 Total One-Time Costs ($733,036) $1,779,000 Total First Year Savings: $3,031,926 $4,234,283 Combined Losing and Gaining Facility Data: Pre AMP Proposed Final PIR Function 1 Workhour Costs $18,668,474 $18,011,213 $15,619,553 $897,444 $808,332 $774,454 PCES/EAS Workhour Costs $2,225,326 $2,033,887 $1,967,533 Transportation Costs $11,205,768 $11,377,550 $11,331,573 Maintenance Costs $6,836,753 $6,393,105 $6,375,689 Space Costs $0 $100,000 $0 Total Annual Cost $39,833,765 $38,724,085 $36,068,803 Non~ Processing Craft Workhour Costs (less Maintenance & Transportation) Total One-Time Costs $0 $2,512,036 $733,036 Total First Year Costs $39,833,765 $41,236,121 $36,801,839 The originating consolidation shifted an average daily volume of 272,570 pieces (base period) from the Oshkosh P&DF to the Green Bay P&DC. The original AMP study, Oshkosh originating and destinating to Green Bay, has been modified to meet the needs of the expanding volumes in Green Bay from upcoming consolidations of Wausau and Iron Mountain. Oshkosh destinating volumes recently consolidated into the Milwaukee, WI P&DC. This consolidation allows the Oshkosh plant to be retooled to become a parcel and bundle processing facility for northern Wisconsin and upper Michigan. Customer Service Considerations: The Oshkosh WI P&DF service performance indicators increased in 2-day while holding steady in all other categories compared to pre-amp levels. Service performance for the Green Bay P&DC improved in all three service categories compared to pre-amp levels. The Lakeland district monitored trips and mail flow processes to ensure a smooth transition and positive customer satisfaction performance. 5 PIR Summary Narrative

7 Transportation Considerations: The final PIR shows a loss of $125,805 in transportation compared to pre-amp levels. Green Bay eliminated Highway Contract Routes (HCRs) and due to needs of service for a savings of over $500,000. Collection trips scheduled to go to Oshkosh were redirected to the Green Bay P&DC. Expected savings were not realized in this PIR as trips were retained to support destinating volumes. Staffing Impacts: The approved Oshkosh AMP proposal identified a net reduction of 27 craft and an increase of five EAS employee positions with the consolidation of operations into Green Bay P&DC. Complement data for the PIR shows a decrease in craft complement of 62 employees and an increase of one EAS. The staffing impacts and management-to-craft ratios are summarized below: 1 CrafVManagement= all 1 Craft= Fl + F4 at Losing; Fl only at Gaining PIR Summary Narrative 6

8 Maintenance Impacts: The AMP projected a net annual savings of $69,116 in maintenance costs. The final PIR shows a first year savings of $461,064. Though Green Bay spent slightly more than expected in all categories, Oshkosh was able to recoup savings in the majority of the maintenance categories. The losing facility identified LDC 37, Building Equipment and LDC 38, Building Services as being the largest contributors to the savings with a combined total of $390,000. Space Impacts and One Time Facility Costs: The AMP projected a one-time cost of $2,512,036 of which $49,770 was for equipment relocation and the remaining was identified for a carrier annex. Two (2) AFCS and one (1) BDS were transferred from the Oshkosh facility to Green Bay at a relocation cost of $49,770 for equipment needed to process originating volumes. In addition to mail processing, the Green Bay facility houses 76 city and rural carriers. An expansion was approved under network rationalization to accommodate the originally planned full AMP of Oshkosh into Green Bay. Wausau and Iron Mountain will be AMP'd into Green Bay thus necessitating the expansion. The money for this 13,000 square foot expansion was incurred by the end of the PIR period. The expansion has since been completed. Other Concurrent Initiatives: During the time frame of the Oshkosh PIR, the gaining site engaged in other concurrent initiatives including: Expand 01 0 lite system in Green Bay Installation of two AFCS & BDS in Green Bay Conclusion: The final PIR for the consolidation of originating volumes from the Oshkosh WI P&DF to the Green Bay WI P&DC reflects a decrease of 62 craft employees. Proposed complement reductions for craft in the approved AMP were 27 FTE. Local initiatives helped drive performance and reduce complement. The PIR projects a first year savings of $3,031,926 to pre-amp levels. This is above the expected first year loss of $1,402,356. A major contributing factor to the positive savings was the expansion for the carriers was not complete at the time of the PIR and costs were not included in the PIR. The carrier addition has since been completed. PIR Summary Narrative 7

9 Service Performance and Customer Satisfaction Measurement Last Saved: October 1, 2013 Losing Facility:..;;O:...:s:,.:.;h:...:ko.:..s::;.;.h:...:P:...:&.:..D::...;_F District: Lakeland PIR Type: Final PIR Implementation Date: 01/01/12 Gaining Facility: Green Bay P&DC District: Lakeland (15) Notes: Satisfaction Measurement (CSM) became Customer Experience Measurement 0, Data reflects most recently completed quarter available in CEM. I Satisfaction (Overall Experience) Satlisfa<:tion with Receiving (Experience with receiving) Satlisfa<:tion with Sending (Experience with sending) Satisfaction with most frequently visited PO (Experience with most frequently visited PO) ~,,..,-,,,,,,,,,,,, Satisfaction with most recent contact with USPS (Experience with most recent contact witt 1 :.. ;::.;.::.. :.....:::.;:.;.::.::..:.:; :.. :_:.=,:_:_---I Likely to recommend the USPS 8 PIR Service Performance and Customer Satisfaction Measurement

10 I Combined Facilities J Workhour Costs - Combined Facilities Last Saved: October 1, 2013 PIRType : :;~ ::: :;,~,,_c=-c=no Type of Distribution Consolidated: Originating " " Date Range of Data: Jan-01~2012 to Oec PIR Workhour Costs Combined FaciHties

11 PIR Work.hour Costs- Combined FacHities

12 (V)NOTES:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~===; 11 PlR Workhour Costs Combined Facilities

13 Workhour Costs -Losing Facility last Saved: October 1, 2013 Losing Facility: Oshkosh P_?Q~ -.. ~ PIR Type':.1';'~~==:;-;;:-;,;m;,;;;:;idf<;<FTCi Type of Distribution Consolidated: Originating Date Range of Data: ~~..!.~- to Dee-31~2012 P!R Workhour Costs- losing

14 PlR Workhour Costs - Losing

15 14 PIR Workhour Costs ~ Losing

16 Workhour Costs -Gaining Facility Last Saved. October 1, 2013 Gaining Facility: _Q~~.~P&DC ~-~ ~ PIR Type : :~~.:,: ~.~ :,_... =,"'" Type of Distribution Consolidated: Originating Date Range of Data: Jan to Oec..J PlR Workhour Costs- Gaining

17 PlR Workhour Costs- Gaining

18 (27)NOTES' PIR Workhour Costs~ Gaining

19 I Other Workhour Move Analysis I P!R Other Workhour Costs

20 i Totals 67,823 50,559 52,383 $3,068,864 $2,251,516 $2, Totals 85,164 90,393 88,604 $3,659,924 $3,908,325 $4,046, P!R Other Workhour Costs

21 PIR Other Workhour Costs

22 Totals 19,465 13,404 14,958 $926,060 $655,676 $733,555 Totals 26,608 28,359 22,290 $1,299,266 $1,378,211 $1,233, PI R Other Worl<hour Costs

23 I Distribution to Other PIR Worksheet Tabs I 22 P!R Other Work.hour Costs

24 23 PIR Other Workhour Costs

25 Staffing - Craft Last Saved: October 1, 2013 PIR Type: Final PIR Data Extraction Date: 08/30/13 Losing Facility: Oshkosh P&DF Craft Positions Craft Positions ~ ~ ~ I (23) I (24) I! Final PIR vs Pre AMP! Final PIR vs Proposed! Total Craft Position Loss:L_,_,a2,_,_,j_,_,~~-~-~-J (Above numbers are carried forward to the Executive Summary) 24 PIR Staffing -Craft

26 Staffing - PCES/EAS Last Saved: October 1, 2013 PIR Type: Final PIR Losing Facility: Oshkosh P&DF Finance#...:5..;c6,;;.;62:.:8:..:5 Data Extraction Date: 8/30/2013 PCES/EAS Positions (2) (7) 25 PIR Staffing- P ES/EAS

27 Gaining Facility: Green Bay P&DC Finance #..::5.:.63;:.4;..;0c:2:., _ Data Extraction Date: ,,_.,_,_,_,_,._,_,...,.,_,_,_,_,_,_,_1_,_,_,_,_,_,_,, Total PCES/EAS I Position Lossi 1 I 4 I 26 ~~ ~ j ~ (Above numbers are carried forward to the Executive Summary) PIR Staffing- PCES/EAS

28 Transportation - PVS Last Saved: October 1, 2013 PIR Type: :...:..:..:.::::...:.. Final PIR Date Range of Data: Jan to -- Dec Losing Facility:-::O:::s=:::h;:..:k;:::os:_:.:h.:...P:...&=D.:...F Finance Number:..::5:.::6..:.6::.28::.:5::.. _ Gaining Facility: Green Bay P&DC Finance Number: _5_6_34_0_2 (2) (3) I (4) I (5) Final PIR Variance Variance Final PIR vs Final PIR vs (7) (8) PIR (10) Variance Final PIR vs (11) Total Final PIR vs Pre AMP Transportation-PVS Savings: ($34,750) (This number added to the Executive Summary (12) Total Final PIR vs Proposed Transportation-PVS Savings: ($'142,476) (This number added to the Executive Summary) (13) Notes= PIR Transportation- PVS

29 (1) Route# Losing Facility: Oshkosh P&DF Transportation - HCR Last Saved: October 1, Type of Distribution Consolidated: Originating Data of HCR Data File: 07/01/12 (3) (4) Final PIR Annual (6) (7) Final PIR Annual Cost PIR Type: Final PIR CT for Outbound Dock: (9) (10) Final PIR 28 PIR Transportation HCR- Losing

30 1,843,036 Change Analysis Final PIR vs Pre AMP Final PIR vs Notes: 29 PIR Transportation HCR- Losing

31 Transportation - HCR Last Saved: October 1, 2013 Gaining Facility: Green Bay P&DC PIR Type: Originating Type of Distribution Consolidated: Originating Date of HCR Data File: 07/01/12 CET for Inbound Dock: CET for Cancellations: CETforOGP: CT for Outbound Dock: ,1-\, I ~ (7) (9) (10) Final PIR Annual Cost Final PIR Annual Cost/Mile PIR Transportation HCR- Gaining

32 3,368,280 Summary HCR Losing & Gaining (13) 1 (14) Final PIR vs Losing Gaining (13) Total Final PIR vs Pre AMP Transportation-HeR Savings: (from losing and gaining facilities) $160,555 (14) Total Final PIR vs Proposed Transportation-HeR Savings: (from losing and gaining facilities) $96,499 HCR PVS (15) Final PIR vs Pre AMP Final PIR vs Proposed (15) Total Final PIR vs Pre AMP Transportation (PVS & HeR): $125,805 (This number carried forward to the Executive Summary) Notes: (16) Total Final PIR vs Proposed Transportation (PVS & HeR): (This number carried forward to the Executive Summary) 31 PIR Transportation HCR- Gaining

33 MPE Inventory Last Saved: October 1, 2013 Data Extraction Date: 07/21/13 PIR Type: Final PIR Date Range of Data: Jan to-- Dec Losing Facility:...:O:...:s::.:h:.:.:ko;:;.;s:.:.h:...:P...:&:::.:D::.F:... _ Gaining Facility: Green Bay P&DC (5) (6) Final PIR Proposed Relocation Costs Final PIR Relocation Costs (9) Variance in Costs $0 $0 (10) Notes: Carried to Space Evaluation and 32 PIR MPE Inventory

34 Losing Facility: Oshkosh P&DF Maintenance Last Saved October 1, 2013 PIR Type*:_F.;.;in.;.;ac_l '-P'-IR-' Date Range of Data: Jan : Dec Gaining Facility: Green Bay P&DC Workhour Activity (2) (3) (4) (5) Variance Variance Proposed Final PIR Final PIR to Final PIR to Costs Costs Pre AMP Proposed Workhour Activity (7) (8) (9) Variance Proposed Final PIR Final PIR to Costs Costs PreAMP (10) Variance Final PIR to Pre Proposed LDC36 707,429 $ 1,003, ,814 $ 379, ,526 $ 614, ,794,898 $ 1,798, ,827 $ 292,459 $ 340,056 :$ 47,597 $ 700,119 $ 830,314 '$' 130,195 $ 3,275 47, ,195 65,993 $ 94,442 $'. {60,362) $ ,971 $ 242,600 $+ 42,630 $ 42,630 19,276 $ 11,462 \27,090) $ -- 54,656 $ 88,714 i$ 52,785 $ 34,058 2,183,038 $ 2,103,205 { ) $ 3,042,102 $ 3,299,857 '$ 434,033 $ 257,755 Grand Totcll 2,514,827 Grand Totcll 3,860,862 (11) Final PIR vs Pre AMP- Maintenance Savings: (12) Final PIR vs Proposed- Maintenance Savings: {$461,064) (These numbers carried f01ward to the Executive Summary) (These numbers carried forward to the Executive Summary) (13)Notes: "Data 1n PIR columns is annualized for First PIR 33 PIR Maintenance

35 Losing Facility : Oshkosh P&DF Distribution Changes Last Saved: October 1, PIR Type: Final PIR Type of Distribution Consolidated: Originating Date Range of Data: Jan to Dec (1) Place a "X" next to the DMM labeling list(s) revised as result of the approved AMP. DMM L001 DMM L011 DMM L002 X DMM L201 Identify the date of the Postal Bulletin that contained DMM labeling list revisions. ( 2 l Postal Bulletin 22321, 10/6/2011 DMM L003 DMM L004 DMM L005 DMM L006 DMM L007 DMM L008 DMM L009 DMM L601 DMM L602 DMM L603 DMM L604 DMM L605 DMM L606 DMM L607 Was the Service Standard Directory updated for the approved AMP? ( 3 l Yes ' DMM L010 DMM L801 (4) Drop Shipments for Destination Entry Discounts FAST Appointment Summary Report NASS Total No-Show Late Arrival Open Closed Facility Name Month Losing I Gaining Facility Code Schd Count % Count % Count % Count % May '13 Losing Facility 549 Oshkosh % % % % Unschd Count 2 June '13 Losing Facility 549 Oshkosh % % % 229 May '13 Gaining Facility 541 Green Bay % % % 288 June '13 Gaining Facility 541 Green Bay % % % % 79.34% 83.67% (5JNotes: ==================== 34 PIR Distribution Changes

36 Customer Service Issues Last Saved: October 1, 2013 Losing Facility: _O:...s:...h.c.k:..:.o.::..sh-'--'-P--=&.;...D_F 5-Digit ZIP Code: Data Extraction Date: -=o::::s""/3::::0-:-:/1:::: Collection Points Number picked up before 1 p.m. Number picked up between 1-5 p.m. Number picked up after 5 p.m. Total Number of Collection Points 2. How many collection boxes are currently designated for "local delivery"? I o ~ 3. How many "local delivery" boxes were removed as a result of AMP? 4. Delivery Performance Report % Carriers returning before 5 p.m. 5. Retail Unit Inside Losing Facility (Window Service Times) 6. Business (Bulk) Mail Acceptance Hours 7. Can customers obtain a 1ocal postmark in accordance with applicable policies in the Postal Operations Manual? Yes 8. Notes: Gaining Facility: Green Bay P&DC 9. What postmark is printed on collection mail? Line 1 Green Bay Line 2 Date and Time 35 PIR Customer Service Issues

37 Space Evaluation and Other Costs Last Saved: October 1, 2013 losing Facility:..:O:..:sc.;h;,;;ko:..:s:.:..h:..:P...:&::.:D:..:F Date: ;;:;0.::.:91.:::.0:..:91..:..13:: Affected Facility 2. One-Time Costs Enter any one-time costs: $2,462,266 $683,266 ($1,779,000\ (These numbers shown below under One-Time Costs section.) 3. Savings Information Space Savings ($):_..;(.:;$.:.'1(~1<0.:.,00=0._) _ $0 ($100,000) (These numbers carried forward to the Executive Summary) 4. Did you utilize the acquired space as planned? Explain. We were not able to utilize as planned as the full AMP was not implemented, the original AMP had the Destinating moving also to Green Bay. 5. Notes: Green Bay moved and expanded the 010 lite system at a cost of $600, VFS and 1 BDS were added to support the system at a cost of $78,266. needed electrical of $5,000 was also added. Total= $683,266 Employee Relocation Costs Mail Processing Equipment Relocation Costs (from MPE Inventory) $49,770 $0 Facility Costs (from above) $2,462,266 ($1,779,000) Total One-Time Costs $2,512,036 $733,036 ($1,779,000) P!R costs carried forward to Executive Summary) Losing Facility:...::O:..::sc.;h;.;;ko:..:s:.:..h:..:P...:&:::D:..:F Gaining Facility: Green Bay P&DC Pre-AMP: FY 2011 Range of Report PIR: FY 2012 (10) 36 PIR Space Evaluation and Other Costs