Parcel Machinability Standards

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Wilfred Mason
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1 Parcel Machinability Standards Linda Malone, VP Network Operations February 2, 2016 Southern Area Focus Group

2 Agenda Background MTAC Workgroup 169 Parcel Structure Simplification Poly Bags 2

3 Background Increasing parcel volumes Shift from corrugated boxes to more cost effective materials such as poly bags, which have limited DMM guidelines Results = increased manual handlings 3

4 Workgroup Formation MTAC workgroup 169 formed February 2015 Issue statement: Some mail currently qualifying as machineable is not compatible with processing on USPS automated equipment. The lack of compatibility results in manual handlings which drive up costs attributed to these products. Goals Standardize DMM regulations Increase efficiency Reduce costs 4

5 Workgroup Activities Evaluated parcel volume FY14 data by mail class, machine, entry, etc. Standard Mail* 2% First-Class Parcels 6% Parcel Return Service* 2% Bound Printed Matter 6% Priority Mail Express 1% Priority Mail 25% Parcel Select Lightweight* 22% First-Class Package Service 17% Parcel Select* 18% Standard Post* 1% 5

6 Workgroup Activities Examined current DMM standards and identified opportunities for clarification Reviewed prior engineering studies on how parcel dimensions were derived 6

7 Parcel Dimensions Length (inches) Width (inches) Height (inches) Weight (pounds) DMM min DMM max or 35* Machines Nationwide -- APBS min in 130+ sites APBS max (44% volume) APPS min in 60+ sites APPS max (35% volume) PSM min in 21 sites PSM max (19% volume) SPSS min SPSS max Rapistan min Rapistan max ADUS min ADUS max deploying 31 in 31 sites 5 in 3 sites (2% volume) 1 in 1 site * 25 pounds except Parcel Select and Parcel Return parcels which have a maximum of 35 pounds, except those containing books or other printed matter (25 pound max) 7

8 Workgroup Activities Discussed parcel issues and opportunities for both the industry and USPS Formed two subgroups Parcel structure simplification Poly bags 8

9 Parcel Structure Simplification PARCEL STRUCTURE SIMPLIFICATION 9

10 Parcel Structure Machinable Non Mach Lightweight Balloon Oversized Irregular Outside Varies by Mail Class 10

11 Parcel Structure Discussed complexities of parcel structure Explored ideas for all new structure or changes to existing structure Preparing recommendations and discontinuing subgroup Eliminate the term outside Definition of outside is similar to a non-machinable parcel Recommend that references to outside be replaced with nonmachinable Eliminate the term irregular Definition of irregular combines lightweight mail that can be automated on an APPS/APBS/SPSS with rolls/tubes which are processed manually Recommend that irregular be eliminated as it doesn t separate machinable versus non-machinable for operations 11

12 POLY BAGS Poly Bags 12

13 Preparation Concerns Pieces sticking together due to labels or other adhesives Poorly applied barcodes 13

match contents = excess selvage, resulting in: Poor

14 Packaging Concerns Friction coefficient / tackiness of poly Lightweight materials Packaging doesn t match contents = excess selvage, resulting in: Poor readability (fold-over) Potential damage Missents 10% 14

15 Missents Pieces block the run-out Must be manually cleared 15

16 Missents When run-out is blocked and not cleared = MISSENT 16

17 Manual Handling Poor automation quality results in manual handlings 17

discussion and potential testing Exposed

18 Poly Bags Established subgroup to address concerns such as poor readability, missents, damage, etc. Seeking additional participants for discussion and potential testing Exposed adhesive Excess packaging Lightweight materials Tackiness of poly 18

19 Poly Bags Better packaging results in: Reduced additional/manual handlings Reduced costs Reduced potential for damage Improved service 19

20 Next Steps Finalize parcel structure simplification recommendations Continue evaluation and improvements for poly bag processing Submit formal recommendations to MTAC and USPS leadership (July 2016) 20

21 Questions 21

Price List Notice 123 Effective May 11, 2009

Price List Notice 123 Effective May 11, 2009 List Notice 123 Effective May 11, 2009 Updated 2/10/2009 DOMESTIC INTERNATIONAL EXTRA SERVICES Retail s Page Express Mail 2 Priority Mail 3 First-Class Mail Cover Parcel Post 4 Media Mail 5 Library Mail