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Postal Automated Redirection System (PARS) John Keegan Manager, Automation Equipment USPS Engineering Agenda Background on USPS mail forwarding operations Overview of PARS PARS cost reduction Areas Change of Address Card Data Entry Forwarding Process Address Correction Service Lessons Learned PARS 1 Background The United States has half of the worlds mail Since 1988 USPS Engineering has purchased over 10,000 pieces of automation equipment to sort the letters and flats Delivery Bar Code Sorter Advanced Facer Canceller PARS Flat Sequencing System 2 What is PARS? …An initiative by the US Postal Service that drastically reduces the cost of forwarding mail to a customer’s new address by automating each of the manual or mechanized processes. 2003 cost to forward mail was over $1.5 billion PARS 3 PARS History Signed a contract with Siemens in 2002 and from 2003 through 2007 PARS delivered the following items at 283 processing centers nationwide at a cost of over $700 million: 290 delivery bar code sorters retrofitted with a PARS labeling module – Combined Input Output Sub-system (CIOSS) 4,527 delivery bar code sorters (DBCS) upgraded with new computers to intercept forwarded mail. 8,270 computer servers installed to provide optical character recognition and directory service. 1,080 Advanced Facer Canceller Systems upgraded 3,084 computer terminals placed at remote encoding sites for image keying 85 Change of Address Card Scanners PARS 4 PARS Statistics 55 million Change-of-Address orders for customers that moved in 2008 18% through the internet PARS 5 PARS Statistics USPS forwarded over billion pieces of mail in 2008 2.4 PARS 6 Original Change of Address Process Delivery Unit Forwarding Unit Change Card Change cards on file 18 months PARS Memphis TN National database National Center 7 PARS Change-of-Address Process Memphis TN National Center Redesigned Change-ofAddress form PARS Scanned and processed by OCR software along with remote video operators at 4 locations 8 Old Mail Forwarding Process PARS 9 PARS Interception If the delivery point bar code and patron name matches the database PARS PARS intercepts and labels over 60% of the forwarded mail with the new address 10 Overview – System Architecture Advanced Forwarding Reader (AFR) finalizes over 60% of images Remote Encoding Forwarded mail pieces are identified on all equipment Images are processed on the AFR If the AFR cannot resolve, the image goes to a remote encoding operator Any non intercepted pieces the carrier sends to the CIOSS PARS 11 Combined Input Output Subsystem (CIOSS) Applies and prints labels with new address’s at over 30,000 pieces/hour CIOSS PARS 12 Combined Input Output Subsystem (CIOSS) PARS 13 Combined Input Output Subsystem (CIOSS) PARS 14 High Speed Label Applicator PARS 15 Original Address Correction Service Address Correction Service is provided to mailers that want to know if their customers have moved Pieces that require notification were identified Pieces were manually copied onto card stock with the new address and sent to the mailer via manual mail handling operations The mailer pays $.70 for each card sent PARS 16 Postal Automated Redirection System Address Correction Service Form 3547 Fee due 70 cents ACME Publishing PO Box 15223 Somewhere NY 10013 John Doe 7 Miner Street Apt. 3 Anywhere MA 07890 7 Miner Street Apt. 3 Anywhere MA 07890 10 Main Street Smalltown CA 90210 PARS TO THE POSTMASTER OF ACME Publishing PO Box 15223 Somewhere NY 10013 Cards are automatically generated, sorted by city, and printed at the National Center 75 million cards printed in 2008 17 Centralized Address Change Printer Located at the National Center, Memphis TN PARS 18 Incentive Based Contract Business Case based on paying for a multiple of actual USPS savings TARGET CATEGORY Baseline Performance Improvement Performance at End of Program Savings per Piece Total Savings ($M) Payout Factor Payout ($M) Increase UAA Intercept 68.73% 1.87% 70.60% $0.0288 $1.35 1.75 $2.36 AFR INT Finalization Rate 65.00% 12.33% 77.33% $0.0355 $6.29 2.00 $12.59 AFR CIF Finalization Rate 38.86% 5.72% 44.58% $0.0355 $2.05 2.00 $4.10 AFR RTS Finalization Rate 59.21% 12.77% 71.98% $0.0355 $7.22 2.00 $14.44 Improve REC UAA Productivity 720 59 779 $0.0027 $4.53 1.75 $7.93 Improve REC COA Productivity 159 38 197 $0.0310 $1.26 2.25 $2.82 TOTAL PARS $22.70 $44.24 19 Lessons Learned Business Performance based incentive contract was low risk and a win win for both USPS and Siemens Implementation Acceptance and training of field operations personnel was key Testing Delays could have been avoided by gradual systematic testing Testing at various sized sites would have been beneficial PARS 20 Lessons Learned Customer Service A positive affect was the reduction of customer complaints – 60 % reduction in complaints on forwarded mail – Complaints on fraudulent address change cards reduced from 27,000 in 2004 to only 368 in 2008 Technical Good results from Siemens using a graphical decision tree representation to document over 3,000 forwarding rules Excellent error rate on change of address cards with two OCRs and keyers. Adding too many features into one release caused the delay of valuable software that reduced operating costs. PARS 21 Summary of Benefits Improved operational efficiency Change-of-Address Cards – reduce manual entry Interception – Eliminates extra handlings and reduces manual keying workload Address Correction Service – eliminates manual copying and sorting of mail Faster and more accurate service to customers Significant system performance improvements since 2004 Interception rate went from 50% to 69%. The average OCR finalization rate 37% to 60%. Over $400 million in annual cost savings PARS 22 Future PAR Plans Continue incentive based contracts to further improve interception AFR read rate , rejects and errors Planning PARS for Flats by retrofitting flat sorting machines and using the same PARS OCR and keying terminals Email any questions to [email protected] PARS 23 Questions PARS 24