Mail Processing Summary & Recommendations

5/27/2014

May 27, 2014

Governor’s Innovation Office Mail Processing Summary &

Recommendations

5/27/2014

Agenda

• Executive Summary • Mail Room Project Overview • Recommendations/Timing • Key Decisions & Success Actions

• Project Activities & Findings • Project Files & Deliverables • Top Recommendations & Highlights • Benefits • Appendix

5/27/2014

Executive Summary– Mail Operations Overview

$600,00 to $1 Million Postage on Machines

37 Vehicles

46 Postage Machines

237 Delivery Stops

129 mail Room Staff

30 mail rooms visited*

3 Centers Of Excellence

PHEAA DGS (Main) PennDot ROC

*No Data for PHEAA & DGS Main Provided/Included

5/27/2014

Current State - Overview

Project team visited (30) mail rooms within 4 miles of Capitol Mail room operations vary widely ~ COE to minimal activity

Observations of mail room activity include: Independent operation of each other Basic equipment complement is similar and based on capability not capacity Mail room performance directly proportional to supervision’s drive Primarily 1 shift operation and some have very low productivity Mail Couriers serve the same places at the same times Many PA Commonwealth vehicles are used by mail rooms No visible focus on different mail priorities Many cost saving/performance improvement opportunities

Governance/Leadership Courier activities, vehicle reduction, & reliable service Quantity of mail rooms Postage costs Returned Mail More….

~ COE = Center of Excellence

5/27/2014

Recommendation’s Time to Benefits (Rec # noted)

A. Short Term ~ within 30 days Rec #2 Assign Change manager Rec #3 Mandatory Use of CMPC

B. Short to Intermediate ~ 30 to 90 days

Rec #9 Optimize Package Shipping Rec #11 Establish SLA with USPS for

reliable mail delivery Rec #12 Reduce Presort mail rates ~ re-

negotiate or contract new vendor

Rec #13 Expand presorting to include flats

C. Intermediate ~ 90 days Rec #1 Establish Mail Operations Governance Rec #4 Consolidate mail Rooms Rec #5 Reduce Mail Operations Costs ~ vehicles,

staff, equipment, etc Rec #6 Broaden Presorting Program Rec #7 Expand 1st class and regular mail presorting Rec #8 Consolidate Courier Activities Rec #10 Reduce per machine Postage amount Rec #14 Reduce mail vehicle costs Rec #15 Operate Mail rooms 2 shifts Rec #16 Reduce Postage Machines Rec #17 Enable electronic and fast postage

replenishment Rec #18 Reduce Returned Mail Costs Rec #19 Employ fully featured production

control/scheduling system Rec #20 Reduce Interoffice mail Rec #21 Employ formal Business Recovery plan Rec #22 Allocate postage/mail room costs

accurately Rec #23 Purchase higher quality envelopes to

reduce rework Rec #24 Cross train mail room staff

5/27/2014

Executive Summary– Recommendations (24)

Implementation Timeframe* Qty Benefits Investment

Short ~ Delivers target benefit in 1 month (Max)

2 Change Leader Assigned & Mandatory CMPC use

Zero

Short to Intermediate ~ Delivers target benefit in 1 to 3 months

4 $1.1 M +$500 K Cash(one time) And Safety, Package shipping, & Postage

$100 K for package shipping

Intermediate ~ Delivers target benefit in 3 months

18 $4.4 M And Governance, Consolidation, Postage +

$50,000 for Change costs

$$ SAVINGS PERFORMANCE SAFETY/HEALTH

* Interdependencies not included in timeframe estimate.

5/27/2014

Executive Summary– High Level Implementation Plan

Assign a Commonwealth Mail Room Change Program Leader

Build & Start Program Communications Program

Implement Postage Reduction Program Plan & Execute Consolidation of Mail

Rooms Start with low Volume Mail rooms

Perform Capacity Analysis of Mail rooms Develop Sequence of Consolidation

Plan & Execute Courier Consolidation Capture All Courier routes

Determine priorities Build most effective routes

Build Mail Room Governance Policies & Procedures

Share “Best Practices” to all mail rooms

Issue Directive Mandating Use of CMPC Hold USPS responsible for Reliable Mail

Delivery

0 2 3 1 4 5 Months

4,5,10,14,15,16, 17,19,21,24

2

6,7,12,13

8

1

3

Recommendation #

5 “Other”

If Needed….

11

Dependencies noted in sequence below Major Initiative # 1

2

3

4 5 6 7

5/27/2014

Executive Summary - Key Decisions Needed ASAP

Select Recommendations to Move Forward Determine Content for each “Wave” of Projects Determine and Assign Resources Set Benefit Milestones and Build Master Schedule Communicate with All Impacted Parties

5/27/2014

Executive Summary – Keys to Success

Commence Work on Top 7 Initiatives Set Priorities for Recommendation Implementation

Set Accurate Detail Operational Baseline Define operations for all mail rooms in scope

Build Progress measurement Mechanism Set progress reporting frequency Build Master Implementation Plan Managed by

Mail Program Change Leader

Start the Change Process………

5/27/2014

TITLE Mail Room Innovation Project Details

5/27/2014

Project Team’s Investigations ~ (30) Mail rooms

• Categories Observed/Assessed • Mail room utilization • Mail room proximity • Operations productivity/performance • Mail Room operating parameters/priorities • Mail room vehicles used • Postage Costs/Allocation/Replenishment • Common ‘Practices’ and unique processes • Synergistic cost reduction opportunities • Business recovery plans • Returned Mail volumes • Courier activities • Equipment inventory • Process flow(s) • Performance Recommendation Compiled

5/27/2014

The Activity Level Varies Greatly

Visit week

SiteInteroffice

mailIncoming

Mail Sorting FilingPick-up

/Delivery Printing FoldingManual Inserting

Auto Inserting Tabbing

Sealing /Postage

Shipping mail

PKG Shipping

Envelope Printing Sort Criteria

DOR Gibson Site Very low Very low Very low Very low MedLow to Med High High High Med High High High None 17-Mar 3

L & I Boas Street Low to Med High High High Low to Med None High High High None High HighLow to Med None 24-Mar 3

POA (DOA)/MMB Low to Med High High High Med None None None None None High High Med None 31-Mar 3DPW on Forster Street High High High High Med None None None None None High High Med None 31-Mar 3

PDE on Market Street Med to high High High High Med None Low Low None None High High Med None 31-Mar 3PennDot (ROC) High High High High High None High None High None High High High None 31-Mar 3

DOR Strawberry Square Low to MedLow to Med

Low to Med

Low to Med Low None None None None None Med Med Med None 17-Mar 2

PBPP on Front street Low to MedMed to High

Low to Med

Low to Med Low to Med None Med None Med None Med

Med to high

Med to high None 17-Mar 2

DMVA Med High High High High None None None None None Med Med Med None 31-Mar 2

PLBC Low Med Med Med Low None None None None None Med MedMed to high None 25-Mar 2

DOS ( 2 sites - NON & Penn Cntr) LowLow to Med

Low to Med

Low to Med Low None Low None Low None Med Med Med None 31-Mar 2

PUC in Keystone building Low to Med Med Med Med Low to Med Very lowLow to Med None

Low to Med None Med Med Very low None 7-Apr-14 2

DEP 400 Market Street Low to MedLow to Med

Low to Med

Low to Med Low to Med None Low Low

Low to Med Low

Low to Med

Low to Med Low None 17-Mar 1.5

PSP Elmerton AveLow to Medium Med

Low to Med Low Low None None None None None

Low to Med Low

Low to Med None 17-Mar 1.5

OAS 555 Walnut St Low Low Low Low

Med to High (couriers) None None None None None Low Low Very low None 17-Mar 1

DOI Strawberry Square Low Low Low Low Low None Low None Low None Low Low Low None 17-Mar 1PennDot (400 North St) Low Low Low Low Low None None None None None Low Low Low None 17-Mar 1DCED On North Street Low Low Low Low Low None None None None None Low Low Low None 25-Mar 1

PSERS on N. 5th Street Very low Medium Medium Medium Low NoneLow to Med Very low Low None Low Low Very low None 25-Mar No data sh 1

PGC on Elmerton Ave Very low Low Low Low Low MedLow to Med

Low to Med

Low to Med None Low Low Low Very low 25-Mar 1

PFBC On Elmerton Ave Very low Very low Very low Very low Very low Very low Very low Very low Very low None Very low Very low Very low None 25-Mar 0PHMC in Museum [1st floor] Very low Very low Very low Very low Very low None None None None None Very low Very low Very low None 25-Mar 0PCCD on North Front Street Very low Very low Very low Very low Very low None None None None None Very low Very low Very low None 25-Mar 0PMRS ON 7th Street Very low Very low Very low Very low Very low None None None None None Very low Very low Very low None 31-Mar 0PEMA Very low Very low Very low Very low Low None None None None None Very low Very low Very low None 31-Mar 0Dept of Aging Very low Very low Very low Very low Very low None None None None None Very low Very low Very low None 7-Apr-14 0SERS on North 3rd street Very low Very low Very low Very low Very low None None None None None Very low Very low Very low None 25-Mar -1

Volume

5/27/2014

The (30) Mail Rooms Are Close ~ Within 4 Miles

Figures show in Miles

5/27/2014

Over 60% are within 0.5 miles of The Capitol Building

5/27/2014

Mail Room Efficiency Varies Greatly

• Productivity is high at certain times in day • When the mail arrives = all hands on deck to process incoming and

outgoing mail • Results in high activity level in early AM and long periods of nearly no

activity for the remainder of the day • Mail rooms appear to be staffed for this high activity and no consideration

that not all mail is high priority and can be processed after the high priority mail is done to linearize the workload for the entire day

• Some mail rooms run very efficiently & others do not • It appears that the mail room’s efficiency is directly related to the

caliber, expertise, and tenure of the key mail room leadership

• Large quantity of mail room staff are at or near retiring • 4 people shared they were retiring soon during study and many other

mail room staff are near or past retirement stage

5/27/2014

Mail Room Operating Parameters

Site

$$ in Postage on machine(s) Staff

# of Courier Routes

# of times/day route run

# of State vehicles

# of Hasler Postage

Machines

# of Pit Bowes Postage

Machines

# of Stops on Courier

RunsLow

PostageMed

PostageHigh

Postage Count

DGS $15,000 5 2 2 1 1 0 10 1 1DOR Gibson Site $68,500 13 1 1.5 4 6 0 5 2OAS 555 Walnut St $15,000 5 3 2 1 1 7 1 3DEP 400 Market Street $15,000 5 4 2 2 1 0 4 1 4DOR Strawberry Square $32,700 5 1 2 0 3 1 7 5DOI Strawberry Square $15,000 2 1 1 1 0 1 2 1 6PSP Elmerton Ave $15,000 4 1 2 1 1 1 20 1 7PBPP on Front street $15,000 4 1 2 1 0 1 1 8PennDot (400 North St) $15,000 5 1 1 2 1 0 18 1 9L & I Boas Street $55,000 18 1 2 2 0 5 22 2 3 10DCED On North Street $15,000 5 1 1 1 1 0 2 1 11PFBC On Elmerton Ave $15,000 2 1 1 2 0 1 1 1 12SERS on North 3rd street $30,000 3 1 2 1 0 2 5 2 13PSERS on N. 5th Street $15,000 4 2 2 1 1 0 11 1 14PHMC in Museum [1st floor] $15,000 0.75 1 1 1 1 0 2 1 15PGC on Elmerton Ave $15,000 2 1 1 1 0 1 18 1 16PCCD on North Front Street $15,000 3 1 1 1 1 0 3 1 17PLBC $15,000 2.5 1 1 1 1 0 4 1 18DMVA $20,000 5 1 1 1 0 2 25 1 1 19POA (DOA)/MMB $15,000 1 1 2 1 0 1 4 1 20DPW on Forster Street $15,000 6 2 1 2 0 1 15 1 21PDE on Market Street $30,000 2 2 3 1 0 2 5 2 22PMRS ON 7th Street $15,000 1.5 1 1 2 1 0 11 1 23DOS ( 2 sites - NON & Penn Cntr) $20,000 5 1 2 1 1 1 4 1 1 24PennDot (ROC) $50,000 14 1 1 2 0 2 7 2 25PEMA $15,000 2 1 1 1 0 1 10 1 26PUC in Keystone building $15,000 2 1 1 1 1 0 8 1 27Dept of Aging $15,000 3 1 1 1 0 1 4 1 28

$606,200 129.75 37 41.5 37 22 24 234 25

Volume

5/27/2014

Courier Activities ~ Repeat the Same Stops

• Nearly all mail rooms have designated courier routes • Many routes are performed 2X/day

• Some routes are formal and efficiently planned and performed and others are more informal in nature

• Parking is a problem in some routes and drivers have received tickets thus they are unwilling to deliver/pick up mail to some sites

• Many times couriers wait together at the same sites ~ Capitol Building, USPS, CMPC, bank, etc.

• Many courier routes have the same stops • The volume of mail picked up/dropped off is low many times • Not all mail is high priority and thus can be delivered/picked up later in

the day

5/27/2014

DOH/DPW Mail Room Process Flow ~ Sample

Remaining Process Flows in Appendix D

5/27/2014

Top 10 Recommendations* Based on Benefit Value

1. Develop, Document, and Implement Mail room Governance

2. Assign a Dedicated Change Manager

3. Screen ALL Mail at CMPC

4. Rationalize and Consolidate Mail Rooms

5. Reduce Mail Operations Costs ~ vehicles, staff, equipment, etc

6. Expand Presort Program

7. Increase 1st class and regular mail presorting volume

8. Rationalize and Consolidate Courier Routes/Activities

9. Implement Least Cost Shipping Software

10. Reduce Postage Stored on Postage Machines

* Spreadsheet containing all 24 Recommendations is in Appendix E

5/27/2014

Select Recommendation Details ~ Governance

Observation: Different mail rooms operate differently. Some use UPS for packages, some use USPS, and some use others. Some pick up their mail at USPS and other have it all scanned at CMPC and others have some or no mail scanned at CMPC. Problem Statement: There is no consistency in the policies and procedures followed by the mail rooms. Use of different service providers, mail management policies, & mail processing procedures ranges greatly Recommendation: There are major gains in consistency in following effective and quality processes in the mail rooms. Strong governance is needed to 'clean up' bad processes, insure safety, and assure consistency and performance of work in the proper manner Benefits: Major elimination of inconsistent/poor mail processing, management, and delivery as well as consistent performance of mail room work. Ability to Leverage economies of scale. Time Required: Up to 3 months to develop, confirm, and implement Governance program.

Recommendation #1

5/27/2014

Select Recommendations Details ~ Assign Change Manager

Observation: There is no recognized leader currently driving change in the mail rooms. Due to the large scale upcoming changes, the lack of a designated change leader will slow progress and dilute results. operation Problem Statement: The amount of change required to accomplish the defined performance recommendations mandates a strong leader to drive the change.

Recommendation: Assign a dedicated change leader to the Mail Operation Improvement program Benefits: A single point of accountability and responsibility will greatly benefit the success and achievement of the target benefits. Additionally, the progress reporting will be performed by this leader so activity, progress, and reporting will be unified. Time Required: This can be 100% accomplished within 30 Days

Recommendation #2

5/27/2014

Select Recommendations Details ~ Consolidate Mail Rooms

Observation: The majority of mail rooms visited appear largely under utilized, over staffed, and have large excesses of equipment capacity on a single shift basis. Additionally, over 60% of the mail rooms visited are with .4 miles of the Capitol. Most mail rooms perform standard mail activities Problem Statement: The mail rooms visited are staffed and equipped for mail processing capability and not capacity. This results in excess costs nearly everywhere.

Recommendation: Rationalize and Consolidate Mail rooms so that equipment, staff, couriers, vehicles, and all other costs are commensurate with the required level of mail activity Benefits This provides several beneficial areas including vehicle costs reduction, staff costs reduction, postage on machines reduction, Commonwealth facility floor space reduction, 'Best Practices‘ performance gains, multi-shift operation, and other benefits Time Required: Can be 100% completed within 90 days

Recommendation #4

5/27/2014

Select Recommendations Details ~ Courier Consolidation

Observation: Nearly every mail room has courier routes that frequently cross or service the same building(s). At times, the couriers follow each other, wait in the same line, pass each other at stops, and even wait for each other to vacate parking spots. Problem Statement: There is no centralized mail delivery mechanism so each mail room creates and manages their own mail delivery network with no regard or integration to all other mail rooms and associated Courier schedules, routes, stops or economic leveraging of courier activities. Recommendation: Consolidate all mail delivery and courier routes and centralize all mail delivery activities. Benefits: Large reduction in courier charges including delivery expenses, staff, vehicle costs, parking, and increased performance to set delivery/pick up target times. Time Required: Can be 100% completed within 90 days

Recommendation #8

5/27/2014

Select Recommendations Details ~ Expand Presorting

Observation: Some mail rooms use presort and others do not. There is a large volume of outgoing mail that is not leveraging Presort cost advantages Problem Statement: The Commonwealth is not fully leveraging Presort mail cost advantages. There are large opportunities to expand current letter presorting, adding presorting to regular mail, plus package presorting.

Recommendation: Expand Presort cost advantages in volume and type of outgoing mail extensively. The Commonwealth is not fully leveraging Presort mail cost advantages as well as the lowest presort cost available Benefits: Major cost reduction across commonwealth. Postage savings annually could easily reach over 2 million dollars annually Time Required: Can be 100% completed within 90 days

Recommendation #6

5/27/2014

Returned Mail Summary = More Data and Analysis Needed

Location Qty/ Year Fix

Addresses Use Databases

PA Fish & Boat Commission ~45 Very few In house DB

DOR –Strawberry 225,000 Majority NCOA & E-Tides &

Pitney Bowes Presort DB

DPW 530,000 No Only to confirm “good” address

6 Surveys are pending return

5/27/2014

Executive Summary - Annual Benefit Opportunity ~ Estimate

Benefit Description Benefit Amount

Reduced postage

- 1st Class (currently not presorted) $600,000 to $1.4 M

- Flats (presorting) $350,000 to $500,000

- Lower rate for presorting $100,000 to $175,000

- Packages and overnights $600,000 to 1.5 M

Reduced vehicle costs $80,000 to $150,000

Reduced mail room staff $1.7 M to $3.0 M

Reduced postage machines $100,000 to $300,000

Reduced ‘Returned Mail” ????? (May add $500 K to $1 M)

Reduced postage on machines $500,000 (Freed Cash Asset)

Total Savings Opportunity $ 3.5 M to $ 7 M (Plus $500,000 cash)

5/27/2014

May 27, 2014

Governor’s Innovation Office Mail Processing Summary

APPENDIX

APPENDIX A – MAILROOM OPERATIONS REPORT

A written report to encompass the review and analysis of all phases of Commonwealth mail operations based on learnings from Greater Harrisburg area mail locations. This shall include: incoming mail, outgoing mail, interoffice mail, courier services, and postage management.

Deliverable: A written report to encompass the review and analysis of all phases of Commonwealth mail operations based on learnings from Greater Harrisburg area mail locations. This shall include: incoming mail, outgoing mail, interoffice mail, courier services, and postage management.

There are several individual and specific mail room activities performed in all Commonwealth Mail rooms. The universally shared activities are:

Incoming regular mail management ~ includes picking up, receiving, slitting, opening, check imaging, funds receipt/deposit, sorting, filing, bundling, signing for incoming certified and next day mail, and package alerts, alert recipient of certified and next day mail receipt,

Interoffice mail management ~ includes picking up, receiving, sorting, filing, bundling, boxing/place in shipping envelope, delivering, and shipping to the recipient

Courier services ~ includes picking up mail, delivering mail, performing special runs for a specific purpose, and transporting people on an as needed/upon demand basis

Outgoing mail ~ includes printing, folding, inserting, sealing, weighing, affixing postage, packing, boxing, affixing package postage, staging, transporting, documenting activity, shipping, delivering, boxing/place in shipping envelope, schedule package pick ups, translate hand written labels into electronic labels, select shipping method, separate presort items, pack/seal boxes, maintain ‘chain of custody’ requirements,

Postage management ~ includes maintain 1st class/regular mail/certified/next day USPS postage on all machines, shipping postage management – either UPS or USPS, maintaining packing supplies as needed, maintaining envelopes & boxes as needed, documenting all activity, reporting on all shipping as required, compiling shipping costs, replenishing postage on postage machines, deploy alternate activity if postage machine breaks down, schedules maintenance on all postage machines,

Each of the above primary areas of PA Commonwealth mail room operations will be addressed individually below. Each will have a basic description, followed by a general assessment statement of what was observed in the project visitations, and then commentary on improvement opportunities.

Incoming regular mail management

As was observed during the (30) mail room site visits, there is a large spectrum of incoming mail management activities performed in the PA Commonwealth mail rooms. From the simplest ~ 10 to 20 total pieces of incoming mail serving less than 15 customers to 40,000 + pieces of mail serving 70+ sites (local and remote). With few exceptions, the activity level for incoming mail was very low. That is to say that the volume of mail was easily handled with los sophistication – save the PennDot ROC site whereby


the EAGLE opened, sorted, scanned checks, deposited funds, and then regrouped the applications and checks in a fully automatic manner.

Incoming mail either begins at the CMPC (Recommended) or at the USPS center. Mail is either delivered by CMPC after scanning or picked up by most mail rooms. This mail is delivered/picked up in total – all regular, 1st class, certified, next day, and packages – at one time or several times during the day depending on the mail room. Upon arrival into the mail room, the mail is sorted into categories:

Regular envelopes and flats Certified Packages Interoffice

As the lower volume mailrooms receive low volumes of the above, they usually skip the initial sorting go directly to the primary sorting of all mail (except packages) into their target destination mail slot/dedicated cubby hole. Usually, the mail is either spread out on an incoming mail table or if low volume, the mail container is taken directly to the bank of recipient’s filing boxes and sorted and filed into the recipient’s box. The packages are taken to another location in the mail room and a marker is placed in the recipient’s mail box to indicate a package has been received. For check management, it is performed manually for smaller volume mail rooms and automatically for the largest (EAGLE). Also for certified and next day packages having high priority, this type of mail may be hand delivered or at least the mail room staff contacts the recipient to alert them the priority mail has been received.

In the high volume incoming mail rooms, the mail is automatically slit open or the envelopes are segmented and processed automatically (EAGLE) or the best manner possible to assure accuracy.

Following the above, the mail is [any and multiple of the routes described below]:

1. Taken from the mail boxes to a mail cart and delivered within the same building 2. Taken from the mail boxes, packed in mail bins, and transported to other PA Commonwealth

buildings 3. Taken from the mail boxes, packed in mail bins, and shipped to other PA Commonwealth

buildings 4. Mail staff waits for sufficient mail to occur, then take the mail from the mail boxes, pack for

shipping (depending on size & volume), and transport/ship to other PA Commonwealth recipients

5. Mail staff is done with daily incoming mail and the building recipients or remote sites send someone to collect and drop of their daily mail. Pick up is from the dedicated mail boxes and dropped off mail is put into a dedicated location for sorting and processing.

6. If a next day or certified mail item is picked up most mail rooms mandate a signature of the person picking up the mail. This is informal in some of the small mail rooms.

7. Also at times, primarily due to experienced staff departures, the above information and inconsistent processes break down and (5) bins of certified/next day/priority mail was pushed


off to the side of primary mail receiving and apparently forgotten for three weeks. The new mail room manager and this project team noticed these bins and requested immediate attention.

Commentary

Incoming mail processing activities are accurate, mature, structured and performed consistently within the higher volume mailrooms. That is to clarify – these mail rooms perform consistently within themselves on a day to day basis. They do not perform consistently with the other mail rooms as there does not appear to be any universal governance of all policies and procedures present. The productivity appears directly related to the experience and expertise of the key mail room staff and not to set Commonwealth policies and procedures. It get worse in the smaller mail rooms as more informal mail processing occurs which further imparts inconsistencies in incoming mail processing. The smaller mail rooms appear to have adapted to this environment and followed practices that get the job done, albeit, in many cases not in the most cost effective or customer service focused manner.

Additionally, the volume for the lowest 30 to 50% of the mail rooms visited is so low that the full time staff usually needs additional duties to keep gainfully employed. In many case, the mail room staff have many other responsibilities. In general, the activity level is high only for an hour or 2 in the early morning and then drops off to near zero as the day goes on. This observation is for all mail room activity. Most mail room staff perform the pick up and delivery of mail. Some of this utilizes additional mail room staff and some mail rooms close while the mail is being picked up/delivered.

It is clear there are performance improvement opportunities in optimizing the effort to pick up, deliver, sort, file, and process incoming mail. Benefits include:

Released building floor space Released mail room staff for other work Courier released assets (to be addressed in the Courier section) Improved service to the mail customer through adherence to ‘Best Practices’ of mail

management universally followed by PA Commonwealth All mail is not of equal priority and needs to be processed according to priority. Checks, legal

documents, and other important mail need to have the highest priority in delivery, processing, and acting upon. Currently all mail is process as in equal priority as seen that all mail rooms operate on a 1 shift basis with high activity in the early hours and low or no activity in the later part of the day.

Interoffice mail management

Interoffice mail comes from all internal sites and employees of the Commonwealth. It can come from a person internal to the building the mail room is located or come from a far away Commonwealth site via


UPS or USPS. It is handled similar to regular mail and after receipt, it is sorted, filed, delivered or picked up, and given a standard priority in most cases (unless otherwise noted).

It is most times picked up by the internal recipient in the normal course of the day when they are dropping off or picking up their daily mail. It is also picked up or dropped off when the outgoing mail is dropped off at the mail room for processing.

From remote sites, interoffice mail is packaged and shipped to the primary mail room and then is distributed appropriately to the target recipient. Unlike regular, 1st class, certified, or next day mail, interoffice is given a ‘soft’ SLA of between 2-4 days if internal building and 3-8 days for external/remote sites. Interoffice mail is one of the primary types of mail that is bundled and shipped weekly to many remote sites.

It is observed that substantial volume of interoffice mail is processed by the mail rooms visited. In this age of email and docu-sign technology, the project team identified that the volume of interoffice mail appears higher than expected.

Commentary

During the course of this mail room activity analysis, the volume of interoffice mail was identified as an area that required further investigation. The volume of documents that are sent interoffice mail did not appear to be realistic as there are many channels of communication that are better, faster, provide confirmed receipt, and offer digital signature capabilities.

It is recommended that a brief volume analysis be performed that will document a sample of inter office mail from several mail rooms to better capture exactly what is being sent via interoffice mail. The results of this analysis will be new directives on what should be sent in what channel to best serve the Commonwealth and be the most effective manner of document sharing at the least cost.

Courier services

Couriers provide multiple services to the PA Commonwealth. They deliver, pick up, and transport mail, packages, and people. They are the on demand default transport, pick up, and delivery mechanism utilized by the mail rooms visited. In some mail rooms, the Courier routes were very sophisticated in their paths and mode of transport ~ driving versus walking. In other mail rooms, the courier services were more ad hoc in nature and have many potential stops each day although only the few that were needed were done. In some mail rooms, the courier routes were fixed and performed at a precise time each day and at other mail rooms, the courier runs were done when the mail arrived or when time permitted. The routes varied in complexity as the more sophisticated routes had a huge amount of thought and planning put into the design and timing of the Courier routes while in other mail rooms, the courier route was just a few stops in the easiest (no back tracking) sequence for the driver.

Al though not observed by the project team, it was shared that many couriers go to the same places at the same time and deliver to the same or nearby recipients. Also it was shared that many couriers stand in line at the CMPC and the USPS with each other sometimes with 5 or more PA Commonwealth


couriers all in the same line. It was even shared that 2 couriers actually hit each other in a car accident while both trying to go to the same location.

A new wrinkle that was shared with the project team is the new Harrisburg crackdown on parking violators. Some couriers shared that they had received a parking ticket for parking in a nearby location to their delivery site. The ticket was shared to be $50 and the courier was responsible to pay it with their own funds. The result was that the courier would drive around until a parking spot opened up or actually not deliver the mail that time and deliver it at the next available time. This results in poor service to the customer as in their mail was late or not even delivered that day. It was also shared that USPS is having similar problems and delaying the delivery of the mail to the mail rooms and CMPC.

In view of the routes provided by the mail rooms – few formal consistent Courier routes and most informal ‘go as needed’ – it appears that Courier routes share the majority of common sites and also pass by sites not serviced by each mail room but serviced by DGS whom nearly all mail rooms deliver and pick up their mail to. In summary, it appears that there is a high volume of Courier activity that is redundant and the level of sophistication varies broadly.

Commentary

Streamlining Courier activities holds high value to the Commonwealth. By scientifically analyzing all currently performed routes and times, prioritizing by the importance of the mail delivered/picked up, and then optimizing/consolidating the Courier runs, it is expected that the associated costs to the Commonwealth for vehicles, staff, insurance, gasoline, vehicle maintenance, and several other costs will dramatically be reduced.

A courier consolidation program is recommended to streamline all Courier activities, improve reliable mail delivery, and reduce costs to the PA Commonwealth.

Outgoing mail

Outgoing mail can be any item that is needed to go to another recipient. It can be a letter, document, item, mass mailing, certified letter, flat, box, next day delivery, presort envelopes, 1st class mail, regular mail, bundled mail for another mail room, boxed magazines, interoffice mail, advertising materials, and nearly any item that one person in the PA Commonwealth wants to send.

The receipt of items coming into each mail room vary widely in their mode. For packages, the scope of receipt and subsequent mail room activities varies from receipt of an item to be shipped all the way to a sealed box with an electronic label affixed to it. For receipt of an item to be shipped, the mail room provides packing services, shipping mode selection, boxing, sealing, printing the label, stacking with the outgoing packages, and in some cases, calling the shipping company to come and get the package. In the more sophisticated mail rooms, simply recording and proofing the shipping label is performed as USP and USPS pick up daily – sometimes multiple times/day.

Similar to packages, flats come in simply the document to be mailed all the way up to a flat received in sealed and electronic address affixed form. The mail room staff will insert the document into the


appropriate sized flat envelope, seal it, affix an electronic label, weigh it, affix the correct postage, and then deliver or schedule a pick up with UPS. In other cases, the mail room will just affix postage and place the item in the USP or USPS pick up location.

The volume of flats and packages varies greatly due to the nature of the mail room’s support for each PA Commonwealth function. The Dept of Revenue mail room on Gibson has very low volume incoming mail and huge volume of outgoing envelopes, flats and boxes. The 2nd DOR site on Walnut Street has a large incoming mail volume as well as a large outgoing mail volume. The majority of the remaining mail rooms have fairly low incoming and outgoing mail volume. Only 25% of the mail rooms have what high volume and over 50% of the mail rooms have Low or Very Low mail volume processed daily.

A couple mail rooms contain sophisticated outgoing mail processing equipment and process mail at high speed. These machines can fold, insert, seal, weight, affix postage (presort included), and also use various forms of document feeds including fan fold paper. The high volume mail rooms – DOR Gibson, L & I, PenDot Roc, and a few others appear very well scheduled and staffed. There was a high degree of activity observed and all were working productively. In the lower volume mail rooms, the activity level observed was much lower and in a few mail rooms, no productive work was observed for nearly a full hour. This is the result of the intensive morning – all mail is equal in priority mode – that translates into mail room staff working all out in the early hours of the day that completes nearly all mail processing so there is little to do in the 2nd half of the day. The high volume mail rooms do better production scheduling and thus linearize their work load so as to keep a consistent level of activity throughout the day.

The project team observed many small mail rooms in close proximity to each out as over 60% of the mail rooms visited were within .4 miles of the Capitol. For most sites, the project team walked from the finance building to the mail room.

The mail rooms appear to be staffed and equipped from a capability standpoint. All of the basic mail room capabilities are present in all mail rooms visited. They possess:

A mail sorting table Mail boxes for all recipients including within the building, nearby, and remote Mail and shipping supplies ~ envelopes, flat envelopes, certified, next day, packing materials,

boxes, UPS system, scale, seal/weigh/affix postage machine (both Hasler and Pitney Bowes), and sometime additional equipment ~ tabbing, envelop printer, simple printing, binding, hole puncher and other assorted equipment.

Located near the shipping receiving area Lift trucks or dollies to move mail in/out of the mail room

The majority of the capabilities listed above support outgoing mail processing. The utilization of the above standard capabilities is observed to be very low in most cases and even low to medium in the high volume mail rooms as they only operate on a single shift/day. In summary the outgoing mail processing activities are very capable but operate as a fraction of their capacity.


Commentary

The mail rooms visited consistently contain very capable outgoing mail processing equipment and that is the primary focus of work performed in most mail rooms. The outgoing mail processing work is usually straightforward and the equipment and mail room staff perform it effectively. The volume of outgoing mail is low to very low in over 50% of the mail rooms visited and all mail rooms only operate on a single shift thus making even the highest volume/highest activity mail rooms only operating at 30% capacity.

It is recommended to perform a mail room consolidation program which will result in the following benefits to PA commonwealth:

Reduction in outgoing mail processing equipment, associated costs, lease fees, maintenance agreements, and all other Hasler and Pitney Bowes associated costs

Reduction in mail room floor space as the outgoing mail activities typically occupy the majority of the mail room floor space

Reallocation of current mail room staff to more beneficial roles with the Commonwealth Reduction in the redundant outgoing mail room supplies Reduction in shipping costs in excess of the actual shipping costs due to special pick ups, non

electronic labels, and mother items (consolidation and adherence to PA Commonwealth ‘best practices’ in fewer more controlled outgoing mail processing mail rooms)

Reduction in Courier route stops Reduction in mail room capital equipment by operating the consolidated mail rooms on more

than 1 shift to better leverage fewer pieces of capital equipment and provide better customer service and support for mail processing

Postage Management

The postage management observed again varied greatly. In the high volume mail rooms, postage management was a science with careful monitoring of all postage equipment on a daily and sometime hourly basis. In the smaller mail rooms, much less care was given to postage management unless postage on the machine ran out. We heard horror stories of postage running out and the mail room staff having to go to the USPS and buy stamps to get important mail out. We also heard of the 4-8 week process to replenish postage on a machine in one mail room which was further lengthened when a check sent to Pitney Bowes was apparently lost so urgency was initiated to re cut a check and then the initial check surfaced. There does not appear to be a universal practice nor policy to replenish the postage on the mail rooms visited. Some say a couple approvals and other say many approvals, and the best mail room – DOR Gibson – has all approvals done once and then electronically replenishes postage on an upon demand basis which takes approximately 5 minutes. The majority of mail rooms visited replied that it takes about 4-7 weeks from replenishment postage request to physical postage replenishment on the machines. This inflates the amount of “safety” postage needed to cover this long replenishment time. This costs PA Commonwealth excess funds as 5 minute replenishment is quick, easy, and just requires proper configuration of the postage equipment.


In some of the lower volume mail rooms, when postage was raised as a topic for investigation, some replied that they had several months of postage put on their equipment. Another mail room replied that they had several years of postage as they did not know how to transfer the postage to another machine or use it in another manner. Still another mail room relied that they put a lot of the unused postage on their machine at the end of the fiscal year since they operate under a “use it or lose it” budgetary framework. There are several mail rooms operating way outside the norm on both sides as to contrast the huge excesses of postage on machines, several mail rooms shared they frequently run out of postage. It appears that PA Commonwealth mail rooms have a wide variance in postage replenishment situations. It appears that there is no clearly understood and universal policy or procedure for replenishing postage.

Commentary

It appears there is no common practice or procedure for replenishing postage on the PA Commonwealth outgoing mail machines. All mail rooms had at least 1 Hasler or Pitney Bowes postage machine and each operated under their own postage replenishment process.

The amount of postage used varies greatly from the high volume of outgoing mail to very low outgoing mail volumes. Thus postage should not be gated to an absolute dollar amount but rather a period of use ~ say one month target with postage replenishment triggered when the amount of remaining postage gets below ½ month calculated residual.

It is clear that most of the mail rooms do not know how to electronically replenish postage. Several mail rooms actually run out as they do not plan for peaks – or peaks come unplanned – of postage usage. A universal policy and procedure is needed to manage postage to keep PA Commonwealth overall costs as low as possible as well as provide adequate postage (never run out).

Additionally, it is recommended that all mail rooms learn how to electronically replenish postage (~ 5 minutes). A universal policy/directive is needed to drive this cost savings.

APPENDIX B – TECHNOLOGY REVIEW

A written report to encompass the review and analysis of the current use of mail operations technology, postage and other mail management decision-making tools, and the current use of best practices in areas such as pre-sorting, address cleansing, certified mail use, and postage by phone reserve. This report will be based on visits and data gathering from Greater Harrisburg area mail operations of the Commonwealth. In our observations, most mailrooms are not using technology to their benefit. We have seen a few mailrooms that are doing a great job utilizing up to date mail room technology. The machinery is widespread, and usually always includes a meter machine at each location. Depending on the operational tasks of the mailroom, we have seen printers, inserters, folders and even machines that are capable of cashing checks electronically. The centers of excellence that we visited have a great streamline process that works fantastic. We have noticed that there are no set policies and procedures, as the smaller mailrooms tend to lean on one or two employees that have a lot of knowledge built up over the years of experience at that particular facility. Most of the smaller mail rooms do things a certain way, because that is the way it has been done in the past. Another observation is that outgoing package costs are not being compared to other available carriers. We have seen a lot of packages being shipped out via UPS only; because that is the vendor the Commonwealth has a contract with. Most mailrooms we have seen are not aware they are allowed to compare shipping prices. We have also seen many mailrooms not taking advantage of presorting mail. Over time, these postage savings by presorting can add up quickly. Also, meter machines should be replenished with postage electronically. This can take up to five minutes to complete. We have seen mailrooms mailing physical postage checks, and not getting postage replenished for up to eight weeks. Commentary

To make more economical decisions, certain tools need to be introduced to those mailrooms. This includes a shipping tool to identify which carrier has the lowest rate based on the specifications of the package. There are many factors that play a role in the cost of shipping a package. These variables can include: distance traveled, expected date and time of arrival, air or land travel, and delivery sign offs. The three main options are FedEx, UPS, and USPS. This comparative tool will help the Commonwealth save money on outgoing shipments. . Some other mail management decision making tools should include postage rates for all outgoing mail. This should be done across all Commonwealth mailrooms as a best practice tactic. Even though there is currently a presort contract in place with the Commonwealth, a lot of mailrooms are unaware of this valuable option. Presorting every piece of mail would save the Commonwealth a lot of money annually. Understandably, smaller operations have no need for an expensive machine, if the volume of mail is not available. It is a good idea to set some sort of common practices in all mailrooms across the Commonwealth. There should be a threshold volume for outgoing mail, if certain mailrooms are over that threshold, an option should be explored to outsource that mail to a center of excellence. If the mail volume is under the threshold, consolidation of mailrooms should be explored further. To have more efficient operations, there is a need for policies and procedures manual across all mailrooms. Included in those policies would be machinery instructions based on efficiency, rules and regulations as it related to incoming or outgoing mail or packages, inner office mail, and postage replenishment regulations.

TagSite address Equipment Class Description Model/Unit Serial Number/License #

711 Gibson Blvd Vehicles International 065-03-2597 PA 87564711 Gibson Blvd Vehicles Hino 085-02-0007 PA 0215A711 Gibson Blvd Vehicles 2001 Ford Pick Up [F250] 057-01-4445 PA 85103711 Gibson Blvd Vehicles 2013 Dodge Van 006-06-5868 PA 34795711 Gibson Blvd Equipment Inserter BH-3500 70000681/With PC711 Gibson Blvd Equipment Enduro Inserter 953575/With PC711 Gibson Blvd Equipment Mailstar Inserter 545-8191/With PC711 Gibson Blvd Equipment Enduro Inserter 953573/With PC711 Gibson Blvd Mail Inserter Meter WJPRO Meter 0000J930006711 Gibson Blvd Mail Inserter Meter WJPRO Meter 0000JT8B0082711 Gibson Blvd Mail Inserter Meter WJ250 4001J4660145711 Gibson Blvd Mail Inserter Meter WJPRO Meter 0000JT870032711 Gibson Blvd Mail Postage Meter Hasler WJ250 4001J4660148711 Gibson Blvd Mail Postage Meter Hasler WJ250 4001J4660149

711 Gibson Blvd InjetBuskro Inkjet printer with Conveyor 632.2BK460

711 Gibson Blvd Injet In Line Tabbing System 632.2BK530711 Gibson Blvd Injet Feeder Stand BK-BK120FS 003291J1200711 Gibson Blvd Injet Quick Dry 20 Unit Assembly 10144299

711 Gibson Blvd InjetIAMSCO High Speed Transport Table W/Vaccuum Pump 10146199

711 Gibson Blvd Folders IKON Baum Folder 99063555 Walnut Street OAS mailroom Vehicles 2003 Chevrolet Venture PA 25015555 Walnut Street OAS mailroom Vehicles 2005 Dodge Caravan PA 26923555 Walnut Street OAS mailroom Sealer/postage machine Hasler IM 5000 LeasedDEP 400 Market street FolderDEP 400 Market street InserterDEP 400 Market street TabbingDEP 400 Market street Sealing/Postage HaslerDEP 400 Market street Postage Meter Hasler #P3344DEP 400 Market street Inserter Hasler #P3343DEP 400 Market street Hasler HJ960 #3342327 Walnut Street DOR Seal/Postage Hasler WJ250 4660141 212346-1327 Walnut Street DOR Seal/Postage Hasler WJ251 4660142 212370-1327 Walnut Street DOR Seal/Postage Hasler WJDWPGC 0049JD6A0035 212349-1327 Walnut Street DOR Tape roll dispenser Hasler WJR30 60A06450062 212351-1327 Walnut Street DOR Conveyer Stacker Hasler WJSTKR 9900ETA0054 212353-1327 Walnut Street DOR ComboWJ185/220/250 Hasler WJDWPGC 0049JD6A0033 212375-1327 Walnut Street DOR Letter Opener Neopost 5070 0991003020 212753-1

APPENDIX C - EQUIPMENT INVENTORY

Pennsylvania Mail Operations Equipment Inventory. Inventory of all vehicles, mail processing, and postage equipment.




327 Walnut Street DOR Letter opener Opex 202C 21121121326 Strawberry Square DOI Postage machine Pitney Bowes DM 1000 01073191326 Strawberry Square DOI Inerter\folder/stuffer Hasler P26671326 Strawberry Square DOI Envelope opening machine Pitney Bowes 1225 375711326 Strawberry Square DOI Vehicles 2013 Dodge Van Caravan PA 34295651 Boas Street Insertion - Letter Bell & Howell - Inserter BH-4000-C06 70000716651 Boas Street Insertion - Letter Bell & Howell - Inserter BH-4000-C06 70000717651 Boas Street Insertion - Letter Bell & Howell - Inserter ENDURO 90000694651 Boas Street Insertion - Letter Bell & Howell - Inserter ENDURO 90000695651 Boas Street Insertion - Letter Bell & Howell - Inserter ENDURO 952822651 Boas Street Insertion - Flat Pitney Bowes DI-950 2200684651 Boas Street Insertion - Flat Pitney Bowes DI-950 2200735651 Boas Street Postage meter/machine Pitney Bowes 1ROT 3005721651 Boas Street Postage meter/machine Pitney Bowes 1ROT 3005722651 Boas Street Postage meter/machine Pitney Bowes 1ROT 3005724651 Boas Street Postage meter/machine Pitney Bowes 1ROT 3005728651 Boas Street Postage meter/machine Pitney Bowes 1ROT 3005736651 Boas Street Postage meter/machine Pitney Bowes 1ROT 3005738651 Boas Street Postage meter/machine Pitney Bowes 1M05 4208107651 Boas Street Postage meter/machine Pitney Bowes 1M00 4222531651 Boas Street Postage meter/machine Pitney Bowes 1M00 4246255651 Boas Street Postage meter/machine Pitney Bowes 1A00 4630741651 Boas Street Postage meter/machine Pitney Bowes 1M00 4633719651 Boas Street Meter Base (Infinity) Pitney Bowes R750 1064601651 Boas Street Meter Base (Infinity) Pitney Bowes R750 1065201651 Boas Street Meter Base (Infinity) Pitney Bowes R750 1065211651 Boas Street Meter Base (Infinity) Pitney Bowes R750 1065231651 Boas Street Meter Base (Infinity) Pitney Bowes R750 1065241651 Boas Street Meter Base (Infinity) Pitney Bowes R750 1065251651 Boas Street Mail Processing Machine Pitney Bowes DM1000 4692651 Boas Street Mail Processing Machine Pitney Bowes DM1100 5114651 Boas Street Mail Processing Machine Pitney Bowes DM1100 5116651 Boas Street Mail Processing Machine Pitney Bowes DM1100 5120651 Boas Street Mail Processing Machine Pitney Bowes DM1100 5123651 Boas Street Letter envelope opener Priority Systems - Omation 206 Envelopener P2892651 Boas Street Vehicle (fleet pool) Van 34197PA 006-05-5825651 Boas Street Vehicle (fleet pool) Van 34828PA 006-05-5896400 North Street PennDot Vehicle (fleet pool) 2002 FORD Windstar Van 2FTZA54432BB19631 EXACT SAME vin???????400 North Street PennDot Vehicle (fleet pool) 2002 FORD Windstar Van 2FTZA54432BB19631 EXACT SAME vin???????400 North Street PennDot Mail Meter Hasler WJ250 016HO1269525481400 North Street PennDot UPS World SHIP Modem, Monitor Label Printer ????? PA Commonwealth Property????




401 North Street DCED Mail Processing Machine Pitney Bowes 3196879402 North Street DCED Vehicle (fleet pool) Dodge Van PA 31527PFBC Elmerton Ave Inserter/Sealer Bell & Howell - Inserter Phillipsburg 28-6886PFBC Elmerton Ave Folder/Sealer RR Donnelly Lasermate LM-7 LBJ-8349PFBC Elmerton Ave Folder Baum Ultrafold XLTPFBC Elmerton Ave Mail Processing Machine Pitney Bowes DM1100PFBC Elmerton Ave Folder/stuffer/sealer Hasler M6000PFBC Elmerton Ave Envelope OpenerPFBC Elmerton Ave Vehicle (fleet pool) Ford F-150 Pick up 1FTPX14565NA81425PSERS on North Street Vehicle (fleet pool) Dodge Grand Caravan 2C4RDGBGXDR765758PSERS on North Street Letter opener Omation 206 2802PSERS on North Street Date Stampers Rapidprint AD-E 537266PSERS on North Street Date Stampers Rapidprint AD-E 519429PSERS on North Street Date Stampers Rapidprint AD-E 420869PSERS on North Street Date Stampers Rapidprint AD-E 484590PSERS on North Street Date Stampers Rapidprint AD-E 500002PSERS on North Street Seal/Postage Hasler & G2 Software IM6000 MA1041000203PSERS on North Street Table top Folder/inserter Neopost DS70 08DW6310PSERS on North Street Tracking System SC Logic GK420d 28J123002910PSERS on North Street Wireless Scanner Symbol STB3418 M1L04W31YPSERS on North Street Laser Printer Ricoh 8150DN USBLM08865PHMC Ground Floor of Museum Vehicle (fleet pool) 2013 Chevy SonicPHMC Ground Floor of Museum Seal/Postage Hasler IM46PGC on Elmerton Vehicle (fleet pool) 2007 Dodge CaravanPGC on Elmerton Sealer/postage machine Pitney Bowes Connect 2000 0006088PGC on Elmerton Inserter Bell & Howell - Inserter 106011APGC on Elmerton Envelope Printer Priority Systems P3458PGC on Elmerton Folder Bell & Howell AF1-00APGC on Elmerton Slitter/cutter/creaser Priority Systems P3349PGC on Elmerton Seal/Postage Hasler HJ960PGC on Elmerton Envelop SlitterPCCD on North Front St Seal/Postage Hasler IS-6000PCCD on North Front St Vehicle (fleet pool) 2003 Dodge CaravanPCCD on North Front St FolderPCCD on North Front St Envelope printerPLBC on capital street Seal/Postage Hasler MS-5500 LeasedPLBC on capital street Envelop printer Neopost AS-930 #212967PLBC on capital street Folder/inserter/Sealer Hasler IM6000PLBC on capital street Vehicle (fleet pool) Mail vanDMVA Fort Indiantown gap Vehicle (US FED fleet pool) 2008 Chevrolet uplander 1GNDU23168DMVA Fort Indiantown gap Vehicle (PA fleet pool) 2010 Dodge Grand Caravan AN# G0001422




DMVA Fort Indiantown gap Seal/Postage State Postage IS440 Plus DG11340006DMVA Fort Indiantown gap Seal/Postage FED Postage IS440 Plus DG11140363DMVA Fort Indiantown gap X-Ray Scanner Dynavision #3335s 2-6-17-1DMVA Fort Indiantown gap Tape Machine Better Pack 555e SA 5ESA0198672DMVA Fort Indiantown gap Printer/copier (Fed) HP Laser Jet 500 MFP M575 MXBCF1P0K6POA (DOA/MMB Sealer/postage machine Pitney Bowes DM1000 1G1ZS57F282623POA (DOA/MMB Vehicle (fleet pool) 2007Chevy malibu 004-02-2046DOH/DPW Sealer/postage machineDOH/DPW Vehicle (fleet pool) Dodge Caravan 006-05-5828DOH/DPW Vehicle (fleet pool) Chevy Uplander 004-05-0593PDE on Market Street Vehicle (fleet pool) 2013 Dodge Caravan 2C4-RDGBG4DR-813321PDE on Market Street Sealer/postage machine Pitney Bowes 3000 0004414PDE on Market Street Sealer/postage machine Pitney Bowes 3000 0004409 PSI (Presort only)PMRS On N. 7th Street Folder/inserter/Sealer Hasler IM480 PSO817000626PMRS On N. 7th Street Vehicle (fleet pool)PMRS On N. 7th Street Vehicle (fleet pool)DOS @ NOB Pitney BowesDOS @ 1 Penn Cntr HaslerDOS @ NOB Folder/StufferPENNDot ROC High Speed Stuff/seal/posta Enduro Inserter 1073PENNDot ROC Inserter Mailstar Inserter 500 49-7000403PENNDot ROC High Speed Stuff/seal/posta Enduro Inserter 1074PENNDot ROC High Speed Stuff/seal/posta Enduro Inserter 1075PENNDot ROC Inserter Mailstar Inserter 500 44-7026PENNDot ROC Forerunner 13 954827PENNDot ROC Forerunner 14 954828PENNDot ROC Inserter Mailstar Inserter 775 41-5261PENNDot ROC Postage Machines (2)PENNDot ROC Pitney Bowes Connect +3000 9205PENNDot ROC Pitney Bowes Connect +300 6713PENNDot ROC Vehicle (fleet pool) Ford AerostarPENNDot ROC Vehicle (fleet pool) Pony Truck - SterlingPENNDot ROC Smart Track System CRD-P1 U1109300091PENNDot ROC Signature Pad TT8500-MNE 00151265PENNDot ROC Power Scan 3800G 09163D1191PENNDot ROC Hand Palm XP20N-1NMLYC00 060101252103102043PENNDot ROC Hand Palm XP20N-1NMLYC01 060103251093802593PENNDot ROC Mail Slitter Omation 202C 211311PENNDot ROC Mail Slitter Omation 306 2E01339PEMA On Interstate DR Postage Machine PB Connect Plus 3000 0008023PEMA On Interstate DR Vehicle (fleet pool) 2014 Dodge Caravan




PUC in Keystone Building Vehicle (fleet pool) 2012 Dodge CaravanPUC in Keystone Building Folder/inserter/Sealer Hasler IM6000-SYSC300PUC in Keystone Building Scale Hasler IMWP70PUC in Keystone Building Barcode Scanner IM56ERRPUC in Keystone Building Ext role tape dispenser IMRLDPUC in Keystone Building Neopost folder/inserter DS-75 NE-DS758704301DPUC in Keystone Building Neopost Envelope opener IM-15 P-3712PUC in Keystone Building Printer HP Deskjet 6940PUC in Keystone Building Monitor Dell Optiplex 790PUC in Keystone Building Thermal printer 2844PUC in Keystone Building Printer Dell 1700 4505-083Aging on Walnut street Sealer/postage machine Pitney Bowes Connect 3000 0002864Aging on Walnut street Folder/Stuffer Hasler M3000 F/S USDO-7191Aging on Walnut street Vehicle (fleet pool) 2007 Chevrolet ImpalaDGS on North Street Vehicle (fleet pool) 2013 Dodge Caravan 2C4RDGBG8DR688565DGS on North Street Postage Machine

Signs

End To Presort Flats and Envelopes

UPS

Senate Processing

Senate Processing

Senate Processing

Certified Pickup

Next Day UPS Packages

Picked Up Sealed

Unsealed

Not on Site

Back to Mail Room

Sort

Ground Only

Deliver

Deliver to USPS by 3:15

USPS Picks Up Priority Mail

USPS Picks Up @ 3PM

End

End

End

End

Deliver to Licensing

All Other

Licensing Only

End

PLBC -USPS -Certified

-Next Day -Express Mail

-FedEX Packages -UPS -Priority

-Charge Back Sender

To Certified Mail Person

Weigh/Affix Postage Label

Envelope Comes Stuffed Compare Costs

Sort

Write Up

Deliver All Else and Pickup

Interoffice

Mail Messenger Delivers

Processed

Processed

Choose Shipper

Weigh Pack

Seal

Affix Postage

Affix Label

End

Directly to Recipient USPS Once/Week

Send to USPS End of Week

THORS Consolidation

Main Mail Not Picked Up

FedEX

Next Day

Outgoing Mail

USPS Contractor Mail

Contractor Delivers to USPS

To Dock

Dock

End

End

DMVA Return

Boxes up to 70lb

As Needed

Sort Deliver and

Pick Up

Deliver and Pick Up

Affix Postage

Courier Pulls Mail for Run File

Weigh

Bundle Up Mail

Drop Off and Pick Up

Deliver

Senate Processing 7-

10:30am

No Clear Recipient

Envelopes Stuffed

Big Mail Run >25 DPCS

Outgoing Separate Location

Put in Bags for Others (All

DOH + Bldgs.

Bring to Mailroom

Pickup and Deliver to Senate

Certified and Express Mail

Picked Up Deliver From

Senate to Mail Room File in Mail Slot

Open

Put Note in Box

If Room 802

End

End

Deliver and Pick Up

Special Messenger

Queue Facilities and Hospital Mail

Pitney Bowes Pick Ups

Pick up by USPS

Presort Pitney Bowes

Certified

2nd Machine

End

End

Next Day UPS (Includes

Boxes)

2nd CNPC Run

Mail Once/Week

Recipient Takes Package

Put Note in Box

FedEX, UPS, Priority

Most Times Ready

On Demand Courier

Senate Processing

End

End

End

End

-Up to 10,000 Pieces + Certified

-Priority System -Mark Received

DOH/DPW

Sort and Scan

Sort

This Building

Health Machine

Health Vs. Welfare

Recipient Signs and Package Scanned

Drop Off Outgoing Mail

Deliver All Mail Pick Up

Sealed Weighed Metered

File on Table Sort and Scan

Print and Affix WorldShip Label Weigh

Deliver

USPS Senate 2x Day Dock to Mail Room

Box Comes Sealed

UPS Next Day

Certified

Sealed

Unsealed

USPS By 3pm

Place in Outgoing Slot

UPS By 1pm

External

Internal In BLD Customer Pick Up/Drop Off Mail

Brookwood, All Other Agencies

Farm Show

End

End

End

Weigh

Take to UPS Pick Up

Deliver to Mail Room Sender Seals

USPS Pick Up Location Wed.

and Fri. Pack

End

USPS

UPS

DOA/MMB

-Certified -Flats -Regular Mail

-Have Charge Backs on Postage

End


Affix Postage Label

Separation

Deliver and Pick Up

Interoffice Sort File

Process Weigh Affix Sticker

Affix Postage Weigh Seal

Affix Postage Sender Fills Out Card

Affix Label

Certified

Underutilized Person and Equipment Temp. Person State Library

Presort Pick Up @ 2pm

Drop Off @ Pickup Loc.

Schedule Pick Up

Place in Outbound

Stuffed and Not Sealed

11:30-12:30 UPS/FedEx/DHL

From CNPC

9th and 10th Floors

Physically Go to Office

Double Other if In/Outbound

Next Day UPS Drop Offs From

International Customers

Approval Required

Folded and Inserted

Manual Insert Fold Print

End

End

End

End Regular Mail 3:10-

3:15pmUSPS Pick Up

Received Stuffed

Packages Weigh Box Received

Only Item to Ship

End

Senate Delivery

Bring up From Dock

End

PDE -USPS Flats and Env.

-Includes Flats, USPS

-10th Floor Pick Up

OUTBOUND

UPS.com for Label and Cost

Return to Mail Room

Deliver and Pick Up

Return to Mail Room

Mass Mailing

Weigh

Deliver to All Internal 1x Day

File (Only if Unknown)

Sort Interoffice

Seal

Pick Up and Deliver

Sort Document Receipt

Seal Package Item

Deliver to Fed. Building

Affix Postage


Weigh

USPS


Pickup at USPS

Date Stamp Hand Open Checks, Fees Bring to Desk

FedEx/UPS Deliver to Person

Deliver to Front Desk

Afternoon Sender Puts Mail in Bin Interoffice

Low Volume Drop in Mailbox

USPS Picks Up

Overnight Take to USPS Box It Up Priority Mail

Payroll (5000~ Checks) Hand Stuff

Pick up Checks From

Treasury

Few Flats USPS

Comes Stuffed and Sealed

USPS Outgoing

Central Mail 2/Week

USPS Every Day

SERS, PSERS, Treasury, Comptroller

End

End

End

End

-Fed. Bldg. 20-100

PMRS

-July 1st Treasury Will Do This Mailing

OUTBOUND

Affix Postage

Courier

Deliver 1x Day

Affix Postage

Affix Postage

Weigh Seal

Weigh Seal

End

End

End

Fed. Courthouse Pickup Mail Deliver

FedEx/UPS

Senate Processing USPS Hand Carry

Interoffice Sort File Sort Bring Back to Mailroom

Hand Carry (Do Immediately)

Pickup/Deliver @ Comptroller

USPS Mail Regional Interoffice Mon/Wed @

1:00 Mail Run

End

USPS Picks Up

Archive Pickup Pallets 1x Month

Start Hasler

Packages

Certified

Unsealed

Sealed Box Affix Postage

Seal

Sort by Code USPS End

End

PCCD

Recipient Pickup/Drop

Off

Process Mail

OUTBOUND

All USPS End

Document Incoming Mail

Pulls to Mail Room From Senate USPS Within Bldg. Open and File

Hand Deliver Accountable

Remote Office

Deliver as Available

Print Label


Stack in Mail Tray Electronic File

USPS for Retailing

UPS overnight

Deliver

End

End

End

End

Inserter Folding Prepare/Copy Documents

Package Document

Post Cards

Regional People Pickup

Print Books

Picked Up Load to

Appropriate Ship Spot

Certified Confirm Receipt

4x Year

Manual Stuffing

Assign Certified # Print Labels Walls System

Print Ship USPS Cut to Size

PGC

End

Affix Postage

Affix Postage

Seal/Weigh Postage

Delivered to USPS

Sort

OUTBOUND

End

USPS Pickup USPS Deliver End

Outgoing

PHMC

UPS Picks Up and Delivers

Unsealed

Deliver to 5th Floor/Pickup

Heritage Foundation

Sort Senate

Separate Sealed/Unseal

ed

File

End

End

End

End

End

Sealed

Receive Stuffed Outgoing

Pickup/Drop Off 1 Bureau Certified

Package Shipping

Once/Day USPS

Move to Dock Pack

UPS Picks Up and Delivers Affix Label Very Low Next

Day

Seal

Affix Postage

Central Mailroom Compile Interoffice

PSERS

Box Storage

Personal/Confidential Date

Stamp

1 Hour Date Stamp

Open Envelope

All

Sort Into Pieces End

End

End

End

End

End

Senate Processing Pickup Mail

Security Notifies

Mailroom To Lobby

Stuffed USPS Affix Postage

Notify 1st in Work Flow

Store Hard Copy

Call Recipient

Packages Ship UPS Generate Label

Folding Return to Originator Neopost

Cover Letters Insert Fold Poll Form Mix With Doc. Mailing

Remove Contents Imaging Sort Create Work

Flow

Presort End

Seal

Deliver/Pick Up End

Affix Label

Affix Label Seal Postage

OUTBOUND

Interoffice

Mail Center

Sort/File

SERS

Walk 5 Stops

USPS

Flats/Envelopes

Courier Run

End

End

End

End Deliver By USPS Sort Drop Off Deliver in

Building File

This Building (3rd, 4th, 5th) Letter Open

Packages Big Package Or High Priority

External Package Delivery

Flats Come Stuffed/Sealed

Letter Stuffed/Unsealed and No Postage

Insert

Software

Package/Box Print UPS Label Ship UPS

Deliver Across Street Stuff Fold

Print

Deliver

Seal Affix Postage

Weigh

OUTBOUND

MGR Office Services

File Sort

Outgoing

In Building

USPS

Bundle

Sort

Fold/Insert/Seal/Affix Postage

Affix Label UPS Weigh

Seal/Affix Postage

End

End

End

End

End

End Direct Pickup Drop Off/Pickup

Computer Tapes PNC Bank Pickup Deliver Mail Sort

Within Bdlg.

Boxes/Tubes/Other

Ship

Pleasant Gap

USPS/UPS

Packages

Copy and Bundle

Envelopes (100-200 day)

No Charge Backs Pack Take to USPS

Pickup USPS Picks Up

Order From Upstairs

Pull Stock Box It Up Place in UPS Pickup Spot

Pitney Bowes Presort

All Leters

End

OUTBOUND

CNP Senate

DCED

Bureau to Bureau is Filed By Each

Call for Special Mail

Pick Up @ North Office

13LD

Interoffice

USPS

Mail is Picked Up/Dropped

Off File

Affix Label

Weigh/Affix Postage

Seal

End

End

End

End

End

End USPS Deliver By USPS Sort File

Pickup FedEx, UPS, DHL Sort Deliver to

North Dropped Off

Mail

All Next Day Goes UPS

USPS Next Day 2:30pm

Packages Sealed and Addressed

Unsealed 50%

Sealed 50% Charge Back Pick Up By UPS/USPS

Print Label Stack Where UPS Picks Up

Strawberry Square DOR Receive and Document

Include Certified Mail Scanned

File Document

Receipt

File USPS

Seal and Affix Postage

Bureau Outgoing Mail

Strawberry Square

End

End

End

End

End

End Senate State Hospital

Gibson Truck Driver Sort 3 Bureau

Open Mail

Record Price Count Confirm USPS Record

BIDM Picks Up UPS Log Tracking # and Date

Brookwood Checks

Sign in Mail Room

Regular Packages

Deliver By 10:30am (SLA)

FedEx

Recipient Signs

USPS Express Mail Hand Deliver SLA Sign @ Mail

Room

Interoffice 2x Per Day File Sort Count

Stage Box Process Label Package With Address and

Source Bureau

Low/High Volume Mail

Presort Certified

First Class Mail


USPS

End

End

UPS/FedEx Delivers to Floor End

File Signed Receipt

Weigh

PBPP

Deliver to Office of Victims Advocate

All Other Agencies Pickup

and Deliver

Office of Victims Advocate P.O. Box

Pickup

Shipping Room Returning Files

UPS

HR Mail and Other Dept. Letters

Front Desk

Packages

File (20~ Slots)

Pickup and Deliver 2x per

Day

Seal and Affix Postage

End

End

End

End

End

End

File Room

Board Secretary

Interstate

Requests Parolee Files Pull Files Document File Pulled

Fold Green Sheet Place in Bin Take to 1st Floor Mail

Room Insert

FedEx

Hand Deliver

Deliver to Recipient

Senate DGS Sort DGS Commonwealth

Mail Open

Envelope

Sign UPS Goes to Mail Room

Confirm Count Deliver or Notify

Sign for Package Deliver or Notify

End

ROC

End

End

Institutions

26 Offices

Document File Receipt

Envelopes

Well-Managed Mail Ops.

UPS, FedEx, DHL

Separate Sort Incoming Mail

UPS Packages

Scanned

Outgoing Mail

Known

GNPC

Affix Postage Seal

End

End

End

End

End Come to Dock Come to

Pickup/Drop Off

Drop Next Day @ Mail Room

Call to Notify

Interoffice From DGS Sort

Regional Offices

Use Messengers

File

From Print Fold Insert

Skids Ward Trucking Bulk Pickup

Pitney Bowes Presort

Charge Back if Not UC

Open Envelope

Open/Determine Recipient

File in Bin

All Else is Picked Up

Pickup Deliver Only to 17th Floor

Dock Security Managed By Mail Room

Drop Off Pickup End

End

End

End

PennDOT Floors 5, 6, 7 , 8

All Mail Picked Up

Ship UPS Bundle

Deliver to Recipient Interoffice

Package

Seal/Affix Postage

Resort

All Comes Through Senate

Processing

End

End

End

End

End

End Delivery Day Pickup

(Include P.O. Boxes)

Separate 1st Class Maiil

Sort

Jetsort

USPS


District Mail (18 Stops)

UPS



Skids Lab Pony Driver End

UPS

To P.O. Box

Delivered or Pickup End

Sort Deliver 100%

Cost

USPS To P.O. Box End

End

DEP Outgoing Mail

List

Comptroller/Interoffice

DHL

FedEx

UPS

Senate Processing

Post Office (Certified

Mail)

Seal Affix Postage Onsite, Pickup/Deliver,

Harrisburg, Regional Offices

Tabbing Folding Inserter Printing

Many Other District Offices

Remaining Regional Offices

Harrisburg

Pickup/Deliver Offsite

Onsite Delivery/USPS

/UPS

No Responsibility for Suppliers Here

Senate Processing

Other Off-Site DGS Offices

Outgoing Mail

Interoffice/On-Site Mail Room

All DGS Offices

Other Offices/Interof

fice

USPS Wrong

Wrong Wrong

_

Interoffice Pickup

Report Count and Invoice

Sender

End

End

End

End

End Resort Deliver

End Federal Post Office Deliver

End USPS Crooked Hill Deliver

Agency Outgoing Mail

Calculate Postage Used End Invoice Users Send USPS Request for

Electronic Renewed Postage

Letters/Flats

Letters/Flats

Packages

Overnight Delivery

Pitney Bowes Presrot

USPS

UPS

UPS

Seal/Affix Postage

Tax Form Services

Tax Forms

Fax

Phone

Mail

E-Mail

IVR

Size

Ship

Seal/Affix Postage

Seal/Affix Postage

End

End

Recipient Signs

USPS Express Mail Hand Deliver SLA Sign @ Mail

Room

Insert

Separate Larger Items

Pitney Bowes/USPS

Presort

USPS

PEMA

Deliver to USPS 4pm

Sender Brings Stuffed

Drop in Blue Bin Mail Stuff Flats Compile Mail

USPS

Deliver and Pickup Central

Mail

Deliver to USPS

Sort and Time Stamp

Affix Postage

Affix Postage Weigh


End

End

End

End End

End To Dock/To Mail Room Senate CNPC Deliver Recipient Picks

Up

UPS (Packages)

Pickup and Drop Off

Deliver to Recipient/Call

If Pallet

Interoffice Pickup

Recipient Picks Up and Drops Off Sort File

Drop Off @ Mailbox

Next Day UPS Handwritten Label

Drop in UPS Box

Bring Certified to Mail Room

Bring Stuffed and Sealed End

End

Return With Receipt

Interoffice Compile Repeat Sort

Recipient Picks Up End

OUTBOUND

End

PennDOT ROC

Next Day USPS

Pitney Bowes Pickup 2x Day

Physical Applications Forwarded to Processing

Upload to Mainframe

Create WID and Specific Indexes

Applications Sent to Imaging

Area

Pickup @ USPS

Return to ROC

Pickup Interoffice

Sort By P.O. Box

Affix Postage


Weigh End

End

End A

End

A Bring to

ROC Load to

H.

Sort by Trans. Type

Put to Sequence

Read Mail

Open Envelope

Sort By P.O. Box

Manual Mail

Separator Sheets

Pickup/Delivery Key

Entry

Image Checks

Checks to Deposit

Area

Assign Work

ID/Separate

Assign ID # WID

Image Check + Trans.

Orient Remove Contents Open

License/VIN # + Fees

EOD Submit

Create New Registration

Check for Stops

Read Scan

Sort to Current

Bin End

Create ICL, Check Image

Each Hour, Elec Send Checks to

Bank

Store Checks For

30 Days, Then Shred

Receive Bank

Confirm.

OUTBOUND

Stack of Documents Stuff Load Machine Fold Stack on Cart

Certified Interoffice- Dedicated

Affix Label

ROC

Choose Shipper

Placed in Interoffice Envelope

Mixture of Heavy/Light

Items

Misdirects Mail

Keystone

Pickup, No Drop Off Sort Deliver in ROC End

Keystone Building

Delivery and Pickup 3x Day 3 Routes Sort

Delivered to Recipient in

ROC End

Penn Center DOS

Scan All Certified Processed on Hassler (NOB/Penn Center

Same As NOB Flats/Envelopes

NOB Manages Interoffice

USPS

USPS

Document

Internal Customer

Pickup/Drop Off

Affix Postage Weigh End

End

End

End

End NOB Deliver to

Penn Center Sort File Sort Sort

Sort

Sort

USPS Picks Up

NOB DOS

UPS

Pickup + Drop Off Deliver

NOB

Penn Center

USPS

#10 Letter Affix

Postage

USPS Stuffed, Sealed, and

Labeled

Interoffice

Sort

Delivery CNPC

Seal

End

End

End End

End

End

Interoffice

Sort File Deliver to Internal

Customers

Penn Center

Central Mail

Outbound Mail

Deliver + Pickup

Place in Bucket

Deliver to Penn Center

Pickup @ 11:00-11:15 at CNPC Packages Deliver to

Recipient Sort All Floors Return to NOB Bring to Mail Room

Pickup Packages

Take to CNPC To USPS

Pickup P.O. Box

Certified Return to NOB Deliver to Penn Center

Deliver to Penn Center

Packages

Certified

Deliver

Deliver

L&I Capital

Deliver to Penn C.

Flats/Envelopes

Folded + Inserted

Insert

Insert

Customer Brings Package to Mail Room

1:00pm Mail Run

Fold Insert

Manual Label

UPS Picks Up

USPS Picks Up 1st Class

PMI Picks Up Presort

USPS Picks Up

Deliver to Internal

Customers

Sort

OUTBOUND

Weigh End

PMI Picks Up

Tub Flats

End

Sort Deliver File End

Sort Deliv. File End

USPS Picks Up End

DOI

Jetsort

USPS

All Else

Handwritten

Order

Document Seal/Affix Postage

End

End

End Store Supplies Management Reorder Deliver

Order Store Supplies Management

PSP

USPS Duplicating Shop

USPS

Seal/Affix Postage

Weigh

End

End

End

End

PSP Mail Room Senate Processing Deliver

Packages Scan Pickup or Deliver Dock

Jetsort

OUTBOUND

Next Day and Certified Mail Deliver Scan

Next Day or Certified

Group Outgoing Mail

Packages

USPS

Mail Room UPS Pickup Place in UPS Pickup Bin

USPS

End

End

USPS

UPS

< 8 0z

> 8 oz

End

End Any Outgoing

Mail

End

End

Tax Service Unit

Fill orders

Mail

Tax service unit opens all mail

Strawberry Square enters

orders

IVR

Printed orders from the Post Office, House of

Reps., Senate, Practitioners, and Vita

Sites

Should we send the printed order

with the shipment?

Customer

This is where we need a tracking system (Priority Systems/MMS

Office Services stops entering into IVR, while

Tax Service Unit prints IVR

orders

After orders are processed by Tax Service Unit- Send

sheets back to Office Services in Strawberry

Square

Tax Service Unit prints IVR orders at 9:25am

and 11:45am

Order and two labels

Print

MULTSESS

IVR orders stored

All of those orders are plugged into

MULTSESS

Ship

Phone

Write orders on the phone log

Orders are keyed into MULTSESS

These orders come through the

fax machine.

Fax

Phone orders keyed into MULTSESS

Anvi Muluta- 985-3211 Darlene Washington- 985-3241 Michelle Chase- 985-3238 Richard Mandly- 985-3237 George Roberts- 985-3236 Wally Baylor- 985-3261

Phones do not roll over to the next number.

Rings 3 times and prompts to leave

message.

Order forms can be faxed.

-DAD-69- VITA order form - REV-121 AD- Bulk order

- REV_121B- Practitioners’ reorder

Category High Med Low

Benefit Impact>$1 Million or major

strategic gain

>$250 K or medium

strategic gain

<$ 250 K or low

strategic gain

Time to Implement >90 Days <90 Days & > 30 days < 30 days

Cost > $500 K < $100 K & > $50 K < $ 50 K

RiskHigh potential not to

achieve benefit

Good chance to

achieve benefit but

some risk it will not

Very little risk not

to achieve benefit

List the Classifications for the Deliverables Spreadsheet

H=HIGH M=MEDIUM L=LOW [IMPACT] X' = HAS IMPACT HERE

Rec # Importance

Strategy/

Tactical/E

xecution

Function/Activity Observation Problem Description Recommended Action ~ "FIX" Expected BenefitsBenefit

Impact

Time to

ImplementCost Risk Reduce Cost

Performa

nce

1 H S Governance

Different mail rooms

operate differently. Some

use UPS for packages and

some use USPS. Some pick

up their mail at USPS and

other have it all scanned at

Senate processing

There is no consistency

in the policies and

procedure followed by

the mail rooms. Use of

different service

providers ranges

greatly

There is little consistency in following good

policies observed in all the mail rooms. Strong

governance is needed to 'clean up' bad

processes and assure consistency and

performance of work in the proper manner

Major elimination of risk on of scanned

mail getting to a PA Government official,

consistent performance of mail

processing work. Leverage economies

of scale

H M L L X XX

2 H S Change Management

There is no recognized

leader driving change in the

mail rooms.

The amount of change

required to accomplish

the defined

performance

recommendations

mandates a strong

leader to drive the

change

Assign a Mail Room Change Manager to drive

the change initiatives

Smooth change process accompanied by

achievement of defined benefits within

the target timeframes

H S L L X X

3 H SNot all mail is screened at

CMPC

Not all operations use

CMPC services for

screening mail. Some use

CMPC every day, other do

not use CNPC at all

Some operations are

not using the CMPC

due to time constraints

in their daily schedule.

This is a safety concern

for operations who are

not using CNPC

Establish a mandatory rule that all

Commonwealth operations use the CMPC. Due

to tight timeframes, the daily routine may need

to be looked and adjusted, so this action can be

realistic

Only safe mail will be onsite at

Commonwealth operations. All threats

detected will be addressed at the CMPC,

not at any mail rooms

H L-M L L X X

4 H T Operations

The mail rooms are staffed

for the highest peak

volume of mail. This results

in a high activity level early

in the morning or at peak

times and then very low

productivity for the

remainder of each day

There is no production

scheduling or effort

linearization of mail

room work. Also the

staffing is excessively

high for the work

output

Reduce Mail Room Staff cost to Commonwealth

by rationalizing and consolidating the mail

rooms

A 60-80% decrease over current staff

related costs for operating the

Mailrooms

H M L-M L XXX X

5 H S Operations

The majority of mail rooms

visited appear largely under

utilized, over staffed, and

have large excesses of

equipment capacity on a

single shift basis.

Additionally, over 60% of

the mail rooms visited are

with .4 miles of the Capitol.

The mail rooms visited

are staffed and

equipped for mail

processing capability

and not capacity. The

right balance between

capability and capacity

is not achieved and

needs to be achieved

Rationalize and Consolidate Mail rooms so that

equipment, staff, couriers, vehicles are

maintained to best service and support the

Commonwealth

This is a large program with several

beneficial areas including vehicle costs

reduction, staff costs reduction, postage

on machines reduction, Commonwealth

facility floor space reduction, leverage

of 'Best Practices', multi-shift operation,

and other benefits leading to highly

productive and efficient mail operations

H M L-M L XXX XX

APPENDIX E - RECOMMENDATIONS

A list of identified short, intermediate and long-term recommendations with anticipated timelines and milestones to aid the Commonwealth in implementing improvements to its mail operations.


Rec # Importance

Strategy/

Tactical/E

xecution


Impact

Time to


Performa

nce



6 H T PresortSome mail rooms use

presort and others do not

Presort saves a lot of

postage cost and needs

to be used extensively.

Consolidate all outgoing mail and leverage

presort's lower postage cost. This includes all

mail pieces sizes

Major cost reduction across

commonwealth. Postage savings

annually could easily reach over 1.5

million dollars annually

H M L L XX

7 H TPostage Savings- First Class

Regular MailSome mail rooms are not

presorting mail, instead

they are metering mail or

placing stamps on by hand

Just in first class mail

alone- over 1 million

dollars can be saved by

reducing postage from

$0.49 apiece to a

presorted rate of $0.42

A service contract between the Commonwealth

and a presort company will need to be set in

place to guarantee rate

Postage savings of over 1 million

dollars/yearH M L L XX O

8 H S Courier Routes

Nearly every mail room has

courier routes that

frequently cross or service

the same building

There is no centralized

mail delivery

mechanism so each

mail room creates and

manages their own

mail delivery network

Consolidate all mail delivery and courier routes

and centralize all mail delivery

Large reduction in courier charges

including delivery expenses, staff, and

increased performance to set

delivery/pick up target times.

H M L L XX X

9 H S Package mailing costs

Many mail rooms whatever

shipping company they

choose. Some use UPS as

the Commonwealth has a

contract for reduced

charges for all outgoing

mail. Most mail rooms ship

mail without any delivered

cost considerations

Mail room managers

are unaware of the

optimal cost to ship

mail and do not have a

tool that helps them

determine the lowest

cost mode to ship

Install a simple application that takes the

weight, the destination, the package size, and a

few other parameters and indicates the least

cost shipping mode/company

Large reduction in shipping costs H L-M L-M L XX X

10 H T Operations

The postage currently on

the Hasler/Pitney Bowes

machines varied greatly.

On some machines it was

low at less than $5,000 and

the worst case, it was

$100,000. In many cases

the postage was provided

as "many years" on the

machines

There is huge excesses

of postage on the

Hasler/Pitney Bowes

machines and possibly

other mail room

equipment that

perform as postage

activities

Reduce Postage On Machines to a simple target

of 1 month's worth of postage as defined by the

volume planned to be processed on each piece

of equipment. Import all existing postage to

machines that will remain after rationalization

and consolidation.

One time savings of over $500,000 in

postage as fewer Hasler/Pitney Bowes

machines will be in use and also have

lower - but calculated and maintained -

postage.

H M L L XXX X


Rec # Importance

Strategy/

Tactical/E

xecution


Impact

Time to


Performa

nce



11 H SLate/Unreliable delivery of

USPS mail

The late delivery of USPS

mail is a universal problem

that we've seen at most of

the mailrooms we have

visited

Due to late mail from

USPS, daily routines are

delayed and/ or put on

hold due to this issue.

This is an ongoing

disturbance that is

directly affecting daily

operations of mailroom

productivity

Establish a SLA with the Crooked Hill Post Office

that meets the desired timeframe for mail

delivery and/ or pickup

Timely delivery and/ or pickup of mail

will ensure daily operations are being

met on time

M-H L-M L L X XX

12 M-H TPostage Savings- Mail

already presorted

Some mailrooms are taking

advantage of presorted

rates, however not all

operations are doing this.

The mail that is already

being presorted, can be

presorted at a lower rate

The postage savings

from the mail that is

already being presorted

can be up for

negotiation with the

current presort

company, or by

shopping around and

finding a different

presort company with

lower rates

Looking for a new presort company or

negotiating with the current presort company

can guarantee the lowest possible presort rates

Postage savings of over 100,000 dollars M-H L-M L L X O

13 M-H T Postage savings- Flats

Most mailrooms are not

taking advantage of

presorting flats. This can

be done the same way as

letter size mail pieces

Most people are

unaware that flats can

also be presorted, the

exact same way letters

can.

A service contract between the Commonwealth

and a presort company will need to be set in

place to guarantee rate

Postage savings of over 400,000 dollars H L-M L L XX O

14 M-H T Operations

There are many vehicles

used by the Mail rooms

visited. In many mail

rooms, 2 or more vehicles

are used only an hour or 2

each day

There are too many

highly under utilized

Commonwealth

vehicles assigned to the

mail rooms.

Reduce Vehicle costs to Commonwealth by

rationalizing and consolidating the courier

routes, vehicles, and staff to a smaller, highly

utilized courier group

A 50-75% decrease over current vehicle

related costs for vehicles currently used

by the Mailrooms

M M L L XX XX

15 M-H S Mail room Productivity

Although mail can be

processed 24 hours/day,

the mail rooms only

operate on a single shift

The equipment is

partially utilized in a

single shift and not

utilized at all in any

other shift

Run each centralized Mail room at least 2

shifts/day to better leverage installed

equipment and to service higher consolidated

mail volumes

Large reduction in equipment,

equipment maintenance costs, and

utilized space [Consolidation Dimension]

M-H M L L XX X


Rec # Importance

Strategy/

Tactical/E

xecution


Impact

Time to


Performa

nce



16 M-H T Operations

Every mail room visited has

1 or more Hasler or Pitney

Bowes sealer, weigher, and

postage affixing machine.

Normally, few were

observed working during

the mail room visits

There is very low actual

work needed on the

majority of these

postage machines. The

total work can be

performed on few (10-

20%) of the current

equipment

Reduce Postage machine count by 60 to 90%,

increase utilization, and operate on more than

1 shift. Needs to be done in combination with

mail room consolidation

Eliminate 50 - 80% of all Hasler/Pitney

Bowes postage related costs including,

lease, maintenance, supplies, power,

and more.

M-H M L L XX X

17 M-H TReplenish Postage Machine

electronically

Most of the Postage

machines have to process a

manual check, send it to

the 3rd party vendor who

sends it to USPS who

processes it and enables

the desired postage, who

send the information back

to the 3rd party vendor

who sends it back to PA.

This takes as short as a few

days and as long as 8 weeks

It takes entirely too

long to replenish the

postage machine. Fast

and accurate

mechanism is needed.

Electronic

replenishment is the

objective. One Mail

room visited

replenishes postage in

5 minutes

Enable/establish an electronic replenishment

mechanism for postage on the postage

machines. Leverage current 'Best Practices"

across all mail rooms.

Eliminate production stoppages, enable

fast replenishment, eliminate high

volume manual postage affixing,

increase performance WHILE decreasing

the amount in each postage machine

(~1 month's worth only)

M-H M L L X XX

18 ?? S Returned Mail

It appears that there is a

large volume of mail that is

returned to the

Commenwealth due to

inaccurate addresses

The Commonweath has

to re-process returned

mail which doubles or

multiplies the cost of

the mail

Reduce "Returned Mail" by assuring the most

accurate and current address of the recipient is

accurate. The first step is to initiate a study to

define the exact annual volume of returned

mail, the costs, and the potential corrective

actions to reduce the cost.

Major reduction in unnecessary costs

resulting from reprocessing returned

mail

M-H ??? M M L XXX???

19 M T Production Control

There is informal capacity

planning and scheduling

heavily dependent on a key

person's skills in most mail

rooms visited

Complex production

schedules are best

developed by using

available tools

Purchase and use a production control

scheduling application in all Mail rooms

Smooth production operations and

"complete" production schedules

assuring everything gets done even

when key people are on vacation or out

of the office

M L-M L L X XX


Rec # Importance

Strategy/

Tactical/E

xecution


Impact

Time to


Performa

nce



20 M S Interoffice MailThere is a lot of Interoffice

mail

It appears a lot of mail

is still being sent

interoffice when it

should be email

Perform a thorough investigation of interoffice

mail and determine the categories that should

be email and educate/mandate email be used

where it should be used

Medium to large reduction in all

interoffice mail management costsM M L L XX O

21 M T Equipment Utilization

Equipment frequently

breaks down and it takes

several days to get it up

and operational again

There is usually (1)

major piece of

equipment in each mail

room for capability

purposes

Consolidate sufficient equipment in a

centralized mail room to enable some back up

capability

Higher performance, achieve delivery

dates, increase productivityM M L L X X

22 L-M SCustomer Service and Cost

Allocation Model

Most operations function

on an informal service level

basis. With only postage

cost allocated if anything is

charged back to customer.

Mail services do not

have agreed SLA's,

documented and

measured delivery

processes or formal

cost allocation

agreements

Select an existing customer service model like

OAS couriers and have this model adapted for

enterprise wide implementation.

Consistent and efficient mail operations

with predictable performance and cost.

Cost systematically allocated to users.

L-M M L L X XX

23 L-M T Envelope quality

Old and low quality

envelopes do not seal well

in the automatic sealing

and affixing postage

machines

The glue on old

envelopes loses it

integrity and some

overall envelope's

quality is too low to

work adequately in the

auto sealer/postage

affixing machines

Purchase higher quality envelopes and purchase

only a 90 day supply at any one time.

large reduction in machine problems,

maintenance costs, and staff that have

to address and fix all machine problems

with each envelop

L-M M M L X X

24 L-M S Experienced staffMany experienced staff are

at or near retirement

The expertise and

experience of longer

term staff will 'walk out

the door' in the next

few years

Immediately start cross training key staff as well

as consolidate mail room operations so as to do

more with less highly experienced staff

Avoid major production stoppages,

mistakes, low quality, and general chaos

when tenured staff retire

L-M M L-M L X XX

Improve

Perception? Savings Perf Safety Short Intermed Oper Tech Strategic Cntr ? RR Comments IMPORT

#Order

XX 1 1 1 1 1 1 5

1

X 1 1 1 2 5

2

X 1 1 1 3 5

3

XX 1 1 1 1 1 x 4 5 4

XX 1 1 1 1 1 1 5 5 5

Improve


#Order

X 1 1 1 6 5 6

X 1 1 1 7 5 7

X 1 1 1 1 1 8

Sourcing may really come into play here with

significant savings and improved service coming

via outsourcing

Very true. Also the Courier activates may be

separated from the mail room activities thus

a candidate for outsourcing

5

8

O 1 1 1 1 9

Is this related to the roll out of mailing software at

an enterprise level. Marks' project?

Yes this is Mark's project as I want to give it

highlights and kudos to Mark.

5 9

XX 1 1 1 1 10 5 10

Improve


#Order

X 1 1 1 1 1 1 11 5

11

X 1 1 1 1 12 4

12

X 1 1 1 1 1 13 4

13

XX 1 1 1 1 14 4 14

X 1 1 1 1 1 1 15

Could we recommend that there be only one large

scale outgoing mail operation? This could be a big

one that coordinates with already implemented

print service consolidation.

no there are too many variations in

customer, mandatory processes, locations,

priority of mail (checks, etc), and others. We

will need multiple sites to service Harrisburg

(3-4)

4 15

Improve


#Order

XX 1 1 1 1 1 16 4

16

XX 1 1 1 1 1 17 4

17

XX 1

1

1

1 1 1

18

4 18

X 1 1 1 1 19 3

19

Improve


#Order

O 1 1 1 1 1 20

Consistent with the customer service model area

described below. Attach significant fees to

internal mail handling.

This can be integrated into the SLA

agreement so the primary mail users pay the

most as well as abusers of interoffice mail3

20

X 1 1 1 1 1 1 21

At a consolidated level, maintenance and support

contracts for equipment can be procured at a

higher service level, possibly with both

availability and restoration time targets

Good point as to consolidate all service and

maintenance contracts - preferably with the

vendor who keeps staff on site in one of the

Commonwealth's mail rooms already

3

21

XX 1 1 1 1 22 2

22

O 1 1 1 1 1 23 2

23

X 1 1 1 1 1 1 24

Rating due to impending consolidation

whereby more experienced staff will

become available 2

24

19 14 2 7 22 17 9 21

Scoring Summary

top 10%

45 5 5

42 2 2

40 1 1

39 16 16

38 2 2

36 2 2

35 10 10

34 5 5

33 14 14

32 5 5

29 9 9

27 2 2

25 2 2

24 1 1

23 1 1

19 2 2

79 8 16 47 8 0 0

10.13% 20.25% 59.49% 10.13%

Target 10 20 60 10

Top Strategic Recommendations As defined

by rating

A. For Increasing NPS = Scope

of the Assessment

#1 Consider special policies for travel groups ~ call center fees, penalties, price changes

#1Create an Level 2 escalation desk which can handle such queries and complaints. This team can be the common point between the Customer care and Contact centre

teams

#1• Prioritize between sales and service calls. Offer higher priority to sales calls and deploy a dedicated team to service sales calls. This team can be cross skilled to manage

service calls as well

#1 Build a level 2 escalation desk that can handle inbound calls from passengers and serve as a conduit between the contact centre and customer care team

#2 Train in key word recognition for NPS

#3Build a feedback loop between the Customer Care team and the contact centre team. Every week/fortnight, the customer team should list down the complaints they have

received wrt to the contact centre and share them with Quality Analysts. The Quality Analysts should in turn study these complaints and coach the agent/team.

B. For Increasing performance

Jetstar Call Center

1

Standardize Campaign Management across all Club Jetstar members. The Club Jetstar member database needs to be updated frequently and to be ensured

that promotional messages are sent out to all members.

Provide visibility to the contact centre on the Club Jetstar operations. This will help them to better respond to caller queries instead of deflecting them to

another service channel

2Establish a high priority customer support area for high CLV customers wanting to purchase a new ticket. Profile customers by CLV and Immediately alert the

agent as to the current customer's profile and characteristics

3• Immediate solution to address this concern is to implement a secure, integrated method to collect payments from callers – Sutherland can implement its

IVR based payment mechanism which will integrate with Jetstar’s payment gateway as well as Skyspeed. This will allow agents to collect credit card details in

a secure manner and process reservations without having to verbally collect card details from callers

4• Implementation of Sutherland KB tool.. OR..

• Help Jetstar to rearrange and index content accurately in LivePro

5 Track multiple PNR's by customer who initiated the PNR

6Create a handoff and communication channel between the Front office and Back office teams for Refund related issues. Deploy a separate team that will be

a conduit between both these operations Implement a full NPS management program

Generate more revenue

Cost take out

Laundry list of more customer purchases on website

Move out areas for reduced cost opportunities

Hotels, car rentals, travel insurance, excess baggage, etc

APPENDIX F – TIMELINE MILESTONES

A timeline illustrating at a high level all key tasks and associated milestones for completion.

1. Assign a Commonwealth mail room change program leader [Rec #2] a. Identify candidate pool b. Determine availabilities, required skillset, and management expertise c. Narrow down list d. Select top candidate e. Obtain necessary approvals and time commitment f. Designate Mail Room Change Program Leader (M#1) g. Build and start Communications program

2. Implement postage cost reduction program a. Broaden Presorting Program to all Mail rooms [Rec #6]

i. Capture all presorting opportunities in all mail rooms ii. Designate all new mail that should be presorted iii. Build transition plan to sequentially broaden presorting cost reduction

program iv. Quantify potential savings due to expanding presorting (volume) v. Start presorting volume expansion program (M#2)

b. Expand 1st class and regular mail Presorting volume [Rec #7] i. Capture all additional presorting opportunities in all mail rooms ii. Designate all new mail volume and categories that should be presorted iii. Build transition plan to sequentially increase presorting cost reduction

program iv. Quantify potential savings due to increasing presorting (volume) v. Start presorting volume increase program (M#3)

c. Expand Presorting to include flats [Rec #13] i. Capture all flats presorting opportunities in all mail rooms ii. Designate all new flats that should be presorted iii. Build transition plan to sequentially broaden presorting cost reduction

program to include additional flats iv. Quantify potential savings due to flats volume presorting v. Start flats presorting volume expansion program (M#4)

d. Reduce current presort mail rates [Rec #12] i. Canvass presort vendors and request firm presort quotes based upon

Commonwealth committed presort total volume and high mail volume regions

ii. Confirm total available mail volumes ~ 1st class, flats, regular mail that should be presorted

iii. Compare quotes to current contract with PSI [depends on (M#3) & (M#4)]

iv. Provide the opportunity for PSI to negotiate lower rates v. If PSI cannot contract presorting equal to best overall presorting package

from other vendors, initiate new program with more attractive presort vendor

vi. Finalize new presorting contract vii. Start presorting under lower cost presorting program (M#5)

3. Plan & Execute Consolidation of mail rooms [Rec #4] a. Build foundation plan for consolidating mail rooms

i. Capture all mail rooms to be candidates for consolidation ii. Document processes performed in each mail room, equipment, and

customers served iii. Build decision matrix with key mail room attributes driving consolidation


iv. Target ‘mail room ‘logical clusters’ v. Build consolidation plan and all consolidation program parameters (M#6)

b. Reduce Mail Operations costs [Rec #5] i. Quantify all mail operations support costs ~ vehicles, staff, equipment, etc. ii. Determine cost reduction categories and cost reduction magnitude iii. Build a sequential plan to reduce mail operations support costs with minimal

risk of disrupting Commonwealth mail processing iv. Integrate this plan with M#6 (M#7)

c. Reduce per machine postage amount [Rec #10] i. Accurately document all current postage on all machines ii. Document all estimated monthly postage usage iii. Determine complete postage replenishment time frame iv. Calculate 1 month’s postage amount on all remaining postage machines v. Determine process to remove current postage on machines to be excessed

and how to transfer it to machines that will remain in operation vi. Integrate to M#11 (M#8)

d. Reduce mail vehicles and associated costs [Rec #14] i. Capture all mail rooms to be candidates for consolidation ii. Document vehicles used by each mail room iii. Build decision matrix with key mail room attributes driving vehicle usage iv. Determine potential surplus vehicles v. Integrate with Courier reduction and all mail room consolidation milestones vi. Build consolidation plan and all consolidation program parameters (M#9)

e. Operate Mail rooms at 2 shifts or as needed in excess of 2 shifts [Rec #15] i. Calculate total mail volume to be processed – inputs and outputs ii. Determine equipment compliment needed iii. Determine mail priorities and all other parameters that impact quality

Commonwealth mail processing iv. Integrate with all mail room consolidation milestones v. Calculate appropriate staffing levels vi. Build operating plan including all consolidation program parameters (M#10)

f. Reduce Postage Machines [Rec #16] i. Capture all mail rooms to be candidates for consolidation ii. Document all postage machines used by each mail room iii. Build decision matrix with key mail room attributes driving postage machine

usage iv. Determine potential surplus postage machines v. Integrate with all mail room consolidation milestones vi. Build consolidation plan and all consolidation program parameters (M#11)

g. Enable electronic and fast postage replenishment [Rec #17] i. Document all mail rooms postage replenishment processes ii. Select best electronic postage replenishment process. iii. Document all necessary steps and key parameters to adjust/set iv. Have executive branch issue Directives to follow electronic postage

replenishment program v. Implement electronic postage replenishment program (M#12)

h. Employ fully featured production control/scheduling system [Rec #19] i. Investigate and document all production scheduling performed ii. Investigate and evaluate all production scheduling systems used iii. Determine viability of any potential long term systems iv. Investigate commercially available production control systems v. Determine “make or buy” production control systems vi. Proceed with decision in ‘v.’ above


vii. Implement modifications, rollout, or new system acquisition activities viii. Complete modifications or purchase of new system ix. Build implementation plan x. Implement more effective production control/scheduling system (M#13)

i. Employ formal business recovery plan [Rec #21] i. Determine volume and type of mail processing equipment ii. Determine mean time between failure of each type of equipment iii. Determine required equipment uptime iv. Determine alternate solutions for equipment/site downtime v. Build plan to enable business recovery/business interruption mitigation vi. Implement plan (M#14)

j. Cross train mail room staff [Rec #24] i. Determine consolidated mail room staff and associated skill levels ii. Determine areas of high production requirements iii. Assess cross skills staff capability for staff to operate multiple machines iv. Assess key staff near retirement and also potential high risk situations v. Design cross skills training program for staff vi. Implement cross skills training program (M#15)

4. Plan and execute Courier Consolidation [Rec #8] i. Capture all mail rooms to be candidates for consolidation ii. Document all Courier routes used by each mail room iii. Determine all mail priorities for all mail rooms iv. Analyze all Courier routes and priorities and build optimal routes and times v. Build Courier schedules vi. Determine staff and vehicles required to support Courier schedules vii. Build consolidation plan and all consolidation program parameters viii. Implement plan (M#16)

5. Build mail room Governance policies and procedures [Rec #1] a. Research and canvass all mail rooms, identify inconsistencies, and document “Best

Practices” b. Draft Governance policies and procedures c. Appoint the ‘Mail Czar’ d. Develop Governance policies and procedures e. Have executive branch issue Directives to follow Governance program f. Implement Governance Program (M#17)

6. Issue Directive Mandating the Use of CMPC [Rec #3] a. Request appropriate PA Government Executive to Issue Mandate b. Issue Mandate and Communicate Directive c. Set mechanism to confirm Directive is followed d. Confirm all Mail rooms use CMPC (M#18)

7. Hold USPS responsible for reliable mail delivery [Rec #11] a. Schedule a face to face meeting with USPS management b. Submit a requirements listing to USPS containing SLAs for required performance c. Negotiate penalties for non-performance d. Grant USPS increased shipping volume and revenue for negotiating purposes e. Build the timetable for USPS improved USPS reliability and performance f. Implement project schedule (M#19)

8. Implement package shipping optimization application [Rec #9] a. Confirm package can do what is needed b. Purchase application and enterprise license c. Develop on site and formal training program d. Train key PA Commonwealth people in how to use application e. Have executive branch issue Directives to follow shipping optimization program


f. Implement shipping optimization program (M#20) 9. Reduce Returned mail due to wrong addresses [Rec #18]

a. Investigate and capture volume and associated cost for ALL returned mail due to inaccurate addresses

b. Assess the cost for double postage and any other costs associated with returned mail due to inaccurate address.

c. Document current tools within PA Commonwealth tools for making address accurate d. Assess whether current tools are adequate e. Use if adequate, if not adequate, initiate application/system selection project f. Have executive branch issue Directives to follow address accurization program g. Select, purchase, train for, and implement address accurization application (M#21)

10. Reduce Interoffice mail volume [Rec #20] a. Investigate and run an analysis of current interoffice mail volume and content b. Determine reduction opportunities c. Determine interoffice mail policies d. Request a directive be issued to reduce interoffice mail e. Have the Directive Issued f. Confirm that the volume of interoffice mail has been reduced g. Set a periodic interoffice mail monitoring mechanism to assure compliance h. Monitor interoffice mail and confirm compliance (M#22)

11. Allocate Postage/mail room costs accurately [Rec #22] a. Make a list of all customers who use mail room b. Estimate volume and cost for each customer c. Run a 60 day program to capture usage d. Estimate costs for total usage and then allocate to all customers e. Run estimated allocation for 3 months and confirm actual costs and allocation %’s f. Hold meeting with all customers and inform of cost allocations and any ‘special’

charges that may be incurred. g. Repeat above for all mail rooms h. Initiate accurate cost chargeback program. (M#23)

12. Purchase quality envelopes (to reduce mail room costs and associated rework [Rec #23] a. Evaluate all envelopes currently used b. Identify envelopes that do not function/seal appropriately c. Identify age and origin of envelopes d. Set guidelines for envelope usability and quality e. Revise current envelope purchase agreement to purchase quality envelopes in

smaller quantities ~ 2 months usage f. Initiate new envelope usage and confirm no rework and excess costs to use

envelopes (M#24)

APPENDIX G DETAIL REQUIREMENTS FOR SELECTION AS A CENTER OF EXCELLENCE

Requirements for Designation as Center of Excellence used:

1. Highly productive operation

2. Equipment with modern technology

3. Efficient production control System/Techniques

4. More than 1 shift operation

5. Efficient and effective supervision

6. Positive production flow

7. Simple/visual management of work

8. Workforce motivated and actively focused on quality

9. Strong Quality procedures and processes

10. BRP and DRP processes evident and followed

11. Efficient postage and materials management

Mail Processing Summary & Recommendations

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