MTAC First-Class Mail Subcommittee June 14, 1995 1. Remittance Mail Report - The update noted that wholesale remittance alone represents over $4.5 trillion in annual funds transfer in the United States economy. This does not include the trillions of dollars being transferred as retail remittances. In addition, the data received in this area results in continuous information updates and the generation of additional orders and collection activity. The ultimate result is that the service performance of the USPS has a direct impact on the timeliness of this data transfer. The issue surfaced within the mailing community as a result of the USPS failure to maintain performance in several areas. These included: longer average mail times; mail availability slippage; regional differences in mail times; and missorts. All led to a loss in confidence in the mailing systems and a search for alternative delivery systems. A brief update on the chronology of the working group was presented and is included in the attachments to the minutes. The working group accomplishments have included definition of the issues; assignment of USPS field and headquarters coordinators; a definition of the remittance mail classes; examination of diagnostic measurement tools; and the agreement to conduct field tests on system options. The next steps include the research and work on an agreeable measurement system; conducting of field tests on holdouts; updates on diagnostic measurement systems and the field intervention team; and the finalization of the draft mission statement and Operations Policy for remittance mail. An update on the ARM program was also presented. It was noted that the ARM custom designed issues included timeliness ( a 95% expectation exists with the customers) and trap rate ( a 70% to 75% trap rate expectation exists with the customers). The first steps taken included the assembling of a headquarters team which represented multiple functional areas. The second was the appointing of area coordinators to support the program. The actions taken to improve timeliness have included the updating of all transportation routings; the updating of over 80% of the existing ARM custom designed contracts; the adjustment of about 30% of the claim times; and the enhancement of the EMRS software to provide accurate timeliness scores. The next steps will be to complete the updates on the existing ARM custom designed contracts and to ensure ongoing maintenance of the program. The next steps to improve trap rate include the continuation of plant operations reviews; the finalization of the FIM listings; and the update of the plant SOPs. It was noted that no discussion on the results or update of the field intervention task force for the Washington Metro Area would be given at this time. This report will be scheduled at a later date when the results are available for presentation to the subcommittee. 2. EXFC Service Report - The Quarter II report noted significant improvements over the same period last year. The data was as follows: Overnight Service Year One Day Two Day Tail of Mail 1994 79% 13% 9% 1995 85% 9% 6% Two Day Service Year Two Day Three Day Tail of Mail 1994 67% 17% 16% 1995 75% 14% 11% Three Day Service Year Three Day Four Day Tail of Mail 1994 65% 17% 18% 1995 76% 13% 11% 3. FCM Classification Reform Issues - This was not covered. It was recommended that all MTAC members attend the Thursday Addressing and ZIP+4 subcommittee where these items would be discussed. 4. Priority Mail Update - The new Prioritize program has established 12 areas across the country where the USPS is reasonably assured of being able to deliver Priority within the 2 Day service standard. The ultimate goal is to provide nationwide two-day service. There are two categories which are being considered under a reclassification filing which is scheduled for filing at the end of the year. These include retail and commercial categories. There would be a price differential between the two and the commercial category would include the Corporate Accounts system similar to that available for Express Mail Service; the availability of Electronic Manifesting (Postal SHIP) and potential volume discounts. The use of bar-coding and tracking is still under study. Mury Salls Chairman MTAC SECOND-CLASS SUBCOMMITTEE JUNE 14, 1995 Charles Pace, Chairman (Absent) Russ Shores, President, RUSSMAR, Inc. (Substituted for Charles Pace for this meeting) John Dorsey, USPS Coordinator Introduction Russ Shores opened the meeting by welcoming all guests. He announced that Charles Pace had suddenly become ill the day before. Russ spoke for all in wishing Charles a speedy recovery. He then introduced Maurice Curtis, USPS Operations Support, to report on the Federal Register Second- Class Proposed Pallet Changes. Statement of Ownership Update Some MTAC members had requested a clarification of the Statement of Ownership. Charles Pace arranged with Leo Raymond to prepare a chart that was handed out to the attendees to serve this purpose. Second-Class Proposed Pallet Changes Maurice Curtis, a new member of the Operations Support staff, stated that the Federal Register notice for proposed pallet changes will be published before the end of June, with a 30 day comment period for the industry to respond (handout attached). He stressed the importance of the customer involvement that has led to the current proposed guidelines and the importance of safety and productivity to the Postal Service. He described the courtesy pallets as pallets not sorted to the required finest levels of presort. The proposed guidelines will offer a 6 month transition period to accommodate the change over to prepared pallets from the time of final rule making. He reviewed highlights of the proposed revised pallet make up guidelines as follows. There are options for 250-499 pound pallet minimums, 84" maximums for pallet boxes and stacked pallets, new pallet sortation requirements for letter size, flats, and machinable parcels, and other issues were covered such as top caps (required on stacked pallets, and requiring flexible construction with no flimsy paper allowed), and double and triple stacking, if pallets are banded together. The heaviest pallets should be on the bottom. Pallet strapping is not required on single pallets and stretch wrap is encouraged. The guidelines allow co-palletizing of automation rate and non automation rate trayed letters except for 5-digit pallets. Physical preparation requirements are proposed to allow mailers with no problems in pallet make-up to continue with their own methods as certified pallets. Pallet customers who fail certification must follow strict Domestic Mail Manual requirements, including top caps which will be provided to the non certified customers, etc.). Implementation of the final rules and guidelines can be expected in the late summer or early fall 1995. Russ Shores thanked a few (Joe Schick of Quad Graphics, Cheryl Beller and Anita Bizzotto of the USPS, etc.) of the industry and USPS contributors who helped shape these proposed guidelines. Reply Card Scanning (RCS) Russ introduced Stu Willoughby, USPS Project Manager of the Reply Card Scanning Program, who provided a handout showing system components and a product description (copy attached). Stu reviewed results of the recent operations test in which Rodale Press and Fingerhut were key participants. He stressed that the system has added an "Electronic Post Office" to the components. He said the next step will be to stress test the system at the Buffalo distribution center and at Wilksbarre. Columbia House will be added to the test for this phase. He also mentioned the fact that the Magazine Publishers Association is interested in testing the use of RCS in combination with the Quik Pak for rapid issue delivery whereby it is perceived that significant benefits can be generated for publishers. He asked that possible volunteers call him at 202-268-2235 if they are interested in participating in such a test. Stu said that research shows that RCS could play a role in 25 - 35% of total renewal and originating subscriber cards. Return receipts is another area of opportunity. Ted Russell, Time Inc. expressed concern about how this technology will impact auditing procedures. Stu explained that said he and Anita Bizzotto are working with auditing companies such as ABC and BPA to ensure issues concerning RCS's possible impact on external and postal audits are identified and solutions are developed where needed. In regard to consumer testing Stu indicated that in a recent panel of 1000 consumers 70% of the respondents have no problem with the concept. Howard Schwartz of Conde Naste asked why the USPS is charging full postage when RCS is sending an image rather than the physical mailpiece. Stu replied that there are costs which are involved in this procedure and in fact, a separate fee for the service is being considered. BMC/2C HUB UPDATE Bob Sheehan, USPS Manager, In Plant Operations, reviewed the results of the recent BMC Network Study and indicated that significant changes have taken place due to increases in volume from drop shipments, palletization, and additional distribution requirements (handout attached). He showed how Operations Support has evaluated the BMC network and individual BMC capacities in light of workload projections. He shared a chart for the period 1996 - 2005 showing a volume vs. capacity analysis, a summary showing facilities for 1996 - 2000 where there will be capacity problems if we do nothing, and another chart for facilities during the 2001 - 2005 time period. He indicated that where shortfalls in capacity are identified, alternative remedies are being developed and recommended changes, if necessary, are proposed for the BMC support systems infrastructure. These remedies can be equipment/fixed mechanization, facilities expansions, network changes, and upgraded computer support infrastructure. He showed a chart for 1996 - 2005 for BMCs where such remedies have been identified. Bob said the forecasting takes into consideration current status, possible impact from reclassification and then a best estimate. He reviewed certain other studies currently ongoing and indicated next steps are to finalize the study's findings with the Area Vice Presidents and Headquarters, to establish a steering group to arrange implementation of recommendations and to establish a cross functional steering group to investigate other options for handling other possible future capacity short falls. Bob said he welcomes additional industry input and provided a copy of his presentation (copy attached). In regard to Russ Shores' question concerning the status of the annexes (of those already opened which ones will stay opened and will others be added?), Bob said the final plan showing this information along with cross dock capability will soon be released for the industry to review and that he will provide it in hardcopy as well as on RIBBS. Bob introduced Ed Ruiz as the new National Manager of BMC Operations. Policy, Requirements & Methods (PRM) Update Bill Strong, Industry Chair of the PRM Group reviewed the role that he and John Dorsey have played during the past 1 1/2 years to ensure that the interests of the smaller circulation publishers are represented. He stated that the accomplishments of this group are significant as witnessed by the simplified co-palletization documentation requirments and the adoption of the 250 pound minimum pallet weight option. He stated they hope to have case studies developed of these opportunities in order to show as many publishers as possible how they can benefit. He reported that the PRM meeting yesterday focused on discussion of air shipping procedures being used now for time sensitive publications. In addition service improvements for short run publications will need further discussion and Dennis Farley, Fairchild Publications, will function as a subcommittee chairman for this purpose. Classification Reform: 2C Update and Review Dick Funck, Meredith Corporation provided two handouts (copies attached) which provide a "Definition of an Issue" and an example clarifying the "Proposed 90% Criteria" which should be helpful in gaining understanding. He reviewed the Publications Advisory Group progress and said that besides publishers the group has been made up of members of the printing and fulfillment industries. The group has been primarily involved with entry requirements concerning how to qualify (main qualifications being 30% editorial, 75% of issue is paid or requester, and 90% of mailing must be presorted to 3 digits or above) for the periodicals subclass. He pointed out that the two handouts will actually appear in the Federal Register notice which will be coming out. He said the 24 piece requirement might be changed to 24 copies to help some of the trade publications which mail a lot of firm packages. In regard to the mailing of an "issue" the other handout is needed since "issue" means different things to different people and this approach at least offers a common denominator for reference. In regard to the barcoding issue Dick said that the 85/15 rule will also appear in the upcoming Federal Register notice. Pub Watch Redesign Update Jim Strong provided a review of the January through March 1995 pilot test of PRESS among the 17 small, medium, and large publisher participants (handout attached). The goal of the test was to get back to the publishers within three working days and they were successful 65% of the time in the test. The ten point test was successful in capturing more than one fourth of the problems without future processing. A frequent problem identified in the test was the lack of proper addressing . The criteria for success weighed most heavily were timeliness and quality and Jim reported that publishers rated the program as successful overall. Next step will be a national implementation beta test in fall 1995 among 100 publishers. Jim asked that publishers who would like to participate to identify themselves. A copy of the Press presentation is attached. Plans for Non-Profit Classification Reform John Dorsey said he has started a Second- and third-class non-profit classification reform effort and customer steering group meetings are set up for June 29, 1995. Market research is currently in the field. The plan is to have proposals ready for Postal Executive committee and board of Governor review before the end of 1995. Charles L. Pace Chairman MTAC THIRD CLASS SUBCOMMITTEE JUNE 13, 1995 Summary Industry Chair: Dan Minnick USPS Coordinator: Jean Li Rogers Third-Class Return Rates Update: At the last MTAC meeting MTAC members pointed out a rate anomaly where the 3C single piece rates equal or exceed First Class Single Piece Rates up to one pound. For continuity mailers, the anomaly has doubled the cost on returns of products weighing less than 16 ounces and which do not otherwise qualify by content for 4C Bound Printed Matter or Special 4C Rates. When asked, the Postal Rate Commission (PRC) acknowledged the anomaly was an error. The USPS has committed to immediate pursuit to provide rate remedies. The USPS is also working to add Shipper Pay Forwarding to 3C in 6-8 months, which will relieve the disproportionate cost that "the weighted fee" approach to forwarding and return postage creates for these postal customers. Carrier Route Minimum For Destination Entry Mailings Resolved. Anita Bizzotto announced that the minimum "CR mailing" of 200 pieces or 50 lbs for destination entry will not be required for individual line item on the 3602-PV. The new ruling will be sent to the field when work with MEPPS in completed. The new ruling will be posted in RIBBS. Flats Implementation Advisory Group Update Dan Minnick, the chair of the advisory group, highlighted some recommendations from the industry/USPS committee, including issues dealing with flats palletization, fletters and scheme sorting. The ensuing fletter discussion advised that mailers should consider lowering cost by pursuing flats barcode instead of non-automated letter, although size and stiffness requirements of the mailpiece must be observed. Those interested in the summary notes of the committee should contact Dan Minnick at 708-517-5683. ADVANCE Is Advancing. Glen Cournoyer indicated that more customers with more mailings and more delivery units are participating in the ADVANCE program. Updated information will be loaded onto RIBBS within the month. Other data systems, including the dropship appointment system, will be integrated into the ADVANCE system in the future. Expansion to other mail classes are being considered. While actionable, timely and continuous, this system should not be confused with other current or developing process measurement systems in the USPS. ADVANCE measures performance from delivery unit to delivery unit, not to the delivery point. Heavy weight Letter-Barcode Test Seeks Participants Sherl Johnson gave an update on the test that began January 1995. The original intent was to test letters at 3.3 ounces before proceeding to test at 4.0 ounces. To date, there has been low participation. To qualify, the mailing should contain over 70% pieces weighing 3.0 ounces. As to whether or not to continue the test, MTAC members responded in the affirmative, citing the classification reform's impact upon fletters that may lead to greater use of heavier barcoded "lletters" from catalogers. More participants are being sought. Please contact Sherl Johnson at 202-268-5185 for more information. Review of Endorsements with "Or Current Resident" Pieces Suggested . Chris Rebello described a desire by mailers to increase response rates and decrease costs by having mail pieces which request Address Change Service (ACS) handling, can also be delivered to " Current Resident" rather than returned since ACS could provide the address change electronically. Citing benefits to mailers and the USPS , several MTAC members expressed interest in working with the USPS to explore ways to decrease cataloger cost for returned catalogs by reviewing several endorsements and their handling processes. Rocky Mathews of the USPS indicated there needs to be re-education in the USPS to meet today's keying environment and expressed interest in working with MTAC members to review endorsements, reduce nixies and discuss the issues, including the possibility of integrating Shipper Pay Forwarding as part of a new endorsement. Those interested in the working group should contact Dan Minnick. Mailing Facility Liability if Mail Owner Defaults on Postage Check Being Reviewed Lee Epstein summarized the issue and recommendations made at the meeting he and MASA/MTAC representatives Dan Harle, Dan Goodkind and David Weaver had with USPS Finance officers Mike Reilly and Richard Porras. The recommendations include changes in wording of the 4/1/93 USPS notice; wording in Form 3602; and recognition that a client's check to the Postmaster is a transaction between the USPS and the client, and not between the USPS and the lettershop or presenter of the mail. A joint industry/USPS working group is being formed and Richard Porras is seeking USPS representatives to participate in the working group. Plans for 3C Nonprofit Classification Reform John Dorsey of the USPS reported the formation of costing teams to design studies and the formation of 2C/3C nonprofit steering groups to examine 2C/3C structure, general eligibility and mail preparation requirements. The groups will prepare a proposal, not a filing, to the Executive Committee, Board of Governors, and the Postal Rate Commission before the end of the calendar year. A meeting of the steering groups will be held on June 29. The aggressive schedule is being set in order to use the last year as the test year for cost basis. Dan Minnick, Industry Chair Third-Class Subcommittee MTAC MINUTES FOURTH-CLASS SUBCOMMITTEE June 14, 1995 Ed Meszaros, Industry Chair Tom Higgins, USPS Coordinator Ed Meszaros opened the meeting at 10:40 am. The meeting began about 20 minutes early due to the General Session not running as long as planned. Phil Parizino was introduced. He talked about the realigning of the Automation Bar Code (ABC) Group. Now the ABC groups are going to be attached to an MTAC subcommittees, the parcels ABC Group is attached to the Fourth-class subcommittee. The ABC Groups deal with technical issues in detail. John Sadler from the Chicago Rates and Classification Service Center (RCSC) discussed the Manifest approval system. In 1993 granting approval was instituted at the District level. The district checks to be sure the customer's system worked properly. A national program to certify manifest software is being developed. This will certify the software only, not the system. a discussion about the Postal field employee not knowing the system and denying certification occurred. Mr. Sadler said certifying the software will eliminate some of this problem. The USPS employee will only have to verify the system hardware and quality procedures. Included will be training of the field employees on the correct certification procedures. Several questions about manifesting specifics were asked. Among them were how to deal with mail bearing the wrong indicia but the correct postage and the number of decimal places needed on the manifest and scale. Regarding indicia/postage, no exceptions have been granted to John's knowledge but the issues needs to be dealt with. The number of decimal places required are 3, to the thousandths place. Next Rodger Garrett introduced himself and presented his professional background, 20 yr. with Xerox, Commercial Office Environment (Steelcase), including President and CEO, became consultant in 1991, then entered the Postal Service. As Group Product Manager, Established Businesses he is attempting to evolve the USPS into a more market driven organization by accelerating the profitable growth of its established product lines. This effort involves 6 points: - Add value to the existing established business product lines. - Optimize volume and revenue growth opportunities in products with high growth potential. - Create strategic alliances and business partnerships to improve business components. - Develop brand identities that achieve competitive advantage in target markets. - Set requirements for and monitor the implementation of established businesses marketing strategies for advertising, promotion and sales support. - Set the requirements and implement pricing and classification reform. Mr. Garrett thanked the parcel mailers for embracing his entry into the USPS and making the transition smooth. Ed introduced Pete Zeranski who began by discussing Parcel's Classification Reform. The target to reform pricing is a tight window, NLT late fall, this is meeting with resistance. The need to reform entire parcel product line by changing classification in steps is being debated. A Strawman has been circulated internally, and with customers through the PSA. This effort will proceed with customer involvement. Image of parcel post will improve through the development of Branded Identity and a Thematic Banner. The USPS logo carries with it positive attributes. Parcel Post boxes will go on sale in Atlanta, then Nashville and San Diego. This will lead to the development of a flat rate box and some specialized applications. Pete asked any shipper's wanting to use the parcel post or USPS logo on their containers to contact him. An extensive direct mail advertising campaign is planned for the fall. Home health care, computers, and lighter weight products in general are the target segments. Concepts being tested include an integrated, centralized voice mail message and the delivery of a package. Integrated postage payment/manifest systems allowing mailers of small volumes to produce a bar coded mailing label and manifest at same time. Parcel upgrade to Priority mail is continuing at window units. Jon Moravec then provided a Major Mailer Tracking Pilot update. This is the testing of Tracking and Tracing at the BMCs using a 16 digit barcode applied to a package by the mailer. The mailer transmits the manifest to a host computer and the scanners at the BMCs compare the information scanned to the manifest. Nationwide implementation will not occur for at least a year. It was stated that this subject should be an agenda item at the next ABC Group meeting. A discussion about the length of the actual bar code being used and other applications for this technology ensued. the adoption of an industry standard barcode was mentioned and Mr. Zeranski indicated discussions regarding this had begun with Engineering. Next Joe Fogel explained how the USPS notifies customers who have "bad" bar codes. Each Bulk Mail Center Service Specialist (BSS) contacts the BSS in the customer's mailing area who in turn contacts the actual customer. A too short bar code is one such problem which would cause the BSS to contact the customer ( bar codes should be at least 3/4 of an inch in height). Also discussed were barcodes on sacks and trays. Sack bar code scanners can read trays as well. The Postal Service needs more bar codes on trays and sacks. Tom Higgins then provided a brief statement on Process Redesign as it affects parcel post. No particular class of mail, except Priority Mail, is involved. What is being looked at are processes such as delivery confirmation. Problems with getting special services included on Merchandise Return Label Service mail when it is correctly indicated on the label was mentioned. Tom Higgins will meet with Retail and discuss the problem. Ed Meszaros made an announcement to the group regarding agenda items for next MTAC. They are due to Ed or Tom by August 4 Ed Meszaros adjourned the meeting at 12:06 p.m. Ed Meszaros Fourth-Class Co-Chair Mailers' Technical Advisory Committee (MTAC) Engineering & Technology/Transportation Subcommittee Minutes Wednesday, June 14, 1995 Joe Lubenow, Industry Chair Bob Cundiff, USPS Coordinator ABC Flats Focus Group Update - Dick Funck/Sherl Johnson Dick Funck introduced Sherl Johnson so that she could present the draft notice on barcoding flat-size pieces expected to be published in the next Postal Bulletin. According to the draft notice, the Postal Service will approve two polywrap materials--a polypropylene and a polyethylene--that performed well in testing conducted in February with USPS and industry participants. Approved mailers will be allowed to obtain flats barcode discounts for submitting pre-approved mailpieces prepared in USPS- certified polywrap and following other specific preparation rules. Only specific size and weight ranges are initially approved, based on the pieces actually submitted in the tests. Further testing will be carried out in August and September, and according to Sherl, there are already 39 mailers who have requested the chance to participate. There will be at least nine polywrap vendors involved in this testing, which will involve a wider range of products, sizes and weights, and therefore is likely to result in broader ranges of acceptable mail pieces and polywrap material. Both the polywrap material and the mailer's proposed use of that material must be approved. The manufacturer of the polywrap material will receive an authorization letter from the Postal Service when a specific material has met USPS requirements. The requirements include the ability to process 1000 pieces per work hour, with fewer than one mishandling per each 400 pieces, while producing a barcode read rate of 98.6% or better whenever the address and barcode must be read through the polywrap. This letter must be provided to any mailer who wishes to use the same approved material for testing additional mail pieces. To use a material already approved, the mailer will have to submit a copy of the manufacturer's authorization with at least 25 sample pieces, satisfying restrictions on the total amount of overhang, currently limited to 3/4 inch, and the method of sealing, in addition to meeting the existing machinability requirements for barcoded flats. Laboratory tests will be conducted by the Postal Service, and if the tests are successful, a second set of sample pieces will need to be submitted for further testing in an operational environment. If these tests are also successful, the mailer will be able to receive flats barcoding discounts, for the specific type of mail piece and polywrap material tested. Of course, all applicable preparation requirements must be met, including an annotation on the mail piece, and documentation of the procedure to each location where the mail is entered. The approval lasts for one year, with annual retesting required. Mailers should allow sufficient time for the two phases of testing to take place, and for the USPS to notify field offices of successful candidates prior to mailing. For more information, call Sherl Johnson at 202-268-5185. Lee Epstein commented that the procedure seemed impractical, since not all mailers could produce two sets of samples far in advance of actual production. Sherl responded that the precautions were necessary at this time, to make sure mailers did not produce millions of polywrapped mail pieces in the expectation of receiving discounts and then end up being disappointed. Joe Schick asked if there was a way to avoid having to send the documentation to each office where mail is entered, by posting it in a way that all offices could verify that the proper approvals had been obtained. Sherl responded that this should be possible. FSM 1000 Flats Sorter - Scott Bombaugh Scott Bombaugh showed a video and reported on the new FSM 1000 flats sorter. The USPS has a contract to purchase 102 of these units, which will be deployed during a one year period beginning in February 1996. The speed of transport is 2.7 meters per second, allowing somewhat more flats per hour to be processed than on the current FSM 881. Compared to the current model, the FSM 1000 can handle more diverse kinds of flats. The size can be as small as 4" by 4" rather than 6" by 6". The maximum size is greater at 12" by 15.75" rather than 12" by 15", and there are not the orientation restrictions that apply to the current sorter: either dimension can define the height of the mail piece. The maximum weight is 6 pounds rather than one pound. The thickness can be 1.25" instead of only .75". In general, polywrapped flats and "flimsy" flats can be processed. According to Scott, the intent of the Postal Service is not to replace the FSM 881 but rather to supplement it with the new machine. There is currently no barcode reader, but testing has been conducted and some progress has been made. Joe Lubenow cautioned that mailers should not expect barcode discounts in the near future from the use of the new flats sorter. Aside from the lack of a proven barcode reader, there are issues of how many units would need to be deployed and where they would have to be placed to allow the Postal Service to consider such a step. The extension of discounts is not the sort of issue that we can expect the USPS engineering staff to address. ABC Parcels Focus Group Update - Phil Parizino Phil Parizino explained that there had been no meeting this time of the Parcels Focus group, but there would be one in September the Tuesday prior to the MTAC meeting. ABC Containers/Transportation Focus Group Update - Bob Lindsay Bob Lindsay discussed the status under the proposed classification reform of "fletters", or mail pieces which have some of the characteristics of both letters and flats, and in some cases fall within the size ranges both for letters and machinable flats. These include digest size flats, "slim jims" and other similar formats. According to a study prepared by Bob, fletters that can be prepared as machinable flats, barcoded to qualify for automation discounts, and submitted as packages on pallets, will receive either modest rate increases or rate reductions under the classification reform proposals. If they are prepared as flats without barcoding, substantial rate increases of up to 26-35% are proposed for all but the carrier route portion of the mailing. In addition, those fletters which can only be prepared as letters face a choice of a more expensive preparation method involving tabbing or some similar process to become automated letters, or substantial rate increases of 15-16% for all but the carrier route portion as nonautomated letters. Whether they are prepared as automated or nonautomated letters, the Postal Service proposes that the fletters would be prepared in trays on pallets. To change a single production line to accommodate both tabbing and traying will cost $200,000 to $250,000, according to figures provided by Bob. These issues are under discussion with the Postal Service in the classification reform Implementation Advisory Groups. PIEX Update - Rick Graff Rick Graff reported on the PIEX meeting that had occurred the previous day. With respect to the Publishers Electronic Payment System (PEPS), parallel testing is now in process. There are still issues remaining in the area of matching the computer generated copy weight with the actual weight. This issue needs to be resolved before further testing is carried out. A second pilot test that is going on involves a tracking system for major mailers with delivery confirmation for parcels shipped through the Greensboro BMC. The original testing involved several mailers. The idea is to construct an electronic manifest and then to generate reports which would indicate the arrival of parcels at the BMC and then provide delivery confirmation later on. The electronic manifest would also allow for bypass of local acceptance and verification. The next project that the Postal Service would like to undertake is something they call Information Based Processing. They are trying to identify a processing environment which describes the mail that is coming to them both as a product with a defined volume and destinations, and as a revenue generator. The PIEX group will begin looking at that at the September meeting. Status of the Automation and Bar Coding Group, its Focus Groups, and PIEX As a result of discussions among Dick Funck as chair of the Automation and Bar Coding Core Group, the MTAC executive committee, and the Postal Service, the ABC Core Group went out of existence as of the end of its June 13 meeting. The ABC Flats Focus Group, ABC Containers and Transportation Focus Group, and the PIEX committee will now be coordinated through the MTAC Engineering and Technology/Transportation subcommittee. The ABC Letters Focus Group will be coordinated through the MTAC Addressing/ZIP+4 subcommittee, and the ABC Parcels Focus Group will be coordinated through the MTAC Fourth Class subcommittee. Dick Funck and Sherl Johnson remain the industry and USPS co-chairs for the Flats Focus Group. Bob Lindsay will end his role as industry co- chair for the Containers and Transportation Focus Group, and be succeeded by Rick Kropski, who will serve with a USPS co- chair to be named. Rick Graff will continue as industry co- chair for PIEX, with a USPS co-chair to be designated. Bob O'Brien and Bob Krause will continue as industry and USPS co- chairs for the Letters Focus Group. Phil Parizino will continue as industry co-chair for the Parcels Focus Group, with a USPS co-chair to be determined. Planet Code - Tom Cinelli Tom Cinelli explained that the Planet Code is a form of reverse topology of the Postnet barcode. It uses three tall bars and two short bars to form a numeric character, while the Postnet code uses two tall bars and three short bars. Combining two numeric characters can provide for alphanumeric characters. In the further definition of the Planet Code, the first two positions identify a specific service, of which several have been defined, and then the additional characters represent data that pertains to that service. Working with information gained from the Planet Code, the Postal Service has established the technology for an Electronic Post Office in order to make that information available in a timely and secure manner to its customers. This is a Windows NT based system that allows post office boxes to be created on file servers on a network and dedicated to individual customers for the purpose of temporarily storing data that they can access. The first application to be developed is CONFIRM, which stands for Computerized On-line Notification for Inbound Reply Mail. This is a system to verify that, so to speak, the check is in the mail. The fact of a payment and the time that payment was deposited in the mail is information that has value. On the destinating side, there is value in letting the recipient know that delivery is forthcoming. This will be available for letter size mail at first because the information is being captured on the letter mail barcode sorters and then downloaded to a server and consolidated. If the mail piece crosses a barcode sorter several times, the important thing may be to know the first time a piece entered the mail stream, not every time it was processed. The initial thinking is that the system is for high volume mail, but the technology is capable of capturing a single piece. The second application is being called the Customer Initiated Payment System or CIPS. It represents an electronic bill payment alternative that is generated by including a Planet Code on top of an address block on a card. Even though there is no check included with the card in this application, there is enough information to create a debit to a payer's account based on a pre-existing authorization that has been set up. This is intended for regularly recurring obligations with constant or variable amounts, such as a tax bill, phone bill, or utility bill, rent or mortgage payment. What is important about the service is that the payer controls the timing of the payment. This is important because not every payer has the luxury of just letting his or her account be debited by anyone at any time, since the funds may not always be there. There is security because the only thing on the face of the card is the Planet Code. And there is convenience because the payer could make several payments at once just by dropping cards in the mail, which is easier than making several phone calls. From the point of view of the payee, the payment is accelerated, and it gets a number of checks out of the payment system, so it reduces processing costs. And from the point of view of the Postal Service, it does keep some volume in the mail stream, probably some 15 billion of these payments on an annual basis. In response to questions, Tom said that CONFIRM and possibly also CIPS would be going into pilot testing in the fall and winter of 1995. The issue of multiple Planet Codes on the same mail piece was being studied, but that at some point faster data processing would be required to capture all the information during the brief time interval available on the sorters. The USPS cannot slow down mail processing in order to accommodate several Planet Codes on a single mail piece. The mail having a Planet Code will not be held out or processed separately. Mailers pointed out that the Planet Code could be used for additional applications such as mail tracking and automated endorsements. It was felt that if the Planet Code could be put anywhere the Postnet code was allowed, the same technologies could be used to produce either or both formats. It was asked whether the Planet Code would replace ULTRA, the Unit Load Tracking Architecture. The Planet Code is a single code and not an architecture which would integrate the information from a number of codes and applications. We are seeking an update on the status of ULTRA at the next meeting. Tom Cinelli can be contacted at 202-268-5297 if mailers have questions or suggestions for further applications for the Planet Code. Remote Barcoding, Remote Computer Readers - Phil Pensabene Phil Pensabene reported on Remote Barcoding and the Remote Computer Reader technology. Using the remote barcoding technology, when letter mail is processed on the OCR, an ID tag is put on the back of every piece. Those pieces which are finalized on the OCR are sorted just as they have been previously. The other pieces are temporarily stored in trays and have their images transmitted to the remote coding site where human operators can take the time using computer work stations with available data bases to determine the delivery point barcode. Back in the mail processing facility, the mail pieces are removed from the trays and put onto an output subsystem (OSS) which reads the ID tag, and then applies the barcode as determined by the remote operators to the mail piece so that the mail can then be processed as automated mail. By the end of 1996, there will be 54 remote barcoding sites supporting 145 mail processing plants. The Remote Computer Reader system is interposed locally after the OCR process and prior to sending the images out to the remote barcoding site. The mail pieces may be fully or partially coded by the Remote Computer Reader process, reducing the workload of the human operators at the remote barcoding site and increasing their productivity by doing part of their work on some of the images. The kinds of images that the RCR can resolve include some handwritten addresses and some poorly typed or printed addresses that the OCR equipment could not handle. The RCR process is also offline from the OCR process and this lets it take additional time if necessary to come up with an answer. In response to questions, Phil estimated that of a thousand pieces, 500 are finalized at the OCR and another 450 or so at the remote barcoding site. The main effect of the RCR process is to reduce 25% of the key strokes needed at the remote barcoding site, both by finalizing some of the pieces and partially coding others. All the pieces processed on the OCR get an ID tag, before it is determined which of the subsystems can code the piece. This does not slow down the OCR process, Phil explained. Electronic Kiosk - Elaine McGirr Elaine McGirr reported on the Web Interactive Network of Government Services, or WINGS. This is a project involving the USPS, IRS, SSA, and VA, and aims at reducing the complexity of interacting with government by providing access to information from multiple agencies through a single interface. While a PC or terminal could be used to access the information, it would also be accessible through smart phones, and would be available to "technological have- nots" through kiosks that would be in various public locations. The Internet with its World Wide Web service and TCP/IP communications protocol are used by WINGS. But WINGS will be the same application no matter how it is accessed. The initial services, intended for availability in about six months, will involve providing general information to users. Later the system will acquire user authentication capability and secure payment methods. It could then be used to provide confidential and specific information such as the status of a Social Security account, electronic filing of benefit requests or IRS forms, and transactions such as renewal of license tags. Currently, the system is still in the developmental stage and no prototype is available. Joe Lubenow, Industry Chair Addressing and ZIP+4 APO Addressing Problem Dan Minnick began the meeting with a description of a problem which had its origin in a incorrect match by address matching software. For some APO and FPO addresses, the ZIP Code has been incorrectly changed to 09142. This is causing a lot of mail to be misdirected to the wrong overseas base. Military postal service personnel must sort through all the mail to find the few pieces which really destinate there. Figures were cited like 10 pieces from a full bag or the equivalent of 3 trays of mail culled from 20. The military has been attempting to notify mailers of this problem. They are asking the MTAC members to help "spread the word" by notifying their association members of the problem. The only address which is valid for ZIP Code 01942 is one that contains "PSC 10." Any other address should be reprocessed using current software or deleted from the address list. Although the original error has been corrected, a significant number of incorrect records have found their way onto rented lists. In addition, the military asked the members to stress that all APO/FPO addresses have delivery address lines which begin "PSC," "CMR" or a ship name such "USS KITTY HAWK." If addresses with APO/FPO last lines do not contain one of those elements, the address is undeliverable and should be deleted. Line of Travel File Paul Bakshi described the Line of Travel (LOT) file, a new product. LOT was originally developed to meet needs created by some of the proposals in the classification reform case. It will be required to qualify for the basic rate within the Enhanced Carrier subclass in Standard mail. There is also a possibility that it may be used to qualify for the high-density rate, although that is by no means certain. The product contains the following elements: ZIP Code, Carrier Route Indicator, Record Type, ZIP+4 Low, ZIP+4 High, Line of Travel Number, and Ascending/Descending Indicator. Mailers may use this product to arrange the ZIP+4 codes in line of travel order. The addresses which have the same ZIP+4 code are sorted in either ascending or descending order, per the indicator. This is not a pure walk sequence, as might be derived from using DSF or CDS to produce a sequenced mailing. If additional ZIP+4 codes are assigned to individual addresses on a block (H or F record types), they would properly be sorted immediately behind the ZIP+4 for the block face. Nor is it a "sector-segment" sortation because the addresses "within" the ZIP+4 code must be arranged in a particular order. Peter Moore stressed that this is a particularly useful tool and that software will easily access the information table during a matching process. Joe Lubenow added that this product was designed to meet proposed requirements for enhanced carrier route rates. Paul indicated the product would be available in August and will cost $800 for a yearly subscription. The product will be issued quarterly with monthly updates available. LOT has current applications as well. Using LOT, mailers can arrange their mail in sequence which is very close to the carrier's walk sequence. The Postal Service has determined that there is improved casing efficiency when mail is arranged in this sequence. Further, LOT can be used to verify or obtain carrier route assignments using the ZIP+4 code assigned to an address. There was a request that the USPS permit the use of LOT for carrier route assignment, now. Bob Krause thought that might be possible, and promised to pursue the request. ABC Letter Mail Report Joe Lubenow reported on the ABC group meeting. First, he discussed the USPS intent to put greater emphasis on assigning ZIP+4 codes at the "best depth of code." He pointed out that a firm located in a high-rise building could have up to 4 possible ZIP+4 code matches, to the street record, the building code, the code for their specific floor or suite number, and a code assigned to the firm itself. Currently, there is no distinction made between the least or most precise match: All of them have equal access to the discounts. The Postal Service is asking the industry's help to develop better ways to gather the apartment and suite information and communicate its importance. At some point in the future, apartment and suite numbers will be required for those addresses where they are needed to precisely identify the intended recipient. During the ABC meeting, Anita Bizzotto talked about using the National Deliverability Index (NDI) as a list evaluation tool. NDI is provided by both NCOA and DSF processing. The index reports on the accuracy and quality of matches made to the addresses in the list. It can provide an evaluation of how many addresses contain the complete information needed to identify a specific address. Joe also reported that the Postal Service is working with some specific industry groups to help improve the quality of address information. These include the check printers, return address labels printers and response cards. Joe discussed Address Element Correction (AEC) as an important quality improvement tool. The Postal Service is exploring the option of licensing the AEC software to DSF licensees to broaden the processing capacity. Two firms have been identified to test the process. Step 2, which sent addresses to delivery units for carrier review, has been suspended because of limited interest by participants. The Postal Service is testing the concept of using name and address files from commercial sources to resolve the addresses AEC step 1 couldn't. Used in combination, these two processes are resolving an average of 60%-70% of the addresses received. The National Customer Support Center is exploring the possibility of providing an "Express Service" on AEC processing, which would provide faster processing and return to the customer. Because AEC can only process about 15,000 records per hour, this service would be available to orders of a limited size. Classification Reform Implementation Advisory Group Report Doug Schmidt discussed Multiline Forwarding Service, a proposal to permit commercial MLOCRs to apply new addresses to mail. He indicated that a formal proposal will be given to the Postal Service during the CASS/MASS vendor meeting. Of primary concern is the security of the change of address information. Doug believes there is technology available to provide sufficient security. Currently, the Implementation Advisory Group is continuing discussion on the proposal that carrier route codes must be updated within 90 days of the mailing date. The industry has production line issues which may make the 90 day requirement difficult to attain. This issue will be the focus of the discussion at the next meeting in early July. Joe also reported that the uniform placement of address elements will not apply to delivery point barcoded mailpieces. He pointed out that this quality standard is not "complete and correct and standardized by Publication 28, Postal Addressing Standards, guidelines." This proposal means getting the address lines in the proper order, with city state and ZIP Code on the bottom line and the delivery address line immediately above. This proposal also means putting the address elements in the address record in the proper order. Suite and apartment numbers should appear at the end of the delivery address line or, if there is a space problem, on the line above the delivery address line. This may be perceived as an intermediate step between "anything that makes a match" and "complete, correct and standardized" address information. Peter expressed some reservations about the consequences of globally moving address data around in a large list environment. Computer systems will garble a certain percentage of addresses when forced to move address elements around. The cost of handling the resultant undeliverable pieces may outweigh, or significantly offset, any benefit resulting from the standardized order on the other pieces. The last proposal that Joe discussed was the annual requirement to verify ZIP Code information. This proposal applies to First, Periodical and Standard classes for the 3/5 digit presort rates. The group had agreed that it is reasonable to expect that ZIP Codes in presort mailings be correct and that annual verification is not an onerous requirement. The group has developed a list of acceptable techniques for non-computerized mailing lists.