Agenda

1. Webinar #9 BMEU Process OptimizationPresented byPritha Mehra Vice President, Business Mail Entry & Payment TechnologiesandLaurie TimmonsCustomer Relations Manager, NortheastFriday, January 9, 2009

2. Agenda • Sarbanes-Oxley Act (SOX) • Performance Based Verification (PBV) • Lean Mail Acceptance Process (LMAP) • Intelligent Mail Barcode (IMB)

3. SOX • Completion of Mailers section of Postage Statement • Completion of USPS section Postage Statement • Properly Performed Verification Procedures • Timely entry of Postage Mailing statements • Business Mail Oversight Management

4. Training • DM 109 Training • Highlights Key Processes in Business Mail Acceptance • DVDs shipped Dec 1- Dec 17 • DVD Available Online • Goal is for acceptance employees to complete the training and assessment by January 30, 2008. • CSPA are reporting completion rates for their area, on weekly basis.

5. PBV • Sarbanes-Oxley Act (SOX) • Performance Based Verification (PBV) • Lean Mail Acceptance Process (LMAP) • Intelligent Mail Barcode (IMB)

6. What is PBV? • PBV is a new Intelligent Verification model • Integrated with PostalOne! • Prompts Clerks to Perform Verification based upon: • Past Verification History of Mailer • Verification labor costs • Estimated Cost Avoidance or Additional Postage Collected

7. PBV Process Flow • Mailer brings in Mailing • BME clerk enters Postage Statement into PostalOne! • PBV model determines if Verifications are Required • PBV notifies Clerk of Verifications to be performed • Verification results are captured in PostalOne! • Automated communications between MERLIN and PBV • Performance Reports/ Management Reports

8. BME Reports Performance of Verifications Performance of Manual on Auto-Rate Late Statement (under test) No Activity Report (under test) Override Report (under test) Mail Quality Reports Mail Preparation Quality Move Update Report PBV Reports

9. PBV Performance of Verifications Report

10. PBV Performance of Verifications Report

11. Move Update • New Move Update Rules for First-Class and Standard Mailers effective Nov. 2008 • PBV sites are enabled to perform Move Update Verifications • MERLIN captures image of Recipient and Address • Data is sent to NCSC and compared against the Change of Address Database • Aged addresses are displayed via Reports • It is very important that clerks at PBV sites share reports with Mailers • Preparation for assessments in May 2009

12. Move Update Report • Move Update Address Validation Summary Report

13. PBV Deployment • National Training was held in Norman Dec 2 – 12, 2008 • Train the Trainer • Each district selected two people that attended training • Deployment Schedules are in place • Training should be completed by March 16, 2009 • Last End Deployment Date is March 23, 2009 • Goal is for all units to be completely deployed by March 23, 2009

14. PBV Deployment Status

15. Lean Mail Acceptance Process (LMAP) • Sarbanes-Oxley Act (SOX) • Performance Based Verification (PBV) • Lean Mail Acceptance Process (LMAP) • Intelligent Mail Barcode (IMB)

16. What is LMAP? • Product of Lean/Six Sigma analysis of BMEUs • Conducted in the Northeast and Southeast Areas • Focus on removing waste steps • Focus on unit configurations • Focus on peak demand processes

17. LMAP Improvements • Establish dock changes for mail flow control • Improved mail flow • Customer throughput • Stage/mail clearance dock space • Large/small mailing check in points • Staged and cleared mail clearly identified

18. LMAP Improvements • Reconfigure unit – put work function closer to mail • Realigned/moved equipment and workstations • Moved BMEU facility • Improved continuous mail flow, reduced extra steps, safety conditions

19. LMAP Improvements • Establish “team” mail acceptance process • Organized DM109 tasks, resources, and visuals to workstations. • What was improved • Pace verification rate to customer mail demand. • Aligns mail flow with PBV

20. LMAP Improvements • Establish visual controls to “trigger” acceptance steps • Assigned placard colors/numbers to each mailing • Placed In-Process Kanbans (IPK) at the end of workstations • What was improved • Uniquely identifies each mailing and verification state. • Ensures FIFO order, signals next task to start, identifies/resolves abnormalities.

21. LMAP Benefits • LMAP Benefits • Improved operational efficiency • Standardizes acceptance and verification processes • Enables ability to improve productivity, quality, and cost goals • Increased compliance of financial controls

22. LMAP Deployment • Training under development • Webinar • Target start date for training is February • Implementation of Process Changes • Approximately two weeks

23. Intelligent Mail Barcode (IMb) • Sarbanes-Oxley Act (SOX) • Performance Based Verification (PBV) • Lean Mail Acceptance Process (LMAP) • Intelligent Mail Barcode (IMB)

24. Intelligent Mail Barcode (IMb) • Preparation for Intelligent Mail Deployment • Phase 1: January/February • Customer Education and Awareness • Field to conduct customer awareness sessions • Video and guides • Intelligent Mail University Regional Sessions • Customer Supplier Agreements • Phase 2: April • Employee System Training and New Verification Procedures • Site Readiness

25. ANY QUESTIONS??

26. Join us next week on Friday, January 16th for: “Commercial First-Class and Standard Mail Measurement” presented by Tom Day Senior Vice President Intelligent Mail and Address Quality