Flats Sequencing System FSS

1. Flats Sequencing SystemFSS Rosa FultonExecutive Director, FSS

2. Agenda • Dulles Pre-production Status • Mailing Industry Concerns / Status • FSS Implementation Communication • Conclusion & Questions

3. FSS Deployment Timeline • Prototype – Indianapolis IN Apr 2006 • BOG Approval 100 Production FSS Machines Dec 2006 • Pre-production Install – Dulles P & DC Sept 2007 • Production First Article Jul 2008 • Phase 1 Deployment Begin Oct 2008 • Phase 1 Deployment End Oct 2010

4. Dulles Pre-production Status • Install Complete Oct 2007 • Integration/ Machine Testing Nov 2007 • Employee Training Nov 2007 • Live Mail Testing Dec 2007 • Official Acceptance Testing Jan 2008 • Full Machine Ramp Up Feb 2008

5. Dulles FSS Installed & Running Test Decks

6. Dulles FSS Installed & Running Test Decks

7. Dulles Stand Alone Mail Prep (SAMP)

8. Dolly Induction AFSM 100

9. Dulles Pre-production Operation • Operational for 1 Year • Pre-prod FSS Will Process Mail for Zones: • Falls Church 22043 and 22046 • Fairfax 22030 • Burke 22015 • Culpepper 22701 • McLean 22101 • Alexandria Belleview 22307 • Alexandria Engleside 22309 • Sterling 20164 • Reston 20190 and 20194

10. Mailing Industry Concerns • Address Location / Address Construction • Consistent Address Location • 11-Digit POSTNET or IMB Barcode • Font Size / Lines and Character Spacing • Mail Entry • Entry Points • Critical Entry Times • Mail Prep Changes

11. Standard Address Construction / Placement • Federal Register Proposed Rule • Published 10/10/07 • Comment Period Through 12/10/07 • Address Construction / Barcode • 11-Digit POSTNET or IMB Barcode • Minimum 8-point Type (approximately 1/10-inch high) • Address Lines Cannot Touch or Overlap • No More Than 3 Blank Spaces

12. Orient Address Location for Carrier Street Handling Implement MTAC Workgroup 101 Results John Doe 123 Main St Anywhere, USA 12345 • This could represent the front cover or back cover of the mail piece. • Customer address and optional delivery endorsement can appear anywhere in the address zone (top third above the dotted line) when the bound edge is aligned to the right. • Customer number, source code and messaging can appear anywhere on catalogs. John Doe 123 Main St Anywhere, USA 12345 John Doe 123 Main St Anywhere, USA 12345 Can be left or right justified, or centered. Can face left or right John Doe 123 Main St Anywhere, USA 12345 Address orientation restrictions will be determined by the USPS (e.g., cannot read upside down when at the top) based on the needs of delivery. Binding or Final Fold Standard Address Placement

13. John Doe 123 Main St Anywhere, USA 12345 John Doe 123 Main St Anywhere, USA 12345 John Doe 123 Main St Anywhere, USA 12345 Can be left or right justified, or centered. Can face left or right Standard Address Placement • Orient Address Location for Carrier Street Handling Specific Standards • Bound or Folded Pieces • If parallel to top edge, entire address block within 3 inches of top • If perpendicular to top edge, one edge within 2.5 inches of top • Enveloped or Polywrapped • No “bound edge” applies- top is either shorter edge • Inserts must be secured • Both • Address block must be at least 1 inch closer to the top than to the bottom Basic Standards • Minimum 1/8 inch from any edge • Parallel or perpendicular to top edge • Cannot be upside down in relation to top edge

14. Mail Entry- What’s On Your Mind? • Number of Entry Points? • Critical Entry Times (CET’s)? • Service Measurement Proposal • National Standardized CET’s • Standard Mail and Package Services • Local CET’s • First-Class Mail and Periodicals • Local Operating Conditions • What About CET’s for FSS?

15. Preparation- What’s On Your Mind? • What Prep Changes Will be Needed? • Current State → Future State • How and When to Transition to FSS Environment? • What is Being Considered Now? • MTAC Workgroup 115 • USPS Looking at End-to-End Flats Flow and Data Exchange

16. What’s Critical? • Communicating the Changes • Recognize Communication is Critical • Believe We Have Many Vehicles in Place • You Are in a Better Position to Evaluate Results

17. New FSS Workgroup Proposal “FSS Implementation Communication Workgroup” • The FSS Program Will Impact How Flat Mail is Constructed, Prepared, Presented and Scheduled For Entry • Potential Price Changes Will Influence Business Decisions and Operational Processes for Customers and Flat Mail Stakeholders • The Phase 1 Deployment Strategy Involves Incremental Adding of FSS Zones Over a Two-year Time Period Resulting in the Need For Timely and Consistent Communication to the Respective Stakeholders in the Mailing Industry

18. FSS Communication Workgroup Desired results • Identify Key Stakeholders Impacted by the Implementation of FSS • Identify and Define the Key Messaging Premise Required • Evaluate the Timing and Frequency of Messaging • Identify Existing Communication Vehicles and Their Value • Evaluate Additional Communication Vehicle Opportunities • Identify and Analyze Current Relevant Feedback Mechanisms • Map Process For Executing a Successful Communication Plan

19. Today’s FSS Changes & Resources • Federal Register Proposed Regulations Posted on RIBBS (New Address and Barcode Requirements for Automation, Presorted and Carrier Route Flat-Sized Mail) • Allows for 60 Day Comment Period • Objective is to Provide One Year Preparation Period • Flats Symposium Q&A’s Posted on MTAC Website Shown Below • FSS Workshop in a Box Scripted Presentation Available for Download at: http://ribbs.usps.gov/mtac.html • New FSS Video

20. Summary • FSS Pre-production Install Underway • Federal Register Proposal Published • Continue Collaborative Effort and Increase Communication • Create Lowest-Combined-Cost System