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Mail Service Performance

Mail Service Performance. An International Perspective Ross Hinds Director Operations & technology Presentation at July 11 Full Workgroup Meeting. Outline. How it was! Why measure How to measure Counting Sampling Technology for postal measurement International sampling systems

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Mail Service Performance

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  1. Mail Service Performance An International Perspective Ross Hinds Director Operations & technology Presentation at July 11 Full Workgroup Meeting

  2. Outline • How it was! • Why measure • How to measure • Counting • Sampling • Technology for postal measurement • International sampling systems • European Union postal law changes MTAG 11 July 2007

  3. Letter Performance 1909 MTAG 11 July 2007

  4. 16 March 1909 12.30pm 17 March 1909 6.00pm MTAG 11 July 2007 IATA World Cargo Symposium March 2007 4

  5. 1909 from Ireland to Belgium • Ordinary rate postcard • Arrived in one day • Handled by postal service in Ireland, Britain, Belgium • Exception reporting the norm – all mail expected to be cleared at the time of arrival and it was • Excellent service! MTAG 11 July 2007

  6. Why measure? • Can only manage what is measured • For customer to know end-to-end time • For regulator to know if requirements met • For Post to know segment by segment • For Posts internationally to assess how much to pay each other MTAG 11 July 2007

  7. How to measure performance • Count actual items meeting specified objectives • Each item must have a unique identifier(text, barcode, RF-ID,…) • Passage of item through mail pipeline is recorded event by event • Events are collected in central system • Reporting systems • On-time delivery • On-time return of delivery information MTAG 11 July 2007

  8. Identifying a mail item UPU Standard Barcode IATA World Cargo Symposium March 2007 8

  9. Mail pipeline instrumentation Sorting Centre Office of Exchange Office of Exchange Sorting Centre Delivery Office Addressee Posting Carrier Postal Item Technology Registered letter Barcode scan Parcel, Express… IATA World Cargo Symposium March 2007 9

  10. IPC measures for identified items • Over 130 postal services performance for EMS (Courier) service worldwide • Similar measures for Parcels, registered and insured letters • Objective is to ensure target level performance is achieved • Payments between Posts based on performance in IPC reports • Data flow is continuous 24 hours X 7 days MTAG 11 July 2007

  11. Where no identifier existsStatistical sampling techniques • Sample the mail pipeline using the date stamp • Simple, cheap and doubtful • Post test mail and record posting & receipt date, giving end-to-end • Effective if posting & receipt by independent people • Not useful for postal operations diagnosis • Post test mail with RF-ID tags • Segment by segment analysis for operations • Sampling issues • What characteristics of mail to measure? • Is the sample representative & what precision? MTAG 11 July 2007

  12. Mail pipeline instrumentation Sorting Centre Office of Exchange Office of Exchange Sorting Centre Delivery Office Addressee Posting Carrier Postal Item Technology Registered letter Barcode scan Parcel, Express… Test letter RF-ID reader IATA World Cargo Symposium March 2007 12

  13. Postal RF-ID Network

  14. RF-ID IPC/Lyngsoe postal tag

  15. Battery Low Frequency Radio Aerial Tag electronics with UHF aerial RF-ID IPC/Lyngsoe postal tagnow generation 6 after 10 years

  16. RF-ID measurement point The Excitercontinuously generates a magnetic field at 125 kHz Activated, when a Postal Tag enters the field. The tag transmits its code and battery status and the embedded reader ID. The Reader receives the signal and adds reader ID and time stamp to the tag data. The Reader transfers the collected data to the Site Server.

  17. RF-ID Reading Points

  18. RF-ID Reading Points

  19. RF-ID Reading Points

  20. RF-ID Reading Points

  21. RF-ID Reading Points

  22. RF-ID Reading Points

  23. Postal RF-ID experiences • Over 10 years in use for measurement • Automates data collection with no change to postal operations, & readings invisible to staff • A niche use of RF-ID • 500,000 tags total to date • Components have been continuously enhanced :GenerationRF-ID tag 6Reader 6Local server 3 • Patents owned by Posts through IPC • Lyngsoe of Denmark & Canada develop and manufacture as IPC partner

  24. Letter Service Performance Measurement • UNEX Country System • Complex specification varying urban/rural, payment method, induction method, envelope size and weight, machine and handwritten addresses • City system • Simple specification of key cities, stamped, street or post office posting box, up to 50 gm letter with machine written address • UPU Terminal Dues Target system • Inbound only measure with City specification

  25. New: Bosnia-HZ (part), Bulgaria, Croatia, FYROM, Turkey 2008 IPC Members Other Posts participating in a UNEX System UNEX System

  26. Experiences in sampling • Tendency to over-complicate the measures • Accuracy needs postal operations scrutiny • Panellists not always careful in data entry • Future directions • RF-ID reader in recipient letter box (trial 4Q07) • GPS/RF-ID reader at posting box (trial planned) • Precision to be approached with care – one driver of cost • Measurement perturbation • Test mail the major flow on small volume routes?

  27. European Union • Key facts • 27 member states • 490m people (US 301m) • Land area 4.3m sq km (US 9.8 sq km) • Legislation • European Commission makes proposals • Council of Ministers and Parliament discuss and amend proposals but can not initiate them • Directives implemented by national legislation • Proposed 3rd Postal Directive at Parliament now • Aim is free postal market but with a Universal Service Obligation for some postal operators MTAG 11 July 2007

  28. EU Postal directives 1997 & 2002 • Universal service obligation • 5 days per week minimum • Letters to 2kg, packets to 10kg minimum (20kg max) • Reserved to Universal Service Provided below 50gm or 2.5 times first weight step of fastest service • Uniform tariff optional to each member state • Service objectives • Cross-border objectives for fastest standard service • Speed J+3 85% 94% actual 2006 • Reliability J+5 97% 99% actual 2006 • Publish results every year MTAG 11 July 2007

  29. Domestic service objectives • Variety of domestic service objectives • Most changed from content-based pricing • Priority (J+1) & non-priority service (J+2,3..) • Weight or shape based pricing too • Services differ • Italy introduced Prioritaria service forJ+1 & later moved single piece mail to Non-Massivo new service • Ireland to one service for single piece mail • Portugal has Priority (Azul) service J+1 and non-priority J+3 • Different rules: non-priority only at post office and not in street letter boxes MTAG 11 July 2007

  30. Reliability EU Objective J+5 97% Speed EU Objective J+3 85% UNEX-18 Official Europe 2006-1994 % Cumulative Performance J+n Performance

  31. Measurement Standards of CEN (EU ANSI) EN13850 Single piece priority mail transit time EN14508 Single piece non-priority transit time EN14534 Bulk mail end-to-end transit time EN14012 Complaints EN14137 Loss of registered mail EN15511 Information on postal services EN13850 is mandatory for domestic & cross-border MTAG 11 July 2007

  32. Current status in Europe • EN 13850 (Priority) used in all EU & EEA • EN14508 (Non-priority) use increasing • J+1 the basic objective for priority (First Class) mail, with J+2….J+6 objective too in many cases • CEN aims to simplify measures to reduce cost • Trend to have Universal Service Provider manage the measures • International objectives included in some national regulatory requirements MTAG 11 July 2007

  33. Some effects of liberalisation • Multiple postal operators in each country • UK, Germany, Netherlands • Unitary price not obligatory • Pricing by delivery address characteristic • Geographical pricing • Market to determine the delivery standards • If not satisfied use a different supplier • Universal Service still required by law • Measurement aimed at postal services for the consumer MTAG 11 July 2007

  34. Mail pipeline instrumentation Sorting Centre Office of Exchange Office of Exchange Sorting Centre Delivery Office Addressee Posting Carrier Postal Item Technology Registered letter Barcode scan Parcel, Express… Test letter RF-ID reader Normal letter High speed barcode scan IATA World Cargo Symposium March 2007 34

  35. Letter 2-D barcodes IATA World Cargo Symposium March 2007

  36. Mail pipeline instrumentation Sorting Centre Office of Exchange Office of Exchange Sorting Centre Delivery Office Addressee Posting Carrier Postal Item Technology Registered letter Barcode scan Parcel, Express… Test letter RF-ID reader Normal letter High speed barcode scan Test letter Acceleration History IATA World Cargo Symposium March 2007 36

  37. Acceleration HistoryFlight 8.30-12.30 Sat 20/2 Aircraft movement Bulk Sorting

  38. Averages – a note • Large mailers concerned about their own mail not average • For tracked products individuals also concerned only about their own mail • For small mailers without tracking need average numbers • Averages are only that • May not reflect anyone’s experience • Useful for trends MTAG 11 July 2007

  39. Summary • Many different approaches to measurement • Counts are better than sampling in principle but • As a by-product of operations • IPC has over 10 years experience of many of the issues and is happy to make it available MTAG 11 July 2007

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