3. Process Improvements

        a. Sorting Technology
Over 9,000 barcode sorters have been retrofitted with an Identification Code Sort (ICS) upgrade kit. The ICS System enables mailpieces with unreadable POSTNET barcodes to be sorted using the unique mailpiece identification tag and the piece's associated ZIP Code. The ICS System eliminates the need to re-label and reprocess these mailpieces, saving two additional passes through the barcode sorters as well as associated labor and label material costs.

The ICS system now connects all of our existing barcode sorters, including Delivery Bar Code Sorters, Carrier Sequence Bar Code Sorters, and Mail Processing Bar Code Sorters. Approximately 1,700 ICS computers are linked together via three ICS Electronic Post Office Servers to provide ID Tag/ZIP data to all letter mail barcode sorters across the country.

We completed deployment of 438 Manual Modification kits for our MLOCRs during 2001. This enhancement allows the MLOCRs to process a wider range of mail, including thick mailpieces that previously had to be sorted manually. This modification has improved the machine's performance by reducing the jam rate, which is resulting in higher throughputs and reduced mail damage.

During 2001, the Postal Service deployed 101 CSBCS Stacker Modification Kits. This 21- or 25-stacker addition provides the CSBCS with the capability of sorting to a greater number of delivery points even though the volume of mail in the route (or combination of routes) may not have changed. Bin overflows, manual processing requirements, processing costs, and delays in getting mail to the carrier are being reduced. Deployment of 252 additional kits will be completed in 2002.

        b. Undeliverable- As-Addressed Mail
Development of the Postal Automated Redirection System (PARS) continued during 2001. This system will handle Undeliverable-As-Addressed (UAA) letter mail more efficiently than today’s process. The UAA mail will be intercepted earlier in the sorting process, resulting in a reduction in total handlings and processing costs. The system will notify mailers of patrons’ address changes electronically for mailers that subscribe to this service or hard copy for mailers that do not. Both services generate revenue for the Postal Service. The system will also automate processing of Change-of-Address forms.

During 2001, a field demonstration of the system’s capabilities was conducted at the Dulles, VA, P&DC. A PARS pilot is currently being conducted at the Dulles P&DC where valuable technological and operational information is being learned.

        c. Advanced Facer Canceler Upgrade
Funding was approved in 2001 to modify selected AFCSs to process mail without phosphorescence in the stamp, indicia, or meter mark. This will avoid the current manual operation required to face and cancel such mail. At least one AFCS at each of the 286 major mail processing facilities, for a total of 358 machines of the 1,086 deployed, will receive this Video Facing Modification. Deployment is scheduled to begin in 2002.

        d. Flat Mail Automation
Over 50 billion pieces annually fall into the flat mail category. In 2001, customers generated barcodes for almost 40 percent of them. Postal computer forwarding system activities also generated a small percentage of barcodes as part of the forwarding process.

An important addition to our automation processing capability has been the Automated Flat Sorting Machine (AFSM) 100. The enhanced features of this machine have enabled us to expand the benefits of automation to the flat mail stream. These features include three automatic feeding stations yielding a potential throughput of over 17,000 pieces per hour, OCR reading with on-line video encoding (i.e., real-time keying) of OCR rejects, and a tray take-away system with adaptability to robotic handling systems. This enhanced processing is providing additional flat sorting capacity. Deployment of 175 AFSM 100s was completed in 2001. A second phase, deployment of 362 machines, which will primarily replace our older and less capable FSM 881s, began in January 2001 and is scheduled to be completed in 2002. Phase 2 hardware and software enhancements have increased the read rate and potential throughput of the machine to over 20,000 pieces per hour.

During 2001, we conducted a competitive test of automatic feeders and optical character readers for the Flat Sorting Machine (FSM) 1000. The FSM 1000 can process mail, such as newspapers and poly-wrapped material, that cannot be handled by our primary flat sorters, the FSM 881 and AFSM 100. The feeder and OCR modifications will provide higher machine throughputs and lower staffing requirements. We expect to award a contract in early 2002 to enhance all FSM 1000s, with deployment beginning late in 2002.

In 2001, the Postal Service completed deployment of PLANET/CONFIRM capability on all flat sorters. This program addresses the needs of many customers, particularly national mailers who want to improve their business processes or refine customer data. PLANET/CONFIRM provides mailers with information regarding origin or destination confirmation, address correction, forwarding, and tracking.

Evaluation of Identification (ID) tag methods for flats application was completed in 2001. ID tagging will extend Identification Code Sorting (ICS) methods used in letter mail to flats. Currently, a flat-mail ZIP that has been resolved by video keying is available only for the current sorting operation. By adding an ID tag, the piece can be matched to its ZIP during subsequent distributions, also. This will greatly reduce manual keying.

A number of initiatives were started in 2001 to develop sorting systems for Delivery Point Sequencing (DPS) of flat mail. DPS processing will sort flat mail to delivery sequence for the carrier, reducing office time and increasing street time. A two-month test to observe effects and gain insight into flats DPS issues was completed in Annapolis, MD, and a development strategy has been formulated.

        e. Parcel Automation
The increase in barcoded packages is driving efforts to improve processing efficiency, including package singulation. During 2001, we deployed 7 parcel Singulate and Scan Induction Units (SSIU) to 7 Bulk Mail Centers (BMCs). These machines reduce the labor required to process parcels. By program end in 2003, a total of 38 SSIUs will be deployed to 19 BMCs.

During 2001, we deployed seven new Small Parcel and Bundle Sorter (SPBS) Feed Systems, bringing the total number in use to 271. Each system supports one SPBS, reducing allied labor required to feed mail onto the SPBS.

We continued the development of a next-generation sorter that takes advantage of the latest technology to distribute small parcels and bundles. This new equipment, known as the Automated Package Processing System (APPS), will automate the existing package processing network by providing automatic package singulation and address reading through an Optical Character Reader/Bar Code Reader/Video Coding System (OCR/BCR/VCS). The APPS includes automated container unloading to support the high throughput requirements. The system will be compatible with the Postal Service's Information Platform and will support in-route tracking of Delivery Confirmation codes. The competitive test was interrupted by the tragic events of September 11th and is planned for completion in 2002.

In 2001, we began the installation of universal sorting technology in a new 220,000 square-foot expansion of the Los Angeles Bulk Mail Center. The state-of-the-art sorting system is designed to handle four separate postal products on a common backbone. Like the APPS, this system utilizes camera-based recognition technology with OCR/BCR/VCS capability for optimum efficiency. Full-scale activation of the system is expected to take place in 2002.

        f. Business Mail Acceptance
The Postal Service has automated the labor-intensive process of evaluating bulk mailing eligibility for work-sharing discounts. The Mailing Evaluation Readability and Lookup INstrument (MERLIN) verifies nearly all mail preparation requirements for both letters and flats. It produces all reports necessary for mailing acceptance and provides images of preparation problems for the mailer to support process improvement. Deployment of the first 200 MERLIN units began in 2001. An additional 1,003 units were purchased in 2001 and will be deployed as a continuation of the first phase effort. Completion is expected in the fall of 2003.