As the technology for computerized resolution of addresses improves, the percentage of mail requiring manual keying at the RECs is reduced. Currently, the reduction of keying requirements due to improvements in computerized encoding is being offset by the addition of keying requirements for other products. Flat mail keying was moved from the plants to the RECs and is being joined by images from the APPS and the Postal Automated Redirection System (PARS).

Although these keying operations are co-located at the RECs, the keying requirements for each are different, and the REC handles them as separate operations. The Postal Service is pursuing their integration. The Universal Coding System (UCS) will replace the end-of-life image processing subsystem for letters and will provide the infrastructure to key all images on common workstations. This will increase REC productivity, as well as facilitating REC consolidation. A funding decision for development of UCS is scheduled for January 2005.

3. Process Improvements

a. Sorting Technology

The Integrated Data System (IDS) continuously collects data from all mail processing equipment in a facility. The system allows managers to better match equipment and staffing to workloads, which improves productivity and reduces operating costs. The data collected also provide more accurate information on mail volumes and equipment utilization. More accurate information by destination and availability for dispatch make it possible to reduce transportation costs. Equipment data also provide the basis for activity-based costing models which can be used to better control operating costs.

Installation of IDS data collection servers (DCS) was completed in the 21 bulk mail centers (BMCs) during 2004, bringing the number of IDS-equipped plants to 321. Networking of BMC sorting equipment to the IDS DCSs continued through 2004. Software to generate locally useful management reports and displays was developed and is being tested in preparation for BMC system-wide deployment. Intelligent Mail initiatives and mail tracking will increase the volume and complexity of this data. Updates of IDS software to handle these increases were developed during 2004 and are being tested.

b. Undeliverable-As-Addressed Mail

PARS automates the handling of undeliverable-as-addressed (UAA) letter mail, intercepting a portion of it in the early steps of the distribution process to reduce handling and processing costs, and improve service. The system electronically notifies mailers who subscribe to the Address Change Service (ACS) and provides hard copy notification to mailers who add an endorsement to their mail piece. Both services generate revenue. The system also automates the processing of change of address forms.

During 2004 the Postal Service completed Phase I testing and first article installation. Phase I includes comprehensive implementation of the PARS program in 49 processing plants, all RECs, and all delivery units. Additionally, a scanner will be deployed into selected Computerized Forwarding System units to automate the processing of change of address forms. PARS Phase I deployment began in August 2004 and is expected to end in December 2004.

A funding decision on the second phase of deployment, which is expected to cover most of the remaining UAA letter mail, is planned for July 2005. Approval would lead to a two-year deployment starting as early as September 2005, provided that the Postal Service can resolve outstanding issues relating to its ability to use the PARS technology developed by a contractor.

c. Advanced Facer Canceller System Doubles Detector and Ink Jet Canceller Upgrades

When mailpieces stick together on automated processing equipment, the mailpiece identification code on the back of the pair will not match the address on the front, and subsequent additional handling is required to correct the error. The Doubles Detector (DD) for the Advanced Facer Canceller System (AFCS) will reduce these associated rehandling and remote keying requirements and improve delivery performance. A contract for the AFCS-DD was awarded in June 2004. In-plant testing is scheduled for December 2004 and first article testing is planned for January 2005. Deployment of 1,086 systems will occur from February through October 2005.