During 2005 AFSM recognition rates improved by more than 2 percent while error rates were reduced by 0.4 percent. UFSM recognition rates for general mail improved by more than 1 percent while error rates were reduced by 0.4 percent. Recognition rates for newspapers increased by 45 percentage points while error rates were reduced by 6 percent. Incremental improvements to further enhance the read rates and error rates on both the AFSM 100 and the UFSM 1000 are planned to begin in late 2005.

The Automatic Tray Handling System (ATHS) is increasing AFSM 100's capabilities and reducing the labor required. It replaces the tray take-away conveyors on the original AFSM 100 with more elaborate fixed mechanization. Each ATHS automatically ejects full trays onto the transport conveyor and produces a properly labeled empty tray to replace the one just dispatched. When the run is completed, the ATHS will systematically dispatch all of the required trays and label and insert a new set of trays for the next sort plan. Deployment of 354 ATHS began in June 2005 and is expected to be completed in June 2006. Further deployment of ATHS to the balance of the AFSM 100s is being considered.

Deployment is planned of a fully automated feeding system for the AFSM 100, called the Automatic Induction system. It uses ergonomic work stations to prepare flats in automation-compatible trays. A mechanical tray handling system transports these trays to the AFSM 100 feed stations where the mail is automatically inducted without operator intervention. The first article test was completed at the end of September 2005. Deployment began in late October 2005 and is expected to be completed in September 2006.

C. PARCEL AND BUNDLE AUTOMATION

The Automated Package Processing System (APPS) is the Postal Service's next generation machine for sorting parcels and bundles of mail. It is replacing the older, more labor-intensive small parcel and bundle sorter. APPS automates package distribution and provides greater processing capacity through automatic package induction, singulation, and address recognition using an OCR/barcode reader/video coding system. The high throughput requirements (up to 9,500 pieces per hour) are supported by automated container unloading. The system also collects detailed information about each package, such as type, size, and weight; and supports in-route tracking of Delivery Confirmation codes. Deployment of 74 APPS machines began in 2004 and will be completed in 2006.

2. Remote Encoding

The automated distribution of mail relies on barcodes that represent the mailing address. The Postal Service translates the address and applies the barcode on pieces that are not pre-barcoded by the mailer. When all computer-based means of coding an address have been exhausted, an image of the address is sent to the remote encoding center (REC) where operators manually key the address information. The results are transmitted to the facility that has the mailpiece, thereby keeping it in the automated mailstream.

During the past several years computer-based image recognition improvements have been realized which significantly reduced the amount of images requiring manual keying at the RECs. As a result, the Postal Service has been able to reduce the number of RECs in the national network from a high of 55 in 1998 to only 15 today. Additional image recognition improvements are expected over the next few years which will allow the continuation of the REC consolidation effort. Three more RECs will close in 2006. Letter and flat mail image volumes continue to decrease as improvements are deployed, while ongoing deployments of APPS machines and the Postal Automated Redirection System (PARS) are providing new images to the RECs. The keying requirements for each are different and the REC handles them as separate operations.

The Postal Service is pursuing the integration of letter and PARS image coding operations as part of a larger effort to develop a replacement for the end-of-life image processing subsystem for letters. The Remote Encoding System (RES) will enable unresolved mailpiece images to be sent from a facility to multiple REC sites instead of just one designated REC as is done today. The RES architecture will be flexible to accommodate different requirements at small, medium, and large facilities. A funding decision for RES development is expected during 2006.

3. Process Improvements

A. SORTING TECHNOLOGY

The Integrated Data System (IDS) continuously collects data from all mail processing equipment in a facility. It allows applications to leverage equipment performance, statistics, and mail tracking data to better manage equipment performance, and thus improve productivity and reduce operating costs. The data collected also provides more accurate information on mail volumes and equipment utilization. More precise 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.