• Expand standardized processes.
• Continue equipment, technology, and facility investments.
• Broaden customer partnerships.
• Rationalize facility networks.
• Streamline and create flexibility in the transportation network.
• Optimize business processes.

1. Expand Standardized Processes

Breakthrough Productivity

Launched in 2001, the Breakthrough Productivity Initiative (BPI) helped focus and structure efforts to use process improvement to drive productivity gains throughout the organization. BPI uses comparative monitoring and performance ranking in operating units across the country. Higher performing units are used as models and are studied to identify best practices. Standard procedures are established based on best practices and training is developed to share performance expectations. Targets are set to drive performance toward the highest levels. When BPI targets are achieved, responsible teams and employees are recognized and rewarded.

BPI will continue to be one of the major tools driving performance to the highest levels in all operations. The Postal Service's experience with BPI is an excellent base for targeting new cost savings from opportunities that remain in many areas. During 2006–2010, the Postal Service will significantly expand standardization activities. Quality control methods such as Six Sigma and Lean Management will be used to reduce variation and improve critical processes.

Delivery

The Postal Service has had success controlling rising delivery expenses through automation efforts such as delivery point sequencing for letters. However, delivery remains the largest cost center, accounting for 43 percent of all expenses. Each year up to 2 million new deliveries are added to the network. Over 3,500 new routes would have to be added every year if the delivery infrastructure were to grow by the same rate.

Controlling growth in costs from new deliveries is a key challenge. Combined with slower revenue growth, increasing costs would create a gap in cost coverage that will impair postal finances. Aggressive management has minimized delivery infrastructure expansion, as the following charts illustrate. Although 5.5 million new deliveries were added since 2002, the number of city delivery routes declined over that period. The number of rural routes increased, but at a rate slower than the growth in new deliveries.