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FY2015 Performance Report — In FY2015, the target for DPH was 42.4. The actual result was 41.5 — a difference of 0.9. We didn’t achieve the target due to an overrun of the work hour plan. Factors included additional workload from volumes and delivery points in excess of the plan; strong growth in Sunday package delivery; delay in plant consolidations; not capturing all of Network Rationalization phase 2 savings; utilization of additional work hours to improve service; additional hours from hiring, training, learning curve and turnover rate of non-career workforce; and an arbitration award affecting Level 18 Postmaster work rules. This non-career workforce is instrumental in providing flexibility while reducing salary and benefit costs for the organization based on lower wage rates. However, the additional hours have a negative impact on the DPH metric.
FY2016 Performance Plan — Achievement of the FY2016 DPH target is based on capturing work hour reductions from decreased volume (offset by the projected growth in packages) along with capturing the savings from operational initiatives.
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