Mail Network Optimization Project

Mail Network Optimisation project focuses on postal (mail) business, which account above 50% of the department’s revenues

India Post’s revenuesPercent

100% = INR 5,862 crore

48 52

SB & Financialservices

Postalreceipts

9

22

69

International mail

Speed post

Ordinary and registeredmail

Mail RevenueRough estimates in percent

Scope of the project

"Get the core right"

"Modernise the look and feel"

▪ Improve India Post's appearance to make it more trustworthy and reliable for customers

▪ Broad approach to upgrade processing facilities and improve working conditions for employees

▪ Make staff and customers proud of being associated with India Post

▪ Optimise India Post’s mail network from collection to delivery

▪ Standardise processes with focus on quality improvement and reduction in complexity

▪ Establish an effective performance manage-ment structure using KPIs and regular reviews

Approach particularly reflects strong need for immediate tangible impact

Geo

grap

hica

l rea

ch

Speed Post & International mail

First class Second class

Prioritycities

All India 2012

Scenario-based design and pilots Scenario-based design

"Wave 1" "Wave 2" "Wave 3"

2011

Roll-out

Product range

Project Roadmap

Recognition of the efforts

7.1.5

Effort of India Post in implementing MNOP awarded with e-Governance 2012-13 award

National Award for e-Governance

7.1.6

MNOP and Speed Post operations

Objective

• Reach a new level of excellence in speed post handling

• Educate each user in the system the overall perspective and the importance of his/her role in achieving excellence and meeting the commitments to customers

• Adopt standard practices in operations across all handling units

• Bring in transparency by generating viable and transaction specific MIS to improve the monitoring process

What excellence is aimed at?

• Maximize next day delivery of articles within and across cities

• Bring in reliability to the service• Provide efficient after sales service

through increased visibility for the articles passing through the system

• Enhancing the look and feel

What are the changes?

• Optimising the processing centres – introduction of sorting hubs

• Standardising the equipments• Realigning the layout in processing centres to

improve handling processes• Stringent commitment to cut off times in bag

closing processes

Introduction of sorting hubs

• Bag handling process rationalised through introduction of sorting hubs to – reduce the number of bags handled– bring in cost effectiveness– achieve scalability

• 89 SPCs identified as sorting hubs on the national network that can close bags to each other; These are specialised processing centres

• Intra circle hubs introduced to handle mail pieces within the circle

• Booking interfaces not reduced• POs are mapped to hubs• Overall expedited processing, transit and delivery time, reduced

sorting complexity (back-routing to a small fraction of mail notwithstanding)

Rationalising booking and delivery

• Booking and delivery processes are through POs • POs to segregate articles as TD or NTD only and close two bags

to parent sorting hub or IC hub(if available)• 89 SPCs which are now sorting hubs are optimised as exclusive

processing centres• BNPL centres handle articles from bulk customers with large

volumes• MBCs, RMS units and OSAs(collection agents) also book articles• Post offices also accept BNPL articles and maintain accounts of

customers subject to certain restrictions in payment processing

Revising layouts

Sample of new layout Introduction of assembly line functioning in hub

Standardising equipments

Sorting Cages

Bag cutter and stool Tray trolleysRoller containers

Commitment to cutoff times to improve D+1

Non-TD sortingTD sorting (from own POs)

TD sorting (from Rest of India)

Rationale Sort rest of India volumes before outgoing flight

Sort TD from own POs while “waiting” for flight receipts

Sort TD from rest of India after receipt from incoming flight

Receiptfrom PO

Cut-off to ensureflight connectivity

Receipt of itemsfrom other cities

Cut-offfor POs

Performance monitoring through KPI analysis

Inter-national reports

Scan com-pliance reports

Transit analysis within city

Transit analysis across city

Time per leg of transit within city

Time per leg of transit across city

Scans compliance in the entire network

Scan analysis per leg of transit within city

Scan analysis per leg of transit across city

Percent of F-scans in SpeedNet vs. F-scans in IPS1

Share of SpeedNet Delivery scans vs. IPS F-scans (TBD)

Articles processed per hour per FTE

Staff absenteeism

Share of bags without bag labels

Share of articles not processed in SpeedNet

Share of articles closed after cut-off time

Share of missorted articles

Share of articles with missing pin codes

Share of articles not dispatched same set

Percent of F-scans in IPS vs. D-scans in IPS

D+X reports

KPI What does it do?

Measures for international inbound article the efficiency of movement at every step before merger with Speed Post

Support-ing KPIs

Measures for each processing step whether articles got scanned as prescribed

Measures speed and reliability of processing of Speed Post articles from booking to delivery

Supports achieving better D+x and scan performance

1a

1b

1c

1d

2a

2b

2c

3a

3c

4a

4b

4c

4d

4e

4f

4g

4h

3b

IMPACT OF MNOP ON SPEED POST

Distribution of delivery %

35.6131.32

1.13 0.26 0.04 0.04 Percentage of Articles de-livered in D+1Percentage of Articles de-livered in D+2Percentage of Articles de-livered in D+3Percentage of Articles de-livered in D+4Percentage of Articles de-livered in D+5Percentage of Articles de-livered in >D+5D+x performance of Hyderabad for artciles

addressed to Bangalore for the month of Sept 2012

39.26

48.06

9.172.47 0.40 0.64

Percentage of Articles de-livered in D+1Percentage of Articles de-livered in D+2Percentage of Articles de-livered in D+3Percentage of Articles de-livered in D+4Percentage of Articles de-livered in D+5Percentage of Articles de-livered in >D+5D+x performance of Hyderabad for artciles

addressed to Bangalore for the month of July 2014

• Observe that D+1 improved from 35.61 to 39.26 percent• Observe a marked increase in D+2 percentage from 31.32 to 48.06 percent•Observe that together D+1 and D+2 account for 87% of the articles

Improvement in D+1 %

BANGALORE CHENNAI GURGAON-SPC

HYDERABAD KOLKATA MUMBAI NEW DELHI NOIDA

September 12 8.91 16.09 1.74 4.45 42.45 8.41 1.69 3.93

July 14 29.66 30.12 10.52 30.11 87.51 16.2 23.7 21.3

5.00

15.00

25.00

35.00

45.00

55.00

65.00

75.00

85.00

Trend in D+1 percentage achievement of Kolkata SPC between September 2012 and July 2014

D+1

per

cent

age

Observe the improvement in D+1 for articles from Kolkatta to major cities

Improvement in D+X score

Improvement in D+X score at Kolkatta SPC between Sept 2012 and July 2014

Observe the improvement in TD and NTD score

Notice that both target and achievement in TD and NTD performance are reduced

Improved visibility through MNOP

Visibility on transit time

New transit analysis tool helps identify bottlenecks efficiently

Supporting KPIs help

Study of supporting KPIs help reduce errors in article handling

Flight KPI

• This is an indicator of the use of best alternative for air transit

Improvement in visibility

Study of end-to-end tracking helps in improving the visibility, thereby providing accurate tracking data to customers

Lab Exercise

14/02/2014 YRM, PTC, Mys-10, PA-ADP 1.1.29

Speed MNOP

• URL http://mnopdashboard.cept.gov.in/speedpostkpi/– All the concerned offices are provided with user

ids and password

14/02/2014 YRM, PTC, Mys-10, PA-ADP 1.1.30

MNOP and first class Mail

Network• Existing mail offices classified into L1 and L2

offices to handle first class unregistered and registered mail

• 89 L1 offices and 244 L2 offices identified• Post offices mapped to L2 office or L1 office

Mail flow process for I class mail

Post Office

Post Office

Post Office

Post Office

Post Office

Post Office

Post Office

Post Office

Post Office

Post Office

Post Office

Post Office

Level-1 mail office

Level-1 mail office

Level-2 mail office

Level-2 mail office

Level-2 mail office

Level-2 mail office

2.17.33

Permitted only under same circle

Sorting pattern• Post offices prepare two kinds of bags– A TD bag containing unregistered mail – A NTD bag containing unregistered mail– A TD bag containing registered mail– A NTD bag containing registered mail

• POs to retain station articles• L2 offices close bags to parent L1 office and mapped

delivery Post offices• L1 offices close bags to each other• The bags handled are treated as due bags

MNOP

Network redesign for Second class mail

• Existing mail offices handling second class mails reclassified as L1 and L2 offices

• 86 L1 and 241 L2 offices identified• Post offices to close one bag containing both TD

and NTD articles to mapped L1 or L2 offices• POs to place the following bags in M bag– first class TD and NTD bags for both unregistered

and registered mail– Second class bag