Mail Network Optimization Project: Optimization of First Class Mail Network & Delivery Process

New Delhi, 7th June, 2011Meeting with the Service Unions

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Project roadmap and roll-out planG

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Speed Post & International mail

First class Second class

Product range

Prioritycities

All India

2012

Scenario-based designand pilots (2010)

Scenario-based design

(2011)

“Wave 3”"Wave 1"

“Wave 2”

2011

Roll-out

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Components of First Class Mail Network Optimization

SOURCE: Source

• Integration of various networks in mail operations

• Revisiting the intra-city network• Redefining the pan-India network• Streamlining the mail flow patterno between mail offices o from post offices to mail offices and vice-versa

• Mapping of all post offices to mail offices• Delivery process optimization in post offices • Monitoring system for First Class Mail &

Registered mail

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Integration of Networks: Approach

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•First Class ordinary mail and registered mail to be integrated for collection, transmission and delivery, to be co-located for sorting• Speed Post to remain a separate network across sorting and transmission, integrated for delivery with other mail; •First Class ordinary and second class mail (excluding parcels) to be co-located for sorting, remain separate for transmission, and integrated for delivery •Parcels could be kept separate for sorting in bigger cities, but co-located in sorting where volumes are low

The integration would depend upon availability of sufficient space in cities

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Consolidation of intra-city mail network

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•Ideally, entire mail operations should be handled under the same roof in a city at an integrated facility (also required for machine-based sorting) •However, space constraints might affect consolidation plan in some cities •Depending upon space availability, the cities could have:

•One integrated mail office for all mail or,•One mail office handling first class and another handling second class mail or,•One mail office handling unregistered mail, one for registered mail and one for second class mail•Speed Post to remain separate

•Functioning of BPCs and MBCs to be rationalized and functional overlap to be eliminated•If space permits, sorting of bulk mail also be merged with retail mail, while BPCs and MBCs continue to provide booking interface

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Structure of pan-India Network of Mail Offices

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•A two-tier structure to be followed consisting of L-1 and L-2 mail offices •High volume mail offices/cities and better connected cities considered for L-1 consideration •Rest of the existing mail offices considered as L-2 offices •All L-2 mail offices mapped to L-1 mail offices •All post offices mapped to an L-1 or L-2 mail office •Mapping of post offices to mail offices currently being validated from the Circles •Only L-1 offices to close bags for each other, L-2 offices to close bags for L-1 office to which they are mapped

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Proposed Mail Flow in the new Network for First Class Mail

SOURCE: Mail Network Optimisation Project

Mail flows

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

▪ Level-1 mail offices exchange mail with each other and with selected L-2 in the Circle ▪ Level-2 mail offices exchange mail with the level-1 mail office to which they are mapped and the

level-2 mail offices mapped to the same level-1 mail office, and with selected L-1 offices ▪ Post Offices exchange mail only with the mail office (level-1 or level-2) to which they are mapped

|India PostSOURCE: Mail Network Optimisation Project

S. No. Circle Level-1 cities1 ANDHRA PRADESH HYDERABAD2 ANDHRA PRADESH NAMPALLY (Hyd’bd)3 ANDHRA PRADESH KURNOOL4 ANDHRA PRADESH TIRUPATI5 ANDHRA PRADESH VIJAYAWADA6 ANDHRA PRADESH VISAKHAPATNAM7 ASSAM GUWAHATI8 BIHAR BARAUNI9 BIHAR GAYA

10 BIHAR MUZAFFARPUR11 BIHAR PATNA12 CHATTISGARH BILASPUR13 CHATTISGARH RAIPUR14 DELHI DELHI15 GUJARAT AHMEDABAD16 GUJARAT ANAND17 GUJARAT RAJKOT 18 GUJARAT SURAT19 GUJARAT VADODARA20 HARYANA AMBALA 21 HARYANA GURGAON22 HIMACHAL PRADESH PATHANKOT23 HIMACHAL PRADESH SHIMLA 24 J&K JAMMU25 J&K SRINAGAR26 JHARKHAND DHANBAD27 JHARKHAND JAMSHEDPUR28 JHARKHAND RANCHI

S. No. Circle Level-1 cities29 KARNATAKA BANGALORE30 KARNATAKA GULBARGA31 KARNATAKA HUBLI32 KARNATAKA MANGALORE33 KARNATAKA MYSORE34 KARNATAKA BIRUR35 KERALA KOCHI 36 KERALA KOTTAYAM 37 KERALA KOZHIKKODE38 KERALA THIRUVALLA39 KERALA TRICHUR40 KERALA TRIVANDRUM41 MADHYA PRADESH BHOPAL42 MADHYA PRADESH GWALIOR43 MADHYA PRADESH INDORE44 MADHYA PRADESH JABALPUR45 MAHARASHTRA AURANGABAD46 MAHARASHTRA MUMBAI47 MAHARASHTRA NAGPUR48 MAHARASHTRA PANAJI49 MAHARASHTRA PUNE50 ORISSA BHUBANESWAR51 ORISSA CUTTACK52 ORISSA BERHAMPUR53 ORISSA JHARSUGUDA54 PUNJAB AMRITSAR55 PUNJAB CHANDIGARH56 PUNJAB JALANDHAR

S. No. Circle Level-1 cities57 PUNJAB LUDHIANA58 PUNJAB PATIALA59 RAJASTHAN AJMER60 RAJASTHAN JAIPUR61 RAJASTHAN JODHPUR62 RAJASTHAN KOTA63 RAJASTHAN UDAIPUR64 TAMILNADU CHENNAI65 TAMILNADU COIMBATORE66 TAMILNADU MADURAI67 TAMILNADU SALEM68 TAMILNADU TIRUNELVELLI69 TAMILNADU TRICHY70 TAMILNADU VELLORE71 TAMILNADU VILLUPURAM72 UTTAR PRADESH AGRA73 UTTAR PRADESH ALLAHABAD74 UTTAR PRADESH BAREILLY75 UTTAR PRADESH GHAZIABAD76 UTTAR PRADESH GORAKHPUR77 UTTAR PRADESH KANPUR78 UTTAR PRADESH LUCKNOW79 UTTAR PRADESH SAHARANPUR80 UTTAR PRADESH VARANASI81 WEST BENGAL BURDWAN82 WEST BENGAL HOWRAH83 WEST BENGAL KOLKATA84 WEST BENGAL SILIGURI

86/87 APS 1 CBPO & 2 CBPO

List of level-1 mail offices

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Mail Office(level-1 or level-2)

HO/SO

BO Letter box

Proposed mail flow from POs to Mail Offices

SOURCE: Mail Network Optimisation Project

▪ Mail Office receives unsorted mail from all HOs/SOs/BOs/letter boxes in catchment area

▪ Mail office sorts mail and retains mail meant for delivery in catchment area, and sends rest of mail to adequate sorting facilities (see flows between hubs)

▪ HO/SO collect mail from the BOs and the letter boxes under jurisdiction

▪ No sorting done at HO/SO

▪ BO sends all its mail to HO/SO with accounts jurisdiction through account bags

▪ No sorting done at BO

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Plan for Registered Mail

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•Registered mail to follow the pattern of first class mail in terms of L-1 and L-2 structure •Track and trace to be provided for Registered mail, software developed by PTC Mysore•Testing of software done in Chennai, Bangalore and Hyderabad•Processes followed at CRCs to be based on Speed Post processes•Hardware would be supplied to the Circles, specifications for article barcode and bag label decided and communicated to Circles•The new software to be used at CRCs and gradually all mail offices handling registered articles would be provided the hardware

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Monitoring System for First Class Mail: KPIs Tracked

SOURCE: Mail Network Optimisation Project

11 Scan compliance in entire network

12 Scan analysis per leg of transit within city

13 Scan analysis per leg of transit across city

7 Share of articles with missing PIN codes

10 Articles processed per hour per FTE

6 Share of missorted articles across city

8 Share of articles not dispatched in same-set

9 Staff absenteeism

Domesticunregistered

Domestic registered

1 Share of undelivered mail

2 Transit analysis within city

3 Transit analysis across city

4 Time per leg of transit within city

5 Time per leg of transit across city

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Proposed Test Letter Programme

SOURCE: Mail Network Optimisation Project

Manual test letters Electronic test letters

▪ Electronic test letters would help India Post improve its performance by deep diving on issues highlighted by manual test letter program (as they would provide tracking similar SpeedNet)

▪ Electronic test letters would allow India Post to have

– Leg wise analysis of mail flow from booking/ collection point to final delivery point

– Root causes of delay in delivery at every leg

▪ Using electronic test letters would allow India Post cost to reduce the volumes of manual test letters to be sent in specific routes

▪ Manual test letter program is scalable and would help India Post track performance on all main flows to unveil every contributor to quality loss

▪ Manual test letter program would enable India Post to:

– Get reliable and statistically representative D+X KPI for metro cities, capital cities and remaining hub offices within a circle

– Monitor performance on an ongoing basis with frequencies to be decided for each flows (metro to metro, capital city to capital city and within city flows)

Test letter program will enable India Post to track performance on an on-going basis and take real time remedial actions

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▪ What is the right sequence of activities ?

▪ What is the right scheduling of manpower?

Optimisation of delivery processes

Processes

Equipment

Performance managementLayout

▪ What are the KPIs needed to track improvements?

▪ What are the performance management tools and systems to monitor continued progress?

▪ What should be the layout of the PO?

▪ What are the local details to consider?

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▪ What equipments are required?

▪ How can feedback from staff be incorporated in design?

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Look and Feel Aspects

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•The objective is to improve the quality of working conditions of mail offices •Providing tools and equipments to mail offices •Basic civil and electrical maintenance

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THANK YOU