MAIL NET WORK OPTIMISATION PROJECT-A REPORT

PROJECT-A REPORT
A MEETING WITH CHAIRAMAN POSTAL SERVICES BOARD AND REPRESENTATIVES OF FORIEGN CONSULTANCY WAS HELD ON 15TH JULY 2010 ON THE SUBJECT. THE DETAILED REPORT IS POSTED HEREUNDER FOR STUDY AND EXPRESSING THE VIEWS.
GS NAPE CREPORT ON THE MAIL NET WORK OPTIMISATION PROJECT
AND INTRODUCTION OF THE PROJECT TO THE UNIONS

A meeting was held to introduce the project on the Mail network optimization to the inions on 15th July 2010.The staff side representatives from NFPE.FNPO and General Secretaries of P3, R3 and R 4 participated in the meeting. The meeting was held under the Chairmanship of the Secretary Department of Posts. The Consultants from the MCkensey were also present.

During the presentation the the need for Network Review as a basis for significant increase in the volumes, revenues, and market share was emphasized.

External& internal Drivers Identified:

The declining mail volumes. Competition from Domestic and International players. Absence of regularization. Change in mail profile Customer demands are the External Drivers. Difficulties of existing network vis-à-vis change mail profile, Low level of IT induction in mail processing Low productivity, Delivery inconsistencies and visibility, Lack of customer focus were identified as internal Drivers

1 The need of a consultant on board:

To give focused attention to mail Operations with a fully dedicated team in project Mode To have external and objective perspective. To learn from best practices in Postal Services world wide .Mc kensey & Co appointed as the project Consultant as a 36 month long project

2. Recent initiatives in Mail operation- Plan Projects for Mail network Optimization

Setting up of Automated Mail processing Systems
Introduction of Freighter aircraft for carriage of mail for NE
Setting up of Mail Business Centers
National Address database management system -Popularization of PIN Codes
RFID in mail processing-GPS tracking in MMS vehicles- Mechanization of Delivery.

3. Deliverables & Time lines contained in the RPF

I Completion of the analysis of current network structure
Products and performance, review of customer requirements 0-3 months
II Finalization of the optimal scenario optimization objectives evaluation and prioritization of design options and definition of the target net work implementation project 0-6 Identification of appropriate technology costing exercise for the preferred technology options assistance in selection of technology service provider migration planning 3-9
Iv Finalization of process specification and blue print definition of key performance indicators and measurement systems, description roles and responsibilities along the mail business managerial set up ,development of training modu;es sequencing of implementation of defined processes, systems and structures 0-12 months
5.Roll out/implementation Pilots 12-18
6 Full Implementatiom 18-36

OBJECTIVES OF THE PROJECT:
To get Core right by End-to-end net work optimization: Optimise India Post’s mail network from collection to delivery
Significant quality improvement Standardise and improve processes and reuce netweork complexity
Rigorous performance management: Establish an effective performance management structure using KPIs and regular reviews
To modernize the look and feel
Customers : Improve India post’s performance to make it more trustworthy and reliable for customers
Employees: Improve working conditions to make staff proud of being associated with India Post
Management: Significantly improve the management, s ability to steer a huge organization.

PROJECT STRATEGY

First start with a few products for big cities and thereafter Add more products for the same cities and finally expand to all products across India PLUS Early and broad involvement of circles and staff side-Constant Monitoring by the DIRECTORATE.

Speed post and International mails were first taken for the project and introduced in Six metros viz; Mumbai, Delhi,Kolkata ,Chennai,Bangalore,&Hyderabad.The project has brought significant improvements for the last six months and improvements were practically noticed in the process of speed Post articles in the SPC Bangalore.
Revamping the Speed post operations: The consultancy suggested the network design, right processes, network schedule, cut off times, processing windows for the speed post articles and it will be extended to the first class mail in order to ensure the maximum D+1 quality.
INTIAL IMPACT OF THE PROJECT IN TERMS OF OPERATIONAL IMPROVEMENT.

Easier Sorting; ensure minimum multiple handling. Less Work load: reduce no of bags & missorts between different locations Better equipment-Ease of working for staff at SPCs with new equipment. Higher throughput: Ensure higher processing with improved process design. Streamlined workflow-by having optimized inflow of mails in the processing centres.Prioritized processing: Ensure processing prioritorisation based on the time of the day for maximum connectivity; Keep everyone informed: Regular interaction and display of SPC s daily performance, Suggestions and feed back encouraged. Training& Incentives –Incentivise high performers and help all staff with newly developed trainings
Ensure 100% scan for both receipt and delivery. No article can enter or leave sorting area unless scanned .optimizing sorting cages ,Reducing multilevel sorting, Revising sorting logic(where necessary).

18 KPIs DEVELOPED TO CREATE TRANSPARENCY

1.Transit analysis within city .Transit analysis across city, Time for leg of transit within city, Time for leg of transit across city. These are for measuring speed and reliability of processing of speed Post articles from booking to delivery

2.Scans compliance in the entire network, Scan analysis per leg of transit within city, Scan analysis per leg transit across city – Measures for each processing step whether articles got scanned as prescribed.

3.Percent of F-Scans in speed net vs F-Scans in IPS-Percent of F-Scans in IPS VS D-Scans in IPS. Share of Speed net Delivery scans ns IPS-scans (TBD)- Measures for International Inbound articles the efficiency of movement at every step before merger with Speed Post.
4. Articles processed per hour per FTE-staff Absenteeism-Share of bags without bag labels-Share of articles closed after cut-off time-Share of articles after cut-off time.-Share of missorted articles.-Share of articles with missing pin codes.-Share of articles not dispatched same set- Supports achieving better D+X and scan performance.

TRAININGS CURRENTLY DEVELOPED BY TRAINING DIVISION

Introductory training for new recruits-Train the trainer training-Basic procedures and operations explanation.-KPI and quality Training-Basic Computer training-Enhanced Computer training-Speed net training-System administration Training- Supervisor training.-Customer Service training.

The consultant and the officers of the Department working on the project and decisions implemented by the Department. The consultancy made it clear that they are not for the survey and report. They will continue to support the managers of the Department in achieving the efficiency and to improve the service purily according to the iIndian Conditions and the Market.

The staff side invited the improvements made and apprehended that there is any hidden Agenda to reduce the staff or offices. The Secretary assured that the project is only to improve the services and the staff side will be consulted at every stage.