Performance Management Presentation Provide Mail, Courier and Package Screening Services

1
Performance Management PresentationProvide
Mail, Courier and Package Screening Services

• Team Members
• Leader John Hunt
• Members James Spears
• Tracy Niksich
• Angela Milton
• Division of Mail and Courier Services
• ORS
• National Institutes of Health
• Date January 14, 2005

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Table of Contents

• Main Presentation
• PMP Template .Slide 4
• Customer Perspective..Slide 7
• Internal Business Process Perspective
  Slide 21
• Learning and Growth Perspective
  Slide 33
• Financial PerspectiveSlide 40
• Conclusions and RecommendationsSl
  ide 52

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Table of Contents (cont.)

• Appendix
• Customer Perspective
• NONE.
• Internal Business Process Perspective
• IB1 Complete and update process maps of
  Service Group/Discrete Services
• IB5 Actual postage used vs. OMAS statements
• IB6 Percentage of courier items meeting the
  two hour delivery target
• Learning and Growth Perspective
• LG1a Turnover
• LG1b Sick leave usage
• LG2a EEO
• LG2b ER
• LG2c ADR
• LG3 Awards/Recognition
• Financial Perspective

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Relationship Among Performance Objectives
Learning and Growth Objectives
Internal Business Objectives

• Customer needs and expectations

Operational Objectives
Performance Improvements / Operational Changes
Performance Feedback
Financial Objectives
Customer Objectives
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Relationship Among Performance Objectives

• Division of Mail and Courier Service (DMCS)
  performance objectives have little, if any impact
  on other objectives
• DMCS performance objectives refer to well-defined
  but separate areas of the discrete services they
  represent

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Customer Perspective
8
Customer Perspective
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Customer PerspectiveWhat does the data tell you?

• IC mail managers provided an excellent means of
  disseminating information concerning mail service
  issues, performance improvement initiatives, and
  postal news
• IC mail managers were a good source of
  information about the potential reactions of IC
  customers to various issues, from postage rate
  increases to DMCS performance improvement
  initiatives

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Customer Perspective
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Survey BackgroundPurpose

• Evaluate the effectiveness of the NIH Division
  of Mail and Courier Services (DMCS) in fulfilling
  its mission over the last six months
• Assess the NIH mail stop contacts satisfaction
  with the following service attributes
• Quality
• Timeliness
• Reliability
• Availability
• Responsiveness
• Convenience
• Competence
• Handling of Problems
• Assess awareness that address information in NED
  is used by DMCS
• Solicit open ended comments
• What was done well
• What needs to be improved
• Other
• Respondents could optionally leave contact
  information for follow up

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Survey BackgroundMethodology

• Hard copy surveys were distributed to all NIH
  mail stop code contacts, along with introductory
  letter and pre-addressed return label.
• Surveys distributed late October 2004
• Responses were gathered through late November
  2004. Completed surveys were returned to OQM
• All responses that contained contact information
  were forwarded to Mr. James Spears of DMCS for
  follow up
• Responses analyzed by SAIC throughout month of
  December and presentation prepared

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Survey BackgroundDistribution
Number of surveys distributed
1,000 Number of
respondents 358
Response Rate 36
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FY04 Satisfaction Ratings on Specific Service
Aspects
Mean Response
N 356
N 357
N 353
N 352
N 352
N 351
N 353
N 353
Unsatisfactory
Outstanding
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Survey Results Overall Scores
Mean Response 8.4 Median
9.0 Scored as
Excellent 78.9
Scored as Good to Excellent 95.8
17
Summary

• Respondent Characteristics
• 36 of recipients responded to survey.
• Satisfaction Ratings on Specific Service Aspects
• Respondents were asked to rate their satisfaction
  with the following aspects of mail and courier
  services
• Quality
• Timeliness
• Reliability
• Availability
• Responsiveness
• Convenience
• Competence
• Handling of Problems
• The scale ranged from (1) Unsatisfactory to (10)
  Outstanding. Satisfaction mean ratings range
  from a high of 8.84 on Responsiveness to a low of
  8.22 on Quality. Notice that the lowest mean
  rating (8.22) is still well above the midpoint of
  a 10-point scale. In general, respondent
  perceptions are quite positive.

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Summary (cont.)

• Comments
• What was done particularly well?
• A total of 144 comments were made
• Two themes were evident
• 91 of comments were Kudos. Timeliness of
  delivery and courteousness of staff were
  mentioned most frequently.
• 6 of comments mentioned specific individuals as
  particularly outstanding
• What needs to be improved?
• A total of 139 comments were made
• 47 of comments mentioned miss-directed mail.
• 20 of comments indicated that nothing needs to
  be improved.
• 6 of comments mentioned timeliness.
• 5 of comments mentioned regular pick up times.
• Other comments
• A total of 72 comments were made
• 50 of comments were Kudos.
• 14 of comments mentioned miss-directed mail.
• 8 of comments mentioned needing more
  information.

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Customer PerspectiveWhat does the data tell you?

• The overall scores show that our service is
  perceived as generally excellent.
• As with our previous survey, the majority of
  complaints centered around the perception of
  Positional mail as misdelivered mail.On speaking
  with the 65 mail stop contacts who complained of
  occasional mis-deliveries, 45 (approximately 70)
  were referring to positional mail, which had been
  correctly delivered-as addressed.There is still
  a lack of knowledge within the NIH community
  concerning positional mail. This, despite the
  fact that the DMCS has distributed flyers and
  discussed the issue with IC Mail Managers for the
  last two years.

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Customer PerspectiveWhat actions are planned?

• DMCS will continue to schedule a mail managers
  meeting every four months to keep this
  communication channel open and viable
• DMCS will continue to educate our customers on
  positional mail through flyers and direct
  communication
• DMCS will conduct another customer poll in FY
  2005 to gauge progress vs. FY 2004

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Internal Business Process Perspective
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Internal Business Process Perspective
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Driver Delivery Times are Consistent
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Internal Business Process Perspective
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Internal Business Process Perspective
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Internal Business Process Perspective
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Internal Business Process PerspectiveWhat does
the data tell you?

• Driver Delivery Times
• Average variation for driver delivery times,
  which was much lower is FY 2003 than in FY 2002,
  was nearly a minute lower in FY 2004 than in FY
  2003. Showing that improvement has continued in
  this area, although further improvement is likely
  to be less significant due to the distance of the
  Stonestreet building from the campus and the
  continued expansion of NIH.
• Using control charts, all delivery variation was
  found to be well within controls.

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Internal Business Process PerspectiveWhat does
the data tell you?

• Incoming Mail is Sorted Correctly
• Two years of quality control samplings and
  feedback to the mail service contractors have
  been successful in lowering the primary sortation
  error rate from 1.06 (FY 2002) to 0.29 in FY
  2003, to 0.16 in FY2004, with no consistent
  problem areas. Any further gains are going to be
  statistically insignificant since the distance to
  0 is well below the statistical margin for
  error.

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Internal Business Process PerspectiveWhat does
the data tell you?

• Postage is Correctly Applied to Outgoing Mail
• Since the new mail services contractor began
  operations with increased training in June 2003,
  the quality sampling error rate has gone from
  0.5 to 0.0, and has remained there ever since.

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Internal Business Process PerspectiveWhat
actions are planned?

• DMCS will continue to monitor the work of the
  contractor in ways that provide creative feedback
  that increases operational excellence
• PMP quality goals for incoming mail sortation in
  2005 will be primarily focused on maintaining the
  current quality levels

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Learning and Growth Perspective
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Learning and Growth Perspective
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Learning and Growth Perspective
36
Percentage of Computer-simulated Bomb Threats
Identified
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Learning and Growth PerspectiveWhat does the
data tell you?

• Training
• Meeting our training goal shows that training,
  especially safety training continues to be a
  priority at DMCS
• DMCS believes that additional training makes for
  a safer, more effective organization
• Continuous Improvement in DMCS quality numbers
  supports this policy

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Learning and Growth PerspectiveWhat does the
data tell you?

• X-Ray Clerk Proficiency
• X-ray clerks are maintaining a high proficiency
  at identifying potential explosives, which is due
  to ongoing training efforts and only somewhat to
  worker experience, since 100 turnover is taking
  place each year (two positions) in these
  contracted positions

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Learning and Growth PerspectiveWhat actions are
planned?

• Training for DMCS will continue at the two
  training sessions per year minimum, with at least
  one session devoted to workplace safety
• Training for x-ray technicians will be increased
  in order to achieve our goal of 97 for next year

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Financial Perspective
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Financial Perspective (cont.)
42
Financial PerspectiveWhat does the data tell you?

• Unit Costs
• Labor costs for contracted discrete services are
  fixed by contract and increase when Bureau of
  Labor statistics job classification standards are
  raised. Nothing can be affected by DMCS
  management in the near term
• Labor costs for the FTE centered discrete
  services are fixed by Congress. Nothing can be
  affected by DMCS management in the near term
• Unit costs for Scan Incoming Packages are
  decreasing due to the increase and projected
  future increase in parcel volume in this area
• The only way to decrease unit costs in the long
  term is to maximize throughput and minimize down
  time. Since down time is very low, efforts must
  be made toward increasing efficiency such that
  volume increases will not increase total costs

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Financial PerspectiveWhat does the data tell you?

• Unit Costs
• The data shows work hours down, even as volumes
  are up. This clearly shows the advantage of
  DMCSs focus on quality, efficiency, and
  time-saving technology.

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Financial Perspective (cont.)
45
Total Savings vs. USPS Parcel Post
46
Total Savings vs. USPS Parcel Post
47
Total Savings vs. USPS Parcel Post
48
Financial PerspectiveWhat does the data tell you?

• Alternative Ground Shipping
• The alternative ground shipping program has
  exceeded expectations by increasing savings from
  the previous Fiscal Year by approximately 43,000
  vs. USPS Parcel Post
• While savings closely track volume, savings are
  greatest on medium-sized parcels (20-70 lbs)

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Financial PerspectiveWhat does the data tell you?

• Awareness of the alternative ground program was
  raised by means of flyers and by keeping IC mail
  managers aware of the savings potential and
  actual savings at each mail managers meeting
• Efforts to increase volume through awareness
  began to pay off in March 2003. Despite
  continued promotion, volume appears to have
  leveled off in FY2004. Our inquiries have shown
  that there is relatively little additional volume
  available to us

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Financial PerspectiveWhat actions are planned?

• DMCS continues to employ more effective ways to
  utilize the work hours were paying for through
  applied technology such as replacing the aging
  PacTrac system.
• DMCS has also more effectively used workhours by
  minimizing sortation errors through a
  comprehensive quality control program (which
  minimizes rework)
• Although the NIH community continues to grow and
  spread out geographically, DMCS has only needed
  to increase contractor personnel by one position
  to accommodate these changes

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Financial PerspectiveWhat actions are planned?

• The alternative ground program will continue, as
  it has been extremely effective at saving money
  vs. USPS Parcel Post, while providing superior
  service
• DMCS will continue to try and capture any
  remaining internal parcel business that can
  result in savings for NIH
• DMCS will continue to look for ways to save
  through technological innovation

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Conclusions
53
Conclusions from PMP

• Meetings with the IC Mail Managers have helped
  improve service and understanding
• The continued reduction of average delivery time
  variation has resulted in better service for our
  customers
• DMCS Quality Control program has resulted in
  improved service
• Ongoing training continues to be a key part of
  DMCS customer service improvement
• Current x-ray clerk training is very effective
• Technology has improved service and slowed
  contractor cost increases

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Conclusions from PMPImprovements

• Implemented a program to decrease the amount of
  wasted postage due to undeliverable mail
• Increased mail efficiency throughout NIH through
  vigorous oversight of the mail contractor and
  strict enforcement of performance requirements
  outlined in the performance-based contract
• Developed a mail security guide (to supplement
  training) that contributes to keeping DMCS
  employees safe at all times, but especially in
  time of crisis

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Conclusions from PMPImprovements

• Expenses have been avoided by using technology to
  get work done more effectively
• Due to recent software improvements in the
  industry, a replacement for the PacTrac system is
  being considered. This will not only enable
  DMCS to process the larger number of accountable
  mail pieces currently received in less time, but
  to manage the software more effectively, with
  less training for operators due to increased
  product ease of use from other vendors
• DMCS quality control program has reduced
  sortation error from 1.06 (FY2002) to 0.29
  (FY2003) to 0.16 (FY2004)

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Conclusions from PMPImprovements

• The alternative ground shipping program met
  expectations by increasing the savings from the
  previous FY (183,682 vs. 140,498) due to
  excellent service and promotional efforts

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Appendix
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Appendix

• Pages 2-5 of template
• Customer Perspective
• NONE.
• Internal Business Process Perspective
• IB1 Complete and update process maps of
  Service Group/Discrete Services
• IB5 Actual postage used vs. OMAS statements
• IB6 Percentage of courier items meeting the
  two hour delivery target
• Learning and Growth Perspective
• LG1a Turnover
• LG1b Sick leave usage
• LG2a EEO
• LG2b ER
• LG2c ADR
• LG3 Awards/Recognition
• Financial Perspective
• NONE...

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Appendices DS1 Process Chart
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Appendices DS2 Process Chart
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Appendices DS3 Process Chart
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Appendices DS4 Process Chart
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Appendices DS5 Process Chart
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Internal Business Process Perspective
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Appendices Process Measures
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Internal Business Process Perspective
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Internal Business Process Perspective
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Internal Business Process PerspectiveWhat does
the data tell you?

• Increase understanding of process
• All process maps are updated as needed and agreed
  to by NIH management, contractor management, and
  contractor employees as an actual representation
• USPS billing is accurate
• There was no discrepancy in USPS OMAS reporting
  this year
• ORS Courier delivery is timely
• All parcels entrusted to the ORS courier service
  were delivered within the two hour window

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Conclusions from Turnover, Sick Leave, Awards,
EEO/ER/ADR Data

• No data was available from Human Resources from
  FY2004 with which to generate comparative studies