Customer Supplier Agreement (CSA) Process Lead … · 2015-05-14 · Customer Supplier Agreement (CSA) Process Lead Time Reduction LSS Project Update ... KAIZEN: Reduce Process Lead

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Customer Supplier Agreement (CSA)

Process Lead Time Reduction

LSS Project Update

Project Leads: Nadya Ramel-Barnes, Isabel Navarro

Team: Cyndi Muldoon, Mury Salls, Steven Krejick, Sebastian Aguiari, Sharon Harrison, Kelly Lorchick, Kevin Bray, Lance Bell, Joe Eagle,

Prat Shah, Rick Baxter

Project Champion: Lauren Zalewski

May 2015

To listen to a recording of this presentation: Click here

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® Agenda

Project Overview

Pilot Site Updates

Primary Metric Control charts

Bin codes Dispatch & Routing (D&R) tags (TMS)

Next Steps

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® Operational Definitions

Mailer sends pallets to USPS

Zips 001-699

Letters arrived mixed zip codes 060, 210, 750

Letters arrived mixed zip codes 060, 210, 750 Zips 700-900

Trays put on pallet per “separation” indicated on CSA

Letters sorted into trays by 3-

digit destination zip codes

CSA defines

mailer

palletization with

separations

Palletization

determines

USPS

handlings

Mailer mail is dropped at

origin USPS facility and

needs to be delivered all

across the country

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® CSA Project Structure

CSA Process Lead Time Reduction

Strategic A3

CSA Content Standardization

Tactical One A3

KAIZEN: Reduce Process Lead Time for

CSA Design – Gen 1

Tactical 1A

KAIZEN: Reduce Process Lead Time for

CSA Design – Gen 2

Tactical 1B

CSA Communication

Structure Tactical Two A3

CSA Operational Execution at

Mailer Tactical Four A3

Increase # of Pieces in Service

Measurement Tactical Three A3

Pending results of Tactical One A3 Estimated Completion: July 2015

Not Started

Pending results of Tactical Two A3 Estimated Completion: August 2015

Estimated Completion: May 2015

Estimated Completion: July 2015

Completed: March 2015

Not Started

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IMPROVEMENTS – IN PROCESS

Improve

Description Results

Pilot short term solution of reduced FAST approvers (Area/HQ only)

Median Approval Time Sept-Dec ‘14 Pilot Areas: 2 Days (12 samples). Approved 42 total but only 12 were created after Sept. 2014 Other Areas: 27 Days (11 samples)

Establish mail point of contact with Mailer + Area Transportation

Improved communication and reduction on approval cycle time

Initiate Tactical A3 ONE – Improve CSA design standardization

Establish standard business rules for CSA creation

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PILOT AREAS: MEDIAN 2 DAYS

OTHER AREAS: MEDIAN 27 DAYS

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HAWTHORNE

EFFECT

Pilot Results:

reduction from 8 to

2 approvers

and

from > 56 to 2 days

Next Steps: Collect more cycle time data update metrics by June 2015

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POTENTIAL FUTURE STATE PROCESS –

HQ CSA DESIGN, REDUCED APPROVERS

Potential Future State

HYPOTHESIS: FPY WILL INCREASE TO 95% AND APPROVAL PROCESS LEAD TIME WILL REDUCE TO 30 DAYS

Pros: Customizable, RACI Approach Cons: Managed locally. Potentially degrades system and increases overall handling cost Requires system enhancements

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® Content Standardization Pilot

Pilot Site Status Notes

DST – Hartford Implementation Complete – Metric tracking 15% reduction in working volume to

USPS

PSI – Los Angeles Implementation Complete – Metric tracking

CSA Update 5/5/15 due to Air Transportation Change Reduction in 9 NVA separations

Additional Pilot Sites

PSI – San Francisco Implementation Complete Significant updates required to modes

and accuracy of CSA

PSI – Sacramento CSA Generator Proposal submitted to Area/Mailer

for review

PSI – Phoenix CSA Generator Proposal pending NDS

transportation review In Area Review Proess

PSI - Columbus CSA Generator Proposal pending NDS

transportation review Pending HQ Analysis

1. Standard Business Rules designed by team

2. Apply Business Rules to CSAs @ Pilot Site

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2

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® Hartford DST Metric Tracking

3/6/201501/23/201501/09/201512/27/201412/15/201412/03/201411/19/201411/06/201410/25/201410/14/201410/01/2014

100

50

0

Start the Clock Date

On-T

ime P

erf

orm

ance S

core

UB=100

LCL=71.8

Baseline OWC Pilot_X=89.6

3/7/20152/24/201501/22/201501/06/201512/19/201412/04/201411/18/201411/01/201410/17/201410/01/2014

100

50

0

State the Clock Date 2D

On-T

ime P

erf

orm

ance S

core

_X=73.8

UB=100

LCL=10.2

Baseline OWC Pilot

3/7/201501/29/201501/13/201512/29/201412/13/201411/29/201411/14/201410/30/201410/16/201410/01/2014

100

50

0

Start the Clock Date

On-T

ime P

erf

orm

ance S

core

_X=75.3

UB=100

LCL=7.2

Baseline OWC Pilot

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1

1

1

11

1

11

1111

111

Source: Service Performance Diagnostics, USPS

DST Hartford Overnight Service Score

DST Hartford 2 Day Service Score

Source: Service Performance Diagnostics, USPS

DST Hartford 3 Day Service ScoreSource: Service Performance Diagnostics, USPS

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® Los Angeles PSI Metric Tracking

4/23/20153/31/20153/12/20152/21/20152/2/201501/13/201512/23/201412/04/201411/13/201410/21/201410/01/2014

100

50

0

Start the Clock Date

On-T

ime P

erf

orm

ance S

core

_X=88.0

LCL=69.4

Baseline OWC PilotUB=100

4/18/20153/26/20153/7/20152/17/201501/28/201501/08/201512/18/201411/29/201411/08/201410/21/201410/01/2014

100

90

80

State the Clock Date

On-T

ime P

erf

orm

ance S

core

_X=98.50UB=100

LCL=94.11

Baseline OWC Pilot

4/20/20153/27/20153/7/20152/17/201501/28/201501/08/201512/18/201411/29/201411/08/201410/21/201410/01/2014

100

90

80

Start the Clock Date

On-T

ime P

erf

orm

ance S

core

_X=97.41UB=100

LCL=93.16

Baseline OWC Pilot

11

111

11

11

1

111

1

11

1

1

1

11

1

1

1

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PSI Los A ngeles Overnight Service ScoreSource: Service Performance Diagnostics, USPS

PSI Los A ngeles 2 Day Service Score

Source: Service Performance Diagnostics, USPS

Source: Service Performance Diagnostics, USPS

PSI Los A ngeles 2 Day Service Score

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® Pilot – Lessons Learned

TMS/SAM-S @ Mailers

Bin Codes

Air Network Changes

Air/Surface mode changes

Measured Pieces

Mail is excluded from service measurement due to entry facility challenges

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® Next Steps

Continue proof of concept pilots

Expanding CSA Design Standardization Pilot Sites

Continue content clean up

Start CSA Communication Structure Project