One Big Comp Statement 4/6/01 5:27 PM Page 1 United States Postal Service 2000 Comprehensive Statement on Postal Operations Table of Contents Chapter One Compliance with Statutory Policies............................................................1 A. Fundamental Service to the People (39.U.S.C. 101(a)) .............................................1 1. General ........................................................................................1 2. Board of Governors .............................................................................1 3. Strategic Planning ..............................................................................3 4. Quality .........................................................................................6 5. Diversity .......................................................................................7 B. Service to Small or Rural Communities (39 U.S.C. 101(b)) .........................................11 C. Employee Compensation and Career Advancement (39 U.S.C. 101(c)) ..............................11 1. Collective Bargaining ..........................................................................11 2. Personnel .....................................................................................13 3. Compensation and Benefits ....................................................................15 4. Employee Development ........................................................................17 5. Selection, Evaluation and Recognition ..........................................................19 6. Workplace Environment Improvement ..........................................................19 D. Postal Cost Apportionment and Postal Ratemaking Developments (39 U.S.C. 101(d)) ................21 1. Omnibus Rate Case ............................................................................21 2. Other litigation ................................................................................22 E. Transportation Policies (39 U.S.C. 101(e),(f)) ......................................................23 1. General .......................................................................................23 2. Domestic Transportation .......................................................................23 3. International Transportation ....................................................................24 4. Postal-Owned Transportation...................................................................24 5. Mail Transport Equipment ......................................................................24 F. Postal Facilities, Equipment and Employee Working Conditions (39 U.S.C. 101(g))....................24 1. Safety and Health – Safety Management Process ...............................................24 2. Environmental Programs .......................................................................25 3. Total Resource Management ...................................................................27 4. Facilities ......................................................................................28 5. Purchasing and Materials ......................................................................29 Chapter Two Postal Operations...............................................................................33 A. Public Perceptions, Customers Outreach and Mailer Liaison ........................................33 1. Customer Feedback Analysis ..................................................................33 2. Customer Outreach and Mailer Liaison .........................................................33 B. Mail Volume and Service Performance ............................................................41 1. Mail Volume ...................................................................................41 2. Service Performance Measurement ............................................................42 3. International Mail ..............................................................................43 C. Mail Distribution .................................................................................45 1. Automation Activities ..........................................................................45 2. Remote Encoding Centers .....................................................................45 3. Process Improvements ........................................................................46 4. Material Handling ..............................................................................47 5. Integrated Processing Facility ..................................................................49 6. Support Systems for Mail Processing ...........................................................50 D. Delivery Unit Operations ..........................................................................51 1. Delivery Point Sequencing .....................................................................51 2. Delivery Operations Information System ........................................................51 3. Mobile Data Collection Device ..................................................................51 E. Retail Programs ..................................................................................51 1. Marketing Calendar ............................................................................51 2. Retail Sales ...................................................................................52 3. Point-of-Service One ..........................................................................52 4. Retail Workforce Strategies ....................................................................52 5. Plan for Retail Operations Performance ........................................................52 6. Postage Technology Initiatives ..................................................................53 One Big Comp Statement 4/6/01 5:27 PM Page 2 7. Self Service ...................................................................................54 F. Marketing Technology and Channel Management ...................................................55 G. Pricing and Product Design ......................................................................55 1. Periodicals Cost Reduction Effort ...............................................................56 2. Business Mail 101 .............................................................................56 H. Electronic Commerce .............................................................................56 1. Our Web Presence… www.usps.com ..........................................................56 2. Messaging Services ...........................................................................56 3. Online Payment Services ......................................................................57 4. Bringing Choice to Our Customers .............................................................57 I. Technology........................................................................................57 1. Strategic Technology Initiatives .................................................................57 2. Information Technology Infrastructure ..........................................................58 3. Information Technology Assessibility ............................................................58 4. Information Application Support ................................................................58 J. Operations Planning ..............................................................................58 1. Staffing and Scheduling .......................................................................58 2. Address Management .........................................................................59 Chapter Three Financial Highlights .............................................................................65 A. Financial Summary ..............................................................................65 1. Revenue ......................................................................................65 2. Expenses .....................................................................................65 3. Net Loss ......................................................................................65 4. Financing .....................................................................................66 B. Productivity ......................................................................................67 1. Total Factor Productivity .......................................................................67 2. TFP, 2000 and the Future Plan .................................................................67 3. TFP, Benchmark Measures .....................................................................67 4. TFP, Additional Considerations .................................................................68 C. Federal Government Appropriations ...............................................................68 D. Breast Cancer Semipostal Research Stamp .......................................................69 Chapter Four Preliminary 2002 Annual Performance Plan ..................................................71 Chapter Five 2000 Performance Report .....................................................................89 Index ............................................................................................108 All reference to “2000” or “the year” refer to the government fiscal year ending September 30, 2000. One Big Comp Statement 4/6/01 5:27 PM Page 1 Chapter 1 Compliance with Statutory Policies A. Fundamental Service to I NetPost Mailing