United States Postal Service

Introduction 

Currently, the United States Postal Service operates approximately 265 mail processing facilities across America. Mail processing refers to a group of activities that are integrated for the purpose of sorting and distribution of mail for dispatch, as well as delivery. The organization has made great changes in their internal operations with an objective of increasing the efficiency and effectiveness of its processes. As such, the organization has focused on planning and implementing critical operational changes that help to meet the needs of a rapidly evolving market. For instance, the United States Postal Service has made significant investments in additional staff training, process improvements, new and innovative equipment, and new information technology infrastructure. Thus, the organization utilized various Total Quality Management practices in order to improve processes and enhance customer satisfaction. 

Total Quality Management 

The United States Postal Service has focused on improving customer satisfaction through service improvement. The organization has developed a Customer Satisfaction Index that is aimed at tracking the satisfaction of residential customers in several metropolitan areas. The feedback from such an initiative will allow the organization to carry out continuous service improvement. The Customer Satisfaction Index measures overall satisfaction levels of customers using more than 35 indicators such as waiting time, courtesy, as well as complaint response. The organization has enlisted the services of a credible contractor to oversee the process. An average of 183,000 customers, provide feedback on a quarterly basis. Basically, the customer satisfaction index is considered one of the valid statistical surveys that can be used by organizations to track customer satisfaction levels, particularly if it is conducted in a more independent manner. 

The United States Postal Service has also incorporated the customer satisfaction index into the bonus system of its employees. This is important because it motivates employees to contribute significantly to efforts aimed at improving customer satisfaction. Besides, it will help in strengthening employees’ commitment and productivity in the workplace. It gives the organization an opportunity to effectively monitor employee attitudes towards customer service. Employees in an organization should not only realize, but should also appreciate the impact of their work on customer satisfaction. The organization has also developed ways for strengthening the employees’ commitment and productivity. The organization has achieved this through focus groups aimed at promoting employee morale. 

The organization has also facilitated easy access to postal information. This is an important area of service improvement in the organization as it improves customer satisfaction. USPS allows its customers to track their mails. This way, people will be able to get timely information relating to the safety and progress of his sent mails. This promotes reliability of the organizations services. Besides, it enhances customer trust. The company carries out spirited online advertisements aimed at creating awareness among consumers about its services that are continuously being improved. For instance, the USPS has established an online shop where most of its products can be accessed by its customers. Additionally, USPS ensures that customers receive faster services through its direct delivery mails. Direct delivery mail promotes reliability and enhances customer satisfaction. 

Customer Focused Culture 

The organization has endeavored to establish and maintain a customer focused culture. The organization has been able to achieve this through the establishment of the Voluntary Protection Program in conjunction with OSHA. This initiative has significantly helped in the improvement of workplace safety. The program has helped in engaging employees in the process of identifying potential hazards. This has been made possible through collective efforts aimed at defining and standardizing best practices. The organization has continuously expanded the Voluntary Protection Program as part of its unrelenting commitment to be a leader in workplace safety. By prioritizing the safety of employees, the company inculcates a culture of customer service in the employees. Generally, happy employees make happy customers. When everyone’s safety is at the heart of the organization, employees become committed to meeting the expectations of customers more effectively. 

Additionally, USPS has been committed to reducing workplace disputes. Workplace disputes contribute significantly to employee inefficiency and low job satisfaction levels. This is because job disputes cause anxiety and demoralizing distractions that limit employee output. By ensuring that employees work in a harmonious environment, the organization promotes a customer focused culture where employees seek to collectively achieve organizational goals. 

USPS has consistently built a culture of continuous improvement among its employees. This has been achieved through performance based management. The Postal Service implemented an award winning performance measurement system in 2003 that has significantly helped in fostering a customer focused culture. Besides, the organization measures various key performance indicators at both corporate and unit levels in order to make meaningful performance distinctions within the line of sight of all members. 

There are various measures that USPS has taken in order to drive the right behavior that facilitates the achievements of set objectives. The priorities related to the achievement of a customer focused culture in the organization include developing future postal leaders by ensuring that the skills of potential candidates are strengthened so as to prepare them for current and future challenges relating to customer needs. The organization also endeavors to recruit motivated new employees who will effectively help the business to establish and sustain the crucial skills that are relevant to the workforce. Finally, USPS will focus on aligning compensation with individual performance. The organization will accomplish this through the improvement of both individual and team performance by utilizing breakthrough productivity programs and initiatives. The strategic marketing professional will be tasked with the responsibility of working with clients on a continuous basis to determine their expectations, needs and preferences, as well as their concerns. 

Design of Work Processes 

Work processes are crucial to the success of USPS. The organization has implemented various techniques aimed at improving operational processes. The postal service treats process improvement as a formal process. The organization has focused on understanding support processes and monitoring execution in order to identify opportunities to reduce total cost ownership. It is important to realize that performance improvement goals and incentives are aimed at achieving shared benefits between the organization and suppliers. There are various important areas identified by the organization for improvement which include failure analysis, cycle time analysis, and cost analysis (Kick et al., 2006). Through failure analysis, the organization has been able to determine why failures occur and under what circumstances. The organization recognizes that failure elimination increases product availability, facilitates usage reduction and reduces maintenance and replenishment costs. In terms of cycle-time analysis, the organization has managed to document the time processes in the supply chain, as well as the time between processes. The organization recognizes that reducing cycle-times results in production time reduction, reduction in time to the customer, as well as the reduction in the amount of inventory required. Cost analysis is critical in understanding what actually drives costs or the use of products. It is worth realizing that cost drivers may arise at any point in the supply chain. As such, cost drivers from raw materials to use by the ultimate customer should be identified and addressed in order to improve efficiency and minimize costs. 

Implementation of Inventory Control Plan 

Inventory is critical in ensuring the availability of materials needed in the successive stages of the organization’s supply chain. However, organizations need to realize that inventory represents an invested cost that adds no value to the final product. Thus, inventory contributes significantly to the total cost of ownership. In order to minimize total cost of ownership, it is important to reduce the level of inventory by smoothing the step between source and use (Sadikoglu & Olcay, 2014). Besides, the risk of inventory shortage should be reduced by improving speed and flexibility. Additionally, the procurement team should seriously consider avoiding the idea of pushing inventory responsibilities back to the vendor because it may increase costs and risks. The design and implementation of the inventory control plan focuses on decisions relating to stocking, stock replenishment, disposal of excess stock, as well as inventory control standards. Stocking involves decisions and policies aimed at determining what and how much of inventory is needed at any given time during production. Stock replenishment relates to when and how much to order at any time in the organization. Due to the costs associated with keeping excess stock, it is important to set out plans that will inform the disposal of surplus stock. The inventory control standards articulate the acceptable attributes relating to inventory and inventory management practices. 

The organization places significant emphasis on cost-effective arrangements that place risks and accompanying expenses of inventory on non-Postal sources such as direct delivery contracts, and just in time (JIT) purchasing. The JIT refers to a management philosophy that seeks to eliminate sources of manufacturing costs. This is because JIT purchasing ensures that the right part is delivered to the right place at the right time. The organization works with the suppliers to optimize their inventory costs. The organization applies several elements in every level of inventory which include developing inventory control plan, ascertaining stocking decision factors, classifying demand-based and non-demand-based items, provisioning, stock positioning, reparable management and stockroom management. 

Ascertaining Stocking Decision Factors 

The organization has been able to find answers to questions that aid in determining factors relating to stocking decisions. The organization determines the significance of various materials to Postal operations. The organization can set its inventory priorities based on how crucial particular materials are in Postal operations. The priorities will border on whether the lack of material could delay processing or cause loss of revenue. Besides, the organization seeks to always ascertain the supply and demand patterns. Supply and demand patterns involve whether there is enough demand to stock an item or whether the stock can be built up in anticipation of future demand. Additionally, the organization is always keen to establish whether market sources dictate the amount of inventory stocked at any time in order to effectively plan inventory. Most importantly, the organization seeks to ascertain the length of time it takes to get materials. 

Classification of Demand-Based and Non-Demand-Based Items 

Basically, inventory items can be categorized into demand-based and non-demand-based items. The demand-based items refer to inventory items that are stocked at the local level because they demonstrate sufficient past demand history necessary to warrant stocking under specified postal service demand frequency standards. It is important to realize that high demand makes an item a perfect candidate for just in time distribution at the wholesale level. The economies of scale enable suppliers to produce on a stable plan to make regular, reliable shipments. This results in supplier resource needs and cash flows stability. Demand frequency provides useful information on the consistent stocking of a particular item (Qian, 2014). However, if a given stock item does not have the required frequency, it is dropped from the inventory. 

Non-demand-based items refer to those items that are normally stocked because they have been proven to be less costly to stock than not to stock. It is important to realize that there are two types of non-demand-based items: critical and insurance. Critical items refer to items that impact the ability of the installation to perform if they are not available. They can include the items on hand for personnel health and safety. Insurance items refer to components that has very low mortality rate and are infrequently used. 

Provisioning 

Provisioning refers to the process of determining how the materials required by the USPS activities should be provided. It involves the characterization of items in terms of whether they are capital, expense, reparable, sensitive, hazardous, centrally or legally acquired. Provisioning focuses on determining the criticality an item to the process being supported, the resultant demand patterns, the anticipated failure rates, as well as the lead time to reacquire. Therefore, the organization has managed to list the items and quantities that should be centrally purchased and distributed to each level of the Postal service, identified for repair and those that should be coded for local purchase as required. 

Techniques Supporting Six Sigma 

Six Sigma refers to the method used in several organizations to look for improvements in business effectiveness and efficiency. Six Sigma primarily relies on a team based approach to focus on the customer, improving processes and eliminating waste. The USPS uses Six Sigma as a continuous improvement tool. Six Sigma provides insights to the organization that will help in reducing variations in process and systems (Noone et al., 2013). Therefore, Six Sigma provides effective quality improvement methodologies that help the organization maximize profits and improve customer value. This has helped the organization to effectively diversify its activities. For instance, the USPS no longer focuses on just mail deliver. In fact, the organization has ventured into logistics and transportation industries. The USPS began the delivery of parcels cargoes and other goods across the country for a competitive fee. The organization has achieved this through the utilization of Six Sigma and other marketing, supply chain and management theories. Additionally, the organization has expanded its services to include electronically transferred documents. This has enabled the organization to take advantage of the technological improvements in the communication sector. The organization has even begun to act as a medium for e-commerce. There are various techniques that the organization has adopted to support Six Sigma. The techniques include labor distribution code, value stream mapping, and mail processing variance. 

Labor Distribution Code 

In order to improve efficiency in the workplace, USPS uses the labor distribution code technique. The labor distribution code helps in evaluating mail processing efficiency. Thus, labor distribution costs enable the organization to cut significantly on labor costs and increase its profit margin. Labor distribution code helps the management to identify major work assignments for employees and it is also focused efficiencies in the automated packages, letters and flats, manual, as well as other indirect mail operations. 

Value Stream Mapping 

Value stream mapping is an effective technique for standardization and network optimization. It is worth realizing that standardization has a significant role in improving service and efficiency in Postal service operations. Value stream mapping facilitates standardization and simplifications of processes, implementation of document best practices and replication of success throughout the organization. Therefore, value stream mapping promotes data driven analysis, a more accurate approach. 

Mail processing Variance 

USPS uses mail processing variance (MPV) model in order to effectively compare mail processing operations performance to efficiency targets. The model helps the organization to pursue continuous improvement objectives aimed at increasing efficiencies in operational processes. The MPV model helps in calculating work-hour performance using efficiency targets. 

Conclusions 

In conclusion, the USPS has made significant changes to their processes and information systems in order to become more efficient and reduce staff. This has resulted to an improvement in service delivery. In order to achieve this, the organization has focused on more data driven decisions. The organization has utilized Six Sigma as a tool for facilitating quality improvement in its operational processes. This has been facilitated through the use of metrics. The metrics are normally analyzed in order to identify issues that may undermine operations. 

References 

Kick, E. L., Fraser, J. C., & Davis, B. L. (2006). Performance management, managerial citizenship and worker commitment: A study of the United States postal service with some global implications. Economic and industrial democracy , 27 (1), 137-172. 

Noone, B. M., Namasivayam, K., & Spitler Tomlinson, H. (2010). Examining the application of six sigma in the service exchange. Managing Service Quality: An International Journal , 20 (3), 273-293. 

Qian, L. (2014). Market-based supplier selection with price, delivery time, and service level dependent demand. International Journal of Production Economics , 147 , 697-706. 

Sadikoglu, E., & Olcay, H. (2014). The effects of total quality management practices on performance and the reasons of and the barriers to TQM practices in Turkey. Advances in Decision Sciences , 2014 .