This report presents the results of the Postal Service’s progress in reducing workhours based on recommendations in a prior report.1 Our objective was also to assess the
overall efficiency of the processing and distribution network for fiscal year (FY) 2009 (Project Number 10XG017NO000). This is a cooperative effort with the Postal Service
and addresses operational risk. See Appendix A for additional information about this review.
Last year, we reported on efficiency levels and mail volume in processing and distribution centers (P&DCs) and facilities (P&DFs), and recommended the Postal Service reduce almost 23 million workhours by FY 2011. The goal of the previous effort was to report out on Postal Service’s efforts to “raise the bar” on productivity levels for those plants that were the least productive in the network nationwide. We took a similar approach in this report and plan to conduct this type of analysis annually.
Conclusion
The Postal Service made substantial progress by reducing workhours in the network from the previous year. Plants that were the least productive in FY 2008 reduced over
18 million workhours (achieving 82 percent of the recommended workhour savings) and improved productivity by over 6 percent. Moreover, from Quarter 1 (Q1), FY 2009 to Q1,
FY 2010, the Postal Service maintained or improved service. See Appendix B for more information.
However, we found the Postal Service had not yet fully adjusted workhours in response to declining mail volume as a result of poor economic conditions, nor achieved all
possible efficiencies in mail processing operations.
We identified five major areas where the Postal Service could realize workhour savings:
– Overtime Hours
– Mail Handling
– Automated and Mechanized Equipment
– Allied Operations
– Manual Operations
The Postal Service could improve operational efficiency by reducing over 16.2 million workhours by the end of FY 2012. This would allow the Postal Service to achieve at
least median productivity levels in the network and avoid costs of almost $744 million based on workhour savings for 1 year.2 See Appendix C for a detailed explanation of
this cost avoidance.
wonder how OIG’s work hours are looking ?
they will never get it! All they can think of is cut this and that but never management personel and hours. No accountability for postal mismanagement! This organization is full of deadbeats that stand around doing nothing and making big bucks. I saw them every day during my career and was always amazed at their arrogance while doing nothing but talk and watch the employees work. It is discusting, and as long as they are not accountable the hostile environment will continue.
they need to get rid of a lot of managers to save a lot of more money they dont need 3 managers in one office one of them making 96,000 dollars a year.
Coudln’t agree with you more J.We are always understaffed at the window,and the shortage of clerks makes it almost impossible to get the mail to us carriers.The 2 clerks in our office have been forced to work every day off since last Sept.And they tell me the other clerks in our other offices are being forced to work also.The craft has lost more than 70,000 carreer employees in the last 4 years.It’s time ot start cutting the fat at the top.We are way to top heavy.And start making lower management work splits,just like they do to the clerks.No reason to pay these clowns for every hour they’re on the clock.Our supervisors are there 10+ hours a day.
If they are serious about reducing workhours they would look at all the redundant reports and redundant administrative office positions, and the salary levels, in Districts, Areas, and in particular, at Headquarters. If the Service cut back on some of the girlfriends, relatives, and cronyism in hiring, they would be able to streamline their operation more effectively.