A Math Modeling Approach
Total Mail Processed by USPS
2000-2009
220,000,000
210,000,000
Thousands of Items
200,000,000
Mail Volume
190,000,000
180,000,000
170,000,000
160,000,000
150,000,000
1
2
3
4
5
6
7
8
9
Years Past 2000
USPS-Cost and Revenue Analysis Report [Fiscal Year Reports]. (n.d.). Retrieved September 25, 2010, from
http://www.usps.com/financials/cra/welcome.htm
10
Employees of USPS
Field Installations
Total USPS
GM/PM/Installation Head 25224
Supervisors/Managers
32850
Prof/ADM/Tech-Field
8408
Clerks/Nurses
205442
Mail Handlers
54892
City Carriers
218397
Motor Vehicle Operators
8406
Vehicle Maintenance
5418
Maintenance Service
39229
Rural Carrier
65170
Area Operations Offices
1397
Total Workforce
664833
Postal Employee Stats at a Glance [Table]. (n.d.). Retrieved September 25, 2010, from http://www.lunewsviews.com/postal-employees-s
tats-at-a-glance.htm
Operating Costs of Postal Service
Operating Expenses
In 3rd quarter, fiscal year;
2010 (Millions of Dollars)
Compensation and
Benefits
11,866
Retiree Health Benefits
1,964
Worker’s Compensation
1,956
Transportation
1,469
Other
2,255
Total Operating Expenses
19,510
Operating Revenue
16,045
Loss from Operations
3,465
United States Postal Service [Table]. (n.d.). Retrieved from http://www.usps.com/financials/_pdf/
Quarter_III_FY10_10Q_Final.pdf
Total Cost of
Workers=15,786
in millions of
dollars
Current State
 Losing money
 Revenue decreasing
 Not capable of being self sufficient
Cost
Revenue
Billions of Dollars
 Becoming obsolete
Years Past 2000
United States Postal Service. (2009). Revenue, prices, and weight reports. Retrieved from
http://www.usps.com/financials/rpw/welcome.htm
Billions of Dollars
The 10 Year Problem
Cost
Revenue
Years Past 2000
United States Postal Service. (2009). Revenue, prices, and weight reports.
Retrieved from http://www.usps.com/financials/rpw/welcome.htm
Billions of Dollars
The 20 Year Problem
Cost
Revenue
Years Past 2000
United States Postal Service. (2009). Revenue, prices, and weight reports.
Retrieved from http://www.usps.com/financials/rpw/welcome.htm
Billions of Dollars
The 50 Year Problem
Cost
Revenue
Years Past 2000
United States Postal Service. (2009). Revenue, prices, and weight reports.
Retrieved from http://www.usps.com/financials/rpw/welcome.htm
Automated Postal Center
 Can support up to 85% of the retail services in a post office
 Weighs letters, flats, and packages (~70 lbs)
 Postage for First-Class®, Priority, express mail, parcel post,
international
 First-class stamp sheets
 ZIP CODE look-up
 Delivery confirmation, certified, and insurance
 Information about other services offered by the post office
 Prints Express Mail labels, Certified Mail™ and return receipt forms
 Displays delivery and tracking information
 Prints receipts
Implementation and Benefits
Cost to Implement
Benefits
 32,741 Post Offices in the
 Need one service clerk to
United States
 1.05 billion dollars to add an
additional APC at each
location
 Only one current employee is
tasked to do routine service
check-ups (do not need to
hire new employee)
supervise the APC; keep two
remaining service clerks to
oversee other operations
 205,000 service clerks (6-7
per post office)
 Cut ½ of the current service
clerks over a period of 10
yearsinitially SAVE 2.43
billion dollars/year in
operating costs
Billions of Dollars
Projected Effects of APC
Cost
Revenue
Years Past 2000
United States Postal Service. (2009). Revenue, prices, and weight reports.
Retrieved from http://www.usps.com/financials/rpw/welcome.htm
References
American Postal Workers Union. (n.d.). Handbook PO-106, Automated Postal Center Program. Retrieved September 26,
2010, from American Postal Workers Union: http://www.apwu.org/dept/ind-rel/usps_hbks/po-series/po106%20automated%20postal%20center%20program%2011-07%20%281.72%20mb%29.pdf
Number of Employees by Union Code PP10 (May 8, 2006). (n.d.). Retrieved September 26, 2010, from postalreporter.com:
http://www.lunewsviews.com/postal-employees-stats-at-a-glance.htm
Postal Automation Discussion. (n.d.). Retrieved September 26, 2010, from Postalreporter.com:
http://www.postalreporter.com/self_service.htm
Potter, N. (2009, August 9). List of Post Offices To Close. Retrieved September 26, 2010, from ABC News - Technology:
http://abcnews.go.com/Technology/story?id=8248335&page=1
Self Service. (n.d.). Retrieved 26 September, 2010, from USPS: http://www.usps.com/alternateaccess/selfserve.htm
United States Postal Service. (2009). Revenue, prices, and weight reports. Retrieved from
http://www.usps.com/financials/rpw/welcome.htm
USPS. (n.d.). United States Postal Service Quarterly Financial Index, Fiscal Year 2010, Quarter III. Retrieved September 26,
2010, from USPS: http://www.usps.com/financials/_pdf/Quarter_III_FY10_10Q_Final.pdf