USPS VP's commit crimes but OIG writes up carriers

July 1, 2010

EDUARDO H. RUIZ

DISTRICT MANAGER, LOS ANGELES DISTRICT

SUBJECT: Audit Report – City Delivery Efficiency Review – Los Angeles District

(Report Number DR-AR-10-006)

This report presents the results of our audit of City Delivery Efficiency Review – Los

Angeles District (Project Number 10XG005DR000). This self-initiated audit addresses

operational risk and is the first in a series conducted by the U.S. Postal Service Office of

Inspector General (OIG). Our objectives were to assess the overall efficiency of city

delivery operations and identify opportunities to reduce operating costs within the Los

The U.S. Postal Service is delivering fewer pieces of mail to a growing number of

addresses as new households and businesses are added to the delivery network each

year. Accommodating this new growth, while facing financial loss from declining mail

volume and rising costs, demands that the Postal Service achieve unprecedented levels of

efficiency.

The Los Angeles District was not operating at peak efficiency and could reduce city delivery

operating costs. Our benchmarking comparison determined the Los Angeles District used

approximately 26 minutes more per day than the national average for each carrier route, as

compared to the standard for that route. The measurement for this, called “percent to

percent.

Although numerous factors were involved, our review of 25 randomly selected delivery

units confirmed these inefficiencies and determined Los Angeles District management did

not always (1) provide sufficient review and oversight of unit offices’ operating efficiencies

and (2) coordinate with the mail processing facility to ensure mail was timely received and

in a condition that promoted office operating efficiency. Elimination of time-wasting

practices and increased focus on efficiency could allow management to reduce workhours.

Some examples include ensuring that:

ready for delivery.

containers, so that carriers can easily identify and retrieve it for their routes.

Consequently, the Los Angeles District used more workhours than necessary to deliver the

mail. Making adjustments to its operations would increase the Los Angeles District’s overall

efficiency and allow them to reduce approximately 298,000 operating workhours, resulting

in savings of about $10.5 million annually or more than $105 million over 10 years. See

We recommend the district manager, Los Angeles District:

1. Reduce the Los Angeles District’s workhours by 298,260 to achieve an associated

economic impact of over $105 million over 10 years.

2. Periodically evaluate units’ operating efficiency and staffing to determine whether further

workhour adjustments are necessary based on workload.

3. Reinforce Postal Service policy and procedures for supervising city delivery office

operations in delivery units and eliminate time-wasting practices as appropriate.

4. Require processing facility managers and delivery managers to coordinate, review, and

update all Integrated Operating Plans to ensure mail arrives timely and in the condition

necessary to promote office efficiency.

Management agreed with the findings, recommendations and monetary impact in our

report. In response to recommendation 1, management stated that an opportunity exists to

save at least the workhours recommended in the report. As of week 37, fiscal year (FY)

2010, the Los Angeles District has reduced 502,953 hours in city delivery for the same

period last year (SPLY). The Los Angeles District expects to achieve a 650,000 reduction

of city delivery workhours to SPLY by the end of FY 2010 with an expected savings of

$26,650,000 in salaries and benefits.

For recommendation 2, management stated that the focus on efficiency has become a

heightened topic of discussion at all levels of district management. Each station has a

carrier flowchart that reflects the approved activity of a letter carrier in the morning as well

as the afternoon. Management indicated they would discuss this flowchart at a stand-up

talk with all letter carriers and strictly enforce its implementation by August 20, 2010.

In response to recommendation 3, management stated that they immediately curtailed the

casing of DPS and advertising mail discovered by the OIG in certain units. Management

also indicated that they discussed the prohibition of casing this mail at the weekly

postmaster/station manager meeting and instructed each postmaster/station manager to

give a stand-up talk to the letter carriers on this issue by July 30, 2010.

For recommendation 4, management indicated that the Customer Service Operations staff

would work with the processing plant to ensure the proper preparation and stacking DPS

mail. The plant has a process in place to ensure all DPS mail sent to the delivery units are

management’s comments, in their entirety.

The OIG considers management’s comments responsive to the recommendations,

findings, and monetary impact. Management’s corrective actions taken and planned should

resolve the issues identified in the report.

The OIG considers recommendation 1 significant and, therefore, requires OIG concurrence

before closure. Consequently, the OIG requests written confirmation when corrective

actions are completed. This recommendation should not be closed in the Postal Service’s

follow-up tracking system until the OIG provides written confirmation that the

recommendation can be closed.