Collection Planning Values Validation Exercise

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No. 695/14
Ref: 230.03
Date: 4th November 2014


To: Branches with POSTAL Members

Dear Colleague,

Collection Planning Values – Validation Exercise

Further to LTB 675/14 and the indoor and outdoor planning value exercises, we have now agreed to carry out further validation on collection elements using fully trained Industrial Engineers.

The main reason for this remains the same as the original indoor and outdoor validation exercises which is due to the efficiency review that is taking place on behalf of Ofcom the regulator.

Again there are a number of tasks carried out on collections that did not exist when planning values on collections were originally established, these are mainly the trolleys, and use of PDAs.

The intention is the same as the other validations to identify and study the standard Methods, review these and the tasks carried out on collections and benchmark them against the current national planning values where they exist. In some instances this will involve formulating new planning values, such as the use of trolleys, and refreshing some existing values where appropriate.

The objective of the exercise is to provide more reliable and accurate reporting. We have requested the filming of some elements of collections work so that they can be used as a reference point and to be able to demonstrate how the collection elements should be carried out.

We will have full access to all information/data generated and the CWU will be involved at all sites and at national level. The list of sites to be included is attached (Annex A) which also includes the timeline for this activity to be carried out.

The exercise is due to commence on the 10th November 2014 and is again due to the availability of fully trained Industrial Engineers. This LTB is being circulated today having being cleared by the Postal Executive at its statutory meeting this morning. We hope the timing of the LTB will not provide an inconvenience to those units involved in this exercise.

Any enquiries to Bob Gibson’s Office, quoting reference 230.03
Email address: hnutley@cwu.org

Yours sincerely

Bob Gibson
CWU Assistant Secretary – Outdoor

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National Terms of Reference - Industrial Engineer Observations
Collections Planning Values Validation

Introduction
Industrial Engineers (IE’s) from Royal Mail assisted by two external Industrial Engineering contractors (working directly to the Royal Mail Industrial Engineering Consultant) will be visiting a number of Collection Offices between 10th November and 5th December 2014. (The list of offices is attached at annex A)
The purpose of this exercise is to carry out measurement activities to produce national planning values which will be used for product costing purposes and to support Royal Mail’s efficiency reporting requirements. The industrial engineers will carry out work studies to collect data on the operational tasks, including measuring distances, times for tasks, container fills and other flows of work. This will enable Royal Mail to understand the true costs associated with the collection operation which will further help demonstrate to the regulator that products are priced appropriately relative to cost and that the operation is working efficiently. This also underpins the work on regulatory and commercial pricing.
The information and data is primarily designed for national use.  Local feedback on the methods, layout, equipment etc. (not individuals), may be discussed with the collections manager and the CWU representative where there are opportunities for improvement. Where this is the case then the full terms of existing national agreements, joint statement and guidelines will apply including the IR Framework.

Operation & Scope
 Prior to the Industrial Engineers visiting an office all employees will be briefed to make them aware of the visit and the purpose. They are not being monitored as individuals; it is about working out what the workload is for different tasks/activities.

When the Industrial Engineer(s) arrive they will be met by the unit manager who will introduce them to the CWU Representative and staff involved as well as other managers where applicable. They will then be shown round the office to familiarise them with the layout and processes at the unit concerned.

The Industrial Engineer will accompany the collection OPG prior to, during and at the end of their collection route, but will in no way obstruct the completion of their work activities.

All IE’s will wear their appropriate ID and PPE relevant to the collection area at all times.

Examples of the things to be looked at include:-
Under the roof activities prior to embarking on collections
Distances between vehicle park point and collection point, i.e. Post Box, Post Office or Firms premises entry point and collection point
Time to open a post box or gain entry to premises
Times to carry out all associated tasks such as clear box
Segregation work back at the originating unit or collection hub.

People should follow the Standard Operating Procedures and Safe System of Work at all times and that is what will be observed and accounted for. Checklists are being provided to the IEs in case some people do cut corners so that the results are not distorted.

This is not about checking the performance of individuals against standards or assessing the performance of units against standards or other units. This is about assessing how long the task takes, not how well individuals are working.

Note: Elements of the observations will be filmed as a reference point both to support the SMVs that are produced and to potentially support training & induction as well as future WTLL briefings on Collection processes and safe working methods.

Involvement
Local CWU reps will be allowed to observe Industrial Engineers carrying out their work where practicable and to also ask questions. Adequate release will be provided for this to be done.

All information/data will be shared with the CWU during and following the exercise.

Following the exercise there will be a joint review and the information/data will be jointly analysed to see what affect if any this may have on current standards, which may in turn require further discussions about the use and application of the information/data. This will take place prior to any sharing with the regulator, or any changes to the current tools used for the purpose of Collections revisions.



Signed……………………………………………….. Signed………………………………………………………..
Graham Baker – Royal Mail Bob Gibson - CWU

Date 30th October 2014

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Annex A


Stockport w/c 10th November
Colchester w/c 10th November
Bedford w/c 10th November
Waterlooville w/c 10th November

Manchester South West w/c 17th November
Bishops Stortford w/c 17th November
Wellingborough w/c 17th November
Fareham w/c 17th November

Bolton w/c 24th November
Harlow w/c 24th November
Eastleigh w/c 24th November