US Postal Service 2009 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2009 US Postal Service annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

52 | 2009 Annual Report United States Postal Service
During 2008, TFP declined 0.5%, the fi rst year since 1999
that the Postal Service registered a decline in annual TFP.
Despite efforts to manage workforce utilization (reduction
of 50 million workhours), utilize material such as supplies
and services effi ciently, and maximize the return on capi-
tal investments (mainly automation), the worsening condi-
tions across most sectors of the U.S. economy during this
fi scal year, resulted in a 4.5% decline in mail volume, which
we were unable to completely offset.
The following graph shows the cumulative TFP trend from
1972 through 2009.
Average Annual Growth
(percentage)
0
5
10
15
20
25
20092000199019801972
Average Annual Growth 1.0% (2000–2009)
Average Annual Growth 0.3% (1972–1999)
18.2
SERVICE AND PERFORMANCE
The Postal Service has measured service performance
from the customer perspective since the early 1990s. This
type of measurement sets the stage for continuous im-
provement through increased focus on performance and
the monitoring of transparent results. Through consulta-
tion with the Postal Regulatory Commission, we have de-
veloped and implemented new service standards and re-
quirements for new or expanded measurement processes
for mailing services. The service performance information
and results are available at www.usps.com.
CUSTOMER SATISFACTION
MEASUREMENT (CSM)
CSM is an independently administered survey of customer
opinions about key areas of service to residential custom-
ers. The following table displays the residential satisfaction
results for the last eight quarters.
Customer Satisfaction Measurement
(percentage)
90 %
91 %
92 %
93 %
94 %
95 %
Quarter 4Quarter 3Quarter 2Quarter 1
92%
93%
92%
93%
92%
93% 93%
94%
Service rated excellent, very good or good 2008 2009
CAPITAL RESOURCES AND LIQUIDITY
Capital Investments
At the beginning of 2009, there were 27 major projects in
progress (i.e., greater than $25 million), representing $5.9
billion in approved capital funding. During the year, three
new projects were approved, which totaled $0.2 billion in
additional capital funding. A total of 10 projects represent-
ing $1.6 billion in approved capital funding were complet-
ed. The year ended with 20 open projects that amount to
$4.5 billion in approved capital.
While the funding for a project is authorized in one year,
the commitment or contract to purchase or build may take
place over several years. By year-end, approximately $3.8
billion had been committed to these 20 open projects.
Actual capital cash outlays will occur over several years.
Through the end of 2009, approximately $2.8 billion has
been paid for the 20 projects.
As of September 30, 2009, all capital commitments (in-
cluding the 20 projects mentioned above), consisting of
building improvements, equipment and vehicle projects,
were $1.8 billion. These projects will be funded by borrow-
ings from the Federal Financing Bank. See Note 8, Leases
and Other Commitments, in the Notes to the Financial
Statements, for additional information.