The US Postal Service Office of Inspector General has issued a report critical of the postal service’s management of vehicle maintenance facilities (VMFs) across the country. The OIG found that then facilities were not managed efficiently, at an annual cost of $21.8 million:
Vehicle maintenance facilities were not operating at peak efficiency and were not efficient when compared to the established targets. Specifically, undistributed labor, work order hours that were more than the timecard hours, was 11 percent of total maintenance labor costs and exceeded the established target of 3 percent. Also, overhead (supervisory and support) labor costs were 24 percent, of total maintenance labor costs, which were lower than the established overhead target of 30 percent. The VMFs had 109 vacant administrative and supervisory positions.
These conditions occurred because of management’s lack of oversight in monitoring mechanic workhours, as well as not reaching the workhour targets due to administrative and supervisory vacancies. Improving oversight and right sizing staff at vehicle maintenance facilities would increase overall efficiency, saving the Postal Service 431,129 workhours at a cost of over $21.8 million annually.