You are a member of senior management for a company located in Europe. There have been a number of inefficiencies noted by senior management in your manufacturing plant. This is not beneficial for your or your career. You have been given the assignment by senior management to implement AI through the vehicle manufacture system for a tire pressure monitoring system. While this is a small part, it does represent a large percentage of the manufacturing plants revenue. This is a high-value project, and you decide it is prudent to use the four phases you learned in class.

Prepare a 2-3 page memo for senior management that addresses the following four phases.

Phase I

What initial steps would you take prior to a full level of research into this?

What data would you use with the AI implementation?

How would you measure the benefits of the AI implementation, both financially and with operations?

How would you implement this? All at once, or in stages?

There will be employees that believe the next step is for them to lose their jobs. What do you say and what do you do in order to calm their concerns?

With this use case, how would you use predictive modeling?

Management wants to view numbers more than theory. If the plant was able to produce 200 of these previously, and the new number was 340 with AI being implemented, what would the new unit efficiency be? What is each part under the old method costed $3, and with the new method this decreased to $1.98. What is the efficiency ratio?

With the cost decreased, the operating profit would increase by the lower cost. How much greater is the operating profit for the 340 units?

If the AI implementation cost $95,000, what is the ROI (return on investment) over a year? You know the number of units are produced a day. The manufacturing plant is operated five days a week for eight hours a day. You also know cost savings.

As a bonus, how many days of production would it take for the company to break even on the funds they spent with the implementation? You know the cost to implement and the cost savings per unit. You also know how many are made over an eight hour day.

Phase II

As this focuses on the part you need to optimize the production, how would the AI process accomplish this? (Hint: follow-up, feedback, and data)

Phase III

You have the better designed and manufactured part. How will this be marketed? Phase IV Through the process, how will this enhance the users experience in operating their vehicle?