Artificial Intelligence (AI) and goal-based planning go together like peanut butter and chocolate. It really is an unbeatable combination.
When we first applied our goal-based planning process to a Value Engineering (VE) fund, we increased the returns by an additional 20% and we showed our client that they could either make that much more, by selecting different projects, or reduce their capital outlay by almost that much, and continue making the same overall savings.
But for many companies, the main problem is not selecting from among a large number of VE opportunities. It’s coming up with the cost-reduction opportunities in the first place.
Enter Artificial Intelligence. Our Quanta AI seeks out the opportunities from among your many products or components, based on some obvious information (number of units you expect to sell after reducing the cost, types of components used, etc.) and some not-so-obvious ones, which for now remain proprietary. We’ll take in whatever data you have though, and find opportunities.
But now you may have too many opportunities, and do not have the budget or people resources to implement them. Enter goal-based planning.
We take all of the value engineering projects you have available, including some you may have started, add in those that Quanta AI has identified, mix in your available resources, set your targeted goals for savings, and out comes a scheduled list of projects. If you include uncertainty in your forecasts for one or more of the projects (maybe sales will be below/above target, or cost savings will be below/above estimated, or the project takes longer than expected), we show you the uncertainty across your entire portfolio of VE projects.
Now that you know which projects to pursue and what their total risk-adjusted outcome should be, you can start working on addressing some of the constraints that are keeping you from saving even more. Perhaps you add more capital to your internal VE fund, hire additional people to implement the projects, or we can help you identify outside resources for the implementation phase, while your internal development teams focus on new products.
Once we help get your fund set up, and Quanta AI scouring your product and components list for opportunities, we know you’ll agree that AI and Goal-based Planning belong together. #QuantaAI
