Written by Odin Bryant
Earlier this week, Forever Foundry announced that "Forever Foundry and Kudos Solutions Join Forces to Revolutionise Digital Transformation in FMCG Manufacturing" in this blog post here. As Kudos Solutions specialise in FMCG manufacturing, it is suitable that our next blog should be about the true costs of integrating AI into FMCG manufacturing.
TLDR: Implementing AI isn't a one-size-fits-all solution, the costs vary significantly across different AI technologies. Integrating LLM’s for digital media solutions are generally the cheapest, with Object Detection also being less expensive. Machine Learning (ML), Reinforcement Learning (RL), and Augmented Reality (AR) / Digital Twins represent a higher level investment to implement and maintain due to the need for specialised hardware and expertise.
If you don’t map out your digital transformation strategy before seeking an estimate, you risk vague quotes, unexpected expenses, scope creep, and project delays. We previously covered the costs of implementing Object Detection here so this article will only include ML, RL and AR.
Machine Learning: Utilising existing sensor data.
Machine Learning represents the most cost-effective starting point for FMCG manufacturers. We've seen examples of initial investment which ranges drastically from £10,000 to £250,000, depending on the scale and complexity of implementation.
The relatively lower costs stem from several factors:
- Availability of free open source pre-trained models.
- Larger supply of experienced contractors.
- Mature infrastructure requirements.
Then there's ROI. For example, implementing predictive maintenance using ML typically delivers ROI within 12-18 months through reduced downtime and optimised maintenance schedules. According to Deloitte, AI-driven anomaly detection and fault prediction can minimise the time needed for maintenance scheduling by up to 50%. And McKinsey claims machine failures typically contribute to about 15% of all downtimes for manufacturers. Energy optimisation systems often pay for themselves even faster.
Reinforcement Learning: Robotic Process Automation.
Reinforcement Learning, including RLHF systems, represents a middle-tier investment, typically ranging from £200,000 to £750,000 for comprehensive implementation.
Key cost factors include:
- More complex computational requirements.
- Lower supply of specialised contractors.
- Extended training periods for training your model.
- Custom hardware integration.
However, the payoff can be substantial. Limiting Human Feedback will likely increase the time and energy required during the learning phase however the freedom enables the model to discover more efficient methods. The key challenge lies in the initial training period, which can take 6-12 months before optimal performance is achieved.
AR and Digital Twins: The Premium Investment
AR and Digital Twin technologies can represent the highest investment, with comprehensive implementations delivering long term solutions for future proofing and enabling faster adoption of future technologies.
This higher cost stems from:
- Need for extensive sensor infrastructure.
- High-precision 3D modelling requirements.
- Complex integration with existing systems. (Technical Debt)
- Specialised hardware requirements.
- Wider staff training needs.
Siemens has made significant progress at their Amberg Electronics Plant in Germany, with a 30% increase in the ability to adjust manufacturing volumes, a 20% boost in productivity, and a 40% enhancement in space efficiency.
Hidden Costs and Considerations
Beyond the direct implementation costs, FMCG manufacturers should account for:
- Staff training and upskilling.
- Existing technical debt.
- Security infrastructure.
- Potential production disruptions during implementation - (Understanding the seasonality of fresh produce for minimal impact on core business.)
Before deciding which technology to implement it is important to assess your current technical debt, ensure your problem statement is validated and speak with SME’s to fully uncover the information surrounding this project and your wider digital landscape so that you can build precise requirements.
Don’t know your current level of technical debt? consider joining the waitlist for Slid3rs.com Forever Foundry’s Q1 Launch.
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