Pilot programme design

Three AI pilots aimed at one line of the balance sheet

A building-products manufacturer had capital trapped in inventory and a digital team already delivering wins. I proposed three pilots tied to working capital rather than to a technology roadmap.

Ranked by balance-sheet impact, not by technical interest
3 pilotsRanked by balance-sheet impact, not by technical interest
Each stage priced separately and separately cancellable
PoC → MVP → scaleEach stage priced separately and separately cancellable
The maintenance pilot targets equipment they already own
No new capexThe maintenance pilot targets equipment they already own

The client

A North American building-products manufacturer with dozens of plants across two continents, a competent in-house digital twin team, and roughly three quarters of its inventory sitting in raw materials exposed to price and lead-time volatility.

The engagement

Three staged pilots, each priced as proof of concept, then MVP, then scale — so each stage buys the right to fund the next.

The problem

The client's pain was working capital — inventory days rising year on year, each additional day tying up serious money, and delivery reliability slipping below target with a revenue headwind attached. Their digital team had already delivered a throughput win on their own, which raises the bar rather than lowering it: any proposal that reads as a generic AI capability tour gets dismissed by people who have already done the real thing.

What I did

I ranked the pilots by proximity to the balance sheet rather than by technical elegance. Forecasting came first because inventory days is the metric under pressure, and I specified hierarchical Bayesian models rather than a standard forecasting stack for a stated reason — sparse product lines and tariff shocks are exactly where conventional approaches break, and the output is a probability band a planner can act on rather than a single number nobody believes. The second pilot was deliberately chosen to need no capital replacement, because a proposal that requires new machinery competes with the machinery budget. The third rode on a migration the client was already funding, so it borrowed an existing budget line instead of asking for a new one. Each pilot was priced in three stages with a team shape per stage, so the client could stop after any one of them without stranding the work.

What was built

Three pilots in priority order: hierarchical Bayesian forecasting of demand and lead time, chosen specifically because it handles sparse product lines and tariff shocks where standard forecasting collapses; predictive maintenance on already-depreciated equipment, so throughput improves without capital replacement; and Monte Carlo scenario planning over the enterprise system for disruption and tariff what-ifs.

On the table at the end

  • Deep-dive case document covering all three pilots — architecture, timeline and financials
  • Executive deck framing the pilots against working capital
  • Staged pricing envelope with team shape per stage

What it changed

Anchored an AI conversation to inventory days and on-time-in-full delivery — the two numbers their board already watched — so the programme was evaluated as a working-capital initiative rather than as an innovation budget.

How it ran

  1. 01

    Open on their numbers

    Inventory days, cash conversion cycle and delivery reliability — sourced and stated first, so the pilots arrive as answers to a problem they already own.

  2. 02

    Rank by balance-sheet distance

    Forecasting first because it moves the metric under pressure; the elegant pilots ranked below the useful one.

  3. 03

    Justify the method, not just the outcome

    Hierarchical Bayesian modelling specified with the reason it beats the default: sparse lines, volatile lead times, probability bands over point estimates.

  4. 04

    Ride existing budgets

    One pilot on equipment already owned, one on a migration already funded — reducing the number of new budget conversations from three to one.

  5. 05

    Stage the money

    Proof of concept, then MVP, then scale, each priced separately with its own team shape and its own exit.

Something similar on your plate?

Thirty minutes, no deck. I will tell you whether it is worth doing at all.