Pp/Ppk

Estimate AI scrap reduction potential with a bounded business case, not a promise. Start from actual scrap and rework history, isolate the loss modes AI could influence, then apply scenario ranges based on data quality, process stability, intervention timing, and adoption. In regulated plants, integration, validation, and change control often limit realized gains more than model accuracy.

Aerospace leaders should measure cost of poor quality (COPQ) using a small, clearly defined set of categories that tie directly to P&L and program risk, with traceable data sources and stable definitions. Executive reporting should highlight trends, main drivers, and structural constraints, not just a single headline number. COPQ must align with finance, program, and quality data and be governed through change control.

There is no single correct cadence. In aerospace, executives typically need a layered review rhythm: daily for critical escapes and major disruptions, weekly for plant-level trends and containment status, and monthly to quarterly for structural COPQ drivers and investment decisions. The right cadence depends on data quality, process maturity, and how quickly corrective actions can be validated.

In regulated manufacturing, rework means bringing a nonconforming product back into specification using the original, approved process (or a pre-validated variant). Repair means making a nonconforming product usable by adding, patching, or modifying it in a way that does not fully restore it to the original design intent or specifications, and typically reduces or limits its allowable use. The distinction has implications for risk, documentation, validation, and customer and regulatory approvals.