The Small and Medium Manufacturer (SMM) Data Reality Check: An AI Readiness Checklist
The Small and Medium Manufacturer (SMM) Data Reality Check: An AI Readiness Checklist

How do you determine if your plant is ready for Prescriptive AI? Before investing in a prescriptive AI platform, Small and Medium Manufacturers (SMMs) must verify that their data environment is a “clean engine” ready for high-performance intelligence. Try this checklist to determine if your shop is ready to bridge the gap from manual monitoring to prescriptive autonomy.

Phase 1: Problem & Data Inventory (Data Contextualization)

  • Identify the “Noisy” Process: Have you selected a process where human inspection is inconsistent (e.g., surface roughness, scratch detection)?
  • The “Golden Dataset” Check: Do you have at least one production line with consistent, labeled data for this process?
  • System Mapping: Is your data currently trapped in “air-gapped” machines, or is it accessible via a central historian or ERP?
  • Contextualization: Do your sensor readings have “tags”? (e.g., A temperature spike is useless unless the AI knows it belongs to Bearing #4 on Line A).

Phase 2: Technical Rigor & “The Industrial Standard”

Industrial AI is far less forgiving than consumer-grade models. Test your requirements against these 2026 industry benchmarks:

  • The 99.5% Accuracy Threshold: Can the solution guarantee accuracy above 99.5%? In manufacturing, a 5% error rate is considered a catastrophic failure.
  • False Positive/Negative Strategy: Does the vendor provide a clear plan for managing False Positives (unnecessary maintenance stops) and False Negatives (missed failures)?
  • Closed-Loop Capability: Does the system allow for Human-in-the-Loop (HITL) validation where an operator can “confirm” an AI prescription to improve future machine learning accuracy?

Phase 3: Vendor & ROI Vetting (The Business Case)

  • Commercial Model: Is the solution OPEX-based (subscription) to preserve cash flow, or does it require a heavy upfront CAPEX?
  • The 6-Month ROI Rule: Can the vendor demonstrate a clear path to break-even within 3 to 6 months?
  • Modular Scalability: Can you start with a single machine or “pilot asset” before committing to a plant-wide rollout?
  • “Explainable AI” (XAI): Does the AI provide the “Why”? (e.g., “Replace the bearing because vibration frequency X indicates inner-race wear.”)

Phase 4: Cultural & Change Management

  • Tribal Knowledge Capture: Is there a plan to involve your most senior veterans in “teaching” the AI? This reduces their fear of displacement and ensures the AI learns the “soul” of the machine.
  • Operator AI Literacy: Do you have a budget or time allocated for training shop-floor staff on how to interact with AI-driven prescriptions?
  • Executive Ownership: Is there a clear business owner (COO or Plant Manager) who can protect this project from being “juggled” between IT and Operations?

This checklist was synthesized from the “Prescriptive AI in the Factory: Accessible for SMEs or Enterprise-Only?”panel session at IIoT World Manufacturing Day.

Expert Contributors:

  • Karthikeyan Natarajan, Co-CEO, Infinite Uptime Inc.
  • Jeff Winter, Vice President of Business Strategy, Critical Manufacturing.
  • Carl March, Manufacturing Transformation Leader, Ernst & Young.
  • Michael O’Donnell, Chief Operating Officer, MAGNET.

Sponsored by Infinite Uptime