PRR × Starkey Vision AI · Executive Briefing Confidential
The decision

Approve a $58,000 pilot. It funds the system that stops defective units from shipping — and it credits toward production.

What it returns, what it costs all-in, exactly what we're buying, how it wires into your systems, and where it goes. No ranges, no open decisions.

The numbers, all-in and honest

Annual value
$1.05M
defect prevention
Payback
4 mo
live operation
One-time build
$343K
pilot + production
Run-rate
$81K/yr
cloud + monitoring
5-yr total cost
$770K
everything in
5-yr net
+$4.5M
~600% ROI

The run-rate is $81K/year, and we're putting it on the front page. That's ~$3K of Azure plus a required managed-monitoring retainer (~$78K/yr) — a mandatory safety control for a classifier on a medical line, not an optional line item. Over five years, everything in, you spend ~$770K to return ~$5.25M in recovered margin. Net +$4.5M.

Why the value is real

Starkey ships 1.4M units a year at $500–$1,600 of gross margin each. A three-person quality team spot-checks by eye and catches roughly 80%, worse late in a shift. A wrong-color shell, a wrong component, or a mislabeled unit that ships is rework, a return, or — for a mislabeled medical device — an audit or a recall. Automated vision inspects every unit at 95–99%+ with no fatigue. At the expected escape rate, the recovered margin is $1.05M a year.

The one thing to know before you commit: the escape rate and the value of a caught defect are our estimates today. The pilot's job is to replace them with your actual RMA, scrap, and warranty numbers before you spend a dollar on production. If your true escape rate proves below 0.2%, the production case is negative — which is exactly why the pilot validates it first, and why the pilot fee is creditable.

The prize is the platform, not the station

Strategic view
The inspection line is the wedge. The prize is a quality-intelligence platform across your plant.

Every verdict and image flows into your Microsoft Fabric data lake with a full 21 CFR Part 11 audit trail, validated against your Oracle serial-and-part master data, and becomes queryable in plain language across QMS, IMS, and line telemetry. "How many recalls this month, and what caused them?" answered in seconds, across every system — not a two-day BI request.

The wedge — Phase 2–3
$1.05M/yr

One inspection system, defect-escape prevention. Provable, underwritten, funds itself in months.

The platform — Phase 4
$2–4M/yr

Quality-cost reduction, recall avoidance, and decision speed at platform maturity. Cost of quality runs 7–9% of sales in med-tech (McKinsey); capturing a few points on ~$1B is millions. Strategic tier — the reason to say yes to the direction, not just the pilot.

The investment — one price per phase

PhaseWhat you getInvestmentTime
Phase 2 · PilotLive proof on your floor; business case validated against your data$58,000 creditable3–5 wk
Phase 3 · Production3-station inspection, Azure MLOps, Oracle/QMS/IMS integration, audit trail$285,0004–6 mo
Phase 4 · PlatformNatural-language quality intelligence + agents over the Fabric lake$37,000phased
Hardware (your CapEx)$7,000 per station — 3 stations for production$18,000one-time
Run-rateAzure ~$3K/yr + required managed-monitoring retainer$81,000/yrongoing
Pilot credits toward productionNet one-time build after credit$343,000

Optional inspection add-ons, priced firm when you want them: white-label logo verification $26,000, metallic-pin protrusion measurement (R&D) $23,000. Every PRR fee maps line-by-line to committed engineer-hours and named roles — the full breakdown is in the Proposal tab.

The hardware — exact models, one price

ItemSpecified partQtyCost
CameraBasler ace 2 a2A2590-60ucBAS — 5 MP, color, USB 3.03$1,281
LensEdmund Optics 25 mm C-Series #165283$1,122
Dome lightAdvanced Illumination DL2230 — diffuse, for true color2$2,154
Ring lightAdvanced Illumination RL121 — grazing, for serial OCR1$440
Light controllerStrobe / hardware-trigger controller1$250
Edge computeFanless industrial mini-PC — Intel i5, 16 GB, no GPU1$900
Mounts + cablingC-mount arms, USB3 locking cables, powered hubset$520
Fixture + enclosure3D-printed fixture (you print) + light shroudset$333
Committed station totalThree cameras: bottom (serial/OCR), top (color/assembly), oblique (logo)$7,000

These are the exact parts — decided, not a range. Static parts in a fixed fixture mean rolling-shutter cameras and a CPU are sufficient; there is no need for a high-speed sensor or a GPU. Each additional production station is $5,500 (it shares the compute and controller).

How it wires into your systems

Cameras (×3)fixture on the line
Edge box — verdictinference under 100 ms, on the line
Serial validationserial ↔ part ↔ color ↔ logo vs. your Oracle master (Daniel's API)
↓ pass / fail returned to the operator; the line never waits on the cloud
QMS / IMS write-backresult logged — 21 CFR Part 11 audit trail
Microsoft Fabric lakeimage + verdict archived for audit + retraining
Agentic layerAzure OpenAI + Copilot Studio — ask across systems in plain language

Serial validation is what makes the verdict mean something — reading a serial isn't enough; matching it to the part, color, and logo it's supposed to be is what catches a traceability failure. It runs against your Oracle master data through the API Daniel exposes. All Azure consumption counts toward your Microsoft commitment (MACC) and is co-sell eligible.

Architecture, in three lines

Board confidence

The ask

Two decisions
Approve the $58,000 pilot — and commit to the direction it opens.
The small yes

Fund the pilot. Low cost, creditable, validated against your data, downside capped.

The big yes

Agree the destination is a quality-intelligence platform, and this station is step one.

Starkey × PRR · Vision AI · Value figures are validated against Starkey's own quality data during the pilot before any production commitment.
Full labor breakdown, regulatory and validation plan, and risk register: see the Proposal tab.