Real-time anomaly detection

Variances caught during the process,not after the period closes.

INVO analyzes the course of production and warehouse operations in real time, identifying behavior that departs from the expected course of the process.

INVO — real-time variance monitor
247 kg
Plan
213 kg
Expected range
208–218 kg
Actual
247 kg

Anomaly detected

Component consumption is outside the expected range for this stage of production.

+15.9% component consumption

Monitoring scope

Four areas analyzedin real time.

Production

  • operation time
  • throughput
  • component consumption
  • waste
  • production pace
  • delays

Warehouse

  • issues
  • returns
  • corrections
  • unusual movements
  • stock discrepancies

Purchasing

  • delivery delays
  • quantity differences
  • price variances
  • delivery quality

Operational processes

  • variances from standards
  • unusual process flow
  • recurring sources of loss

Thresholds vs learning models

Instead of defining every threshold,the system derives the norm from data.

Traditional threshold alert

Variance > 10% → alert.

INVO Intelligence

Is the course of this operation unusual for this product, bill of materials, batch size, process stage and current context?

In a classic ERP the user defines the rule: exceeding the norm by 10% raises an alert. The question is on what basis that particular threshold was chosen.

For one product +8% sits inside normal process variability; for another, +3% is already a significant disturbance. That is why the range of the norm is derived from historical data.

How it works

On what basis does the systemrecognize a variance?

01

A reference set of correct operations

For each specific product build, INVO analyzes among others:

Production

  • product
  • bill of materials
  • units
  • batch

Material

  • issued material
  • consumed material
  • waste

Context

  • time
  • line
  • process stage

Historical examples of a correct process course, held in the operational data warehouse.

02

Deriving the expected range

For 1 000 units of product X the model derives the expected consumption for the current process context:

Expected range208–218 kg

The range doesn't come from a manually entered limit — it follows from the real behavior of the process reflected in the data.

03

Significance depends on process context

The same percentage can mean different things depending on how variable the process is.

Process variability ±1%

+4% = significant variance

Higher-variability process

+8% = within the norm

Live monitoring

The forecast is compared with the real courseof the process, as it runs.

INVO — real-time variance monitor · Batch #4821
247 kg
Plan
213 kg
Expected range
208–218 kg
Actual
247 kg

Anomaly detected

+15.9% above the expected level

Unusual warehouse issue for Batch #4821.

Areas to verify

  • weighing
  • material issue
  • waste
  • bill of materials compliance

The technology behind it

This class of application uses, among others, Isolation Forest, statistical models, autoencoders and — for richer sequential data — time-series models.

The model architecture is not a fixed part of the product — the choice depends on the characteristics of the client's dataset.

Pipeline

  1. collect
  2. validate
  3. train
  4. backtest
  5. compare models
  6. deploy
  7. monitor drift

Estimated financial effect

Catching variances early limits material loss,complaint costs and production downtime.

A plant with $22M annual material consumption

Unexplained variances and waste
2% = $440K
Assumed reduction through early detection
20%
Annual effect
$88,000

Achieving the effect does not require eliminating most of the losses. At production scale, detecting even a small share of variances covers the cost of implementing the system.

ROI calculator

Estimate the potential on your own parameters.

Unexplained variances, overconsumption and waste, expressed as a share of material value.

22,000,000 USD
2.0%
20%

Value of losses: 440,000 USD

Savings potential

88,000 USD

/ year

≈ 7,333 USD a month

An indicative simulation of potential savings — the values are not a guaranteed result.

Real-time anomaly detection

React during the process,not after the month closes.

See how INVO identifies variances in production and warehouse operations.