To enhance product reliability and capture China’s healthy drinking water market, Haier Qingdao needed to overcome quality, productivity and cost challenges associated with a complex product portfolio. To solve these, the company deployed AI algorithms and 32 digital technology solutions such as adaptive temperature control for carbon rod sintering and auto-repair for Reverse Osmosis membrane adhesive defects. Along with the use of SKU-level demand forecasts for auto-replenishment, Haier Qingdao achieved a 40% reduction in defect rates, a 72% drop in quality costs and a 53% reduction in inventory turnover days.