Generative Defect Simulation for SAP Visual Inspection

Executive Summary

In 2024, as part of SAP Business AI, I collaborated with the Visual Inspection product group to design a generative AI workflow capable of producing synthetic defect images for machine learning training. This replaced the traditional and costly process of manufacturing and photographing defective parts. The concept advanced through leadership reviews, secured support, and later became a shipped capability inside SAP’s manufacturing portfolio, enabling customers to accelerate visual inspection model training with significantly lower cost and effort.

Introduction

Visual inspection systems depend on high-quality training data to accurately detect defects in manufactured products. Traditionally, this required physically creating defective samples, photographing them, and manually annotating each defect. This process was slow, expensive, and difficult to scale across product variants.

In 2024, SAP Business AI explored a new approach using generative AI to produce synthetic defect images based on a single clean photograph of a product component. This breakthrough allowed manufacturers to train machine learning models with far greater efficiency while reducing reliance on physical defects.

I partnered with the Visual Inspection team to design the end-to-end experience that operationalised this idea and made it usable inside SAP’s ecosystem.

Context and Strategic Position

SAP Business AI functioned as a central strategic team responsible for shaping AI experience guidelines and enabling consistent adoption across SAP’s product landscape. My role involved providing UX leadership and consultation to multiple lines of business to ensure AI concepts were both strategically aligned and operationally feasible.

Visual inspection was a particularly strong candidate for innovation because:

  • ML adoption in manufacturing is slowed primarily by dataset creation

  • Manufacturers repeatedly spend time and money generating physical defects

  • Rare defects are difficult to capture, leading to gaps in model accuracy

  • Each new product variant required starting ML training from zero

  • Synthetic data could reduce time and cost while increasing accuracy

This project demonstrated how SAP Business AI could unlock value at the core of digital manufacturing.

Problem

Machine learning systems require thousands of high-quality images representing both defective and non-defective product states. Manufacturers faced several difficulties:

Operational difficulties

  • Creating defective samples required stopping or adjusting production

  • Gathering rare defect types often took weeks

  • Manual annotation required skilled personnel and significant time

  • Model retraining needed full repetition for every new product variant

Business pain points

  • Dataset creation costs were high

  • Onboarding new products slowed down adoption

  • Inconsistent real-world image quality caused ML setbacks

  • Scaling across product lines required significant recurring investment

The challenge was to design a radically more efficient process that reduced cost, improved quality, and enabled reuse across variants.

My Role

As the UX designer representing SAP Business AI, I was responsible for:

  • Understanding manufacturing workflows, defect taxonomies, and ML training processes

  • Collaborating closely with the intelligent systems specialist and Visual Inspection product owner

  • Designing the generative AI workflow for producing synthetic defect images

  • Enabling users to upload product photos, generate defects, refine them, and prepare datasets

  • Ensuring clarity, transparency, and quality controls for domain experts

  • Creating the UX that connected this workflow to Visual Inspection’s ML training pipeline

  • Shaping how the concept aligned with SAP’s broader AI design guidelines

  • Preparing and presenting the concept for leadership evaluation

What began as a conceptual exploration later moved into SAP’s roadmap and evolved into a fully shipped capability.

Solution Overview

The designed workflow uses generative AI to create realistic defect images by building synthetic flaws on top of a base product photo. Users can generate multiple variations for each defect type and customise them to match real production scenarios.

The experience allows users to:

  • Upload a photo of any product component

  • Select a defect category

  • Generate synthetic versions with realistic visual quality

  • Adjust severity, scale, location, and frequency

  • Compare original versus generated variations

  • Approve or regenerate results

  • Export the entire synthetic dataset directly into Visual Inspection

  • Use the dataset to train machine learning models immediately

This streamlined dataset creation process eliminates repetitive manual work, accelerates ML adoption, and reduces cost for manufacturers.

Why This Matters for SAP

This work advanced SAP’s strategic goals in multiple ways.

Strengthened SAP’s manufacturing portfolio

Synthetic defect generation significantly reduces the barrier for customers adopting ML-driven visual inspection.

Supports cross-industry scalability

The generative workflow adapts to any product category because users provide their own images.

Reinforces SAP Business AI as an innovation leader

Demonstrates practical, valuable applications of generative AI within core enterprise workflows.

Drives ecosystem consistency

The design aligns with SAP’s AI guidelines, promoting uniform adoption of intelligent capabilities across teams.

Becomes a reusable capability

The logic for synthetic defect generation can support multiple SAP manufacturing products.

Most importantly, the concept matured into a real product capability, confirming its strategic and practical value.

Estimated Business Impact

(Industry-based estimations)

Time savings

  • Reduction in dataset preparation time: 70 to 90 percent

  • Reduction in total ML model development cycle: 50 to 70 percent

Cost reduction

  • Reduction in physical defect-creation cost: 80 to 95 percent

  • Estimated 20,000 to 200,000 EUR saved per product line per training cycle

  • Annotation-related cost reduction: 60 to 85 percent

  • Annual savings for medium manufacturers: 50,000 to 150,000 EUR

Quality improvements

  • Accuracy improvement: 10 to 25 percent due to broader defect coverage

  • Greater consistency in lighting, angles, and defect visibility

Scalability

  • New product onboarding time reduced by 50 to 80 percent

  • Reusable model logic increases ROI across multiple product lines

Value for SAP

  • Supports AI-first manufacturing strategy

  • Improves competitiveness in the industrial AI market

  • Provides a demonstrable example of Business AI enabling Lines of Business

These estimations show how generative AI can significantly shift efficiency, capability, and cost structures for manufacturers.

Closing

This project reimagined how manufacturers prepare machine learning datasets for visual inspection. By introducing synthetic defect generation, the workflow reduces time, lowers cost, and delivers higher consistency without disrupting production lines.

The most rewarding outcome is that the concept progressed far beyond exploration. It received strong leadership support, evolved through validation cycles, and is now a shipped capability within SAP’s manufacturing product portfolio. Customers are already using this to accelerate defect detection training and improve product quality with far less effort.