Modularization

March 2009Bill Meyer
William (Bill) Meyer -
B.E. (Civil) Hons., MBA.
Modularization
Director Project Execution Development
Foster Wheeler USA Corporation
Houston, Texas.
Ph. +1 713 929 8089

Project Costs
Factors we can influence / manage
Engineering Procurement Construction
Factors driven by market forces
~10% ~45% ~45%
Manhour
Cost $
Manhours Material
Quantities
Manhours
Material
Prices
Manhour
Cost $
Total
EPC
Cost $

THERE ARE MANY WAYS TO MOVE MANHOURS OFFSITE:
MODULARIZATION
Module is defined as
Minor or major section of a plant
Modularization

Defintion of a MODULE
Minor or major section of a
plant
Fabricated and assembled
offsite
Modularization

plant
offsite
Comprised of complete or
partial systems
Modularization

plant
offsite
Comprised of complete or
partial systems
Complete
(within practical limitations)
inside module boundaries
Modularization

Other Methods of Moving Manhours Offsite or to a More Productive
Environment
Preassembly –partial assembly of typically multi-craft components into an
assembly
Modularization

Other Methods of Moving Manhours Offsite or to a More Productive
Environment
Prefabrication – fabrication of typically single-craft components into a
fabricated item.
Modularization

Modularization
1. Decision making process for modular execution
2. Economic evaluation
3. Optimizing proportion of man-hours to move offsite
4. Engineering and Procurement implications
5. Module Fabrication
6. Critical success factors

Decision Timing for Modularization
Modularization
Project
Phase
FEL 1
Conceptual FEL 2
Assess FEL 3
Define
Execution FEL 5
Evaluation
FEL 4
Evaluate Module Options
Modular Execution Decision

e.g. OSBL piping in existing racks
Major storage tanks
Modularization Decision

Site Survey includes
• Labor
availability, productivity, quality,
craft availability, cost, other projects
in area, union impacts, regional /
political issues

• Labor
• Weather impacts

• Labor
• Weather impacts
• Logistics
on site and to site, from fabrication
yard, cost and technical capabilities,
laydown areas

Site access restrictions can limit size of modules that can be
delivered to site

Logistics is project specific – Some sites have their own ports

• Labor
• Weather impacts
• Logistics
• Environmental impact

• Labor
• Weather impacts
• Logistics
• Safety

• Labor
• Weather impacts
• Logistics
• Safety
• Permit issues

• Labor
• Weather impacts
• Logistics
• Safety
• Permit issues
• Etc.

Buy materials Fabricate Modules
Local suppliers / mod. yards

Buy materials Fabricate Modules
World wide suppliers / mod. yards

Modularization
Will impact possible module sizes
Type of plant
Scale of plant

Modularization Economics
1. Decision making process for modular execution
2. Economic evaluation
3. Optimizing proportion of man-hours to move offsite
4. Engineering and Procurement implications
5. Module Fabrication
6. Critical success factors

Modularization Execution Benefits:
1. Cost reductions (detailed shortly)

1. Cost reductions
2. Schedule reductions

1. Cost reductions
3. Risk reductions – 2 shifts possible, less impact on local craft, quality
enhancements, etc

1. Cost reductions
enhancements, etc
4. Safety – shop conditions, less working at height, less congestion, less
plant traffic

1. Cost reductions
enhancements, etc
plant traffic
5. Quality – controlled conditions, permanent established workforce and
skilled workers

1. Cost reductions
enhancements, etc
plant traffic
skilled workers
6. Reduced manpower on site

1. Cost reductions
enhancements, etc
plant traffic
skilled workers
7. Higher productivity – Nomex, Permits

1. Cost reductions
enhancements, etc
plant traffic
skilled workers
7. Higher productivity – Nomex, Permits
8. Etc.

Cost Downside
Increased cost of steel
Increased cost of shipping
Potentially - increased cost of transport and installation

Cost Downside
Increased cost of steel
Increased cost of shipping
Potentially - increased cost of transport and installation
Increased cost of engineering

Cost Upside
Move labor cost offsite to cheaper labor supply
Reduce indirect costs (construction supervision, consumables etc)
Improved productivity (weather, flexible workforce, site accessability etc)
Reduced schedule reduces construction indirects
[Positive impact to NPV if revenue stream begins earlier]

33 Month Schedule 3 million man hour
-
20,000
40,000
60,000
80,000
100,000
120,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33
months
Site Prep Civil Structural / Mech / Equip Piping E & I Indirects
Stickbuilt manhous

Module manhours removed offsite
-
20,000
40,000
60,000
80,000
100,000
120,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33
months
Residual manhous after module manhours moved offsite

-
20,000
40,000
60,000
80,000
100,000
120,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33
months
Estimate of % of ME&I hours that can be moved offsite in modules subtracted
from site hours
Module manhours removed offsite
-
20,000
40,000
60,000
80,000
100,000
120,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33
months

Cost Benefits
Economic Productivity Factor
On-site Off-site
Labour Productivity 2.20 1.2
Composite Manhour cost $105.00 $55.00
Relative manhour cost c/w Gulf Coast $231.00 $66.00
Economic productivity ratio 3.50 : 1

Cost Benefits
Economic Productivity Factor using Far East Yards
On-site Off-site
Labour Productivity 2.20 3.5
Composite Manhour cost $105.00 $12.10
Relative manhour cost c/w Gulf Coast $231.00 $42.35
Economic productivity ratio 5.45 : 1

MODULE vs STICK COST DIFFERENTIALS
Modular versus Stick built costs
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
Modular Cost Stick built Cost
Installation cost Δ
Shipping cost Δ
Const. Mngmt cost Δ
Foundation cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
labor cost
Savings
Millions$
Existing Project Data
(Note – All projects have different cost drivers )

$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
Shipping cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
Labour cost
Shipping cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
Labour cost
Shipping cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
Labour cost
COST DRIVEN MODULAR
PROJECT
SCHEDULE DRIVEN
MODULAR PROJECT
COST DRIVEN STICK BUILT
PROJECT

Manhour Density is Key
Offsite Manhours Optimization

Manhour Density is Key
Process Unit Modules Pipe Rack Modules

MARGINAL COST FOR ADDITIONAL PAU
Based on a manhour density of 12.9 manhours / m3
PAU Modularisation Drivers
24%
3%
2%
6%
2%
63%
Manhour
Steel
Foundations
Shipping
Installation
Delta
Breakeven
@ 2.4 manhours / m3

Identify the labour intensive sections on
the site… (highlighted red)

Aggregate where feasible…

Construct off-site

Steam turbine generators already
manufactured but VPU’s anticipated
around machines and lube oil skids.
Otherwise powergen area
predominately ‘stick built’.
Switch Room
modularised as
PAB.
Current piperack could be adapted
to suit modularisation. Currently
envisaged as 29 PAR’s as marked.
Deaerator structure to be
supplied as complete PAU.
Option to include pumps on
module or in hook-up scope.
Boiler manufactured and
understood to contain some
preassembly. Potential to
modularise burner and economiser
area.
Liquor tank could be
modularised to include
extensive piping and
pumping duties.
Potential to combine demin and
injection areas into a single VPU
or PAU module.
Piperack along water pumps
currently marked-up as PAR
modules. Could possibly be
combined with pumps and
supplied as 2-3 PAU
modules
Unit 350 - Steam and Power Plant
Proposal for Modularisation with Minimum Re-engineering
Stack / steelwork
supplied as a
preassembled VPU with
lower level PAS support.
Unexposed stack lifted
and welded after.
Potential to
modularise diesel /
HFO areas.
Scrubbers pre-dressed as
VPU’s or prior to lift if
already manufactured.

Unit 350 - Steam and Power Plant
As now being Engineered by Oracle

E & P Impacts
Planning is Critical for Modular Projects

Modular
Stick Built
Schedule Comparison – Modular vs Stick Built
0
10
20
30
40
50
60
70
80
90
100
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36
Duration - Months
Progress%
Order Placement Engineering Construction
Order Placement Engineering Construction
E & P Impacts

Module size constraints
Smaller modules require careful design for operator access
PDS modelling of modules enhances operator review and is
powerful tool for module fabrication
E & P Impacts

Modularization
Access needs to be provided outside smaller modules

Module Types
1. Pre – Assembled Units (PAU’s)
Multi disciplined modules including:
- tagged and non tagged items, steel, piping, electrical,
instrumentation, fireproofing, insulation

Module Types
1. Pre – Assembled Units (PAU’s)

Module Types
2. Pre – Assembled Racks (PAR’s)
Piping modules including:
- steel, piping, electrical cable tray, fireproofing, insulation
Site built steel
or concrete
columns

Module Types
2. Pre – Assembled Racks (PAR’s)

Module Types
3. Vendor Assembled Units (VAU’s)
PAU’s assembled by a vendor

Module Types
3. Vendor Assembled Units (VAU’s)

4. Vendor Package Units (VPU’s)
Complete packages purchased from a vendor
Module Types

5. Remote Instrument Buildings (RIB’s) Sub-stations etc
Module Types

E & P Impacts
Piping design file layout
Link files for pipe
stressing
Split files for quantity
takeoff and procurement

Differences can include
Location of pumps
PAR
02/03
PAR
04/05
PAU 01
PAU 02
PAU 03 PAU 05
VAU 02
etail above
Modular
Stick built
E & P Impacts

Pipe track to pipe rack
E & P Impacts

Easy Install Easy Ship
E & P Impacts

Additional clearance can be provided
where required
E & P Impacts

E & P Impacts
Site based Loads, Clearances and Critical Dimensions
Crane loads
Module clearances
Crane clearances
Foundations to
leave low
etc

Clearance between
piperacks critical
E & P Impacts

E & P Impacts
Loads applied to Modules
Fabrication yard supports

E & P Impacts
Transporting in the
Module yard

E & P Impacts
Sea acceleration forces
during shipment

E & P Impacts

E & P Impacts
Transporting on site

E & P Impacts
Installing on site

Installation Methods
Crane
Installation

Transporter
Installation

Jack-down
Installation

E & P Impacts
In-situ on foundations

E & P Impacts
Procurement Complexity
Number of delivery
locations impact
ordering and material
tracking
Equipment
Deliveries
Material Logistics for the
Stick-Built Project
Install
Dock
Truck

E & P Impacts
Procurement Complexity
Truck
Material
yard
Dock
Transport
Install
Material Logistics for the
modularized Project
Truck
Truck
Install
Module Fabrication
Yard
Equipment
Deliveries
Port
Module
Deliveries
Loadout
to ship
Bulk Materials and
minor equipment
Modules and
major equipment

Logistics is project specific
Logistics

Logistics

Type of ship – RO-RO, LO-LO, H/L
E & P Impacts

– Potential to ship stick built
materials in “dead space” on
HL ships
E & P Impacts

E & P Impacts

E & P Impacts
Larger Modules on weather deck

Barges could
also be viable
E & P Impacts

Barges could also
be viable –
and are
sometimes
essential due to
module size and
RORO
requirements
E & P Impacts

Modularization

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Modularization

Similar to Modularization (20)

More from gusgon

More from gusgon (7)

Recently uploaded

Recently uploaded (20)

Modularization