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Modularization: The Fine Art of Offsite Preassembly for Capital Projects

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Modularization

A practical, hands-on guide to offsite preassembly, beginning with the project as just a concept gleam in the CEO’s eye and winding all the way through implementation at the construction site.

Modularization is a philosophy change! And along with that change, comes the need to understand the implementation requirements and project mindset adjustments that impact and influence all aspects of the modular project. To accomplish this, the book provides a complete (from beginning to end) identification and evaluation of the differences that make a modular project unique, starting with the very basics in terms of definitions and setting the groundwork of expectations by identifying benefits and challenges. Then, because the journey is as important as the destination, the reader is guided through the various project phases in a manner that reflects how they would be addressed in the workplace. From the very earliest identification of concepts, through early assessment and selection of the optimal choice to be finally carried into detailed design, the reader is acquainted with each phase of the development process, including explanations and relevant suggestions for many of the questions and issues that typically come up.

A perfect reference for professional and technical leaders when developing the early, critical planning phases of modular projects, this guide offers useful examples and details on the fundamentals required to get a modular project started correctly and keep it on track. And, for those whom this is not their first foray into modular project management, this guide includes suggestions, examples, and/or lessons learned to make the subsequent module projects easier to implement.

Recognized industry experts Michael Kluck and Dr. Jin Ouk Choi have authored this guide to modularization that is ideal for owners, contractors, project management, engineers, project controls, and procurement―in fact, anyone interested in improving current construction project management practices. In addition, its thought-provoking examples and project case studies provide the perfect platform for its instructional use in teaching modular concepts.

Written from the perspective of both the Client/Owner and the EPC Contractor, this guide provides useful information needed for initial project management setup and technical details useful to working functional groups within the project. As such, it is truly a universal guide that can provide personnel at all levels within the project with the information needed to make project implementation more seamless. This book is written in terms of the large-scale industrial modularization project, but the steps and process are equally applicable to small-scale projects and projects outside the industrial construction realm.

Some of the topics covered in this guide include:

  • The basics (to set a basis for major topic presentations)
  • Module configurations (“good, bad, and ugly”)
  • A deep dive into modularization business case
  • Module team and project interactions
  • Module execution planning and timing
  • Success factors, pitfalls and avoidance
  • A walk through the “module project”
  • A modular project case exercise – tying it all together
  • Standardization – the next step
  • What the future holds

Author(s): Michael Kluck, Jin Ouk Choi
Publisher: Wiley
Year: 2023

Language: English
Pages: 251
City: Hoboken

Cover
Title Page
Copyright Page
Contents
Preface
Acknowledgements
Introduction
Chapter 1: What Is Modularization?
Chapter 2: Advantages and Challenges of Modularization
Chapter 3: Industry Status on Modularization
Chapter 4: What Is a Module?
Chapter 5: The Business Case for Modularization
Chapter 6: The Module Team and Execution Plan Differences
Chapter 7: Key Critical Success Factors for Modular Project Success
Chapter 8: The Fabrication Yard
Chapter 9: Module Considerations by Project Group
Chapter 10: A Practical Module Development Process
Chapter 11: Modularization Application Case Study Exercise
Chapter 12: Standardization: The Holy Grail of Pre-Assembly
Chapter 13: Innovative Technologies for Modularization
Chapter 14: Moving Forward
Chapter 15: Key Literature and Resources on Modularization
Chapter 1 What Is Modularization?
1.1 Definitions
1.1.1 Modularization
1.1.2 Module
1.1.3 Percentage Modularization
1.2 “Planning for Modularization” as a Best Practice
1.3 Current State of the Construction Industry
1.3.1 How Did the Construction Industry End Up in Such a Sad State of Affairs?
1.3.2 The Solution: Modularization
1.3.3 Why Aren’t All Jobs Modular?
1.3.4 Are Module Jobs More Expensive?
1.4 Three Distinct Module Options (or Circumstances)
1.4.1 Very Limited
1.4.2 Selective Implementation
1.4.3 Maximized Modularization
1.5 What Modularization Is “Not”
1.5.1 Panacea (a Solution for All Difficulties)
1.5.2 Constant
1.5.3 Easy
1.6 Summary
References
Chapter 2 Advantages and Challenges of Modularization
2.1 Why Do Fabrication Yards Have an Advantage?
2.1.1 Obvious Reasons
2.1.2 Less Obvious Reasons
2.2 Advantages of Modularization
2.2.1 Reduced Capital Costs
2.2.2 Improved Schedule Performance
2.2.3 Increased Productivity
2.2.4 Improved Predictability (Surety/Reliability) or Less Variability
2.2.5 Increased Safety and Quality Performance
2.2.6 Increased Sustainability Performance (Green Benefits)
2.2.7 Site and Site Construction Team Benefits
2.3 Challenges
2.3.1 Critical Path (Reduction in Flexibility)
2.3.2 Upfront Cost (and Pre-Commitment)
2.3.3 Barriers to Engineering
2.3.4 Acceleration of Procurement
2.3.5 Owner and Contractor Capabilities
2.3.6 Module Fabricator Skills and Capabilities
2.3.7 Extensive Coordination
2.3.8 Logistics (Module Transportation)
2.3.9 Others
2.4 Summary
References
Chapter 3 Industry Status on Modularization
3.1 Modular Projects Case Study
3.1.1 Case Study Methodologies
3.1.2 Sample Characteristics
3.2 Results (Industry Status on Modularization)
3.2.1 Advantages of Modularization
3.2.2 Cost and Schedule Savings Compared to Stick-Built
3.2.3 Recognized Project Difficulties and Impediments to Modularization Application
3.2.4 Business Case Drivers for Modularization
3.2.5 Types of Module Units
3.2.6 Number, Size, and Weight of Modules
3.2.7 Characteristics of Job Site and Module Fabrication/Assembly Shops
3.3 Summary
Acknowledgments
References
Chapter 4 What Is a Module?
4.1 Common Terms
4.1.1 Pre-Assembled Pipe Rack or Pre-Assembled Rack (PAR)
4.1.2 Pre-Assembled Units (PAU)
4.1.3 Skid Mounted Unit (SMU) or Vendor Package Unit (VPU)
4.1.4 Vendor Assembled Unit (VAU)
4.1.5 Pre-Assembled Structure (PAS)
4.2 Other Terms
4.2.1 Small PAU/Medium PAU/Large PAU/Super PAU/Mega (or Small/Medium/Large/Very Large/Mega Equipment Modules)
4.2.2 Small PAR/Medium PAR/Large/Very Large PAR (or Small/Medium/Large/Very Large Pipe Rack Modules)
4.3 Module Considerations
4.3.1 Plot Plan Development
4.3.2 What Does Such an Exercise Look Like?
4.3.3 Why Analyze the Process?
4.3.4 Steps in Maximizing Module Efficiency
4.3.5 Additional Module Considerations
4.4 Summary
References
Chapter 5 The Business Case for Modularization
5.1 Fundamentals of the Business Case
5.1.1 What Makes a “Good” Module Candidate?
5.1.2 Every Project Has Some Amount of Modularization
5.1.3 Three Distinct Levels of Involvement
5.1.4 Advantages and Challenges
5.2 Important Factors to Consider
5.2.1 Universal Key Project Drivers
5.2.2 Additional Project-Specific Factors
5.3 The Business Case Process
5.4 The Business Case Model
Project Analysis
The 13-Step Business Case Flowchart
5.5 The 13-Step Business Case Flowchart
Step 1 Modularization Technical Feasibility
Step 2 Identify Module Drivers
Step 3 Analyze Module Potential
Step 4 Perform Options Analysis
Step 5 Develop Module Scope, and Step 6 Develop Module Size
Step 7 Produce Module Definition and Index
Step 8 Develop Execution Strategy and Execution Plan
Step 9 Produce a Definitive Cost Estimate
Step 10 Produce a Definitive Schedule
Step 11 Check Module Viability
Step 12 Proceed with Modularization to the Next Project Phase
Step 13 Fall Back to Stick-Built
5.6 How Often Should the Business Case Flowchart Be Utilized?
5.7 Summary
References
Chapter 6 The Module Team and Execution Plan Differences
6.1 The Module Team
6.1.1 A Module-Savvy Leader
6.1.2 The Module Team Members
6.1.3 Critical Team Members
6.1.4 Integration into Project Management
6.1.5 Module Team Growth
6.2 Execution Plan Differences (EPDs)
6.2.1 Guiding Principles
6.2.2 Topics of Execution Plan Differences
6.2.3 Detailed List of Execution Plan Differences
6.2.4 Timing of Execution Plan Differences
6.3 Summary
References
Chapter 7 Key Critical Success Factors for Modular Project Success
7.1 Modularization Critical Success Factors (CSFs)
7.1.1 CSF Labels and Descriptions
7.1.2 Frequent Module Job Mistakes
7.1.3 Responsibility and Timing of CSFs
7.1.4 Most Delayed CSFs in Terms of Accomplishment Timing
7.2 Association between Modularization CSF and Project Performance
7.3 Training Exercise
7.3.1 Instructions for the Training Exercise
References
Chapter 8 The Fabrication Yard
8.1 Basic Benefits of the Fab Yard
8.2 Manufacturing and Construction Mixture
8.3 AWP and Module Fabrication
8.4 Selecting a Fabrication Yard
8.4.1 Project Size
8.4.2 Number of Yards Utilized
8.4.3 Location of the Yard
8.4.4 Complexity
8.5 Contracting Strategy
8.5.1 Type of Contract
8.5.2 The Best Type of Subcontract
8.6 Division of Responsibility
8.7 Summary
Reference
Chapter 9 Module Considerations by Project Group
9.1 Engineering Considerations
9.1.1 Module Evolution
9.1.2 Operations and Maintenance Input
9.1.3 Structural Engineering Is King
9.2 Scheduling Considerations
9.3 Procurement Considerations
9.3.1 Fabrication Yard Interfacing
9.4 Sub-Contract Considerations
9.4.1 Heavy Haul (HH)
9.4.2 Vessel Transport
9.4.3 Module Offloading Facility (MOF)
9.4.4 Heavy Lift (HL)
9.4.5 Pipe Spools and Galvanized Structural Steel Fabrication
9.5 Fabrication Considerations
9.5.1 Bolted vs. Welded
9.5.2 Structural Shapes
9.6 Completion/Testing/Prep Considerations
9.6.1 Shipping Incomplete
9.6.2 Ship Loose
9.7 Load-out Considerations
9.7.1 Land Load-out and Self-Propelled Modular Transporters (SPMTs)
9.7.2 Marine Onloading and Offloading
9.7.3 Capacity of the Wharf or Quay
9.8 Module Movement Considerations
9.9 Module Responsibility Matrix
9.10 Shipping Considerations
9.10.1 Tying or Fastening the Module
9.10.2 Movement to Site and Hook-Up
9.11 Construction Considerations
9.11.1 Understand the Schedule
9.11.2 Understand the Modules
9.12 Summary
References
Chapter 10 A Practical Module Development Process
10.1 Introduction
10.2 Initial Project Analysis
10.2.1 Reality Check Questions
10.3 Early Discussions
10.4 Module Tenets
10.4.1 Definitions
10.4.2 Boundaries and Limitations
10.4.3 Cost
10.4.4 Impacts
10.4.5 Experience
10.4.6 Commitment
10.5 Project Drivers
10.5.1 Cost versus Schedule
10.5.2 Other Drivers
10.5.3 Owner-Furnished Equipment
10.5.4 The Module Team
10.5.5 How Many and How Big?
10.6 The Five-Step Module Development Process
10.6.1 Step #1 The Stick-Built versus Module Comparison
10.6.2 Step #2 The Module Layout
10.6.3 Step #3 Expand and Accept
10.6.4 Step #4 Schedule
10.6.5 Step #5 Cost
10.6.6 Other Activities
10.7 Concerns to Watch Out For (Lessons Learned)
10.8 The Inevitable Question
10.8.1 The Late Requested Module Study
10.8.2 Less Ambitious Options
10.9 A Couple of Observations from Experience
10.9.1 Underestimation
10.9.2 Under-Collaboration
10.10 Conclusion
Chapter 11 Modularization Application Case Study Exercise
11.1 Oil and Gas (Downstream) LNG Modularization Project Scenario1
11.2 General Project Description and Background
11.3 Additional Project Site/Existing Facilities Information
11.3.1 General Information
11.3.2 Potential African Supply Bases
11.3.3 Opportunity Island
11.3.4 Asian Fabrication Yards
11.3.5 The Houston Engineering Offices
11.3.6 Project Scope
11.3.7 Project Characteristics
11.3.8 Project Stakeholders
11.3.9 Modularization
11.4 In-Class Exercise
Opportunity Framing (FEL-0)
11.4.1 Suggested Student Development Activities
11.4.2 Suggested Student Development Activities
11.4.3 Suggested Student Development Activities
11.4.4 Suggested Student Development Activities
11.4.5 Suggested Student Development Activities
Chapter 12 Standardization
12.1 Why the Interest?
12.1.1 Design Benefits
12.1.2 Learning Curve Benefits
12.1.3 Procurement Benefits
12.1.4 Cost and Schedule Benefits
12.1.5 Overall Value Captured
12.2 How Might It Impact You?
Example
12.3 How to Implement Modularization with Standardization?
12.3.1 The Two Methods of Combining Modularization and Standardization
12.3.2 Ten Factors to Determine Potential for Standardization
12.3.3 Suggested Standardization Study Sequence
12.4 The Standardization Work Process
12.4.1 The First Unit (or Prototype)
12.4.2 All Subsequent Units
12.4.3 Owner/Client Accountability
12.5 The Standardized Approach: Critical Success Factors for Standardization
12.5.1 Continuity
12.5.2 Alignment
12.5.3 Discipline
12.6 Conclusion: You’re on Your Own
Acknowledgments
References
Chapter 13 Innovative Technologies for Modularization
13.1 Introduction
13.2 Current List of Innovative Technologies for Modularization
13.3 Technologies of Interest
13.3.1 Visualization, Information Modeling, and Simulation
13.3.2 Sensing and Data Analytics for Construction
13.3.3 Robotics and Automation
References
Chapter 14 Moving Forward
14.1 What’s Next?
14.2 So, What Did We Get Out of This?
14.3 What Did You Get Out of This?
14.4 Suggested Future Actions: Our Seven Industrial Modularization Accelerators
14.4.1 Applied Knowledge
14.4.2 A Different Academic Teaching Approach
14.4.3 Identify, Acknowledge, and Incorporate Required Paradigm Shifts
14.4.4 Friendly Contracting
14.4.5 Industry Re-branding (or Making the Industry Sexy, Again)
14.4.6 More Alliances and Research
14.4.7 Planning Techniques and Their Combinations
14.5 The End or the Beginning?
References
Chapter 15 Key Literature and Resources on Modularization
15.1 Key Literature from Construction Industry Institute (CII) and Dr. Choi
15.1.1 The Constructability Task Force 83-3
15.1.2 Research Team 29
15.1.3 Research Team 171
15.1.4 Research Teams 232 and 255
15.1.5 Research Team 283
15.1.6 Dr. Choi’s Dissertation and the Follow-up Research
15.1.7 CII Modularization Community for Business Advancement (MCBA) Toolkit
15.1.8 (Ongoing) Research Team 396
15.2 Key Research Articles on Modularization and Standardization by Dr. Choi
15.2.1 New Technologies and Approaches for Modularization
15.2.2 Modular Construction in the Building Sector
15.2.3 Modular Construction for Post-Disaster Reconstruction
15.2.4 Education for Modularization
15.2.5 Accelerated Bridge Construction
15.2.6 Facility Standardization
Abbreviations
Contributors
Index
EULA