Developing the “Right” Modularization Decisions for … & Prefabrication must be an early...
Transcript of Developing the “Right” Modularization Decisions for … & Prefabrication must be an early...
Copyright © 2012 Fluor Corporation
IQPC Prefabrication & Modularization Conference, March 2013
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Developing the “Right” Modularization Decisions for Mining Modules in China
Wang Junfeng & Tony Kretzschmar Fluor China Engineering & Construction
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Fluor Reaching 100 Years: A Business Milestone
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China Office Profile
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Executing projects in China since 1978 More than 250 projects completed in
China Strong FSR/FEED/PMC/EPCM/EPC
execution capabilities 9 Mega Projects executed during the last
decade
Fluor has worked with more than: – 20 Class A China Engineering
Companies – 70 Super Class / 1st Class
construction companies
Current staff ~ 900+ Office Locations:
– Head Quarters, Shanghai Dawning Center
– Beijing Lido Plaza
Beijing
Shanghai
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Introduction
Modularization and prefabrication solutions have brought many projects commercially and technically from dreams to reality
There are no end to the challenges in successful modular and prefab solutions including proper design, prefabrication, shipping, and installation
Successful offsite modularization and prefabrication needs a new approach at all levels within the design, delivery and installation activities
Insights into recent modular developments that target to overcome the issues & challenges, from design innovations throughout the course of each project from concept to commission
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Modularisation & Pre-Assembly – Definition
Modularization is an execution approach for design, procurement, contracting and construction that shifts site construction hours away from the site
Includes skids, pre-assemblies, entire process structures, machines, and other structures including bridges
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What Are They? Assemblies of process
plant components
Assembled at one location (fabricator) and transported to another (jobsite)
Made up of structure, equipment, piping, electrical, and instrumentation
Made in a variety of sizes
Modularization & Pre-Assembly – Examples
Prefabrication Preassembly
Process Modules Offsite Fabrication
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Safety Drivers
Fluor Managed Jobsite Construction Work Hours: 2010: 20,916,315 2009: 16,487,350 2008 : 20,213,603 2007 : 2,664,611 2006: 11,934,729 2005: 24,953,635 2004: 50,811,158
Fluor projects in China meet Best-in-Class standards
0.930.98
0.87
0.64
0.5
0.370.46
0.42
0.280.22 0.23 0.24
1.67
1.03 1.02
1.23
0.88
0.72
0.58
0.68
0.570.64
0.13 0.12
0
0.12
0.28
0.170.1
0.180.23
0.02 0.02 0.04
1.16
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Fluor GlobalU.S. CIIFluor China
Total Recordable Rate
# Fluor Self Perform & Subcontractor Combined Total Recordable Rate * Calculated per 200,000 hours worked
#
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Cost Factors
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Cost Factors
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Sample Cost Comparison – Stick Built vs. Modularisation
Item Stick Built Modularisation Comment
Tradeworker Productivity Higher Shop environment more productive
Tradeworker Hours Reduced Higher productivity
Tradesworker All-In Labour Cost Reduced Lower overheads; low cost labor resources
Field Indirect Costs (Camps & Catering)
Higher Fewer Tradesman on site
Scaffolding Costs Higher More work above grade
Engineering Costs Higher More structural design; added project management
Transportation Costs Higher Heavy haul/heavy lift costs
Material Costs Higher More structural steel
Project Contingency Higher Less risk factors in shop environment
Execution Flexibility Reduced Design and procurement frozen earlier
Material Surplus Neutral Neutral May be less with modular approach
Cost of Cash Higher Earlier spending
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Schedule Considerations
Key activities prior to the detailed design phase are: Business Planning Phase Recognize drivers Collect Information related to the modular decision Scope Definition Phase Strategic evaluation – (simplified cost delta analysis, CII tool or similar) Conceptual transportation, handling studies, maximum module size Process considerations Preliminary configuration studies Cost delta evaluation (as described above) and labor requirements comparison Schedule impact evaluation Decide level of modularization/complex preassembly Preliminary Engineering Phase Develop procurement and contracting strategies Develop fabrication strategies Detailed transportation, handling studies Sequencing studies and schedule evaluations Finalize configurations, extent of modularization/offsite fabrication Develop estimates, quantities, and schedules Develop modular specifications and responsibility matrices Finalize execution plan
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Environment/Socioeconomic Drivers
Environmental Footprint • Does reduced footprint provide environmental value to company,
community, country? • Does high peak craft levels create local environmental impact?
Socioeconomic Impact • Does high peak craft levels create local negative or positive
socioeconomic impact? • Is there a minimum local labour content requirement?
Standard Design • Can the facility be standardized so that the design can be used for
duplicate facility • Can we design one/build many?
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The Module and Prefab industry is maturing…
Trends: • Modules are becoming more sophisticated, more being packed into them • Dependence on fit for purpose materials and designs to drive down costs • Start up times after module delivery minimized to deliver projects quicker • Shipping solutions are very creative, nothing to big or too small • Project & risk management overcoming challenges to deliver success
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Critical Considerations
Project Managers don’t like surprises, and should pay special attention to the following critical items:
Engineering design schedules Equipment & material deliveries Shipment sequencing Weather patterns along shipping route Design Changes after start of module fabrication Selection of module handling equipment Control of fabricators’ activities Weight management
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Mining Modules Case Study - Design
TIME
Target Weight‘Not to Exceed’ Weight
FabricationDetailed Design & ProcurementConcept Phases Comm +
Approved Design Changes
Engineering Reserve Management Reserve & Operators Reserve
Design Margin
End of FEED
WEIGHT
Fabricator’s Used Reserve
Reported Weight
Module Weighing
Weight Contingency
Calculated Weight
Reported Weight ≤ Target Weight
Steady Reported Weight throughout the project life cycle
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Fabrication & Material Management
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Shop Preassembly Fit-up
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Packaging and Packing
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Protected Transportation
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Unloading & Site Preassembly
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Storage & Site Installation
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Challenges - Common Threads
Multinational Execution • Engineering / Design • Fabrication • Installation / Erection
Codes and Standards • Design and fabrication to non familiar codes & standards
Materials Management • Materials used in fabrication mostly from China
Shipping Logistics • Sea and road transportation to final installation location
Media / Public Relations • Sensitive to attention regarding “outsourcing” & “quality”
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Mitigating Risks
Risks are like an iceberg, some features are apparent, others are hidden below the surface.
Alignment: • technical • cultural • procedural
Communication: • Communication • Communication plan • More Communication • Even more communication
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Module Execution Roadmap
I. Develop Module Definition • Transportation restrictions • Design Criteria • Modular Plot Plan (sizes, weights, quantities) • Select transport and handling methods • Assume location of module fabrication facility • Determine facility/equipment requirements for
handling modules at both mod yard and site • Finalize cost and schedule analysis (baseline) • Document benefits and risks and confirm extent
of modularization II. Award Critical Contracts
• Ocean transport • Land transport
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Module Execution Roadmap
III. Develop integrated project execution plan • Module setting sequence • Module production durations • Stowage plans for transport • Assembly area and warehousing requirements • Shop fab capacities and manpower curves • Material delivery schedules • Engineering drawing completion schedule • Detailed procurement plans & procedures • Establish milestone schedules
IV. Engineering Design & Procurement • Perform design & procurement activities • Incorporate transportation & handling requirements
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Module Execution Roadmap
V. Module fabricator selection • Contracting philosophy • Assess facilities, capacity and capabilities • Award in timely manner
VI. Establish oversight organization & project controls • Timely procurement activities • Material tracking • Fabricator performance measurements
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Conclusions
1. Modularization & Prefabrication will continue to be a viable, even preferable solution, increasingly so due to globalization.
2. Modularization & Prefabrication will allow projects to proceed that may have otherwise not been viable.
3. Modularization & Prefabrication puts to test Project Management principals (planning, logistics, risk management, communication, etc).
4. Modularization & Prefabrication must be an early decision in a project, then project planning, communication and controls need to follow suit for the strategy.
5. Alignment regarding technical, cultural and procedural gaps is critical to success of project.
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Questions & Answers
The decision to modularize on a project is one that needs full commitment, early on, from the entire project team including the client.