Contenu connexe Similaire à Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation (20) Plus de IQPC Australia (20) Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation1. Modularisation – The Next Step
William (Bill) Meyer - Director Project Execution Development
B.E. (Civil) Hons., MBA. Foster Wheeler USA Corporation
Houston, Texas.
william_meyer@fwhou.fwc.com
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
2. Modularisation – The Next Step
Topics
1. Where is modularisation going? Is there a trend?
2. What is the optimum size of module? Are larger modules
better?
3. What impacts are tomorrow’s modules likely to have on
construction?
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
3. Modularisation – The Next Step
Agenda
1. Introduction
2. Historical Perspective – Past Trends
3. Understanding why – Cost / benefit and decision
process
4. Optimising module sizes
5. Summary
6. Q & A
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
4. Modularisation – The Next Step
Accent
Australian
University of Melbourne
Bachelor of Engineering (Civil) Honors
MBA
Work
½ as specialist Heavy Lift and Transport contractor
– Vice President Mammoet USA
½ Foster Wheeler – Engineering, Procurement, Construction contractor
– Director Project Execution Development
– Focus on major project construction execution and project management
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
5. Modularisation – The Next Step
Global Engineering and
Foster Wheeler Construction Contractor and Power
Equipment Supplier
In business for over 100 years
Strong history in technology
development
Proven track record of successful
project execution
A global presence
Over 13,000 resources
Permanent offices in 28
countries
Financially strong
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
6. Modularisation – The Next Step
Bogota
Registered Office & Corporate Center
Operating Unit HQs and/or Main Engineering Center
Regional/Local Engineering Center
Sales Offices
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
7. Modularisation – The Next Step
Topics
1. Introduction
2. Historical Perspective – Past Trends
3. Understanding why – Cost / benefit and decision
process
4. Optimising module sizes
5. Summary
6. Q & A
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
8. Modularisation – The Next Step
Historical Perspective – past trends
Statoil Mongstad – Norway - 1988
221 modules
975 tonnes max module
6 module yards
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
9. Modularisation – The Next Step
Historical Perspective – past trends
Statoil Mongstad – Norway - 1988
221 modules
975 tonnes max module
6 module yards
Schedule driven
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
10. Modularisation – The Next Step
Historical Perspective – past trends
Mobil Coryton – UK - 1993
Isomerisation unit
58 Modules to 350 tonnes
Barge delivery from one
European fabricator
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
11. Modularisation – The Next Step
Historical Perspective – past trends
Mobil Coryton – UK - 1993
Isomerisation unit
58 Modules to 350 tonnes
Barge delivery from one
European fabricator
Schedule driven
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
12. Modularisation – The Next Step
Historical Perspective – past trends
ExxonMobil Singapore Aromatics - 1996
213 modules – 26,875 tonnes total
1150 tonnes max
7 module yards
39 barge voyages
Schedule driven
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
13. Modularisation – The Next Step
Historical Perspective – past trends
Inco Goro – New Caledonia - 2006
Nickel mine and ore processing plant
599 modules
600 tonnes max
2 main module
yards
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
14. Modularisation – The Next Step
Historical Perspective – past trends
Inco Goro – New Caledonia - 2006
Nickel mine and ore processing plant
599 modules
600 tonnes max
2 main module
yards
Cost driven
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
15. Modularisation – The Next Step
Historical Perspective – past trends
The Woodside-operated NWSV Phase V
LNG Expansion – Australia – 2007
75 modules
1,800 tonnes max
Pluto currently nearing completion
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
16. Modularisation – The Next Step
Historical Perspective – past trends
The Woodside-operated NWSV Phase V
LNG Expansion – Australia – 2007
75 modules
1,800 tonnes max
Pluto currently nearing completion
Cost and schedule driven
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
17. Modularisation – The Next Step
Historical Perspective – past trends
1. Pre circa 2000, main reason to go modular was for schedule
benefits
2. More recently, cost benefits have been the aim
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
18. Modularisation – The Next Step
Topics
1. Introduction
2. Historical Perspective – Past Trends
3. Understanding why – Cost / benefit and decision
process
4. Optimising module sizes
5. Summary
6. Q & A
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
19. Modularisation – The Next Step
Viable Modular Execution
Benefits > Price you have to pay for those Benefits
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
20. Modularisation – The Next Step
Viable Modular Execution
Benefits > Price you have to pay for those Benefits
AND
Risk of NOT achieving those Net Benefits is Low, Manageable &
Risk Goals are Achievable
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
21. Modularisation – The Next Step
Modular Execution Benefits can be:
1. Cost reductions
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
22. Modularisation – The Next Step
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
23. Modularisation – The Next Step
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
Profit
Compliance
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
24. Modularisation – The Next Step
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
3. Safety enhancements
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
25. Modularisation – The Next Step
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
3. Safety enhancements
4. Quality enhancements
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
26. Modularisation – The Next Step
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
3. Safety enhancements
4. Quality enhancements
5. Reduced impact on Society
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
27. Modularisation – The Next Step
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
3. Safety enhancements
4. Quality enhancements
5. Reduced impact on Society
6. Reduced impact on Environment
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
28. Modularisation – The Next Step
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
3. Safety enhancements
4. Quality enhancements
5. Reduced impact on Society
6. Reduced impact on Environment
7. And many more…
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
29. Modularisation – The Next Step
Decision Analysis – Modular or Stick built?
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
30. Modularisation – The Next Step
Timing is Critical
Evaluate Module Options
Modular Execution Decision
Project
Phase
FEL 1
Conceptual FEL 2
Assess FEL 3
Define FEL 4
Execution FEL 5
Evaluation
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
31. Modularisation – The Next Step
e.g. OSBL piping in existing racks
Major storage tanks
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
35. Modularisation – The Next Step
Site Survey includes
• Labour
Availability, productivity, quality,
craft availability, cost, other projects
in area, union impacts, regional /
political issues etc
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
36. Modularisation – The Next Step
Labour Productivity
8000
7000
6000
5000
4000
3000
2000
1000
0
4
2
0
8
6
4
12
24
36
46
50
50
50
56
64
72
80
88
96
0
10
11
12
12
13
14
Graph 1 - Labor vs time (% of project schedule) – Direct hour impact if productivity
shortfall of trainees
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
37. Modularisation – The Next Step
Result of productivity shortfall
7000
6000
5000
4000
3000
2000
1000
0
4
2
0
8
6
4
12
24
36
46
50
50
50
56
64
72
80
88
96
0
10
11
12
12
13
14
Graph 2 - Labor vs time (% of project schedule) – Schedule impact if productivity
shortfall of trainees
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
38. Modularisation – The Next Step
Skilled Labour Availability – Move manhours Offsite
7000
6000
Move manhours offsite to
5000
pre-cast, pre-fab, pre-
assembly and modules
4000
3000
2000
1000
0
4
2
0
8
6
4
12
24
36
46
50
50
50
56
64
72
80
88
96
0
10
11
12
12
13
14
Graph 4 - Labor vs time (% of project schedule) – Manhours moved offsite
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
39. Modularisation – The Next Step
Site Survey includes
• Labour
• Weather impacts
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
40. Modularisation – The Next Step
Site Survey includes
• Labour
• Weather impacts
• Logistics
On site and to site, route surveys,
from fabrication yard, cost and
technical capabilities, laydown
areas
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
41. Modularisation – The Next Step
Site access restrictions can limit size of modules that can be
delivered to site
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
42. Modularisation – The Next Step
Logistics are project specific -
– Some sites have their own ports …
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
43. Modularisation – The Next Step
Logistics are project specific -
… others are road access only
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
44. Modularisation – The Next Step
Site Survey includes
• Labour
• Weather impacts
• Logistics
• Environmental impact
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
45. Modularisation – The Next Step
Site Survey includes
• Labour
• Weather impacts
• Logistics
• Environmental impact
• Safety
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
46. Modularisation – The Next Step
Site Survey includes
• Labour
• Weather impacts
• Logistics
• Environmental impact
• Safety
• Permit issues
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
47. Modularisation – The Next Step
Site Survey includes
• Labour
• Weather impacts
• Logistics
• Environmental impact
• Safety
• Permit issues
• Etc.
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
48. Modularisation – The Next Step
Module Yard Survey includes
• Labour
Productivity, cost, flexible
workforce, skills, experience etc
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
49. Modularisation – The Next Step
Relative Costs to Fabricate Modules and Ship to Project X site
Project and Site Specific
Module Yard Specific
Calendar Date Specific
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Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
50. Modularisation – The Next Step
Module Yard Survey includes
• Labour
• Yard capabilities
Covered fabrication, assembly area,
loadout capabilities, management
skills and experience, procurement
capability, drafting capability,
quality systems, safety records etc
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
51. Modularisation – The Next Step
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
52. Modularisation – The Next Step
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
• Shipping type and distances to site
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
53. Modularisation – The Next Step
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
• Shipping type and distances to site
• Weather
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
54. Modularisation – The Next Step
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
• Shipping type and distances to site
• Weather
• Political factors
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
55. Modularisation – The Next Step
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
• Shipping type and distances to site
• Weather
• Political factors
• Etc
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
59. Modularisation – The Next Step
Type of plant
Will impact possible module sizes
Scale of plant
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
60. Modularisation – The Next Step
Type of plant
Will impact possible module sizes
Scale of plant
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
62. Modularisation – The Next Step
Economics of Modular Execution
For the cost estimates of stick and modular
Need only to focus on DIFFERENTIAL COSTS between stick built
and modular execution
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
63. Modularisation – The Next Step
Cost Downside
Increased cost of steel / minor bulks / foundations
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
64. Modularisation – The Next Step
Cost Downside
Increased cost of steel / minor bulks / foundations
Increased cost of shipping
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
65. Modularisation – The Next Step
Cost Downside
Increased cost of steel / minor bulks / foundations
Increased cost of shipping
Potentially - increased cost of transport and installation
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
66. Modularisation – The Next Step
Cost Downside
Increased cost of steel / minor bulks / foundations
Increased cost of shipping
Potentially - increased cost of transport and installation
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
67. Modularisation – The Next Step
Cost Downside
Increased cost of steel / minor bulks / foundations
Increased cost of shipping
Potentially - increased cost of transport and installation
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
68. Modularisation – The Next Step
Cost Downside
Increased cost of steel / minor bulks / foundations
Increased cost of shipping
Potentially - increased cost of transport and installation
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
69. Modularisation – The Next Step
Cost Downside
Increased cost of steel / minor bulks / foundations
Increased cost of shipping
Potentially - increased cost of transport and installation
Increased cost of Engineering
Increased cost of client yard management
Increased cost to set modules / extra field welds / hydro
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
70. Modularisation – The Next Step
Cost Upside
Move labour cost offsite to cheaper / more productive labour
supply
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
71. Modularisation – The Next Step
Manhours moved offsite on a past modular project
120,000 120,000
100,000 100,000
80,000 80,000
60,000 60,000
40,000 40,000
20,000 20,000
- -
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33
months months
Site Prep Civil Structural / Mech / Equip Piping E&I Indirects
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
72. Modularisation – The Next Step
Cost Upside
Move labour cost offsite to cheaper / more productive labour
supply
Reduce indirect costs at site as less directs (construction
supervision, consumables etc)
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
73. Modularisation – The Next Step
Cost Upside
Move labour cost offsite to cheaper / more productive labour
supply
Reduce indirect costs at site as less directs (construction
supervision, consumables etc)
Reduced cost of camp construction due to lower peak
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
74. Modularisation – The Next Step
Cost Upside
Move labour cost offsite to cheaper / more productive labour
supply
Reduce indirect costs at site as less directs (construction
supervision, consumables etc)
Reduced cost of camp construction due to lower peak
Improved productivity (weather, flexible workforce, site
accessibility, material flows, etc)
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
75. Modularisation – The Next Step
Cost Upside
Move labour cost offsite to cheaper / more productive labour
supply
Reduce indirect costs at site as less directs (construction
supervision, consumables etc)
Reduced cost of camp construction due to lower peak
Improved productivity (weather, flexible workforce, site
accessibility, material flows, etc)
Reduced schedule reduces construction indirects
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
76. Modularisation – The Next Step
Cost Upside
Move labour cost offsite to cheaper / more productive labour
supply
Reduce indirect costs at site as less directs (construction
supervision, consumables etc)
Reduced cost of camp construction due to lower peak
Improved productivity (weather, flexible workforce, site
accessibility, material flows, etc)
Reduced schedule reduces construction indirects
[Positive impact to NPV if revenue stream begins earlier]
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
77. Modularisation – The Next Step
Cost Neutral
Shipping of module materials to yard versus shipping to site
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
78. Modularisation – The Next Step
Cost Neutral
Shipping of module materials to yard versus shipping to site
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
79. Modularisation – The Next Step
Module Modular versus Stick built costs
versus Existing Project Data
(Note – All projects have different cost drivers )
Stick built $100.0
$90.0
Cost $80.0
Installation cost ∆
Savings Shipping cost ∆
$70.0
Differentials $60.0
Millions $ Const. Mngmt cost ∆
Foundation cost ∆
$50.0
Steel cost ∆
$40.0
Engineering cost ∆
$30.0
Camp cost ∆
$20.0
Labour cost
$10.0
$0.0
Modular Cost Stick built Cost
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
80. Modularisation – The Next Step
Marginal Cost of Construction
Marginal Cost of Construction / manhour =
Wages for Direct Labour
+ Indirect Labour (incl Inspection and QA)
+ Payroll Burdens / Benefits / Allowances / Premiums /
Camp Costs / Subsistence for Direct and Indirect Labour
+ Management Costs / Field Offices / Indirect Facilities
+ Construction Equipment / Small Tools and Consumables
+ Scaffold
+ Stick Built Materials Laydown and Distribution
+ ETC
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
81. Modularisation – The Next Step
Cost Benefits
Construction
Site
Labour Productivity 2.20
Marginal Cost of Construction / mh $105.00
Relative Manhour Cost c/w Gulf Coast $231.00
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
82. Modularisation – The Next Step
Cost Benefits
Construction Module
Site Yard
Labour Productivity 2.20 1.20
Marginal Cost of Construction / mh $105.00 $55.00
Relative Manhour Cost c/w Gulf Coast $231.00 $66.00
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
83. Modularisation – The Next Step
Cost Benefits
Economic Productivity Factor
Construction Module
Site Yard
Labour Productivity 2.20 1.20
Marginal Cost of Construction / mh $105.00 $55.00
Relative Manhour Cost c/w Gulf Coast $231.00 $66.00
Economic Productivity Ratio 3.50 : 1
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
84. Modularisation – The Next Step
Cost Benefits
Economic Productivity Factor using a Far East Module Yard
Construction Module
Site Yard
Labour Productivity 2.20 3.50
Marginal Cost of Construction / mh $105.00 $12.10
Relative Manhour Cost c/w Gulf Coast $231.00 $42.35
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
85. Modularisation – The Next Step
Cost Benefits
Economic Productivity Factor using a Far East Module Yard
Construction Module
Site Yard
Labour Productivity 2.20 3.50
Marginal Cost of Construction / mh $105.00 $12.10
Relative Manhour Cost c/w Gulf Coast $231.00 $42.35
Economic Productivity Ratio 5.45 : 1
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
86. Modularisation – The Next Step
Cost Benefits
Economic Productivity Factor
Construction Module
Site Yard
Labour Productivity 2.55 3.50
Marginal Cost of Construction / mh $125.00 $12.10
Relative Manhour Cost c/w Gulf Coast $318.75 $42.35
Economic Productivity Ratio 7.53 : 1
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
87. Modularisation – The Next Step
COST DRIVEN MODULAR SCHEDULE DRIVEN COST DRIVEN STICK BUILT
PROJECT MODULAR PROJECT PROJECT
Modular versus Stick built costs Modular versus Stick built costs Modular versus Stick built costs
$140.0
$120.0
$100.0
Installation cost ∆ Installation cost ∆ Installation cost ∆
Shipping cost ∆ Shipping cost ∆ Shipping cost ∆
$80.0
Steel cost ∆ Steel cost ∆ Steel cost ∆
Engineering cost ∆ Engineering cost ∆ Engineering cost ∆
$60.0
Camp cost ∆ Camp cost ∆ Camp cost ∆
Labour cost Labour cost Labour cost
$40.0
$20.0
$0.0
Modular Cost Stick built Cost
Modular Cost Stick built Cost Modular Cost Stick built Cost
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
88. Modularisation – The Next Step
Agenda
1. Introduction
2. Historical Perspective – Past Trends
3. Understanding why – Cost / benefit and decision
process
4. Optimising module sizes
5. Summary
6. Q & A
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
89. Modularisation – The Next Step
Manhour Density is Key
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
90. Modularisation – The Next Step
Manhour Density is Key
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
91. Modularisation – The Next Step
Manhour Density is Key
The more manhours in a given shipping volume, the greater the
cost benefit to moving those manhours offsite.
This benefit must outweigh the cost to ship those manhours
back to site.
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
92. Modularisation – The Next Step
Cost of module shipment vs. module “size”
Cost ($ million)
services
Specialist Semi-
Liner
Heavy Lift Submersibles
Ships
Module size / weight Large
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
94. Modularisation – The Next Step
Manhour Density is Key
The more manhours in a given shipping volume, the greater
the cost benefit to moving those manhours offsite.
This benefit must outweigh the cost to ship those manhours
back to site.
Second order effects then must be taken into account, such as
extra steel costs, site transport and installation costs etc.
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
95. Modularisation – The Next Step
Manhour Density is Key
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
96. Modularisation – The Next Step
Identify the labour intensive sections on the site…
(highlighted red)
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
97. Modularisation – The Next Step
Aggregate where feasible…
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
98. Modularisation – The Next Step
Construct off-site
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
100. Modularisation – The Next Step
Interconnectivity factors
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
101. Modularisation – The Next Step
Interconnectivity factors
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
102. Modularisation – The Next Step
Interconnectivity factors
Additional hookup at the interface
Additional ship space
Additional Installation costs
Delta steel
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
103. Modularisation – The Next Step
Interconnectivity factors
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
104. Modularisation – The Next Step
Interconnectivity factors
Additional hookup at the interface
Additional ship space
Additional Installation costs
Delta steel
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
105. Modularisation – The Next Step
Vertical and
horizontal
splits for
this CCR
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
106. Modularisation – The Next Step
Agenda
1. Introduction
2. Historical Perspective – Past Trends
3. Understanding why – Cost / benefit and decision
process
4. Optimising module sizes
5. Summary
6. Q & A
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
107. Modularisation – The Next Step
Summary
1. Where is modularisation going? Is there a trend?
More modularisation is the trend for jobs in high labour
cost areas / low quantity of skilled labour areas
Trend will be driven by demand for resources and energy
Market segment dependant
BRIC – IC low , BR depends on location of site and yards
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
108. Modularisation – The Next Step
Summary
2. Are larger modules better?
Depends on plant scale and type / shipping
distances and costs / logistics constraints
Relative costs of shipping vs. big / small / splitting
For any given shipping cost curve – typically yes!
Manhour density of plant modules > breakeven
Height of C. of G!
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
109. Modularisation – The Next Step
Summary
3. What impacts are tomorrow’s modules likely to have on
construction?
In general – reduces construction risk (but shifts it to E&P)
Construction equipment
Technology exists to move and install large loads
Crane size development driven by larger equipment items
and need for longer reach, not primarily module sizes
Innovation is still key!
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
110. Modularisation – The Next Step
ANY QUESTIONS ?
Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011