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“Achieving LEAN Project Delivery through Modularization”
Presented by: Paul Hochi
May 19th, 2011
33 McGraw-Hill Construction Confidential. All information presented © McGraw-Hill Construction, 2011. All rights reserved.
Player Usage2009 vs. 2013
Percentage of Respondents Using
Prefabrication/Modularization
on Projects
2009 vs. 2013
84%76%
90%98% 99%98%
0%
20%
40%
60%
80%
100%
Contractors Architects Engineers
User 2009 User 2013
In two years, nearly all players will be users of
prefab/ modularization
on some projects!
Owners follow AEC –90% use prefab or
modular in projects today, 100% expected
in 2013
* Reprinted with permission
Agenda: Achieving LEAN Project Delivery through Modularization
Modular is a Lean Construction
Technique
Using Modularization to Provide Lean
Project Delivery
Achieving LEAN through Modular
Innovation
Modular is a Lean Construction Technique
• Safer
• ControlledEnvironment
• Vertical structures built at grade
• JIT material management
Project Impacts for Modular
Parallel Construction is
Faster…
Project Impacts for Modular
Safety
Quality
Cost certainty
Schedule certainty
Schedule acceleration
Local labor availability
Site constraints
Environmental/ regulatory constraints
Lean Construction Tool to Add Value, Standardize, &
Eliminate Waste
Innovation:
“It’s not about doing things better,
it’s about doing better things.”
Toyota’s LEAN Way
ECP-1 FacilityTuas, Singapore
Genentech, 2008
Drivers for Modular
Aggressive schedule –the
fastest project in
Genentech’s history
Craft availability
Quality control - process
module construction in a
controlled environment
Goal Achieved: 24 months
from preliminary design to PQ complete
“The project execution was fantastic. Completion in 24 months!
They had three geographic regions working on this project and
they all came together with no items off more than three eighths
of an inch. Good use of large box modules, done very well.
They had some severe logistical challenges.”
ISPE Judging Panel
2010 ISPE Facility of the Year Award Winner
Shop Fabrication
Buffer Prep Module in Fabrication
Utility Module in Fabrication
Mechanical Module in Fabrication
Module Setting in Singapore
Buffer Prep Area
Fermentation Suite
Genentech- Tuas, Singapore- ECP-1 Facility
Summary Results:
2010 ISPE Facility of the Year Award
2010 Joseph J. Jacobs Master Builder Award
10 months schedule acceleration
Supplemented local labor pool by executing 900,000 field labor hours in a separate location with good labor availability
1,800,000 combined hours worked without a LTA
Quality construction in a high productivity environment (no weather concerns)
Bulk Biotech Facility
Interstitial Modules
U.S.A.
Why Go Modular?
Speed
24 months from Charter to OQ complete
Parallel construction activities
Building shell, interstitial and HVAC modules at the
same time (136 modular units)
Concerns over local contractor availability Work in the area and East Coast
Market conditions
Benchmarking Association identified schedule was 20 months faster than their industry benchmarks. Risk analysis identified a 3% chance of success.
Schedule – Modular vs. Stick built
Planned on site craft
On site craft w/o modular
to meet schedule
Client benchmark
execution
5 months
Modular Piperack
HVAC Skids
Modular Interstitial
area w/ duct and
piping
Modular walkable
Ceiling System w/
lights & HEPAs
Grade A plenum
Modular Wall
Systems
Modular Piperack
HVAC Skids
Modular Interstitial
area w/ duct and
pipingGrade A plenum
Building Columns
Interstitial Module
Interstitial Module
Modular Wall
System
Interstitial Modules 74 interior modules over
66,200 sf
120,000 lbs. of duct
32,600 lf of piping
44,000 lf of electrical raceway
Installed hanging, walkable
ceiling system
Light fixtures & HEPA
housings installed
20%-25% labor efficiency
154,000 shop craft hours
Safe, clean, environmentally
controlled working area
Parallel work – July 2009
Roofing done
Exterior framing continues
Parallel work – July 2009Duct skids start
to be set
AHU’s set in place
Parallel work – July 2009
Prepare modules
For shipment
Rigging the first module
Into the building
Parallel work – July 2009
Modules brought in the building
before slab on grade finished
Parallel work – August 2009
Modules in place
Modules ready to be lifted
Connections to duct skids above
March 2010
Why do it?
Schedule savings 5 months
Work hours offsite 270,000
Cost premium $3.3MM in SAVINGS!
Getting to market 5 months faster PRICELESS
Conclusions for Modular
Lean Principles
Integrated Delivery
Project Savings
Lean Construction Technique
Provides Lean Project Delivery
LEAN Can Also Be Achieved through
Modular Innovation