Download - Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation
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Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
William (Bill) Meyer -
B.E. (Civil) Hons., MBA.
Director Project Execution Development
Foster Wheeler USA Corporation
Houston, Texas.
![Page 2: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/2.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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?
![Page 3: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/3.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 4: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/4.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 5: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/5.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
� Global Engineering and 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
Foster Wheeler
![Page 6: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/6.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Registered Office & Corporate CenterOperating Unit HQs and/or Main Engineering CenterRegional/Local Engineering CenterSales Offices
Bogota
![Page 7: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/7.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 8: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/8.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Historical Perspective – past trends
Statoil Mongstad – Norway - 1988
� 221 modules
� 975 tonnes max module
� 6 module yards
![Page 9: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/9.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Historical Perspective – past trends
Statoil Mongstad – Norway - 1988
� 221 modules
� 975 tonnes max module
� 6 module yards
� Schedule driven
![Page 10: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/10.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Historical Perspective – past trends
Mobil Coryton – UK - 1993
� Isomerisation unit
� 58 Modules to 350 tonnes
� Barge delivery from one European fabricator
![Page 11: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/11.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Historical Perspective – past trends
Mobil Coryton – UK - 1993
� Isomerisation unit
� 58 Modules to 350 tonnes
� Barge delivery from one European fabricator
� Schedule driven
![Page 12: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/12.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 13: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/13.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Historical Perspective – past trends
Inco Goro – New Caledonia - 2006
� Nickel mine and ore processing plant
� 599 modules
� 600 tonnes max
� 2 main module
yards
![Page 14: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/14.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 15: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/15.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Historical Perspective – past trends
The Woodside-operated NWSV Phase V LNG Expansion – Australia – 2007
� 75 modules
� 1,800 tonnes max
� Pluto currently nearing completion
![Page 16: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/16.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 17: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/17.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 18: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/18.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 19: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/19.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Viable Modular Execution
Benefits > Price you have to pay for those Benefits
![Page 20: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/20.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 21: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/21.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Modular Execution Benefits can be:
1. Cost reductions
![Page 22: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/22.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
![Page 23: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/23.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
Profit
Compliance
![Page 24: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/24.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
3. Safety enhancements
![Page 25: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/25.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
3. Safety enhancements
4. Quality enhancements
![Page 26: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/26.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Modular Execution Benefits can be:
1. Cost reductions
2. Schedule reductions
3. Safety enhancements
4. Quality enhancements
5. Reduced impact on Society
![Page 27: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/27.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 28: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/28.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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…
![Page 29: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/29.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Decision Analysis – Modular or Stick built?
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Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Project
PhaseFEL 1
Conceptual FEL 2
Assess FEL 3
Define
Execution FEL 5
Evaluation
FEL 4
Evaluate Module Options
Modular Execution Decision
Timing is Critical
![Page 31: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/31.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
e.g. OSBL piping in existing racks
Major storage tanks
![Page 32: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/32.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
![Page 33: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/33.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
![Page 34: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/34.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
![Page 35: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/35.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Site Survey includes
• Labour
Availability, productivity, quality, craft availability, cost, other projects in area, union impacts, regional / political issues etc
![Page 36: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/36.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Labour Productivity
0
1000
2000
3000
4000
5000
6000
7000
8000
0 12 24 36 46 50 50 50 56 64 72 80 88 96 104
112
120
128
136
144
Graph 1 - Labor vs time (% of project schedule) – Direct hour impact if productivity shortfall of trainees
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Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Result of productivity shortfall
0
1000
2000
3000
4000
5000
6000
7000
0 12 24 36 46 50 50 50 56 64 72 80 88 96 104
112
120
128
136
144
Graph 2 - Labor vs time (% of project schedule) – Schedule impact if productivity shortfall of trainees
![Page 38: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/38.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
0
1000
2000
3000
4000
5000
6000
7000
0 12 24 36 46 50 50 50 56 64 72 80 88 96 104
112
120
128
136
144
Graph 4 - Labor vs time (% of project schedule) – Manhours moved offsite
Move manhours offsite to pre-cast, pre-fab, pre-
assembly and modules
Skilled Labour Availability – Move manhours Offsite
![Page 39: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/39.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Site Survey includes
• Labour
• Weather impacts
![Page 40: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/40.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Site Survey includes
• Labour
• Weather impacts
• Logistics
On site and to site, route surveys, from fabrication yard, cost and technical capabilities, laydown areas
![Page 41: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/41.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Site access restrictions can limit size of modules that can be
delivered to site
![Page 42: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/42.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Logistics are project specific -
– Some sites have their own ports …
![Page 43: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/43.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Logistics are project specific -
… others are road access only
![Page 44: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/44.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Site Survey includes
• Labour
• Weather impacts
• Logistics
• Environmental impact
![Page 45: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/45.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Site Survey includes
• Labour
• Weather impacts
• Logistics
• Environmental impact
• Safety
![Page 46: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/46.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Site Survey includes
• Labour
• Weather impacts
• Logistics
• Environmental impact
• Safety
• Permit issues
![Page 47: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/47.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Site Survey includes
• Labour
• Weather impacts
• Logistics
• Environmental impact
• Safety
• Permit issues
• Etc.
![Page 48: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/48.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Module Yard Survey includes
• Labour
Productivity, cost, flexible workforce, skills, experience etc
![Page 49: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/49.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Relative Costs to Fabricate Modules and Ship to Project X site
Italy
USA
USA
Japa
nKor
eaKor
eaKor
eaFra
nce
Mex
ico
Mal
aysi
aSin
gapo
reSin
gapo
reM
alay
sia
Philip
pine
sTha
iland
Chi
naC
hina
Vietn
amC
hina
Project and Site Specific
Calendar Date Specific
Module Yard Specific
![Page 50: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/50.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 51: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/51.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
![Page 52: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/52.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
• Shipping type and distances to site
![Page 53: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/53.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
• Shipping type and distances to site
• Weather
![Page 54: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/54.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
• Shipping type and distances to site
• Weather
• Political factors
![Page 55: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/55.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Module Yard Survey includes
• Labour
• Yard capabilities
• Size of client management team
required
• Shipping type and distances to site
• Weather
• Political factors
• Etc
![Page 56: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/56.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
![Page 57: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/57.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
![Page 58: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/58.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
![Page 59: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/59.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Will impact possible module sizes Type of plant
Scale of plant
![Page 60: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/60.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Will impact possible module sizes Type of plant
Scale of plant
![Page 61: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/61.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
![Page 62: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/62.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 63: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/63.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Downside
� Increased cost of steel / minor bulks / foundations
![Page 64: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/64.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Downside
� Increased cost of steel / minor bulks / foundations
� Increased cost of shipping
![Page 65: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/65.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Downside
� Increased cost of steel / minor bulks / foundations
� Increased cost of shipping
� Potentially - increased cost of transport and installation
![Page 66: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/66.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Downside
� Increased cost of steel / minor bulks / foundations
� Increased cost of shipping
� Potentially - increased cost of transport and installation
![Page 67: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/67.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Downside
� Increased cost of steel / minor bulks / foundations
� Increased cost of shipping
� Potentially - increased cost of transport and installation
![Page 68: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/68.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Downside
� Increased cost of steel / minor bulks / foundations
� Increased cost of shipping
� Potentially - increased cost of transport and installation
![Page 69: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/69.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 70: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/70.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Upside
� Move labour cost offsite to cheaper / more productive laboursupply
![Page 71: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/71.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
-
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
-
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
Manhours moved offsite on a past modular project
Site Prep Civil Structural / Mech / Equip Piping E & I Indirects
![Page 72: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/72.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Upside
� Move labour cost offsite to cheaper / more productive laboursupply
� Reduce indirect costs at site as less directs (construction supervision, consumables etc)
![Page 73: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/73.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Upside
� Move labour cost offsite to cheaper / more productive laboursupply
� Reduce indirect costs at site as less directs (construction supervision, consumables etc)
� Reduced cost of camp construction due to lower peak
![Page 74: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/74.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Upside
� Move labour cost offsite to cheaper / more productive laboursupply
� 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)
![Page 75: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/75.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Upside
� Move labour cost offsite to cheaper / more productive laboursupply
� 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
![Page 76: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/76.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Upside
� Move labour cost offsite to cheaper / more productive laboursupply
� 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]
![Page 77: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/77.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Neutral
� Shipping of module materials to yard versus shipping to site
![Page 78: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/78.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Neutral
� Shipping of module materials to yard versus shipping to site
![Page 79: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/79.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Module
versus
Stick built
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 ∆
Shipping cost ∆
Const. Mngmt cost ∆
Foundation cost ∆
Steel cost ∆
Engineering cost ∆
Camp cost ∆
Labour cost
Savings
Mill
ion
s $
Existing Project Data
(Note – All projects have different cost drivers )
![Page 80: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/80.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 81: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/81.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost Benefits
Construction
Site
Labour Productivity 2.20
Marginal Cost of Construction / mh $105.00
Relative Manhour Cost c/w Gulf Coast $231.00
![Page 82: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/82.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 83: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/83.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 84: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/84.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 85: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/85.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 86: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/86.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 87: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/87.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Modular versus Stick built costs
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
Modular Cost Stick built Cost
Installation cost ∆
Shipping cost ∆
Steel cost ∆
Engineering cost ∆
Camp cost ∆
Labour cost
Modular versus Stick built costs
Modular Cost Stick built Cost
Installation cost ∆
Shipping cost ∆
Steel cost ∆
Engineering cost ∆
Camp cost ∆
Labour cost
Modular versus Stick built costs
Modular Cost Stick built Cost
Installation cost ∆
Shipping cost ∆
Steel cost ∆
Engineering cost ∆
Camp cost ∆
Labour cost
COST DRIVEN MODULAR
PROJECT
SCHEDULE DRIVEN
MODULAR PROJECT
COST DRIVEN STICK BUILT
PROJECT
![Page 88: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/88.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 89: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/89.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Manhour Density is Key
![Page 90: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/90.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Manhour Density is Key
![Page 91: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/91.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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 manhoursback to site.
![Page 92: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/92.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Cost of module shipment vs. module “size”
Co
st
($ m
illi
on
)
Module size / weight Large
Lin
er
serv
ices
Specialist Heavy Lift
Ships
Semi-Submersibles
![Page 93: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/93.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
![Page 94: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/94.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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 manhoursback to site.
� Second order effects then must be taken into account, such as extra steel costs, site transport and installation costs etc.
![Page 95: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/95.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Manhour Density is Key
![Page 96: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/96.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
� Identify the labour intensive sections on the site…(highlighted red)
![Page 97: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/97.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
� Aggregate where feasible…
![Page 98: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/98.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
� Construct off-site
![Page 99: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/99.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
![Page 100: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/100.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Interconnectivity factors
![Page 101: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/101.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Interconnectivity factors
![Page 102: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/102.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Interconnectivity factors
�� Additional hookup at the interfaceAdditional hookup at the interface
�� Additional ship spaceAdditional ship space
�� Additional Installation costsAdditional Installation costs
�� Delta steelDelta steel
![Page 103: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/103.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Interconnectivity factors
![Page 104: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/104.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Interconnectivity factors
�� Additional hookup at the interfaceAdditional hookup at the interface
�� Additional ship spaceAdditional ship space
�� Additional Installation costsAdditional Installation costs
�� Delta steelDelta steel
![Page 105: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/105.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
Vertical and horizontal splits for this CCR
![Page 106: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/106.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 107: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/107.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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
![Page 108: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/108.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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!
![Page 109: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/109.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
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!
![Page 110: Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation](https://reader033.vdocuments.mx/reader033/viewer/2022042700/554e27dbb4c90571798b518b/html5/thumbnails/110.jpg)
Feb 2011Bill Meyer
Modularisation – The Next Step
© 2011 FOSTER WHEELER. All rights reserved.
ANY QUESTIONS ?