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“Achieving LEAN Project Delivery through Modularization” Presented by: Paul Hochi May 19 th , 2011

“Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

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Page 1: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

“Achieving LEAN Project Delivery through Modularization”

Presented by: Paul Hochi

May 19th, 2011

Page 2: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using
Page 3: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

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

Page 4: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

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

Page 5: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Modular is a Lean Construction Technique

• Safer

• ControlledEnvironment

• Vertical structures built at grade

• JIT material management

Page 6: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Project Impacts for Modular

Parallel Construction is

Faster…

Page 7: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

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

Page 8: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Innovation:

“It’s not about doing things better,

it’s about doing better things.”

Toyota’s LEAN Way

Page 9: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

ECP-1 FacilityTuas, Singapore

Genentech, 2008

Page 10: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

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

Page 11: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

“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

Page 12: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using
Page 13: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Shop Fabrication

Page 14: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Buffer Prep Module in Fabrication

Page 15: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Utility Module in Fabrication

Mechanical Module in Fabrication

Page 16: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Module Setting in Singapore

Page 17: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Buffer Prep Area

Page 18: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Fermentation Suite

Page 19: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Genentech- Tuas, Singapore- ECP-1 Facility

Page 20: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

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)

Page 21: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Bulk Biotech Facility

Interstitial Modules

U.S.A.

Page 22: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

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.

Page 23: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Schedule – Modular vs. Stick built

Planned on site craft

On site craft w/o modular

to meet schedule

Client benchmark

execution

5 months

Page 24: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Modular Piperack

HVAC Skids

Modular Interstitial

area w/ duct and

piping

Modular walkable

Ceiling System w/

lights & HEPAs

Grade A plenum

Page 25: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Modular Wall

Systems

Modular Piperack

HVAC Skids

Modular Interstitial

area w/ duct and

pipingGrade A plenum

Page 26: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

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

Page 27: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using
Page 28: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Parallel work – July 2009

Roofing done

Exterior framing continues

Page 29: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Parallel work – July 2009Duct skids start

to be set

AHU’s set in place

Page 30: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Parallel work – July 2009

Prepare modules

For shipment

Rigging the first module

Into the building

Page 31: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Parallel work – July 2009

Modules brought in the building

before slab on grade finished

Page 32: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Parallel work – August 2009

Modules in place

Modules ready to be lifted

Connections to duct skids above

Page 33: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using
Page 34: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

March 2010

Page 35: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using
Page 36: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

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

Page 37: “Achieving LEAN Project Delivery through … Lean Project Delivery...Agenda: Achieving LEAN Project Delivery through Modularization Modular is a Lean Construction Technique Using

Conclusions for Modular

Lean Principles

Integrated Delivery

Project Savings

Lean Construction Technique

Provides Lean Project Delivery

LEAN Can Also Be Achieved through

Modular Innovation