Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation

3,863 views

Published on

This presentation by William (Bill) Meyer explores the past trends of modularisation, the cost and benefits of modularisation, optimising module sizes and the future of modularisation.

2 Comments
2 Likes
Statistics
Notes
No Downloads
Views
Total views
3,863
On SlideShare
0
From Embeds
0
Number of Embeds
29
Actions
Shares
0
Downloads
339
Comments
2
Likes
2
Embeds 0
No embeds

No notes for slide

Modularisation – The Next Step - Presentation by Bill Meyer, Foster Wheeler USA Corporation

  1. 1. Modularisation – The Next StepWilliam (Bill) Meyer - Director Project Execution DevelopmentB.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. 2. Modularisation – The Next StepTopics1. 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. 3. Modularisation – The Next StepAgenda1. Introduction2. Historical Perspective – Past Trends3. Understanding why – Cost / benefit and decision process4. Optimising module sizes5. Summary6. Q & A Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  4. 4. Modularisation – The Next StepAccent AustralianUniversity of Melbourne Bachelor of Engineering (Civil) Honors MBAWork 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 managementBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  5. 5. Modularisation – The Next Step Global Engineering andFoster 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 strongBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  6. 6. Modularisation – The Next Step Bogota Registered Office & Corporate Center Operating Unit HQs and/or Main Engineering Center Regional/Local Engineering Center Sales OfficesBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  7. 7. Modularisation – The Next StepTopics1. Introduction2. Historical Perspective – Past Trends3. Understanding why – Cost / benefit and decision process4. Optimising module sizes5. Summary6. Q & A Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  8. 8. Modularisation – The Next StepHistorical Perspective – past trendsStatoil Mongstad – Norway - 1988 221 modules 975 tonnes max module 6 module yards Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  9. 9. Modularisation – The Next StepHistorical Perspective – past trendsStatoil 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. 10. Modularisation – The Next StepHistorical Perspective – past trendsMobil 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. 11. Modularisation – The Next StepHistorical Perspective – past trendsMobil 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. 12. Modularisation – The Next StepHistorical Perspective – past trendsExxonMobil 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. 13. Modularisation – The Next StepHistorical Perspective – past trendsInco 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. 14. Modularisation – The Next StepHistorical Perspective – past trendsInco 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. 15. Modularisation – The Next StepHistorical Perspective – past trendsThe 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. 16. Modularisation – The Next StepHistorical Perspective – past trendsThe 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. 17. Modularisation – The Next StepHistorical Perspective – past trends1. Pre circa 2000, main reason to go modular was for schedule benefits2. More recently, cost benefits have been the aim Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  18. 18. Modularisation – The Next StepTopics1. Introduction2. Historical Perspective – Past Trends3. Understanding why – Cost / benefit and decision process4. Optimising module sizes5. Summary6. Q & A Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  19. 19. Modularisation – The Next StepViable Modular ExecutionBenefits > Price you have to pay for those Benefits Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  20. 20. Modularisation – The Next StepViable Modular ExecutionBenefits > Price you have to pay for those BenefitsANDRisk of NOT achieving those Net Benefits is Low, Manageable &Risk Goals are Achievable Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  21. 21. Modularisation – The Next StepModular Execution Benefits can be:1. Cost reductions Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  22. 22. Modularisation – The Next StepModular Execution Benefits can be:1. Cost reductions2. Schedule reductions Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  23. 23. Modularisation – The Next StepModular Execution Benefits can be:1. Cost reductions2. Schedule reductions Profit Compliance Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  24. 24. Modularisation – The Next StepModular Execution Benefits can be:1. Cost reductions2. Schedule reductions3. Safety enhancements Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  25. 25. Modularisation – The Next StepModular Execution Benefits can be:1. Cost reductions2. Schedule reductions3. Safety enhancements4. Quality enhancements Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  26. 26. Modularisation – The Next StepModular Execution Benefits can be:1. Cost reductions2. Schedule reductions3. Safety enhancements4. Quality enhancements5. Reduced impact on Society Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  27. 27. Modularisation – The Next StepModular Execution Benefits can be:1. Cost reductions2. Schedule reductions3. Safety enhancements4. Quality enhancements5. Reduced impact on Society6. Reduced impact on Environment Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  28. 28. Modularisation – The Next StepModular Execution Benefits can be:1. Cost reductions2. Schedule reductions3. Safety enhancements4. Quality enhancements5. Reduced impact on Society6. Reduced impact on Environment7. And many more… Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  29. 29. Modularisation – The Next StepDecision Analysis – Modular or Stick built? Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  30. 30. Modularisation – The Next StepTiming 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. 31. Modularisation – The Next Step e.g. OSBL piping in existing racks Major storage tanksBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  32. 32. Modularisation – The Next StepBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  33. 33. Modularisation – The Next StepBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  34. 34. Modularisation – The Next StepBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  35. 35. Modularisation – The Next Step Site Survey includes • Labour Availability, productivity, quality, craft availability, cost, other projects in area, union impacts, regional / political issues etcBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  36. 36. Modularisation – The Next StepLabour 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. 37. Modularisation – The Next StepResult 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. 38. Modularisation – The Next StepSkilled 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. 39. Modularisation – The Next Step Site Survey includes • Labour • Weather impactsBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  40. 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 areasBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  41. 41. Modularisation – The Next StepSite access restrictions can limit size of modules that can be delivered to site Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  42. 42. Modularisation – The Next StepLogistics are project specific -– Some sites have their own ports …Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  43. 43. Modularisation – The Next StepLogistics are project specific -… others are road access onlyBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  44. 44. Modularisation – The Next Step Site Survey includes • Labour • Weather impacts • Logistics • Environmental impactBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  45. 45. Modularisation – The Next Step Site Survey includes • Labour • Weather impacts • Logistics • Environmental impact • SafetyBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  46. 46. Modularisation – The Next Step Site Survey includes • Labour • Weather impacts • Logistics • Environmental impact • Safety • Permit issuesBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  47. 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. 48. Modularisation – The Next Step Module Yard Survey includes • Labour Productivity, cost, flexible workforce, skills, experience etcBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  49. 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 m M i co ly ng a ilip ia na Vi na na SA SA a a Fr a ng e M ore n M e Th es nd Si ysi Si por re re re pa c Ita Ph ays na an n hi hi hi la ex U U ap Ko Ko Ko pi Ja a C C C et ai a al alBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  50. 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 etcBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  51. 51. Modularisation – The Next Step Module Yard Survey includes • Labour • Yard capabilities • Size of client management team requiredBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  52. 52. Modularisation – The Next Step Module Yard Survey includes • Labour • Yard capabilities • Size of client management team required • Shipping type and distances to siteBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  53. 53. Modularisation – The Next Step Module Yard Survey includes • Labour • Yard capabilities • Size of client management team required • Shipping type and distances to site • WeatherBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  54. 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 factorsBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  55. 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 • EtcBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  56. 56. Modularisation – The Next StepBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  57. 57. Modularisation – The Next StepBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  58. 58. Modularisation – The Next StepBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  59. 59. Modularisation – The Next StepType of plant Will impact possible module sizesScale of plant Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  60. 60. Modularisation – The Next StepType of plant Will impact possible module sizesScale of plant Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  61. 61. Modularisation – The Next StepBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  62. 62. Modularisation – The Next StepEconomics of Modular ExecutionFor the cost estimates of stick and modularNeed only to focus on DIFFERENTIAL COSTS between stick built and modular execution Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  63. 63. Modularisation – The Next StepCost Downside Increased cost of steel / minor bulks / foundationsBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  64. 64. Modularisation – The Next StepCost Downside Increased cost of steel / minor bulks / foundations Increased cost of shippingBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  65. 65. Modularisation – The Next StepCost Downside Increased cost of steel / minor bulks / foundations Increased cost of shipping Potentially - increased cost of transport and installationBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  66. 66. Modularisation – The Next StepCost Downside Increased cost of steel / minor bulks / foundations Increased cost of shipping Potentially - increased cost of transport and installationBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  67. 67. Modularisation – The Next StepCost Downside Increased cost of steel / minor bulks / foundations Increased cost of shipping Potentially - increased cost of transport and installationBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  68. 68. Modularisation – The Next StepCost Downside Increased cost of steel / minor bulks / foundations Increased cost of shipping Potentially - increased cost of transport and installationBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  69. 69. Modularisation – The Next StepCost 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 / hydroBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  70. 70. Modularisation – The Next StepCost Upside Move labour cost offsite to cheaper / more productive labour supplyBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  71. 71. Modularisation – The Next Step Manhours moved offsite on a past modular project120,000 120,000100,000 100,000 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. 72. Modularisation – The Next StepCost 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. 73. Modularisation – The Next StepCost 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 peakBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  74. 74. Modularisation – The Next StepCost 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. 75. Modularisation – The Next StepCost 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 indirectsBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  76. 76. Modularisation – The Next StepCost 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. 77. Modularisation – The Next StepCost Neutral Shipping of module materials to yard versus shipping to siteBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  78. 78. Modularisation – The Next StepCost Neutral Shipping of module materials to yard versus shipping to siteBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  79. 79. Modularisation – The Next StepModule Modular versus Stick built costsversus Existing Project Data (Note – All projects have different cost drivers )Stick built $100.0 $90.0Cost $80.0 Installation cost ∆ Savings Shipping cost ∆ $70.0Differentials $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. 80. Modularisation – The Next StepMarginal Cost of ConstructionMarginal 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 + ETCBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  81. 81. Modularisation – The Next StepCost Benefits Construction Site Labour Productivity 2.20 Marginal Cost of Construction / mh $105.00Relative Manhour Cost c/w Gulf Coast $231.00Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  82. 82. Modularisation – The Next StepCost Benefits Construction Module Site Yard Labour Productivity 2.20 1.20 Marginal Cost of Construction / mh $105.00 $55.00Relative Manhour Cost c/w Gulf Coast $231.00 $66.00Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  83. 83. Modularisation – The Next StepCost BenefitsEconomic Productivity Factor Construction Module Site Yard Labour Productivity 2.20 1.20 Marginal Cost of Construction / mh $105.00 $55.00Relative Manhour Cost c/w Gulf Coast $231.00 $66.00 Economic Productivity Ratio 3.50 : 1Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  84. 84. Modularisation – The Next StepCost BenefitsEconomic 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 $12.10Relative Manhour Cost c/w Gulf Coast $231.00 $42.35Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  85. 85. Modularisation – The Next StepCost BenefitsEconomic 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 $12.10Relative Manhour Cost c/w Gulf Coast $231.00 $42.35 Economic Productivity Ratio 5.45 : 1Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  86. 86. Modularisation – The Next StepCost BenefitsEconomic Productivity Factor Construction Module Site Yard Labour Productivity 2.55 3.50 Marginal Cost of Construction / mh $125.00 $12.10Relative Manhour Cost c/w Gulf Coast $318.75 $42.35 Economic Productivity Ratio 7.53 : 1Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  87. 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 $0.0 Modular Cost Stick built Cost Modular Cost Stick built Cost Modular Cost Stick built Cost Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  88. 88. Modularisation – The Next StepAgenda1. Introduction2. Historical Perspective – Past Trends3. Understanding why – Cost / benefit and decision process4. Optimising module sizes5. Summary6. Q & A Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  89. 89. Modularisation – The Next StepManhour Density is Key Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  90. 90. Modularisation – The Next StepManhour Density is Key Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  91. 91. Modularisation – The Next StepManhour Density is Key The more manhours in a given shipping volume, the greater the cost benefit to moving those manhours offsite. This benefit must outweigh the cost to ship those manhours back to site. Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  92. 92. Modularisation – The Next Step Cost of module shipment vs. module “size” Cost ($ million) services Specialist Semi- Liner Heavy Lift Submersibles Ships Module size / weight LargeBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  93. 93. Modularisation – The Next StepBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  94. 94. Modularisation – The Next StepManhour 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. 95. Modularisation – The Next StepManhour Density is Key Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  96. 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. 97. Modularisation – The Next Step Aggregate where feasible…Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  98. 98. Modularisation – The Next Step Construct off-siteBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  99. 99. Modularisation – The Next StepBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  100. 100. Modularisation – The Next StepInterconnectivity factors Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  101. 101. Modularisation – The Next StepInterconnectivity factors Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  102. 102. Modularisation – The Next StepInterconnectivity 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. 103. Modularisation – The Next StepInterconnectivity factors Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  104. 104. Modularisation – The Next StepInterconnectivity 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. 105. Modularisation – The Next Step Vertical and horizontal splits for this CCRBill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  106. 106. Modularisation – The Next StepAgenda1. Introduction2. Historical Perspective – Past Trends3. Understanding why – Cost / benefit and decision process4. Optimising module sizes5. Summary6. Q & A Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011
  107. 107. Modularisation – The Next StepSummary1. 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. 108. Modularisation – The Next StepSummary2. 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. 109. Modularisation – The Next StepSummary3. 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. 110. Modularisation – The Next Step ANY QUESTIONS ?Bill Meyer © 2011 FOSTER WHEELER. All rights reserved. Feb 2011

×