Achieving LEAN Project Delivery through Modularization. Presented by: Paul Hochi

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

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3 Player Usage 2009 vs % 80% Percentage of Respondents Using Prefabrication/Modularization on Projects 2009 vs % 98% 98% 99% 90% 76% In two years, nearly all players will be users of prefab/ modularization on some projects! 60% 40% 20% 0% Contractors Architects Engineers User 2009 User 2013 Owners follow AEC 90% use prefab or modular in projects today, 100% expected in 2013 * Reprinted with permission 3 McGraw-Hill Construction Confidential. All information presented McGraw-Hill Construction, All rights reserved.

4 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

5 Modular is a Lean Construction Technique Safer Controlled Environment Vertical structures built at grade JIT material management

6 Project Impacts for Modular Parallel Construction is Faster

7 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

8 Innovation: It s not about doing things better, it s about doing better things. Toyota s LEAN Way

9 ECP-1 Facility Tuas, Singapore Genentech, 2008

10 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

11 2010 ISPE Facility of the Year Award Winner 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

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13 Shop Fabrication

14 Buffer Prep Module in Fabrication

15 Mechanical Module in Fabrication Utility Module in Fabrication

16 Module Setting in Singapore

17 Buffer Prep Area

18 Fermentation Suite

19 Genentech- Tuas, Singapore- ECP-1 Facility

20 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)

21 Bulk Biotech Facility Interstitial Modules U.S.A.

22 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.

23 Schedule Modular vs. Stick built On site craft w/o modular to meet schedule Client benchmark execution Planned on site craft 5 months

24 Modular Piperack HVAC Skids Grade A plenum Modular Interstitial area w/ duct and piping Modular walkable Ceiling System w/ lights & HEPAs

25 Modular Piperack HVAC Skids Grade A plenum Modular Interstitial area w/ duct and piping Modular Wall Systems

26 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 Building Columns Interstitial Module Modular Wall System Interstitial Module

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28 Parallel work July 2009 Roofing done Exterior framing continues

29 Parallel work July 2009 Duct skids start to be set AHU s set in place

30 Parallel work July 2009 Rigging the first module Into the building Prepare modules For shipment

31 Parallel work July 2009 Modules brought in the building before slab on grade finished

32 Parallel work August 2009 Connections to duct skids above Modules in place Modules ready to be lifted

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34 March 2010

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36 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

37 Conclusions for Modular Lean Construction Technique Provides Lean Project Delivery LEAN Can Also Be Achieved through Modular Innovation Lean Principles Integrated Delivery Project Savings

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