Prefabrication, Preassembly Modularization and Offsite Fabrication Bob Lewis Chicago Bridge & Iron Good Morning – We the team members of PT 171 are glad to be able to introduce you to PPMOF. You will note that we have a lengthy title. This was by design as our first team meeting resulted in the complete title which included all four areas of Prefabrication, Pre-assembly, Modularization and Off site Fabrication. We did this by design to make sure we communicated the broad spectrum of the prefabrication issue and not just modularization. We hope you become familiar with our acronym, PPMOF and share our excitement about our teams effort.

Prefabrication Modularization Offsite Fabrication Preassembly A quick glance at these pictures can give you a feel for PPMOF. Prefabrication is a manufacturing process usually taking place at a specialized facility. Pre-assembly is a process by which various materials, components and equipment are joined together, usually focused on a system A Module is pre-assembled and may include portions of many systems, usually in larger transportable units Offsite fabrication is the preassembly or fabrication at both offsite and on site. but other than the final installation location. Offsite Fabrication Preassembly

Why PPMOF? Needs Improved safety Better facilities faster Improved cost and value Solution Use the tool and process to help evaluate: Demanding schedules Adverse site conditions Limited skilled labor Goal Develop a guideline tool and process, not a formula or “black box” answer. Our first issue was why consider use PPMOF. Our conclusion is to consider PPMOF to help answer the basic project need of safer, higher quality projects with improved schedules and cost. Does this sound like a familiar CII theme? The process we have delivered helps solve these issues by providing an upfront planning process that considers major issues such as demanding schedule, adverse site conditions and limited skilled labor. Our goal is to provide a process and a physical tool to help make an early judgment that addresses these and other issues. The tool provides a framework to help with these decisions.

Project Team Carl Haas UT Austin Bob Lewis, Chair Chicago Bridge & Iron Richard Mayes Rust Bob McCabe U.S. Steel Rob Smith Lockwood Green Jongchul Song UT Austin Wayne Sykes Kvaerner Bob Tatum Stanford University Jorge Vanegas Georgia Tech University Terry Wilford U.S. Army Corps of Engineers Paul Wood Eli Lilly Scott Flatley BE&K, Inc. Our PT 171 Project Team is as shown here. We are very pleased with the team effort which was well balanced with academics, owners and contractors. Past Members Curt Watson Eichleay Walter Fagerlund UT Austin David Jacobs Washington Group Daryl Zimmerman U. S. Department of State

Past Developments CII Research CII, 1987 — Tatum, Vanegas Source Document 25 CII, 1992 — MODEX Center for Construction Industry Studies Prefabrication Study — 1999 Other industry and research publications “Home grown” decision tools Past research studies has determined that PPMOF has the potential to positively influence project performance. Guidelines were developed by CII in 1987 for the effective use of PPMOF and a follow-up research in 1992 developed additional tools.The Center for Construction Industry studies conducted a study in 1998 that showed PPMOF use had dramatically increased. Our project is a continued effort to these studies. We focused on providing a solid framework to help with the analysis and decision making for the up-front early planning process.

Research Motivation Doubling of prefab use in last 15 years New, robust technologies 3D CAD Internet Robotics Supply chain evolution Increased focus on safety awareness Skilled labor availability issues We had strong divers that motivated the need for this current update to the PPMOF issue. In addition to the strong increase in the use of PPMOF, the new generation of technologies such as 3D cad, internet and robotics increase the ability to provide PPMOF work. The supply chain evolution in the third bullet refers to the move to outsourcing, global sourcing, thoughts about value proposition, and use of communications technologies. Another tam will report on this issue. This item and the ongoing issues of safety awareness and skilled labor availability were additional key motivators to our research.

Research Objectives Update pre-fab, preassembly, modularization, and offsite fabrication knowledge in light of developments in last 15 years. Increase level of awareness about PPMOF. Develop a tool to enhance the PPMOF decision-making process. Our key objectives was to update the knowledge and awareness about PPMOF. We made a very early decision to focus on the development of a tool to enhance the early planning decisions on the use of the PPMOF process.

Benefits/Drivers Schedule pressure Lack of skilled labor Safety Environmental/ regulatory constraints Unique site attributes Cost savings opportunities Our benefits and drivers are shown here. The top three items concerning schedule, labor and safety were proven to be key process benefits. We also found the the environmental/ regulatory constraints, the unique site issues and the cost saving potentials to be strong drivers for the use PPMOF

Challenges/Impediments Increased engineering and coordination Requires better front-end planning “Stick-build” paradigm Transportation and handling Decreased flexibility Potential increased cost As with any real capital project that we all try to face, we found several challenges that were important to note. The first two of increased engineering and coordination and requiring better up front planning are both “Front End Planning” issues that CII continues to find to be critical issues to project success. Our process helps force the early planning that is so important. The other issues of a stick building, transportation, decreased flexibility and potential increased cost all are challenges that must be addressed in considering PPMOF.

Research Team Methodology Focus: developing a framework for early decision making: Literature reviews Multiple site studies Develop a decision process/tool Validated with industry input Beta tested As noted we focused on research that that helped develop a framework for early decision making. We feel all of our methods were comprehensive. A key aspect of the research was the Beta test of our tool.

Industry Site Studies BE&K Central Texas Iron Works Fluor-Daniel Howe Baker Jacobs Applied Tech Eli Lilly McAbee ProQuip U.S. Steel Our site studies had a good blend of owners, contractors and vendors Replace words with logos??

Key Findings Tool facilitates open communication. Potential: part of pre-planning; may drive execution strategy. Both 3D CAD and IT facilitate PPMOF. Potential: dealing with skilled labor shortages. Tool facilitates design reuse. Range of applications: not “all or nothing.” Our Key Findings are shown here. The key issue is that our process and tools drive and facilitate open communication and has potential as part of pre-planning and the execution strategy of a project. We also found that PPMOF has a good potential to help deal with the skilled labor shortages. It is important to note that we found a full range of PPMOF applications, not just an all or nothing relative to deciding on a completely modularized project.

Decision Guideline Tool — What It Is Tool to help recognize the issues. Allows judgment-based decisions to be made. Provides early, high-level review of key issues and timeline guidance for decision making. Facilitates project team education and alignment through open communication. A source of industry drivers and impediments to PPMOF. I now want to review our decision guideline tool by first reviewing what it is and then what it is not. It is a tool to help recognize the issues to make up-front decisions on modularization or later decisions on pre-assembly, prefabrication and off-site construction It allows judgment-based decisions to be made that facilitates a systematic thought process which provides a conceptual framework for decision making. It provides for early high level review of key issues and timeline guidance for decision-making It facilitates project team education & alignment through open communication Most importantly the tool is a source of industry drivers & impediments to PPMOF

Decision Guideline Tool — What It’s Not Does not provide definitive answer or solution. No formulas or cost data to provide “yes or no.” Not designed to produce project execution plan or detailed execution issues. No “black box” decision making. Not biased toward PPMOF. The tool does not provide a definitive answer or solution. We do not offer formulas or cost data to provide a yes or no answer It is not designed to produce a project execution plan or detailed execution issues We think it very important that it is not black box decision making tool and that is not biased toward PPMOF, it gives the pros and cons issues to consider It simply facilitates a better decision making process.

Typical Input Form Shown here is a typical input form. The tool is a simple spreadsheet that allows the review team to reflect on the issues our research discovered that should be considered. The issues are grouped into 10 sections such as cost, schedule, labor, safety site attributes. We set up a simple scoring system with pop up examples to help understand each question. The example is shown in the yellow box.

Typical Final Score Summary The final scoring sheet shown here is relative to the individual team or user to give general indications. A key feature of this sheet is the ability weigh each of the 10 categories to get a total score that reflects the importance of the key issues for the projects such as labor schedule or cost.

Typical Report of Extremes The report of extremes is very important as the stated purpose of the tool is to help with the overall up front decision on whether to consider PPMOF in the project. This report gives the top ten items that support PPMOF and the top ten that do not support PPMOF.

PPMOF Conclusions A decision process that should be integrated into pre-project planning. Addresses existing and recurring industry challenges. Capitalizes on emerging enabling technologies. Is a knowledge-based guide to improve up-front decisions. Our conclusion is that the PPMOF early decision making process should be integrated into the project preplanning effort. PPMOF helps address the recurring industry challenges such as skilled workforce shortage, schedule pressures and project cost. PPMOF capitalizes on emerging enabling technologies. In summary this PPMOF decision process is a knowledge based guide to help make better up front decisions to see if PPMOF can add value to your project

Implementation Session Learn the details that support the benefits. Work with a real planning team that uses the process and tool to make an early evaluation of modularization for a project. Join us and work with the team to see what the recommendation will be and how they get to a conclusion. We invite you to our implementation session were we will provide the details to support the benefits we have referenced. You will be able to work with and see a real planning team use the PPMOF decision tool and the impact it had on their project. Come join us to see if you could us a tool that would allow you to decide to build a facility this fast. Link to film cut The Members of PT171 thank you for your time.