RT-396

The demand for increased efficiency for projects in the heavy industrial sector continues to rise, compressing time-to-market expectations. At the same time, skilled craft labor has evaporated and environmental regulations have become more stringent by applying sustainability guidelines. Industry leaders need to 1) understand how to respond to these challenges and 2) take advantage of the industry’s best implementation tools. Foremost among the best available techniques is the concept of modularization. Although modularization is far from new or complicated, its implementation strategy is still is not well understood, properly planned, or effectively executed.

RT-396 addressed an essential research question: “When is the appropriate time for modularization planning, and how should a company develop a business case to support the modularization decision?” To achieve this goal and address the current context of increased constraints, the team developed three tools:

1. Modularization Business Case Analysis Tool 1 (BCA Tool 1)
2. Modularization Business Case Analysis Tool 2 (BCA Tool 2)
3. ESG Modularization Assessment Tool (ESG Tool)
    

RT-396 built on the well laid-out fundamentals of RT-283 as it identified the barriers that explain why so many industry leaders are not utilizing modularization techniques. RT-396 assessed the benefits of modularization for a project and developed BCA Tools 1 and 2 to help project teams achieve them. These tools determine whether a project should modularize and identifies the optimal extent of the modularization. The ESG Tool recognizes society’s recent emphasis on ESG – environment (waste, water, GHG emissions), socioeconomic parameters (community impact), and governance (stakeholder and shareholder engagement) – by helping companies understand ESGs, their impacts on projects, and how modularization can help mitigate these potential ESG project drivers. Used together with the team’s research findings, the ESG Tool defines a successful modularization strategy and assessment process. If implemented early and applied specifically, the ESG Tool provides a path to the best execution strategy for a project, including identifying the direct relationship between modularization and ESG factors.