Modularization Business Case Analysis Model for Industrial Projects

Abstract

Modularization is a method of enhancing project value by exporting a portion of the site work to fabrication/assembly shops or yards. However, the construction industry has difficulties in identifying the optimum extent of modularization to maximize its benefits. Research Team 283 of the Construction Industry Institute (CII) developed a business case process to identify the optimum proportion of work hours to be shifted off-site by means of a module scope and identified modularization drivers. With the assistance of the CII’s Modularization Community of Practice (MCOP), this study developed a model that provides the practitioner with specific savings in addition to finding the optimum level of work hours to be moved off-site. The researchers also collected existing business case analysis models/tools from various companies and the available literature to identify the most acceptable or best-fitting elements. These elements were integrated into the new model, which was reviewed and validated by CII MCOP. This model will be applicable to various projects where decision making for modularization is difficult because of the absence of an assigned cost/factor/productivity for different parts of a module job. This research will add to the already-existing literature and research on modular decision-making practices.