Standardization Strategy for Modular Industrial Plants

Abstract

Modularization is a well-established technique in which a portion of site-based work is exported to fabrication shops, thereby contributing to an improved construction. When modularization is combined with design standardization, according to the literature of the shipbuilding and manufacturing industries, the result is a leveraging opportunity. Such an approach can incorporate all the benefits from both design standardization and modularization and can constitute a strategy for augmenting modularization. This paper addresses a leveraging opportunity for modularization augmentation by examining how modularization and design standardization relate to one another in the industrial sector. A research team comprised of industrial and academic members identified standard modules as well as a modular standardized plant (MSP) as distinct approaches to combining modularization and design standardization. The research further identified 10 types of economic advantages and 3 types of economic disadvantages when the two are combined. Consequently, the paper documents case studies to provide further insight into the characteristics of modular projects with standard design, the assessment results of its impact and benefits, and the lessons learned.