Modularization presentation for HBR - houbrt.com in Refinery Process ... ¾Capacity for over 1200...
Transcript of Modularization presentation for HBR - houbrt.com in Refinery Process ... ¾Capacity for over 1200...
15 August 2007Bill Meyer
Modularization
Introduction
William (Bill) Meyer - Director Project Execution DevelopmentFoster Wheeler USA Corporation
Contact: 2020 Dairy Ashford Road, Houston, TX 77077Ph. 281 597 3000Direct 713 255 6089
15 August 2007Bill Meyer
1. Modularization drivers
2. Module types
3. Installation methods
4. Engineering and Procurement impacts
5. Logistics
6. Module Fabrication
7. Critical success factors
Modularization
Turner Industries
IntroductionTo
Foster Wheeler
International Engineering Firm (EPC)International Engineering Firm (EPC)with over 100 Years of with over 100 Years of
Dedicated Services to the Dedicated Services to the Process and Energy IndustriesProcess and Energy Industries
Foster Wheeler
A global business: over 10,500 highly skilled people
Reading
Milan
Houston
Singapore
CLINTON, NJ
Helsinki
Corporate CenterOperating Unit HQs and/or Main Engineering CentersRegional Engineering CentersSales/Local Service OfficesManufacturing Centers
A global network of high-quality resources, enabling us to deliver local service and local content, and to access local labor markets
Shanghai
Chennai
Foster Wheeler Operations
FOSTER WHEELER LIMITEDFOSTER WHEELER LIMITED
FW Energy InternationalFW Energy InternationalFW Energy CorpFW Energy Corp.
ENGINEERINGAND
CONSTRUCTION
ENGINEERINGAND
CONSTRUCTION
FW USA Corp.FW USA Corp.FW Energy Limited FW Energy Limited -- U.K.U.K.FW Continental EuropeFW Continental EuropeFW Asia PacificFW Asia Pacific
ENERGYEQUIPMENTENERGY
EQUIPMENT
2006 Revenue: $2.8 Billion Backlog: $5.4 Billion2006 Revenue: $2.8 Billion Backlog: $5.4 Billion2006 Revenue: $2.8 Billion Backlog: $5.4 Billion
Foster Wheeler Corporate Overview
RefiningPetrochemicalsChemicalsHydrogen / GTL / GasificationOil and Gas PowerPharmaceuticals and Fine ChemicalsBuild Own and Operate
Fired HeatersCoke Drum Unheading SystemsSteam GeneratorsBoilersCondensersSCR’s
ENGINEERING ENGINEERING & CONSTRUCTION & CONSTRUCTION SERVICESSERVICES(EPC or (EPC or EPCmEPCm))
EQUIPMENT EQUIPMENT SUPPLYSUPPLY
Foster Wheeler Services & Products
Leader in Refinery Process Engineering
200+ Hydroprocessing Units200+ Crude Units200+ Vacuum Units80+ Catalytic Reforming Units100+ FCC Units80+ Cokers40+ Alkylation Units50+ Deasphalters20+ Catalytic Polymer Units30+ Aromatics units20+ Lube refineries50+ Hydrogen Plants80+ Sulfur Plants
Reactor Regenerator Assembly with UOP VSS Technology at Premcor FCCU, Memphis, TN
Sriracha, Thailand
Singapore
Houston, Texas
Milan, Italy
Madrid, Spain
Perryville, New Jersey
Paris, France
Reading, U.K.
Foster Wheeler E&C Centers
North America 1,300United Kingdom 3,200Italy 1,200France 500Spain 650Singapore 400Thailand 600China 900Other worldwide 1,750+
Total 10,500+
FW Houston presence since 1940sSince 1994, U.S. EPC Center for Oil & Gas, Refining, and Petrochemical ProjectsOffice space in 3 buildingsCapacity for over 1200 Engineering and Design StaffFully Integrated Design Systems (CAD) and Communications Technology
Foster Wheeler Houston Operations
End market diversity of backlog
December 29, 2006Total: $5.4 billion
Backlog includes flow-through costs
29.0%
17.2%
32.0%
16.6%
3.2%2.0%
Oil & Gas
Refining
Chemicals
Power Equip. & Services
Pharmaceutical
Power Plant Ops, Other &Eliminations
15 August 2007Bill Meyer
1. Modularization drivers
2. Module types
3. Installation methods
4. Engineering and Procurement impacts
Modularization
15 August 2007Bill Meyer
Modularization execution benefits:
1. Cost reductions 2. Schedule reductions3. Risk reductions
Modularization
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Cost Downside
Increased cost of steelIncreased cost of shippingPotentially - increased cost of transport and installation
Modularization
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Cost Downside
Increased cost of steelIncreased cost of shippingPotentially - increased cost of transport and installationIncreased cost of engineering
Modularization
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Cost Upside
Move labor cost offsite to cheaper labor supplyReduce indirect costs (camp, construction supervision, consumables etc at the site rates)Improved productivity (weather, flexible workforce, site accessability etc)Reduced schedule - reduces construction indirects[Positive impact to NPV if revenue stream begins earlier]
Modularization
15 August 2007Bill Meyer
Cost BenefitsEconomic Productivity Factor
On-site Off-siteLabour Productivity 1.70 1.2
Composite Manhour cost $105.00 $55.00Relative manhour cost c/w Gulf Coast $178.50 $66.00
Economic productivity ratio 2.70 : 1
Modularization
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Cost BenefitsEconomic Productivity Factor using Far East Yards
On-site Off-siteLabour Productivity 1.70 3.5
Composite Manhour cost $105.00 $12.10Relative manhour cost c/w Gulf Coast $178.50 $42.35
Economic productivity ratio 4.21 : 1
Modularization
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MODULE vs STICK COST DIFFERENTIALS
Modular versus Stick built costs
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0$60.0
$70.0
$80.0
$90.0
$100.0
Modular Cost Stick built Cost
Installation cost ΔShipping cost ΔConst. Mngmt cost ΔFoundation cost ΔSteel cost ΔEngineering cost ΔCamp cost Δlabor cost
Savings
Milli
o ns
$
Modularization
Existing Project Data
(Note – All projects have different cost drivers )
15 August 2007Bill Meyer
Modular versus Stick built costs
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
Modular Cost Stick built Cost
Installation cost Δ
Shipping cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
Labour cost
Modular versus Stick built costs
Modular Cost Stick built Cost
Installation cost Δ
Shipping cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
Labour cost
Modular versus Stick built costs
Modular Cost Stick built Cost
Installation cost Δ
Shipping cost Δ
Steel cost Δ
Engineering cost Δ
Camp cost Δ
Labour cost
COST DRIVEN MODULAR PROJECT
SCHEDULE DRIVEN MODULAR PROJECT
COST DRIVEN STICK BUILT PROJECT
Modularization
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Schedule benefits
Schedule benefits
Modularization
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Modular
Stick Built
Schedule Comparison – Modular vs Stick Built
0
10
20
30
40
50
60
70
80
90
100
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36
Duration - Months
Prog
ress
%
Order Placement Engineering ConstructionOrder Placement Engineering Construction
Return
Modularization
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1. Modularization drivers
2. Module types
3. Installation methods
4. Engineering and Procurement impacts
Modularization
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Module Types
1. Pre – Assembled Units (PAU’s)Multi disciplined modules including:- tagged and non tagged items, steel, piping, electrical,
instrumentation, fireproofing, insulation
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Module Types
1. Pre – Assembled Units (PAU’s)
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Module Types
1. Pre – Assembled Units (PAU’s)
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Module Types
1. Pre – Assembled Units (PAU’s)
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Module Types
2. Pre – Assembled Racks (PAR’s)Piping modules including:- steel, piping, electrical cable tray, fireproofing, insulation
Site built steel or concrete
columns
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Module Types
2. Pre – Assembled Racks (PAR’s)
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Module Types
2. Pre – Assembled Racks (PAR’s)
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BHPBilliton – Module Types
3. Vendor Assembled Units (VAU’s)PAU’s assembled by a vendor
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BHPBilliton – Module Types
3. Vendor Assembled Units (VAU’s)
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4. Vendor Package Units (VPU’s)Complete packages purchased from a vendor
Module Types
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5. Remote Instrument Buildings (RIB’s) Sub-stations etc
Module Types
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5. Remote Instrument Buildings (RIB’s) Sub-stations etc
Module Types
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1. Modularization drivers
2. Module types
3. Installation methods
4. Engineering and Procurement impacts
Modularization
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Installation Methods
Crane Installation
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Installation Methods
Strand Jack Installation
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Installation Methods
Transporter Installation
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Installation Methods
Transporter Installation
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Installation Methods
Transporter Installation
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Installation Methods
Jack-down Installation
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1. Modularization drivers
2. Module types
3. Installation methods
4. Engineering and Procurement impacts
Modularization
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E & P Impacts
Planning is Critical for Modular Projects
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Differences can includeLocation of pumps
PAR 02/03
PAR 04/05
PAU 01
PAU 02
PAU 03 PAU 05
VAU 02
etail above
Modular
Stick built
E & P Impacts
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Differences can includePipe track to pipe rack
E & P Impacts
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Differences can includePipe track to pipe rack
Easy Install Easy Ship
E & P Impacts
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Differences can includePipe track to pipe rack
Additional clearance can be provided
where required
E & P Impacts
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E & P Impacts
Piping design file layoutLink files for pipe stressingSplit files for quantity takeoff and procurement
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E & P Impacts
Site based Loads, Clearances and Critical Dimensions
Crane loadsModule clearancesCrane clearancesFoundations toleave low etc
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Installation Methods
Transporter Installation
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E & P Impacts
Loads applied to Modules
Fabrication yard supports
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E & P Impacts
Loads applied to Modules
Transporting in theModule yard
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Module yards
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E & P Impacts
Loads applied to Modules
Sea acceleration forcesduring shipment
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E & P Impacts
Loads applied to Modules
Sea acceleration forcesduring shipment
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Type of ship – RO-RO, LO-LO, H/L
E & P Impacts
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E & P Impacts
Loads applied to Modules
Transporting on site
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1. Pre – Assembled Units (PAU’s)
E & P Impacts
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Logistics and therefore loads imposed is project specific
E & P Impacts
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E & P Impacts
Loads applied to Modules
Installing on site
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E & P Impacts
Loads applied to Modules
In-situ on foundations
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E & P Impacts
Procurement ComplexityNumber of delivery locations impact ordering and material tracking
EquipmentDeliveries
Material Logistics for theStick-Built Project
Install
Dock
Truck
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E & P Impacts
Procurement Complexity
Truck
Materialyard
Dock
Transport
Install
Material Logistics for themodularized Project
Truck
Truck
Install
Module Fabrication Yard
EquipmentDeliveries
Port
ModuleDeliveries
Loadout
to ship
Bulk Materials and minor equipment
Modules andmajor equipment
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– Potential to ship stick built materials in “dead space” on HL ships
E & P Impacts
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E & P Impacts
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E & P Impacts
Loads applied to Modules
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1. Modularization drivers
2. Module types
3. Installation methods
4. Engineering and Procurement impacts
Modularization
15 August 2007Bill Meyer
Critical Success Factors include:Experienced team with tried and proven systems
Modularization CSF’s
Client / Project # Modules
Goro Nickel Project 625
Singapore Aromatics 213
TARP, Thailand (2X strategy) 65
Celanese, Singapore 25
ExxonMobil LSADO Altona (FEL) 13
SINCOR (FWUSA Shop) 10
Clark/Premcor, Texas 12
Shell, Deer Park, Texas 14
Mobil Coryton, UK 53
Statoil, Norway (1980s) 205