The application of mega complex projects in the heavy industrial sector have been growing globally for the last ten years. Given there is growth of mega complex projects, the failure rate of these types of projects has also increased. According the EY (who have analyzed 500 completed mega projects from the previous five years), they mention: “Of the projects analyzed, 60% experienced schedule delays, and 38% had cost overruns.”Mega projects typically take up to five years to complete and given the current economic environment (due to the global pandemic) and the uncertainty of the future, companies are looking to reduce the business risk for future projects. Based on research performed by Mckinsey &amp; Company, the construction industry needs to change to become more productive and as the industry changes it will look very different five to ten years from now. These changes will only be accelerated by the current COVID-19 pandemic. One solution is the application of smaller standard modular plants or trains that can be designed and constructed quicker and more efficiently.Smaller to medium sized projects are typically more successful in meeting the company’s business case more so than larger projects as they are more agile and are not as complex. They can also meet timelines per market demands as the timeline to finish smaller projects is much less compared to mega projects.Modular design and execution’s focus is to move labour offsite into a more controlled environment and has been utilized on projects for decades. Utilizing this practice will reduce project risk, and when combined with facility standardization, will further reduce the project risk and also will reduce the time to market. Think of it as looking at your project in smaller standard modular pieces and then combining the pieces to create a larger end result over time.&nbsp;This product-based approach will lead to more of a manufacturing style approach to not only improve productivity but to reduce overall lifecycle costs and schedules and improve overall quality and safety. Further, in times of economic uncertainty, it will reduce the business risk for the project as the business can break the project down into “bite-sized pieces”. This process will be similar to what is used in car manufacturing as well as ship building.Companies will need to be innovative in order to be competitive and have a positive return on investment on their future programs and projects. In the current and future economic environment, an innovative way to execute projects is to utilize a product-based approach.This presentation will focus on what a product-based approach is using an example from a small-scale LNG plant and how it can be applied to heavy industrial projects.

A Different Way to Execute Project Using a Product-Based Approach

Paper Proceedings: https://asmedigitalcollection.asme.org/OMAE/OPTC2021/volume/85222

ASME 2021 Onshore Petroleum Technology Conference (OPTC2021)

Supporting the need among researchers worldwide for additional online and multimedia content, ASME now offers the ASME Conference Video Collection. This platform will collect and provide long-term access to conference presentation videos, encompassing all technology areas within ASME's technical conference and events program. About 30,000-40,000 engineers across all mechanical engineering and related disciplines participate in ASME conferences each year. This includes authors of approximately 6,000 to 8,000 technical papers published by ASME, the majority of whom also submit video presentations for our virtual conferences. The video collection will be available as an add-on to existing product packages or as a separate subscription.