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

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): “Of the projects analyzed, 60% experienced schedule delays, and 38% had cost overruns.” Based on research performed by McKinsey & 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. A 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”. 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 paper will focus on how to develop a standard modular plant using a product-based approach and provide a case study from a small-scale LNG plant.