Identifying Key Modularization Decision Factors in Industrial Projects

Modularization, a strategy of transferring some or all site-based work to external locations, has the potential to improve project competitiveness with cost and schedule advantages. While much previous research on modularization has primarily focused on the building sectors, many heavy industrial projects have yet to fully realize the benefits of modularization due to poor and late decisions. To address this issue, this research identifies the critical decision factors for implementing modularization in industrial projects. Utilizing the expertise of the Construction Industry Institute Research Team 396, the researchers identified the decision factors for modularization based on their importance in the industrial sector after thoroughly examining existing business cases/decision models from world-leading global companies and literature. A survey questionnaire was prepared and distributed to the subject matter experts, asking them to rank the importance of decision factors. The result indicated that the top 10 key decision factors for modularization in industrial projects were site location, site attributes, site access, labor costs, cost savings, owners' ability, logistical constraints, maximum module size, labor availability, and site infrastructure. The study guides the practitioners seeking to maximize the benefits of modularization in heavy industrial projects.