Why, When, How to Benefit from Modular Projects Lena Lasarzewski, Pharmadule Inc. January 15, 2008 Agenda • What is a modular project? • Advantages with modular construction • Challenges with modular construction • When to choose a modular approach • How to execute a modular project • Conclusions • Questions/Discussion Modular Projects • Manufactured – not constructed • The modules (building blocks) form the complete facility - all process and utlility equipment etc. is already installed Advantages of Modular Projects • • • • • • • • • Cycle time reduction • 6-12+ months shorter than conventional Cost management • Fixed price, change control Proven designs • More than 50 pharma/biotech plants delivered Clean manufacturing environment • 75-80% of project in Supplier’s workshops High quality design and construction • Crafts personnel have been trained on a large number of pharmaceutical and biotech projects • Responsibility from design through validation Integrated Commissioning/Qualification/Validation Systems have been tested over a large number of projects Minimal site disturbances, increased safety • Shorter time, less people on site Economy • Net Present Value Schedule Schedule Comparison Comparison –– Conventional Conventional vs. vs. Integrated Integrated Modular Modular Project Project Integrated Conventional Well Executed Reference Modular F&F 2004 F&F 2006 Target 0 -5 -10 -12 -15 Months 36-20=16 -16.5 -18 -20 -25 -30 -35 -36 -40 Fill Finish Approx. 30’ – 40’ K sqf Detail Design - OQ Challenges of Modular Projects • Shorter schedule • Fast, efficient decision-making • Front-load planning and engineering • Understand needs - URS • Integrated validation • QA and Compliance involvement from start • Embrace change • Different, much faster, project execution (paradigm shift in project execution) • Execution moves quickly • Fast, efficient turn-around, impact of changes • Personnel offsite • Increased Travel What Do We Mean By Modular Concept Large open area Installation of Large Process Equipment Modular Fabrication Length: 13,35 (44’) Height: 4,1 m (13’) Rational fabrication under controlled indoor conditions. Re- assembly at clients site. Width: 4,45 m (14’ 8’’) Weight: 15-35 tons Area: ~ 60 m2 (650 F2) Compressed Implementation Schedule SUPPLIER ACTIVITIES Conceptual/ Basic Design Detailed Design & Engineering Signing of Contract Procurement Plant Fabrication Installation of equipment Assembly, Tests (IQ) & GMP Inspection Operator Training Plant Disassembly AT SUPPLIER’S SITE Shipment AT OWNER’S SITE OWNER ACTIVITIES A&E Liaison Warehouse & Administr. bldg Foundation and sewage system Reassembly of Plant Commissioning IQ OQ Electricity and water supply Validation/PQ Operation Production Modular Fabrication Disassembly and Transportation Transportation to Owner’s Site Re-Assembly at Owner’s Site Re-Assembly at Owner’s Site Decision For a Modular Approach • Should be made in conceptual phase • Evaluate project criteria • Complexity of project • Timing (product, process, market demands) • Site conditions • Owner’s capabilities/organization • Evaluate net present value • Evaluate risk Project Drivers towards Modular Decision • Predictability • High level of assurity to successfully to complete a project on time and on budget • Schedule • Speed to market, delayed investment, permitting • Site • Safety, security, disturbancies, labor, weather • Owner Resources • Flexibility • Phased expansion, process modifications, moving facility • Project management • Complexity, quality & risk concerns, financial How To Execute Modular Projects • Assemble full team at project inception • Assign clear roles, responsibilities and organization • Plan early • Complete conceptual planning first • Decision timing is most important - Empowerment • Plan the work process for flexibility • Efficient change order process • Provide adequate field staff • Embrace the modular concept • Partner with supplier • Form a joint project team with shared goals Completed Facilities Biotech Facilities Sterile Facilities Conclusion • A Modular Approach Can Provide Higher Total Return On Investment • Shorter Schedule • Less Risk • Higher Safety • Make Modular Decision Early • Staff For Rapid Project Execution • Embrace The Modular Concept • New project execution methodology • Integrated validation Questions/Discussion Thank You