Early Business Case Analysis Model for Industrial Modular Projects during Business Planning

Modularization is an execution strategy that transfers a portion of site-based work to off-site yards or facilities, contributing to improved project performance. Despite its numerous benefits, past studies reveal that many capital projects execute modularization poorly. Previous research on modularization business case analysis has largely focused on the building sector, with limited attention to the industrial sector. Even with the existing works on the industrial sector, practitioners criticized these studies due to a gap between academic knowledge and practical application. Moreover, they do not address new and emerging drivers, such as sustainability, including environmental, social, and corporate governance (ESG) criteria. Additionally, these studies do not aid owners in making an informed decision about modularization during the early project phase. To address this, the authors, with the help of modularization subject matter experts (Construction Industry Institute Research Team-396), identified the key drivers—including the new and emerging drivers for modularization in the industrial sector—that need to be considered in the early planning phases for modularization decisions. The developed early business case analysis model for industrial modular projects incorporates 12 key modularization drivers and six additional considerations (factors typically overlooked) that should be evaluated during the early project phase. Applying this model at the outset enables project teams to assess key drivers and considerations, thereby justifying the decision to adopt modularization for the project. The developed model is in questionnaire format, and each question is accompanied by an in-depth description that aids in developing practitioners’ understanding. The developed model was assessed and validated with 16 actual industrial projects. The validation demonstrated that the developed early business case analysis model was effective in assessing a project’s modularization potential and substantiating the associated benefits. An early business case analysis model was developed that helps users make informed decisions by reviewing key modularization drivers and considerations during early project phases. Additionally, the study’s findings and developed model can assist practitioners in understanding and addressing new drivers, such as ESG, enabling them to make the most informed decisions on modularization.