Modularization2011 Break Bulk ConferenceDick Knoll – President /Owner– Drexel Logistics – Houston, Texas • The decision to fabricate and modularize has been determined by the owner and concurrence obtained from the various suppliers that the equipment can in fact be modularized. • All due diligence in engineering has been reviewed and completed • All due diligence in raw materials, supplies and equipment needed has been determined • All due diligence in quality control has been determined KNOWN FACTORS
Modularization FOR THE PROJECT OWNER, IT IS NOW TIME TO MOVE FROM CONCEPTS AND ENGINEERING TO TRANSPORT EXECUTION ONE MAJOR FACTOR CONFRONTS THE PROJECT PRINCIPAL MODULARIZATION “ASSUMES” SIMPLICITY IN CONSTRUCTION BUT MODULARIZATION DOES NOT GUARANTEE SIMPLICITY IN TRANSPORTATION
Modularization THE MODULAR EXECUTION MUST BE CONFIRMED BY ANSWERING TWO CRITICAL QUESTIONS DO I AS THE PROJECT OWNER INTEND TO MANAGE AND CONTROL THE ENTIRE TRANSPORTATION FUNCTION FROM ALL ORIGINS TO FINAL SITE WITH MY OWN LOGISTICS STAFF ? OR DO I AS THE PROJECT OWNER SUB-CONTRACT THE MANAGEMENT, VENDOR CHOICES AND EXECUTION CONROL FOR TRANSPORTATION FROM ALL ORIGINS TO FINAL SITE ?
Modularization Assuming the project owner has limited logistics resources or is unwilling to manage every detail, a third party logistics provider services are secured. That third party provider, working in concert with the project owner, determines ; A realistic schedule for delivery of goods to the jobsite A listing of capable logistics vendors that can be used to manage all physical logistical functions
Modularization In Addition the following salient points are mutually established between the project owner and the third party provider; A responsibility chart for the third party A clear communication network for all parties in the project Probable benchmarks and watershed goals for the project itself and all parties involved
Modularization As a STAND ALONE CONCEPT, MODULARIZATION brings cost and efficiency savings to the equipment needs of any project, but it does not reduce the need for attention to transport details, choice of carriers and particularly, choice of the primary transport third party vendor to finally execute the project.