Links between modularization critical success factors and project performance

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2014-05

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Abstract

Through the exporting of a portion of site-based work to fabrication shops, modularization (MOD) can enhance efficiency in the construction industry. The industry, however, applies modularization at only a low level. To reach higher levels of modularization, the EPC industry needs new approaches. Previous studies have identified the current trends in and barriers to the industry's application of modularization. Moreover, in 2013, the Construction Industry Institute's (CII) Research Team 283 identified 21 critical success factors (CSFs) that create an optimum environment for a broader and more effective use of modularization. However, the researcher has identified a need to better understand the relative significance of MOD CSFs and their associations with project performance. Thus, the research was conducted to provide recommendations for better project performance by identifying correlations between the accomplishment of MOD CSFs and project performance and examining actual modular projects' MOD CSF accomplishment. This study identified four statistically significant positive correlations. Those are between the accomplishment of MOD CSFs and: 1) cost performance; 2) schedule performance; 3) Construction performance; and 4) Startup performance. In addition to the correlation analysis, the study also identified the CSFs that appear to contribute the most to 1) "Modular Project Success", 2) Construction success, 3) Startup success, 4) Cost performance, and 5) Schedule performance. To collect information on the actual industrial modular projects, the study surveyed industry experts. By using this study, many industrial project stakeholders from owners to fabricators, designers and EPC contractors, will be able to understand the relationships between MOD CSFs and project performance. Such an understanding should motivate them to achieve better project performance through implementing modularization CSFs.

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