{"id":2215,"date":"2014-04-02T20:43:16","date_gmt":"2014-04-02T20:43:16","guid":{"rendered":"https:\/\/garrett-ind.com\/?page_id=2215"},"modified":"2014-07-07T20:50:50","modified_gmt":"2014-07-07T20:50:50","slug":"our-skid-systems","status":"publish","type":"page","link":"https:\/\/garrett-ind.com\/our-skid-systems\/","title":{"rendered":"Engineered Skid Systems"},"content":{"rendered":"

What Are The Advantages?<\/h2>\n

Part of the trend towards investing in a modular system is single-source responsibility, meaning a source that is selected due to specific reasons, e.g. price advantage, quality, support, delivery, etc. Advantages are realized by a customer when a manufacturer accepts the responsibilities that go with building a modular system. What are the benefits that the customer or end-user realizes when a modular system manufacturer accepts single-source responsibility of a system vs. having the system being \u2018stick-built\u2019 at the customer\u2019s facility.<\/p>\n

1.Singular Responsibility<\/h4>\n

One of the biggest advantages of buying a modular system is one company can be held accountable for all aspects of a project, including the ability to design, engineer, fabricate, and properly manage all aspects of a project, such as providing clean in place (CIP), UF, HTST, decontamination, batch, blending, and other types of processing or utility systems.<\/p>\n

2. Lower Administrative Costs<\/h4>\n

A significant amount of time and effort is spent administrating projects, including soliciting\/reviewing bids, placing purchase orders with multiple suppliers, expediting\/receiving components, entering invoices, and finally paying for equipment. By placing a single purchase order with one supplier, all of these associated costs and headaches go away.<\/p>\n

3. Manage Cash Flow<\/h4>\n

It becomes much easier for a client to manage cash flow if they place an order with one qualified supplier. Most modular system manufacturers are paid per a defined payment schedule, based on a predetermined set of deliverables as defined in a contract. This information, in conjunction with the overall schedule that is developed for the project, will define pay-out dates by the customer. A payment term may include:<\/p>\n

\u25aa\u00a0\u00a0 Percent upon receipt of purchase order<\/p>\n

\u25aa\u00a0\u00a0 Percent upon submittal of drawings for approval<\/p>\n

\u25aa\u00a0\u00a0 Percent upon completion of fabrication<\/p>\n

\u25aa\u00a0\u00a0 Percent upon submittal of turnover package (TOP)<\/p>\n

The overall size or dollar value of the project typically determines the quantity and schedule of payments over the life of the project.<\/p>\n

4. Reduce Risk<\/h4>\n

Risk reduction is also one of the goals any customer has when implementing a project. These risks can come in the form of schedule delays, cost overruns, misapplication in the design, and many other factors. Involving one company, and making them the responsible party for the overall success of the project, allows the customer to communicate directly with one entity and apply pressure to ensure the project success \u2014 which becomes much more difficult when coordinating efforts with multiple firms.<\/p>\n

5. Minimize Construction And Design Discrepancies<\/h4>\n

Most projects go through a certain amount of change during the life cycle of the project. Minimizing construction and design discrepancies is an advantage when building a modular system through a single design-build company because any requested changes are seamlessly and quickly transferred from the customer to the supplier \u2014 rather than disbursing the information among multiple design, management, and fabrication firms. Reducing the number of companies and individuals involved in the transfer of information will better ensure that changes made to the design are also captured in the construction phase of the project.<\/p>\n

6. Reduce The Decision Cycle<\/h4>\n

The overall schedule for a project is greatly affected by the number of changes that occur during the life cycle of the project. This is typically due to design changes, which in turn affect material deliveries, etc. One factor that can be better controlled by sole sourcing a modular system is reducing the decision cycle, and consequently better controlling the overall project schedule. In many cases, projects have multiple companies involved, which include engineering\/design, construction management (CM), project management (PM), and the different trades working on the project. By reducing the companies involved, decisions can be made more quickly, which allows the overall schedule on a project to be maintained.<\/p>\n

7. Reduction In Litigation Claims?<\/h4>\n

Finally, a reduction in litigation claims and overall insurance costs will be realized by fabricating equipment in a controlled shop environment.<\/p>\n

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Four Ways Modular Systems Cut Costs<\/h2>\n

A primary goal of any customer, when building new or adding equipment to an existing facility, is the ability to source equipment at the lowest and most economical cost possible while maintaining a high level of quality. Modular system suppliers, who provide turn-key systems, have the necessary design, engineering, management, and fabrication capabilities to properly do so. Internal engineering and construction procedures are developed to expedite the design, fabrication, and management aspects of a project, and are constantly refined to minimize the overall time from project kick-off to start-up and commissioning. Saving time equates to saving money when sourcing and building equipment. A reduction in the overall length of a schedule consequently reduces the cost of the project. In this installment, we will review some of the many ways in which cost savings can be realized when building a modular system.<\/p>\n

Labor and Facilities<\/h4>\n

Stick-built systems by definition are built piece by piece at the customer\u2019s site, while modular systems are constructed in a controlled shop environment. Savings associated with construction practices include:<\/p>\n