Modular Manufacturing

Economies of Scale

Modular Manufacturing Explained

Modular manufacturing is an industrial production strategy which utilizes standardized modules that can be produced and assembled into final products more efficiently than conventional fabrication methods. The product is designed with component modularity to organize and simplify the manufacturing process while enabling a final product that is easier to repair or upgrade. 

Modules can be manufactured at different facilities and delivered to the final assembly location, allowing for greater flexibility in supply chain development and the manufacturing process. The final production stage involves assembling premanufactured models that are designed to be compatible and interchangeable with the other components in the final product. The process of manufacturing the standardized modules can benefit from the familiarity and simplicity of a specific module. Any variety in the final product line can be achieved by switching specific modules instead of requiring an entirely different design for the final product with supply lines dedicated to producing every other component. 

Modular Manufacturing Fundamentals

The ultimate strategy of modular manufacturing seeks to maximize efficiency and quality by designing products with the full life cycle in mind, from industrial production to later life cycle upgrades and maintenance. 

Economies of scale

Modular manufacturing achieves economies of scale by combining multiple design strategies. Serialized production reduces costs through the efficiency and simplicity of scaling repetition. Improving the manufacturing process itself is much easier when the production line is operating at a stable and predictable flow rate. 

Any inefficiencies or problems in the production line can be identified and improved upon. The “first of a kind” product will always have room for improvement in both design and production methods compared to the “Nth of a kind” later on. As these improvements take place, the better designed product can be made from a more streamlined manufacturing process. As all contributing processes are improved upon, costs are reduced, more products are sold and mass production can be achieved. 

Importance of Modular Manufacturing 

Modular manufacturing is a key driver of efficiency and innovation in modern industrial design. Standardizing components and sub-assemblies, manufacturers streamline their production processes, reducing waste and catching more errors. A production method utilizing modular design can have a better response time to changing market demands in both quantity and specified needs. Modular manufacturing can encourage competition and innovation as improving upon a specific interchangeable module will have lower barriers to entry than attempting to introduce an entirely new product. Standardized compatibility between modular parts can offer flexibility in the supply chain and market place, reducing the vulnerability of possible bottlenecks or delays in production. Modularity in design offers better flexibility, responsiveness, sustainability and efficiency across the industrial sector, benefiting both producers and consumers.

Reducing Fixed Costs

Research, development, design and production facilities all contribute to fixed costs that must be distributed in the price of products being sold, so the more products that are sold, the smaller proportion of fixed costs needs to be added to the final price of each unit. Modular components can be produced or acquired by a range of different facilities that might be equipped and experienced in producing the required module, avoiding the need for retooling or retraining. The facilities could also be pre-existing, so no new factory construction would be required. 

Quality Control 

Supervising manufacturing is more efficient and more effective when there are fewer boxes to check in a process. Ensuring the quality of a simple module can be much easier than ensuring the quality of a complex final product. If there is a particular fault or malfunction in a module, it can be swapped out within the final product, avoiding a product loss to a malfunction that could be hard to diagnose. 

In the world of manufacturing, modular design and production can ensure each component of a system is made to the highest standards of safety and quality, while allowing for an easy replacement if necessary. This not only helps to prevent problems and maintain the overall performance of the final product, but also offers flexibility and adaptability which is crucial in a world with ever-changing demands.

Safety

Modular manufacturing simplifies the quality control methods as each part of a machine or product is designed to perform a specific function. Modularity helps to improve safety as faulty components can be identified early and can be easily removed and replaced without affecting the rest of the system. Safety is improved by making it easier to identify and fix problems in operation of the final product as well. Standardization of a quality design in production ensures every module is made to the highest quality standards, reducing the risk of defects and malfunctions.

Modular manufacturing is key to creating a system that is not only safe and reliable, but also flexible and adaptable, ready to face the challenges of the future.

Rapid Production and Repair

A final product composed of modules can be rapidly assembled and delivered, reducing time to market. Reduced time per product on the assembly floor equates to more products assembled and effectively a higher production rate. From the financial perspective, rapid manufacturing and delivery allows for rapid returns on investment, securing a faster revenue stream and market presence. 

Modular manufacturing isn’t just for luxury or frivolous products, there are critical systems and products that lives depend on which utilize modularity. If a power grid transformer blows out, it is important to have that module replaced and repaired in a rapid turn around to restore electricity. Hospital equipment, data centers and transportation infrastructure all take advantage of modular design with parts available for rapid replacement in order to keep everything operational if a particular component malfunctions. 

Reduced Waste

Modularity also helps reduce waste. When a component fails or needs to be upgraded, the component can be replaced without needing to replace the entire unit. Replacements and repairs are also streamlined with modular design as swapping a module can get a unit up and running again while the malfunctioning module can be diagnosed and possibly repaired for later use without additional interruption in unit function.

Upgrades

If an operating system needs to be upgraded but the desired improvement can come from upgrading a few modules, it would be more cost effective and easier to replace the specific modules instead of replacing the entire system. This can also be applied on the manufacturing side, if field performance of a final product is lacking due to frequent problems with a particular module, that module can be redesigned and become the new standard while retaining total compatibility with the rest of the total product.

Modular Manufacturing in the Nuclear Sector

Small Modular Reactors (SMRs) are the most notable example of modular manufacturing in the nuclear sector. Power station equipment can be prefabricated and delivered to the construction site where they can be assembled much faster than conventional onsite fabrication. An industrial site utilizing modular reactors can scale energy needs easily by adding more SMR units. Having a collection of modular reactors operating in parallel can also allow for staggered maintenance and refueling so power output has fewer total interruptions. Most large Gigawatt capacity reactors need to shut down entirely to refuel or perform maintenance, taking the entire power plant offline if it is the only reactor onsite. An industrial site with 12 SMRs can potentially stagger routine maintenance and refueling if continued power output is a preferred condition.

Modularity also applies to other components in some nuclear power plants. Many people associate nuclear power plants with the iconic image of massive twin cooling towers. Modular building methods for cooling could replace the on-site construction required for concrete cooling towers with integrated cooling such as fans.. Reducing size and increasing count can offer faster construction and more flexible maintenance schedules. Modularity has the added benefit of offering redundancy for basic system functions if one of the towers needs to be shut down for maintenance, the rest of the power generating assets can continue operations if all other aspects are operating within designated thresholds. In some ways, modularity offers redundancy as well which is important to safety and security of operations. In some configurations of A row of 12 cooling towers operating at 60% can afford a few to go offline if something malfunctions, as the other cooling towers can pick up the slack left by the units that go offline. 

Modularity by Last Energy

Last Energy offers a few key differences in business strategy that set it apart from other SMR companies. 

Production Assets

Last Energy utilizes existing infrastructure and know-how of contract facrbricators and manufacturers to scale operations. 

Off-the-Shelf Parts

Standardized industrial components can be acquired from vendors and assembled into the plant modules. These parts are assembled into modules reducing the time and additional costs associated with custom fabrication. This method of acquisition also allows for flexibility and resilience against supply chain disruptions as there is no dependency on dedicated vendors for custom parts.  

Full Plant Modularity

Modules are assembled on site for all plant components, not just the reactor. Turbines, cooling systems, generators, control systems, safety systems, electrical systems and the plant structure itself are all contained in modular units designed for rapid installation and operation. 

Full Sector Compatibility

The plant design is focused on compatibility and simplicity by using modules with established supply chains and availability. Components used are standard ensuring availability and contractor familiarity including, but not limited to, the generators, cooling systems, piping, heat exchangers, turbines and even the construction equipment itself. 

Standardized Construction

The construction equipment specs required to assemble a PWR-20 plant are easily within the capacities of most construction companies. Laying a foundation, pouring concrete and having access to a standard crane are the major boxes to check. The plant modules themselves can be fitted together by most general contractors and the process is designed to be procedurally efficient. 

Last Energy’s Economies of Scale

The PWR-20 is designed to scale, as the plant modules can be rapidly produced, delivered and assembled. Repeating this process builds more familiarity and efficiency through experience and knowledge across the entire supply chain. The small footprint of a standalone plant allows multiple installations to be constructed where they are needed.

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