Targeted Cost Methodology for High-Tech Facility Design
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Solution Overview
Problem
Companies, especially startups and scale-ups in high-technology fields like pharmaceuticals, semiconductors, and biotechnology, face challenges in minimizing risks and maximizing returns on investment when delivering high-technology manufacturing facilities due to lack of experience in specifying such facilities and the high costs associated with traditional project methods.
Innovation Solution
A method for predicting construction costs by identifying R&D or manufacturing processes, specifying infrastructure and mechanical systems, determining minimum facility size, and adjusting project budgets to meet compliance, quality, and time-to-market objectives, while considering third-party contracting options.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional project methods are used to deliver high-technology facilities, then companies can obtain standard manufacturing facilities, but the project costs will be high and the companies lack experience in specifying such facilities
Solution Approach 1:
The patent applies preliminary action by establishing a targeted cost methodology early in the project conception phase. The system defines cost parameters, identifies process equipment requirements, and determines facility size specifications before detailed design begins. This upfront planning allows companies to understand total project costs including soft costs, professional services, and architectural/engineering fees, enabling informed decision-making before commitments are made.
Solution Approach 2:
The patent employs parameter changes by systematically varying key project parameters such as facility size, process equipment specifications, and location choices to achieve targeted cost objectives. The methodology allows companies to adjust parameters like determining whether to contract with third-party facilities versus building owned facilities, and how these parameter changes impact overall project cost and timeline.
2Ease of manufacture
If companies outsource production to low-cost countries to reduce manufacturing costs, then labor and land costs decrease, but the cost of owning and operating manufacturing facilities increases due to lack of experience
Solution Approach 1:
The patent implements feedback mechanisms by continuously monitoring project costs against the targeted cost established during conception. The system tracks actual expenditures across all cost categories including soft costs, professional services, and construction, providing ongoing feedback that allows project teams to identify cost deviations early and take corrective actions before overruns occur.
Solution Approach 2:
The methodology applies preliminary action by establishing comprehensive cost models and contingency plans before project execution. Companies use the targeted cost approach to pre-determine acceptable cost ranges and identify potential risk areas, allowing them to proactively manage costs rather than reactively responding to overruns during construction.
3Ease of manufacture
If facilities are delivered at the lowest possible cost to maintain cash flow, then operating costs decrease, but the quality and compliance standards may be compromised
Solution Approach 1:
The patent uses parameter changes to systematically explore the relationship between cost and compliance quality. The methodology allows companies to adjust parameters such as facility specifications, equipment selections, and construction standards while maintaining compliance with mandatory industry and government regulations. The targeted cost approach identifies the minimum acceptable parameter values that satisfy compliance requirements.
Solution Approach 2:
The patent applies segmentation by breaking down the facility delivery project into distinct cost categories and compliance requirements. The methodology separately addresses soft costs, professional services, architectural/engineering fees, and construction costs, allowing companies to optimize each segment while ensuring overall compliance. This segmented approach prevents cost-cutting measures from compromising essential compliance standards.
Data Source
AI summary
The present invention discloses a methodology and device for predicting the cost of construction of a facility for use especially in conception stages of a project. The method proceeds by identifying a process application to be housed within the facility, identifying specified process equipment, minimum size of the facility, the support utility infrastructure required for all systems which will provide for the needs of the identified process application, and determining associated costs. A variety of other factors may also be examined in determining cost, and by identifying a project budget, the cost or budget itself may be adjusted.