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How XYZ delivered 8x ROI on a $150M pharmaceutical project
Unlocking 8x ROI with Engineering Grade AR™
01 The Facts
The results included here are client- and owner-verified outcomes from the field:
$150M
Hyperscale pharmaceutical project
$2.3M
Savings realized with XYZ at 60% completion
As the specter of recession looms, the construction industry is confronting the intensifying pressures of severe labor and skills shortages; completing projects on time and within budget poses an increasingly formidable challenge.
Despite the broader economic and industry-specific challenges, large-scale construction is thriving, with the demand for pharmaceutical lab and manufacturing facilities particularly strong.
According to a report by ResearchAndMarkets.com, the global pharmaceutical construction market’s value is expected to reach $30.4 billion by 2026 (up from $24.5 billion in 2020), expanding at a compound annual growth rate (CAGR) of 3.9%.
As the principal incentive for the pharmaceutical industry is speed-to-market, contractors are subjected to immense pressure to work with accelerated timelines; this results in an increased risk of errors and rework, diminishing already slim margins.
The disconcerting facts
70%
of pharmaceutical projects miss their original budget by an average of
15%
4
Months
average delay on a typical 3-year project schedule
02 The Challenge
Seeking increased quality control and higher accuracy
The general contractor highlighted in this case study manages project delivery for leading pharmaceutical, medical technology and data center companies around the globe.
With an admirable 50-year history, this firm has closely witnessed the industry’s challenges to progress, such as the reliance on vast amounts of 2D drawings onsite.
The inherent problem: assets are designed in 3D, then converted to 2D drawings, then the asset is built in 3D.
The high volume of constantly changing PDFs onsite creates significant confusion and disconnect between teams – it grows extremely difficult to keep track of the latest iteration.
Another challenge that the general contractor has faced over the years is the severe limitation of reactive validation processes such as laser scanning, which identifies errors only after they’ve occurred and the costs amassed, leaving rework as the only remediation option.
On average, there are more than 5,000 2D drawings on a complex construction site; a number which rapidly increases with revisions.
Find out more about the benefits of AR in construction and investing in innovation.
03 Engineering Grade AR™
Design in 3D.
Build in 3D.
Validate in 3D.
XYZ Reality’s Engineering Grade Augmented Reality™ managed solution allows construction teams to validate and verify builds in real time, enabling the identification of mistakes before they become costly rework.
69% of owners say poor contractor performance is the single biggest reason for project underperformance.
Deploying Engineering Grade AR provides construction teams with enhanced quality control, unlocking substantial time and cost savings. Consequently, this improves contractor reputations with asset owners, opening the door for winning more business.
“The killer is rework. To redo a job is probably going to cost you 6 - 8 times more than it would have cost to get it right first time.”
Project Manager,
General Contractor
XYZ Reality’s Engineering Grade AR™ solution benefits
- Allows construction teams to position holograms of 3D BIM models to millimeter accuracy onsite
- Comes as a fully managed service that includes:
- Safety-certified hardhat, the Atom
- XYZ Reality provides a dedicated Field Application Engineer (FAE) to set up integrations, deploy the Atom onsite and supply training; your ROI starts on day one, not weeks or months later
- Proprietary cloud software
- Proactive validation
- Enables a continuous flow of information from the field that feeds into office teams, synchronizing models, including into 3rd party tools such as BIM360 from Autodesk
“The Atom™, the world’s most accurate Engineering Grade AR solution, enables your team to benefit from viewing holograms of 3D models onsite with millimeter precision.”
David Mitchell
Founder & CEO, XYZ Reality
04 Case Study
Unveiling the success secrets of a complex pharmaceutical project – a deep dive
When the general contractor won the commission of a $150 million mission critical pharmaceutical project, they wanted to leverage cutting-edge technology to increase build control and offer the asset owner further confidence that it would be built right, first time.
They sought version control, elimination of reliance on reactive validation processes such as laser scanning, ease of use, quick deployment, and millimeter accuracy.
The only solution that met all their needs was the Atom.
We looked at the market for AR solutions:
The Atom’s impressive results
“[The Atom] is a gamechanger.”
Construction Manager, General Contractor
Thanks to the Atom's capabilities, the $150 million mission critical pharmaceutical project proceeded smoothly.
XYZ’s solution integrated perfectly into the contractor’s existing processes, immediately increasing productivity, with Augmented-Reality-for-Quality (ARQ) workflows seamlessly linking inspections with Autodesk's BIM 360 software.
No additional software was required, saving the contractor valuable time. XYZ allowed for proactive verification and validation in the field, eliminating the need for laser scanning.
“It will be evident from an early stage if there is something wrong. There is no time lag between what you actually see and getting results.”
GROUP HEAD OF DIGITAL PROJECT DELIVERY, GENERAL CONTRACTOR
Thanks to the Atom's capabilities, the $150 million mission critical pharmaceutical project proceeded smoothly.
As the Atom isn’t affected by the data lag of traditional verification processes, it enabled the contractor to maintain a steady stream of real-time data flowing from the field to office teams.
Not only did this provide complete version control, ensuring that all parties utilized the latest iterations, but it gave the contractor access to trustworthy, objective, project-wide information, enabling more informed decision-making throughout the whole project lifecycle.
Strengthening collaboration for construction success
Through its unbiased project insights, the Atom efficiently bridged the gap between construction teams, management and asset owners, allowing all stakeholders to access and share critical project data and design updates instantly.
This promoted seamless communication and collaboration, contributing to the project's ultimate success – as well as unlocking impressive time and cost savings.
XYZ solution
a fully managed service
As the XYZ solution comes as a comprehensive, fully managed service, an XYZ field application engineer (FAE) was deployed onsite, supporting inspections and results analysis, as well as ensuring fluid integration with XYZ's proprietary cloud software.
Overcoming the skilled workforce shortage with XYZ
The Atom’s managed service offering effectively tackles the skilled workforce shortage, as it removes the need for training teams who may struggle with learning new technologies.
05 Demonstrable ROI
XYZ Reality’s hidden ROI
The Atom’s benefits and ROI are easily measurable, but the Atom also provides gains that are harder to quantify:
- Encourages a collaborative culture across trades
- Unites teams by eradicating information silos
- Increases site safety: Less work = less activity = less risk.
We designed the Atom Engineering Grade AR solution to bring construction teams together – after all, everyone works hard toward the same goal: to safely deliver projects on time and within budget.
Project Value
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Project Duration
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Industry
ROI
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Estimated Savings
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* The information generated by the calculator relies on certain assumptions based on genuine XYZ Reality customer data and feedback. The calculator is designed to give a general indication of costs. XYZ Reality shall bear no liability for any use of or reliance upon the information provided.
