Industrialized Construction Chronology: The Disputes and Success Factors for a Resilient Construction Industry in Malaysia

2.1. Global Terminology for Industrialized Construction

The idea of performance improvement in the construction industry is not new compared with other industries, such as the manufacturing industry. The performance improvement concept was first discussed in the 1960s when the “Future” dream was described by Carter in 1967 to improve the construction industry by using the production concept, which governs the manufacturing industry [11].

Moreover, industrialization is an idea that goes beyond the use of elements produced off-site and the assembly of buildings to a rather “Visionary” system. However, the study by the NHBC Foundation of the UK [12] stated that the amount of work required for off-site production projects prior to going to the actual site often increases in comparison to traditional construction process, thus decreasing the amount of work carried out on-site.

There are a number of other terms used globally to describe industrialized construction and prefabrication systems. Subsequently, the literature uses common terminology such as pre-assembly, prefabrication, off-site manufacturing (OSM), off-site production (OSP), and off-site construction and modern method of construction (MMC) to describe industrialized construction. The study by Kamar and Hamid [13] compiled the following terms used by other scholars to represent the industrialization of the construction sector:

• Off-site: This is a term used to describe the spectrum of applications where buildings, structures, or parts thereof are manufactured and assembled remotely prior to their final installation [14].
• Pre-assembly: Pre-assembly literally means “Assemble Before,” and covers the manufacture and assembly (usually off-site) of buildings or parts of buildings earlier than they would traditionally be constructed on-site, and their subsequent final installation [15].
• Prefabrication: Prefabrication is a manufacturing process that usually takes place at a specialized facility, where various materials are joined to form components of the final installation [16].
• Modern method of construction (MMC): The MMC is the term used by the UK government to describe a number of innovations in house building, most of which are offsite technologies, moving work from the construction site to the factory [17], [18], [11], [19].
• Off-site construction (OSC)/off-site manufacturing (OSM)/off-site production (OSP): This largely interchangeable term refers to that part of the construction process that is carried out away from the building site, for example, in a factory or a specially created temporary production facility close to the construction site (or field factories) [14], [20].
• Off-site prefabrication: This is a process that incorporates prefabrication and pre-assembly. The process involves the design and manufacture of units and modules, usually remotely, and their final installation at the site [17].

Regardless of the terms, the idea of industrialization in construction is the same, namely, the manufacturing of structural components for the construction of buildings in a controlled environment, rather than doing so on site [21]. Pan [22] provides an approach to highlight and distinguish the various terms, which are categorized into four sections. Table (1) lists the term categories, which reflect the historical evolution of the concept.

However, according to the earlier studies, the assessment and critical review of the construction industry is essentially attributed to its low performance output in terms of cost and construction lifecycle time, poor quality of products, and poor health and safety record in comparison with other industries. With regard to the above issues, many initiatives have been instigated worldwide to effect change in the construction industry in order to mitigate and overcome these inherent problems [10]. The study by Nadim [9] summarizes the international initiatives that promote transformation in the construction industry. Table (2) extends Nadim’s findings by adding the Malaysian initiatives.

A common point of departure among international initiatives that promote the construction industry emphasizes meeting clients’ needs, integrating design and construction, and benchmarking performance. Therefore, the MMC can be one of the means of developing and changing construction industry practices by applying and emphasizing the manufacturing concept and introducing different levels of mechanization in the construction industry sector.

On the other hand, the MMC may also include a variety of building approaches, such as OSM and on-site work. Accordingly, from the terminology perspective of industrialized construction, OSC, OSP, OSM, OSF, prefabrication, modular construction, industrialized building systems (IBS), and factory built assembly have often been utilized interchangeably to emphasize certain parts of the construction process that are carried out off site [10], [12], [14].

Nadim [10] shows the five levels of industrialization based on the research by Leabue and Vinals [23] in 2003, which can vary by enterprise, type of component/product produced, and region. These levels of industrialization are simple machinery, mechanization, automation, robotization, and reproduction (see Table 3).

In this regard, the construction industry is affected by the increasing complexity of current construction projects, together with the advances in technologies needed to introduce a challenging proposition for the wider uptake of off-site production as a modern method for industrialization for building products. Industrialized construction has attracted the interest of countries such as Japan, Singapore, Hong Kong, Sweden, Switzerland, Germany, the United Kingdom, the United States, among others. The Ministry of Housing and Local Government of Malaysia visited several European countries in the early 1960s to evaluate their housing development programs, with the purpose of launching an IBS in the construction sector for building affordable and quality houses [24]. According to Elliot [25] an IBS often represents the processes of technical methods or the philosophic approach to the construction industry. It is vital to demonstrate the actions and events within the Malaysian IBS sector. Fig. (1) is a summarized chronology of IBS implementation in Malaysia.

The horizontal axis in the chronology graph illustrates the period (year), from 1999 to 2015. The vertical axis shows the three principle categories: IBS strategy plan, standards/manual, and major events in Malaysia. The chronology shows that over the last few decades, a number of IBS roadmaps, strategic master plans, and several workshops, seminars, and exhibitions have been developed to promote IBS in the Malaysian construction industry. The IBS implementation is proposed in order to grasp reasonable opportunities in the global market place and to meet the challenges of international competition in the construction sector [8].

2.2. Definition of an Industrialized Building System (IBS)

Indeed, the lack of a uniform definition depends heavily on user’s experience and understanding, which vary from country to country. There are various IBS definitions from more than 20 researchers who have previously studied this field from 1971 to 2011. The Construction Industry Development Board of Malaysia gave the workable definition of IBS in Malaysian context as “A construction technique in which components are manufactured in a factory controlled environment (on or off site), delivered, positioned and assembled or erected into a structure with minimal additional site works” [28].

Kamar, et al.[21] developed the following working definition for IBS: “An innovative process of building construction using concept of mass-production of industrialized systems, produced at the factory or onsite within controlled environments, it includes the logistic and assembly aspect of it, done in proper coordination with thorough planning and integration.”

According to Abdullah and Egbu [29], previous IBS definitions show authors’ positions in ontology, which define an IBS as a method, an approach, and a process, or a product, system, and technology. The definitions of IBS have been classified based on the two aforementioned categories. Kamar, et al.[21] and Kamar, et al. [13] highlighted the 20 scholars who worked on IBS definitions, and tabulated their results based on two main categories and six fundamental characteristics of IBS definitions from 1971 to 2009. Table (4) shows the list of scholars who have defined an IBS, based on two fundamental categories and the year of study.

In Table (4), 15 researchers defined an IBS as the process, approach, and method. However, five researchers defined an IBS as a technology, product, and system. In addition, IBS definitions emphasize other characteristics, such as industrialized production, the transportation and assembly technique, on-site fabrication, mass-production, structured planning and standardization, and process integration. Each definition covers at least two or three other categories and characteristics of an IBS mentioned earlier. Here, the widely accepted IBS definition in Malaysia of the CIDB Malaysia does not cover aspects of structured planning, mass-production, standardization, and process integration in its definitions. For instance, Chung [42] defined an IBS as a method, approach, and process, a definition that includes five of the six characteristics listed in the table.

The results show that all of the above characteristics and fundamental categories of IBS definitions are essential and should be included in a holistic workable IBS definition. For this purpose, this study defines IBS as “a computer-integrated design, manufacturing and construction system using the concept of off-site or on-site prefabricated mass-production technique within a controlled environment while utilizing proper coordination and planning to transport, position and install building components with minimal in-situ works.”

2.3. Industrialized Construction Classification

The classifications of industrialized construction are numerous, and documented based on the material, process, and system approach. Mazjub [49] proposed a classic classification of industrialized construction that classifies them based on systems and building materials. Kamar, Hamid, Azman, and Ahmad [21] summarized the industrialized construction classifications (see Table 5). The table compares different classifications and makes appropriate choices on construction methods for the Malaysian construction industry.

In 2003, the CIDB of Malaysia proposed a classification for IBS that is widely approved of in the Malaysian context, and is used by scholars and practitioners in the construction sector [54]. The CIDB [28] classified IBSs based on structural aspects of the systems into five major groups:

• Precast concrete framed buildings, panel and box systems: Precast concrete elements such as columns, beams, slabs, and walls, and “3D” components such as balconies, staircases, toilets, lift chambers, refuse chambers, and lightweight precast concrete and permanent concrete formworks are classified as the most common group of IBS products in this classification.
• Formwork system: This system is considered one of the “Least Prefabricated” IBS products, because it involves site casting such as tunnel forms, tilt-up systems, and permanent steel formworks, and the products offer high-quality finishes, subject to the structural quality control and to delivering fast construction with lower site labor and material requirements.
• Steel framing system: This system has always been popular and is used extensively in the fast-track construction of skyscrapers. Recent developments for this type of IBS include the usage of light steel trusses consisting of cost-effective, profiled, cold-formed channels and steel portal frame systems as alternative to the traditional heavier hot-rolled sections.
• Prefabricated timber framing system: This system consists of timber building frames and timber roof trusses. The system offers interesting designs from simple dwelling units to buildings with high aesthetical value, such as chalets for resorts.
• Blockwork system: This construction system uses conventional bricks, which have been revolutionized using of interlocking concrete masonry units (CMU) and lightweight concrete blocks to save on construction time and to simplify the usage of effective alternative solutions.

A recent study by Doran and Giannakis [53] in 2011 covered modularity in construction and classified modular building systems into three groups: pure modular, hybrid modular, and onsite modular. The pure modular category is the most standardized modular building system, and does not accommodate change, whereas the onsite modular building system group allows for a high degree of customization [53]. According to the above study, the classification of IBSs by the CIDB in 2003 can be expanded to cater to the scope of modularity (volumetric) in construction. These new classifications of IBS methods lifted the Malaysian construction industry to another level of industrialization. Hence, IBSs have the potential to be involved in the entire lifecycle of project delivery by initiating reproduction levels of industrialization in the Malaysian construction industry.

2.4. Critical Success Factors of IBS

There are several push factors that encourage the adoption of IBSs in the construction sector, such as health and safety risk reduction, dealing with environment and sustainability issues, client influences, and addressing skills shortages [18], [55], [56], [36]. Therefore, a considerable number of studies have investigated the benefits of an IBS compared with conventional construction methods. Abdullah and Egbu [29] highlighted the following benefits of the IBS method Fig. (2) [57], [58], [36], [59], [60]. By utilizing this system, the dependency on foreign construction workers and the inherent social problems caused by foreign workers will also be minimized.

Kamar, et al. [2] investigated the CSFs in the implementation of IBS in Malaysia. Their research identifies potential CSFs in the implementation of IBS through a literature search and a case study survey of construction companies in Malaysia (see Table 6).

The aforementioned scholars indicate that applying the CSFs to implement industrialized construction in the Malaysian construction context needs initial thought and a fundamental transformation of the current system in Malaysia.

Kamar, et al. [2] indicated the following changes based on the aforementioned CSFs in order to appropriately implement an IBS in Malaysia:

1. Key success factors for off-site construction projects lie in good management (both on- and off-site) and in the planning and control of the overall project life cycle.
2. The integration of IBS components and modules into the building construction system requires that the various parties and the supply chain create a good communication channel in order to implement an integrated approach to the design, manufacturing, and construction of buildings.
3. The Malaysian construction industry needs to learn about effective logistics management to include the management and sustained improvement of the production process in order to eliminate waste and to ensure the right components are produced and transported at the right time, in the right order, and without defects.

Based on the above issues, a successful IBS implementation requires extensive knowledge of processes, design, and manufacturing. In addition, the IBS implementation needs to improve the skill level of the current workforce by increasing the quality of training at all levels. This requires a tremendous education and training effort, particularly for construction practitioners who are involved in handling, positioning, and erecting the prefabricated components as on-site activities. It is important to select an appropriate technology, such as an IT/ICT support tool, to improve construction business viability.

Moreover, there are many issues and challenges in implementing an IBS. These include poor knowledge in this area, resistance from customers and professionals, misunderstanding building regulations, cost issues, IT/ICT integration, few codes and standards, a market monopoly, a lack of integration in design and construction, complex interfacing between systems, manufacturing capabilities, and cultural issues [46], [55], [70], [56], [8]. A recent study on the drivers and barriers for industrialization in construction shows the most frequent barriers relate to a lower degree of customization and reduced flexibility in producing to meet customers’ requirements [71]. Building production systems with a high degree of industrialization are often regarded as having lower performance, owing to the need to freeze a design early, and being more resistant to product innovations because off-site building production requires a high capital investment in fixed assets and depends on high production volumes to offset the capital investment [71].

On the other hand, most IBS project deliveries in the Malaysian construction industry apply the fragmentation approach, which was identified as one of the main barriers to adopting an IBS in Malaysia [72]. The fragmentation issue (traditional design and construction process) means that all design and construction processes are conducted in a sequential manner throughout the project life cycle [72]. In addition, a characteristic of the Malaysian IBS construction process is that it is conducted in a sequential manner, based on the segregation of professionals during the design and construction processes. In fact, the segregation of professionals throughout the project lifecycle results in inefficiencies during the construction phase, such as increased project complexity, rework, increasing costs, and longer construction durations [72], [73]. Therefore, it is recommended that the IBS project lifecycle process adopt modern technology, such as building information modeling (BIM), through a holistic package of policy, specific training programs, and related initiatives in order to minimize the fragmentation gap in current Malaysian construction projects.