CONSTRUCTION INDUSTRIALISATION: MECHANISATION, STANDARDISATION AND VALUE CREATION

Construction Research Institute of Malaysia (CREAM)
1.3 IBS Roadmap Reviews 2
1.4 Unresolved Issues on IBS 6
1.5 Definition for Industrialisation 9
1.6 Drivers, conditions and consequences 10
1.7 Drivers to Industrialised 10
1.8 Problem Statement 10
1.10 The Way Forward – Rethinking and Redefining IBS 11
Chapter 2 Literature Review 19
2.1 Introduction 19
2.3 Core Concepts of Mechanisation, Automation and Robotics 23
2.3.1 Construction Technology Characteristics 24
2.3.2 Construction Automation and Robotics Technologies Characteristics
25
2.3.4 Review on the Characteristics and Technology Fusion 29
2.4 Barriers to Mechanisation, Automation and Robotics Implementation 30
2.5 Roger Bruno Graph 35
2.6 CIB Graph 39
3.1 Industrialised Building System (IBS) Manufacturers In Malaysia 40
3.2 Potential Applications and Solutions 41
3.2.1 Economic and Cost 41
3.2.2 Structure and Organisation of the Construction Industry 45
3.2.3 Construction Product and Work Processes (Technology Fusion) 46
3.2.4 Technology 49
Chapter 4 Mechanisation, Standardisation and Value Creation 51
4.1 Introduction 51
4.2.1 Challenges and Barriers to Mechanisation 55
4.2.2 Industrialised Building System (IBS) as part of Mechanisation 56
4.3 Standardisation in Construction Work 67
4.4 Industrialisation in Building Construction 71
4.5 Value Creation in Construction 73
4.5.1 On-site Production 73
4.5.2 Off-site Production 74
5.1 Conclusion 76
5.2 Recommendation 79
Figure 1 Degree of Industrialisation (Roger Bruno Richard, 2005) 13
Figure 2 IBS and Value Creation 15
Figure 3 3D Volumetric Construction 17
Figure 4 3D Volumetric Construction 17
Figure 5 On-site construction stages facilitating automation and robotics technologies
30
Figure 7 Level of Industrialisation vs Value / Standardisation 39
Figure 8 Value Creation and Series Size 76
LIST OF TABLE
Table Tittle Page
Table 1 Type of Construction System 21
Table 2 Level of Onsite Mechanisation 54
Table 3 Factors that inhibit the adoption of mechanisation in construction 55
Table 4 Standardisation Component Category 70
Table 5 Characteristics and Demands on Industrialised Construction 71
Table 6 Industrialisation Paradigm 72
Table 7 SWOT Analysis 78
CONSTRUCTION INDUSTRIALISATION: MECHANISATION, STANDARDISATION AND
VALUE CREATION
CHAPTER 1
1.1 Introduction
Prefab buildings in Malaysia started way back in the 1960s when Dewan Bandaraya Kuala
Lumpur (DBKL) built the first prefab flats in Jalan Pekeliling. About 22.7 acres of land along
Jalan Pekeliling, Kuala Lumpur was dedicated to the project comprising 7 blocks of 17
stories flat consists of 3000 units of low-cost flat and 40 shops lot. This project was awarded
to JV Gammon and Larsen and Nielsen using Danish System of large panel pre-cast
concrete wall and plank slabs. The project was completed within 27 months from 1966 to
1968 including the time taken in the construction of the RM 2.5 million casting yard at Jalan
Damansara.
The second prefab housing project initiated by the government comprising 6 blocks of 17
stories flats and 3 blocks of 18 stories flats was constructed at Jalan Rifle Range, Penang.
The project was awarded to Hochtief and Chee Seng using French Estoit System. The
project utilised the large panel system which required large concrete panel cast in the factory
and transported to site on trailers for assembly. The speed of construction is much faster
although the tendered price was slightly higher by 5% to 8%.
1.2 Industrialised Building System (IBS)
Between the 1970s and 2000s, the term ‘prefab’ gradually changed to IBS (Industrialised
Building System). According to Construction Industry Development Board (CIDB), IBS is
defined as a construction technique in which components are manufactured in a controlled
environment (on or off site), transported, positioned and assembled into a structure with
minimal additional site work. It consists of precast component systems, fabricated steel
structures, innovative mould systems, modular block systems and prefabricated timber
structures as construction components. Parts of the building that are repetitive but difficult –
and too time consuming and labour intensive to be casted onsite – are designed and
detailed as standardised components at the factory and are then brought to the site to be
assembled. The onsite casting activities in IBS utilise innovative and clean mould
technologies.
The fundamental idea of IBS is to move onsite construction work to a controlled
manufacturing floor. Therefore, the main advantage of using the IBS system is that there is a
high degree of quality control from start to finish. IBS should be able to control even the
tiniest details of a design with precision and consistency. Nevertheless, not all builders are
able to deliver projects using IBS. This is due to the fact that the initial costs of the site for
manufacturing and heavy machineries are expensive while our labour is still comparatively
cheap.
1.3 IBS Roadmap Reviews
To promote and encourage adoption of prefabricated construction or IBS, the Malaysian
Government through CIDB (together with the captains of the industry) formulated a master
plan called Industrialised Building Systems (IBS) Roadmap 2003-2010 and is currently on its
second IBS Roadmap 2011-2015.
Two of the main objectives of IBS Roadmap 2011-2015 are:
i. To sustain the existing momentum of 70% IBS content for public sector building
projects through to 2015
Status: In November 2008, the Treasury Malaysia issued a Treasury Circular Letter,
now referred to as SPP 7/2008, instructed all Malaysian government agencies
directing them to increase the IBS contents of their building development projects
(RM 10 million and above) to a level not less than 70 points of the IBS score and in
that sense IBS must be incorporated as part of the contract document for
tender. The decision was to create sufficient momentum for the demand for IBS
components and to create a spill-out effect throughout the nation. The Ministry of
Education is the largest IBS construction project buyer with the rapid construction of
secondary and primary schools, worth a total of RM 2.4b. However, only 10% of 4000
completed government projects since 2008 had used IBS as their construction
method. This is due to lack of monitoring from the government and incapable of
contractors and their sub-contractors in delivering IBS projects. Smaller contractors
tend to view IBS as threats and not as opportunities. Failure of the government to
create an open system (aim to encourage participation of small and medium
components producers) has created a monopoly of manufactures, thus increased the
price of components and tender pricing.
ii. To increase the existing IBS content to 50% for private sector building
project by 2015
Status: Residential projects such as flats, condominiums and terrace houses
have high IBS potential due to its repetitive nature. The private sector built RM
13.7b worth of these residential projects, compared to only RM 1.8b by the public
sector. If more of the private sector is convinced to adopt IBS, the resulting
outcomes will be manifold.
Based on recent study by Construction Industry Development Board (CIDB) the
current uptake on IBS in private sector projects in Klang Valley is stand at 45%.
This encouraging take up is due to the fact that Kuala Lumpur City Hall (DBKL) is
mandating the use of IBS for building projects constructed in Kuala Lumpur.
Iskandar Malaysia is another local authority that currently imposing the similar
instruction with a positive outcome.
The report discovered that high rise development and factory-like buildings tend
to have higher adoption of IBS compared to landed properties and small
commercial units and the adoption in Malaysia is client-driven rather than end-
customer’s demand driven.
On positive note, more private developers have emerged as a champion of IBS
including Sime Darby Property Sdn Bhd, Sri Pajam Sdn Bhd and Zikay Group. A
part from that, companies such as Eastern Pre-Tech and Kim Lun Sdn Bhd have
successfully penetrating Singapore’s precast market.
On the other hand, there is reluctant among the small private companies to take
risk on IBS which is mainly due to cost and unstable market and hence lack of
investment. Another major thing that needs to be considered as barrier is the
resistance from established architects to use IBS. They are the hardest to
convince to use IBS compared to smaller and less established architects.
To date, there are 160 IBS manufactures registered under Assessment of IBS
Status Company (AIS) - certification or accreditation of components companies
and installers. It is perceived that most manufacturers are single plant operators
concentrated in selected states only, propagating its own proprietary system, not
operating in full capacity and having difficulty meeting the demands of
contractors. It seems that most locally developed products based on traditional
material such as reinforced concrete and most using innovative materials are
based on imported technology.
The data on Bumiputera IBS contractor was not readily available. A close proxy
for this data would be the number of personnel who have been trained by CIDB
for practical application of IBS. To-date, 598 contractors have attended this
practical IBS training, out of which 589 are Bumiputera contractors. However, this
proxy has its limitations as the individual participants may not be active
contractors. In summary, the Bumiputera participation is still below target.
To encourage open system and standardisation, standard catalogue for IBS
components has been published CIDB in 2012 and standard joints for IBS
components in currently been developed by Construction Research Institute of
Malaysia.
a) Modular Coordination
The introduction of Modular Coordination in the industry not only provides dimensional
basis for the coordination of dimensions and of those buildings incorporating them, but
also it acts as a tool towards rationalization and industrialization of the building industry.
Modular Coordination in Buildings is not a new concept. It is well documented in the
Malaysian Standard MS 10064: Part I -10: 2001. However, the use of MC in construction
is still on voluntary basis and IBS proponents failed to include MC in the Uniform
Building-By-Law (UBBL) as stipulated in roadmap’s recommendation.
b) Failure of Open System
Based on the fundamentals of Open Building, components are standardised and can be
interchangeable in a skeleton – infill concept. However, the ideal state of having one
common IBS Open System for the whole industry is very unlikely in the near future. This
is because the industry already has 160 IBS systems providers that cover precast
concrete frames, panels and blocks, steel frames, prefabricated timber frames as well as
system formworks. Each system provider has invested heavily and not all systems or
production facilities are easily adjustable or convertible.
c) Lack of incentives to lure conventionalist to change to IBS
Some may argue that the incentive in the form of exemption of levy for projects with
minimum IBS Score of 50% is too little. The effectiveness of the offer is very unlikely due
to the fact that the current levy imposed on building projects is already low. Initially the
levy charged for construction projects was at 0.25%. However, after the enforcement of
the Economic Stimulus Package in 2003, it was reduced to 0.125% and as for low, low
medium and medium cost housing projects, no levy is imposed. Based on the 0.125%
rates, say for a RM 20 million project, the levy to be paid to the Government is only RM
250,000. The offer will only be attractive if the increase of cost due to the usage of IBS
components is less than that value.
d) Skill Shortages
Currently there is a shortage of skilled on-site specialists for assembly and erection of
components and experienced IBS project managers who can plan and coordinate with
the IBS manufacturers. Some of the larger IBS manufacturers are finding it very difficult
to recruit people with IBS experience who can understand the construction process and
be able to translate technical drawings to produce the required IBS components. In
addition, the installation process on-site requires skilled installers. There are a few
options to train a skilled IBS installer: One way is through apprenticeship and working
with contractors who are carrying out IBS projects. IBS courses carried out in training
institutions such as Akademi Binaan Malaysia and Pusat IBS are very short-termed
(approximately 3-5 days for each module). The effectiveness of such courses may be
questionable and need to be re-examined in the new context of creating IBS
professionals to support the industry.
The move towards the usage of Industrialised Building System (IBS) by the Malaysian
Government is not a local or isolated action. It is a global phenomenon, in UK’s Modern
Method of Construction (MMC) is defined as those technologies which provide an
efficient process to provide more products for better quality in less time. IBS can be
defined as products, systems and techniques used in making construction less labour-
oriented, faster as well as quality controlled. It generally involves a mass prefabricated
product in a factory using mechanized tool and transported to the construction sites and
erected.
Looking back at how industrialisation started brings us to the 19th century. Early in that
century, mechanical power came available and gradually replaced manpower and
horsepower. In those days production technologies underwent a major transfer. Small
hand held tools were replaced by heavy machines. This caused a need to move the
production of most goods from the manufacturer’s dwellings to factories. In factories big,
dirty and noisy machines could be installed and the massive output could be stored and
handled better. This move from small scale production to mass production caused by the
availability of mechanical power is generally known as the Industrial Revolution. For
construction this early stage of industrialisation had hardly any effect on the traditional
processes. Products had never been home-made. The work place had always been out
in the open and it stayed as it was. Some mechanical tools were adapted such as drills,
lifting devices and motorised means of transport, but mechanised production was not an
option.
A second industrial revolution was driven by the invention of the computer. Not only
man’s power, but also the functions of man’s brains, ears and eyes could be performed
by equipment. Calculating, planning, sensing, steering and decision making became step
by step computerised tasks. And again the construction industry was a late adaptor, if
there was any adaption at all. At the end of the 20th century almost all handling in
factories was done by computer driven devices. But in construction brick layers,
carpenters and plumbers continued to position materials by hand guided by visual
information only.
As a consequence construction became one of the most labour intensive industries.
Housing became a luxury good, hardly affordable for average income people. While the
quality of most industrial goods became better and better, the quality of construction work
suffered from lack of craftsman and poor labour condition. Now 100% of all jobs are in
construction and this percentage is still growing steadily. If the industry cannot benefit
more from industrialisation then construction will soon be too expensive for anyone.
1.5 Definitions for Industrialisation
Industrialisation is not easy to define. Dictionaries give a variety of descriptions. But little
consensus is found. Several aspects are usually linked with industrialisation such as:
Use of mechanical power and tools
Use of computerised steering systems and tools
Production in a continuous process
Continues improvement of efficiency
The concept of industrialisation mainly concerns the suppliers of the construction industry
who provide standardised and industrialised products. The model of product and process
innovation developed by Utterback and Abernathy (1975) indicate that once a dominant
design is established then the efforts in the industry focus on rationalisation and on process
innovation to reduce cost and improve productivity. Industrialising the process is a way to
rationalise it and to reduce production costs.
Industrialisation involves the rationalisation of the whole building process and no single actor
can handle the whole process. Collaboration appears to be one of the key elements of
industrialisation strategies because all the stakeholders involved during the course of a
project need to share the same view over the project. Successful industrialisation requires
integrating all the stakeholders of the building process at the beginning of the project. But to
improve the efficiency and the quality of the construction process, cooperation needs a
leading actor who drives and coordinates the process and coordinates the network of
partners. The driving actor can be represented by two stakeholders who established a
strategic and formal partnership (such as IKEA and Skanska in the BoKlok case).
According to Alinaitwe et al. (2006), there are several ways to consider industrialisation in
construction.
The first is to distinguish between on-site and off-site industrialisation:
Off-site industrialisation refers to pre-fabrication of building elements that will be
assembled on site. It can offer numerous benefits such as a decrease of trades and
interfaces to manage and coordinate on site, better working conditions, better control and
more consistency, a fall of waste on and off site (Blismas, 2007).
“On-site industrialisation refers to the application of advanced tools and technologies on
building sites” (idem, 2006, pp222). Just in time deliveries or identification of elements
with bar codes are examples of on-site industrialisation.
The second option is to separate product industrialisation from process industrialisation. “On-
site and off-site are both examples of product industrialisation. On the other hand, process
industrialisation is concerned with how parties are cooperating, contractually and informally.”
(idem, pp222).
1.6 Drivers, conditions and consequences
There are three types of characteristics or aspects. First the drivers (why we industrialise),
second the conditions (essential and therefore part of the definition) and third the
consequences (resulting from the chosen process, other than the drivers)
1.7 Drivers to industrialised
Need for cheaper production
Lack of skilled labour
There are several issues regarding IBS that hampered further industrialisation:
In Malaysian context, IBS is assume as only precast component and system where as
the level of industrialisation industry, mechanisation, automation, robotics and
reproduction
IBS materials always assume as concrete based where as it is more than that which
includes steel, fibre, hybrid and modular systems
IBS Score developed by the CIDB is not appropriate tool to measure the level of
industrialisation
Therefore, there is a need to fully understand the level of industrialisation in construction
industry.
1.9 Objective of Study
The aim of this study is to develop the construction industrialisation framework that suit
Malaysian construction industry:
This aim of study is supported by three objectives, which is:
To define the level of industrialisation, mechanisation, automation, robotic and
reproduction
framework
To develop final framework of industrialisation through a series of industrial workshop
1.10 The Way Forward– Rethinking and Redefining IBS
a) Understanding the Level of Industrialisation
By comparison to the local definition, the term IBS used in Malaysia covers a very wide in
scope which include the application of onsite systems and one cannot distinguished it
properly with conventional practice. While other terms used to represent construction
industrialisation are often relates to innovative solution, current definition and scope of
IBS defined by CIDB includes low-tech solutions and other of practices which already
become common and not substituting conventional practices i.e. block works and
formwork systems. Therefore, even if the large numbers of components in construction is
to be fabricated under IBS, the construction is still forever site-intensive handicraft.
Rethinking the old processes is now critical if the industry is to move forward in IBS. The
industry requires change management and business reengineering to encourage new
mindset. To move forwards, IBS need to be redefined by looking into the degree of
industrialisation (Figure 1) and value creation (Figure 2)
Figure 1: Degree of Industrialisation (Roger Bruno Richard, 2005)
Figure 1 explains the degree of industrialisation. There are five degrees of
industrialisation which are: prefabrication, mechanisation, automation, robotic and
reproduction.
i. Prefabrication is a manufacturing process that generally takes place at a
specialised facility, in which various materials are joined to form a component part
of the final installation
ii. Mechanisation comes in whenever machinery is employed to ease the workload of
the labourer at factory or at site
iii. Automation is a situation when the tooling (machine) completely takes over the…