Core Concepts and Issues Final

INDUSTRIALISED BUILDING
SYSTEM (IBS)
DEFINITION, CONCEPT AND ISSUES
Zuhairi Abd Hamid

Mohamed Nor Azhari Azman
Kamarul Anuar Mohamad Kamar
Zulkefle Ismail
Ani Saifuza Abd Shukor
Mohammad Fadhil Mohammad
Taksiah A. Majid
Faridah Ismail
Copyright
Published in 2011 by
Construction Research Institute of Malaysia (CREAM)
MAKMAL KERJA RAYA MALAYSIA
IBS Centre, 1st Floor Block E, Lot 8,
Jalan Chan Sow Lin
55200 Kuala Lumpur
MALAYSIA
Copyright © 2011 by Construction Research Institute of Malaysia (CREAM)
All rights received. No part of this publication may be reproduced, stored and transmitted in any form, or by any
means without prior written permission from the editors.
The views expressed in the papers are of the individual authors. The editors are not liable to anyone for any loss
or damage caused by any error or omission in the papers, whether such error or omission is the result of
negligence or any other cause. All and such liability is disclaimed.
The reader should verify the applicability of the information to particular situations and check the references
prior to any reliance thereupon. Since the information contained in the book is multidisciplinary, international
and professional in nature, the reader is urged to consult with an appropriate licensed professional prior to taking
any action or making any interpretation that is within the realm of a licensed professional practice.
LIST OF EDITORS
Zuhairi Abd. Hamid Construction Research Institute of Malaysia
Mohamed Nor Azhari Azman Universiti Sains Malaysia
Kamarul Anuar Mohamad Kamar Construction Research Institute of Malaysia
Zulkefle Ismail Universiti Islam Antarabangsa
Ani Saifuza Abd Shukor Universiti Teknologi MARA
Mohammad Fadhil Mohammad Universiti Teknologi MARA
Taksiah A. Majid Universiti Sains Malaysia
Faridah Ismail Universiti Teknologi MARA
LIST OF CONTRIBUTORS
Ahmad Tarmidzi Haron University of Salford
Ahmad Hazim Abdul Rahim Construction Research Institute of Malaysia
Ani Saifuza Abd. Shukor Universiti Teknologi MARA
Angela Lee University of Salford
Faridah Muhammad Halil Universiti Teknologi MARA
Faridah Ismail Universiti Teknologi MARA
Fazli Jahaya Universiti Teknologi MARA
Janidah Eman Universiti Teknologi MARA
Kamarul Anuar Mohamad Kamar Construction Research Institute of Malaysia
Maria Zura Mohd. Zain Construction Research Institute of Malaysia
Mohd Sufian Hashim Provenholding Sdn Bhd
Mohamed Nor Azhari Azman Universiti Sains Malaysia
Mohammad Fadhil Mohammad Universiti Teknologi MARA
Mohamad Zain Hashim Universiti Teknologi MARA
Mohammed Arif University of Salford
Mohd Nasrun Mohd Nawi University of Salford
Mohd Rofdzi Abdullah University of Salford
Mohd Khairolden Ghani Construction Research Institute of Malaysia
Mohd Sanusi S. Ahamad Universiti Sains Malaysia
Mohd Hanizun Hanafi Universiti Sains Malaysia
Mustafa Alshawi University of Salford
Nadira Ahzahar Universiti Teknologi MARA
Rohana Mahbub Universiti Teknologi MARA
Siti Hafizan Hassan Universiti Teknologi MARA
Taksiah A. Majid Universiti Sains Malaysia
Zuhairi Abd. Hamid Construction Research Institute of Malaysia
Zulkiflee Abdul Samad Universiti Malaya
Zulkefle Ismail Universiti Islam Antarabangsa
ACKNOWLEDGEMENTS
Elias Ismail Construction Industry Development Board
Noraini Bahri Pusat IBS, CIDB
Rofizlan Ahmad Pusat IBS, CIDB
Maria Zura Mohd. Zain Construction Research Institute of Malaysia
Helmi Aizat Ahmad Fuad Construction Research Institute of Malaysia
Natasha Dzulkalnine Construction Research Institute of Malaysia
Construction Industry Development Board
IBS Centre
Jabatan Kerja Raya (JKR)
University of Salford
Universiti Malaya
Universiti Sains Malaysia
Universiti Islam Antarabangsa
Universiti Teknologi MARA
Universiti Pendidikan Sultan Idris
Politeknik Sultan Idris Shah
CIRAIC 2009 PROCEEDING EDITORS:
Hamimah Adnan
Zulkiflee Abdul Samad
Fadzil Hassan
ABOUT THIS BOOK

One of the main themes that have emerged from the Industrialised Building System (IBS) research during the
past five years is the perspective view of the IBS players and the role of Construction Industry Development
Board (CIDB) to educate the construction industry. The content of this book is contributed by Construction
Research Institute of Malaysia (CREAM)’s researchers and researchers from various universities. This book
shows not only the historical roots of IBS but also the expansion of the concept of Supply Chain Management
(SCM), manufacturing and Integration Team Approach. Much of the content has been derived from deep
literature review, quantitative approach, in-depth interviews with key industrialists across all the construction
and manufacturing disciplines and proper analysis of results. Many examples have been given, but it is important
to remember that there is no one correct answers to the application of IBS in the construction industry. I trust that
this book will stimulate the readers’ interest to give serious consideration on the application of IBS on future
projects in which they are involved.
Mohamed Nor Azhari Azman

Universiti Sains Malaysia
TABLE OF CONTENTS
No Introduction 1
1 IBS: Revisiting the Issues on Definition, Classification and the Degree of 3
Industrialisation
2 IBS in Malaysia: The Current State and R&D Initiatives 14
3 Experiences and Lesson Learnt on IBS Construction in Malaysia 25
4 Off-Site Construction Industry: The Common Pattern 35
5 IBS: A Review of Experience in United Kingdom and Malaysian Construction 41
Industry
6 Exploring the Level of Knowledge in IBS System Among the Contractor in 50
Penang
7 A Study on the Trend of the Use of IBS Components and the Setting Up of IBS 56
Manufacturing Factories in the Malaysian Construction Industry
8 Conceptual Spatial Site Selection for One Stop Centre for IBS Manufacturing 67
Plant in Pulau Pinang
9 Understanding the Management and Integration of Supply Chain Concepts: 78
Driving Malaysia’s Construction Projects Through IBS
10 Integration of Issues and Problems of Construction Supply Chain Management in 87
IBS
11 An Integration Team Approach for Improving Sustainability in the IBS 97
Malaysian Construction Project
Index 104
INTRODUCTION
By Kamarul Anuar Mohamad Kamar
IBS is the term coined by the industry and government in Malaysia to represent the adoption of construction
industrialisation and the use of prefabrication of components in building construction. 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. The fundamental idea
of IBS is to move on-site wet trades to the manufacturing floor. 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 construction industry has started to embrace IBS as a method of attaining better construction quality and
productivity, reducing risks related to occupational safety and health, alleviating issues for skilled workers and
dependency on manual foreign labour, and achieving the ultimate goal of reducing the overall cost of
construction. Apart from this, it offers minimal wastage, fewer site materials, a cleaner and neater environment,
controlled quality, and lower total construction costs.
The book covers the fundamental vision for IBS as seen by the practitioners and academia in Malaysia. It
depicted the issue of definition, classification of IBS, lesson learnt on building concept from local and
international practices, and different approaches to the understanding and use of different concept in IBS. It also
examiners the concept of supply chain and integration in IBS and highlight current readiness level of contractors
and potential factors of IBS site selection manufacturing. This book is significant for new adopters to learnt and
adopts best practices and to avoid pitfalls in the implementation.
Paper 1: Kamar et al. revisit the issue of definition, classification and degree of industrialisation of IBS. The
clarified concept of IBS and the definition provided for this study provide a basic understanding for the concept
and will drive research, innovation and implementation strategy forward. Further, the concept of open system is
the long term and systematic approach toward a positive development of building industry. The introduction of
open will not only reengineer our construction process but will transform the way of doing business in
construction. It allows openness in IBS supply chain where builders can bid for lower price of components. It
encourages participation from manufactures and assemblers to enter the market, thus reducing the price of IBS
components.
Paper 2: Azman et al. studies the off-site pattern in United State, United Kingdom and Australia and identifies
the status pattern of off-site in Malaysia which is currently in the hybridisation stage. The study of pattern
construction industry is vital in order to classify the level of the achievement in construction industry. While in
the US, UK and Australia have achieved the modular building standard but Malaysia is still in the initial state to
achieve it.
Paper 3: Kamar et al. review the experience of IBS implementation in United Kingdom. The paper syntheses
literature on policies and current state of adoption in the United Kingdom compares it to the state in Malaysia
and finally provides recommendations as the way ahead for the industry.
Paper 4: Azman et al. studies the potential factors for sites selection of IBS plant. The conceptual approach is to
apply six criterion factors such as road characteristic, proximity from the new potential development area,
population census, and proximity from the existing infrastructure, topography and land-use suitability.
Paper 5: Nawi et al. discuss fundamental issue during the design stage of construction life cycle. The paper
looking into the development of new concurrent engineering model for the life-cycle design and construction
project is an initiative to improve the level of communication and coordination among the construction players
particularly on IBS projects.
Paper 6: IBS construction in Malaysia started almost 40 years ago with the completion of the Tuanku Abdul
Rahman Public Housing Estate or commonly known as the Pekeliling Flats. For the last five decades, the
construction industry has been experimenting with various prefabricated construction; being lead by various
precast concrete solution providers. However so far, no proper compilation on IBS best practices was published
for current and future reference. Based on the authors’ vast experiences in IBS, Hashim and Kamar compiles
the experiences and lesson learnt on IBS construction in Malaysia. The compilation is a significant document for
new adopters to learn and adopts best practices in IBS and to avoid pitfalls in the implementation.
Paper 7: Abd. Shukor et al. established the definition and explored the understanding and purpose of SCM.
The presented literature and evidence have shown that the characteristics and the nature of the construction
industry supply chain constitute the main challenge to the implementation of SCM on a wider scale. Future
empirical studies should extensively examine these areas, especially the integration of supply chain players with
the procurement process and its implementation.
Paper 8: Zuhairi et al. highlight the current scenario of IBS adoption. A number of implementation snags are
identified as potential hurdles to the implementation of IBS.
Paper 9: Azman et al. study the trend of using IBS components and identify the factors required for the setting
up of IBS manufacturing factories in the Malaysian construction industry.
Paper 10: Hassan et al. investigate the level of knowledge in IBS among contractors registered in Penang
Island. The paper scrutinizes the drivers as well as the level of knowledge and understanding of IBS from the
perspective of the contractor who implements IBS at the project level.
Paper 11: Shukor et al. examine integration issues and problems on the supply chain management of IBS. The
paper reports the dominant problem in the supply chain of IBS, including strategic procurement and support
argument, identifying that supply chain and procurement could be the cause of many problems in the process and
implementation of IBS.
1
IBS: REVISITING THE ISSUES ON DEFINITION, CLASSIFICATION
AND THE DEGREE OF INDUSTRIALISATION
Kamarul Anuar Mohamad Kamar, Mustafa Alshawi, Zuhairi Abd. Hamid, Mohd Nasrun Mohd Nawi,
Ahmad Tarmidzi Haron and Mohd Rofdzi Abdullah
kamarul@cidb.gov.my
INTRODUCTION
IBS is a technique that uses pre-fabricated components or off-site installation, where project clients and
developers can gain benefit from many ways. Construction Industry Development Board (CIDB) of Malaysia
has published a definition for IBS and its classification which has been widely used as common understanding
by researchers and practitioners in Malaysia (CIDB, 2003; CIDB, 2007; Hamid et al., 2008; Kamar et al., 2009;
CIMP, 2007b). The definition and classification are as follows:
Definition
IBS is 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.
Classification
• Pre-cast Concrete Framing, Panel and Box Systems
• Steel Formwork Systems
• Steel Frame System
• Prefabricated Timber Framing Systems
• Block Work System
However, the move towards industrialisation of construction industry is a global phenomenon and not merely a
local or isolated initiative. The definition and classification need to be evolved and incorporate with global
views and understanding. The definition and classification of Off-site Construction (OSC), Modern Method of
Construction (MMC), Off-site Manufacturing (OSM), Off-site Production (OSP), pre-assembly and
prefabrication are worth to be examined. It gives us a different perspective and enriches our understanding on
IBS concept as whole.
Numerous descriptions of the IBS concept have been highlighted by local researchers and all of the
definitions stressed on pre-fabrication and mass production. The term and classification were often
misinterpreted as a system limited only for construction of buildings. It can be defined as an approach or process
used in making construction less labour-oriented and faster as well as fulfilling quality concern (Shaari and
Ismail, 2003). The broader view of IBS is about the changing of conventional mindset, championing human
capital development, developing better cooperation and trust, promoting transparency and integrity (ibid). Firstly,
the paper will revisit current definition and classification on IBS. Secondly, it will review other terms to describe
IBS in the literatures. Thirdly, the conceptual definition and classification will be developed and finally, the
paper reviews IBS and its relation to a degree of industrialisation. With the issues of global competitiveness,
productivity and quality, global industry players are revisiting IBS as a tool in achieving better performance. IBS
should provide clear understanding on its etymology and classification.
REVISITING CURRENT IBS DEFINITION
The paper revisits the definition of IBS from 20 literatures of local and international researchers from 1971 –
2009. The definitions are listed on the following Table 1.The following analysis has been derived from Table 1:
• In general IBS definitions have been classified into two categories:
¾ IBS as a method, approach and process
¾ IBS as a product, system and technology
• Fifteen authors have defined IBS as a method, approach and process. On the other hand, only five (5)
authors defined IBS as a product, system and technology and these include the definitions from notable
international researchers (Sarja, 1998; Warszawski, 1999)
• From the table, the definitions consist of six (6) different characteristics of IBS; industrialised production,
transportation and assembly technique, onsite fabrication, mass-production, structured planning and
standardisation and integration
• While almost all literatures mentioned an offsite technology or factory production as an important
attribute for IBS, definition by CIDB (2003), Chung (2006) and Shaari and Ismail (2006) highlighted
onsite technologies in IBS
• All definitions cover at least 2 or 3 characteristics of IBS. Definition by Chung (2006), however, covers 5
out of 6 characteristics listed on the table
• The definition by CIDB Malaysia (CIDB, 2003) which has been widely used in Malaysia has not covered
the aspects of mass-production, structured planning and standardisation and integration in its definition.
Those characteristics, however, are essential as highlighted by other researchers
• Regardless of the terms, the idea of IBS is the same which is to move some effort away from the
construction site to a more controlled environment of the manufacturing floor. The paper, however,
suggests that the new definition on IBS should consists of both the process and system point of view, as
well as all six (6) characteristics highlighted on the table
OTHER TERMS USED TO DESCRIBE IBS
Many different terms are used to describe industrialised construction and prefabrication. Pre-assembly,
prefabrication, Modern Method of Construction (MMC), Offsite Construction (OSC), Offsite Manufacturing
(OSM) and Offsite Production (OSP) are terms in common use at various times in the literatures. The following
Table 2 highlights the definitions to describe the industrialisation of construction industry:
Table 1. List of Definition of IBS
Table 2. Other Terms Used to Represent Industrialisation in Construction
Modern Method of Construction (MMC) is a term adopted in the UK as a collective description for both
offsite based construction technologies and innovative onsite technologies. The former represents prefabrication
and manufacturing technology and the latter includes techniques such as thin-joint block work and tunnel-form
construction (Goodier and Gibb, 2006). In definition, MMC includes both industrialised and non-industrialised
innovation. Non- industrialised innovation is the use of innovation method that has been seen in other industries
including carpet reinforcement, metal shutters, core jump systems, double jumping cores, edge protection
systems and service walls (BURA, 2005). The paper concludes that not all MMC is IBS, but all IBS is under
MMC. IBS in definition is a process in which component are manufactured, positioned and assembled into a
structure with minimal additional site works both off-site and on-site (CIDB, 2003). Offsite and manufacturing
technique is essential to IBS but onsite IBS method can be used in the form of in-situ pre-cast system using steel
formwork (ibid). Thus, the paper concludes that all offsite is IBS, but not all IBS is offsite.
The other term used to describe IBS is prefabrication. Prefabrication is a manufacturing process generally
taking place at a specialised facility, in which various material are joined to form a component part of final
installation (Tatum et al., 1986). Some prefabrication can be done onsite (onsite fabrication). Offsite construction
however, is a description of the spectrum or part there of which are manufactured or assembled remote from
building site prior to installation in their find position. In this family, Offsite Construction (OSC), Offsite
Manufacturing (OSM) and Offsite Production (OSP) are largely interchangeable terms which refer to that part
of the construction process which is carried out away from the building site, such as in a factory or sometimes in
specially created temporary production facilities close to the construction site (or field factories) (Goodier and
Gibb, 2006). While, the components maybe are assembled onsite and offsite, preassembly literally means to
‘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 (Gibb and Isack, 2003). Thus the offsite can be
divided into preassembly and onsite assembly. The relations are best shown in the following Figure 1.
ESTABLISHING A WORKING DEFINITION OF IBS
From the above list of definitions the more generic definition of IBS can be derived as the following:
“IBS is an innovative process of building construction using concept of mass-production of

industrialised 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”
Figure 1. IBS and Other Terms to Describe Industrialisation in the Method of Construction
IBS CLASSIFICATION
Just as the definitions, IBS has a various different classification which is based on material, process and system.
Table 3 shows the classification of IBS, building system, MMC and OSM.
For further exploration of and discussion between researchers in this field, a generic classification for IBS is
derives as the followings:
• Frame System (pre-cast or steel)
• Panellised System
• Onsite fabrication
• Sub-assembly and components
• Block work system
• Hybrid System
• Volumetric and Modular System
The classification is based on CIDB’s IBS classification which is well known in Malaysia, with an important
addition of hybrid and volumetric (modular) system. Both are essential systems in MMC’s classification. Onsite
fabrication term is used to replace steel formwork system. This is to move away from the prefabrication image of
formwork system at site. The precast concrete framing, prefabricated timber framing system and steel framing
system is combined under the term ‘frame system’ for simplicity reason. This term is also used in MMC’s
classification. Roof truss, balconies, staircases, toilets, lift chambers are classified under sub-assembly and
components. This is a move to promote ‘in-fill’ and ‘skeleton’ concept which is an interesting concept in open
system. It is hoped that IBS classification can be standardised in the future in order for IBS to be accepted by
practitioners as a primer construction method.
Table 3. Comparison of IBS-MMC Classification
IBS AND THE DEGREE OF INDUSTRIALISATION
Industrialisation is a part of a wider modernisation process through the development of modern methods of
production and technology system, mainly factory production where work is centrally organized, production
operations are mechanized and are focused on mass production (Lessing, 2006). The degree of industrialisation
is an indicator to measure the level of industrialisation adoption. It also represents the maturity of IBS adoption.
The degree of industrialisation is shown in Figure 2:
• Prefabrication is a manufacturing process generally taking place at a specialised facility, in which various
material are joined to form a component part of final installation (Tatum et al., 1986)
• Mechanization comes in whenever machinery is employed to ease the work of the labour
• Automation is a situation when the tooling (machine) is completely taking over the tasks performed by
the labour
• Robotics comprises the ability of the same tooling which has the multi-axis flexibility to perform by itself
diversified tasks. This allows the mass-customization concept.
• Reproduction implies that research and development of innovative processes are truly capable of
simplifying the production process
To be successful in IBS, we need to move away from prefabrication towards the level of mechanisation,
automation, robotics and finally reproduction. Prefabrication can be as high as mass-production of components
in factory to as low as using steel formwork onsite. If one still practices prefabrication and the government still
encourages the use of low technology solution, the evolution of industrialisation could be static and the effort to
promote mass-customization could be jeopardised. Mass-customisation concept and open system as highlighted
in IBS Roadmap 2003-2010 (CIDB, 2003) can only be adopted through automation (Richard, 2005). IBS
practitioners need to continuously search for new strategies as well as new technologies to increase the degree of
industrialisation. The government and the policy makers should find solution to assist the industrial revolution
and eventually stop promoting low-tech onsite prefabrication which gives little benefit to the practitioners.
Figure 2. Degree of Industrialisation (Richard, 2005)
This degree or level of industrialisation is also associated with the scope of work in the construction process
or life cycle. As compared to the traditional method, the prefabrication scope of work involves more planning.
On the other hand, the prefabricated scope of works is less than the mechanisation approach in term of tasks
involved. The tasks covered by mechanisation which integrate the architectural work (painting, ducting,
finishing) are done in factory earlier before the mobilisation to site. While prefabrication is the process of
joining the components of panels and this becomes an element of building, the mechanisation level is applied to
the process in the factory by machine. The automation level utilises the programmable machines like robotics to
perform the tasks including the computerised tools for planning, design and operation.
The role of manufacturing in the project life cycle is increased with the degree of industrialisation. Above all,
when industrialisation is concerned, the earlier a decision is made the better so the production team can plan to
schedule the work of prefabrication. In the prefabrication, mechanisation and even automation degree of
industrialisation, one can change the design in planning phases. This is because the prefabrication can start
during the planning and execution stage of the project life cycle. But for robotics and reproduction, the design
shall be determined as early as the conceptual stage. By understanding the degree of industrialisation, one can
plan the IBS project cycle and accommodate its manufacturing element as early as the conceptual phase of the
project. One can also understand the risk of IBS where, any late change on design within the implementation
stage can present a disaster to the whole project.
CONCLUSION
IBS is the term to represent the prefabrication concept in Malaysia. The term is invented to move away from the
typical paradigm of prefabricated systems. This paper proposed the definition, classification and its relation to
other terms used to describe industrialised construction and finally discussed IBS and its degree of
industrialisation.
IBS definition should incorporate all six (6) characteristics from existing definitions which are industrialised
production, transportation and assembly technique, onsite fabrication, mass production, structured planning and
standardisation and integration.
IBS should be seen as innovation in construction. The innovation agenda has been promoted in the UK under
the MMC and offsite construction’s umbrella. It is imperative that IBS is seen as an evolution of construction
using new and innovative techniques rather than a revolution.
The classification of IBS should be expanded to cater the scope of volumetric (modular) and hybrid
construction. IBS is not to be seen as a threat to traditional methods. Both methods should be able to work in
tandem and improve their processes collectively. The sharing of best practice between the two approaches is
essential for the continued successful development of both construction sectors.
IBS should move up the degree of industrialisation from prefabrication to reproduction through innovation.
The mass-customisation concept which is vital to open building system agenda can only be achieved through the
adoption of automation in the level of industrialisation
The more advanced IBS is in the level of industrialisation, the more roles IBS has to be involved in project
life cycle. The reproduction level of industrialisation will involve the whole project life cycle from planning to
maintenance. IBS can be seen as a solution to the whole project life cycle if only, it can achieve reproduction
level of industrialisation
The generic definition and classification had been proposed in this paper to engage positive debate into it and
to obtain constructive reaction from practitioners and researchers. It is hoped that the definition and classification
will enhance our understanding of IBS.
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2
IBS IN MALAYSIA: THE CURRENT STATE AND R&D INITIATIVES
Zuhairi Abd. Hamid, Kamarul Anuar Mohamad Kamar, Maria Zura Mohd. Zain, Mohd Khairolden Ghani, Ahmad Hazim Abdul Rahim
kamarul@cidb.gov.my
INTRODUCTION
With its current level of quality, productivity, safety and excessive reliance on unskilled foreign workers, the
state of the local construction industry is not in line with future development of Malaysia (CIDB, 2003a). This,
together with the social problems associated with foreign workers, further aggravates the situation (Gue, 2007).
As such, the Industrialized Building System (IBS) is a new trend introduced to promote systematic construction
process and to reduce the dependency on foreign workers. Despite all the plausible advantages, early effort to
promote usage of IBS as an alternative to conventional and labour intensive construction method has yet to
greener a good response. CIDB (2003b) reported that construction project using IBS in Malaysia only stands
15% in the year 2003. But the completed project using IBS in the year 2006 only 10% (CIDB, 2007b) less than
one - third of total construction project (using at least one IBS product) in year 2006 (CIDB, 2007a) as compare
to forecasting IBS project of 50 % in 2006 and 70% in year 2008 (CIDB, 2003a). Relatively, the low labour cost
in Malaysia is the root cause of the problem (CIDB, 2007a). Although the members of the industry are open to
the idea, a major portion of the industry stakeholders are indifferent, perhaps due to resistance towards change
and insufficient information to support feasibility of change. The adoption in Malaysia is towards client-driven
and the development of ‘factory-like’ buildings (TESCO, Giant, Carrefour etc) tends to have higher adoption of
IBS than landed properties and small commercial units (CIDB, 2007b). In this case, it has proven that it is
difficult to introduce new technologies and method due to relation of such adoption with people perception.
Perhaps, the industry is still lack of empirical data and research subjects on the issues of Business Process Re-
engineering (BPR) and Change Management. It is considerable to the Research and Development (R&D)
institutions and local universities have to provide the industry with relevant information to support the decision
making process. Despite these barriers, IBS is still predicted to lead Malaysian construction industry towards
nation modernisation and globalisation.
PROBLEM STATEMENTS
Prosperity and high economic growth in Malaysia have created a high demand for construction activities. As a
consequence, this has attracted a huge number of foreign workers into this country to take up employment on site
as unskilled labour doing manual jobs. Total foreign workers rose from 4% of total employment in year 1990 to
about 10.7% in 1997 and 9% in year 2001. As at July 2004, there are about 1.3 million registered foreign
workers, constituting 12% of total employment in the country (MOF, 2005). The Annual Labour Force Survey
conducted by the Department of Statistics, revealed that the number of foreign workers has increased to 1.1
million in year 2000 compared to about 136,000 persons in the early 1980s. Latest immigration statistics indicate
that the number of legal foreign workers in Malaysia rose to 1,359,632 workers as at July 2004 (MOF, 2005).
The majority of foreign workers are from Indonesia, averaging 66.5% of total foreign workers, followed by
Nepal (9.2%), Bangladesh (8.0%), India (4.5%) and Myanmar (4.2%), as shown in Table 1. In year 2001, male
foreign workers accounted for 66% of total foreign workers and they dominated all major sectors, except
services (MOF, 2005). As such, the contribution of foreign workers to construction industry is significant.
According to Construction Industry Development Board (CIDB) Malaysia, 69% (552,000) out of total 800,000
of registered workers as at June 2007 is foreign workers (CIDB, 2007c). It was undoubtedly a shocking result for
the construction observer. According to the report from the Department of Immigration Malaysia, foreign
workers represent a comparative moderate percentage 44% of total workforce in construction industry (depicted
in Table 2) in year 2006.
Despite unskilled labour contributions, the country is in a difficult situation with a host of problems such low
quality works, delays, wastages, social problems, diseases and etc. Foreign workers are usually unskilled when
they first arrived in Malaysia and this impacted the productivity and the quality of the construction industry
(CIDB, 2007a). To exaggerate the situation, local workforce is also reluctant to join the industry because of the
issues of low wages combined with low emphasis on occupational safety and health has created an image of
dirty, difficult, dangerous (3D) industry. As such, the state of the local construction industry is not in line with
future development of Malaysia (CIDB, 2003a). IBS is a new trend introduced to promote systematic
construction process and to reduce the dependency on foreign workers. Nevertheless, a number of
implementation snags identified as being potential hurdles to the implementation over the issues of supply
demand, economic volume and general readiness. Among all, cost and budget constrain along with the low
labour cost (foreign) in Malaysia is the root cause of the problem (CIDB, 2007a). Despite those barriers, IBS is
still predicted (or to be enforced) to lead Malaysian construction industry towards nation modernisation and
globalisation.
Table 1.Composition of Foreign Workers by Country of Origin (%)

(MOF, 2005)
Jan-July
Year 1998 1999 2000 2001 2002 2003
2004
Indonesia 53.3 65.7 69.4 68.4 64.7 63.8 66.5

Nepal 0.1 0.1 0.1 7.3 9.7 9.7 9.2
Bangladesh 37.1 27.0 24.6 17.1 9.7 8.4 8.0
India 3.6 3.2 3.0 4.0 4.6 5.6 4.5
Myanmar 1.3 0.9 0.5 1.0 3.3 4.3 4.2
Philippines 2.7 1.8 1.2 1.0 0.8 0.6 1.1
Thailand 0.7 0.5 0.4 0.4 2.4 0.9 1.0
Pakistan 1.0 0.6 0.5 0.4 0.2 0.2 0.1
Others 0.2 0.2 0.3 0.4 4.6 6.5 5.4
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Table 2. Percentage of Foreign Workers to Total Construction Workforce

(MOF, 2005)
2003 2004 2005 August 2006
Local Workforce 224,877 272,053 309,528 334,704
Foriegn Workers 231,184 265,925 281,780 264,853
Total 456,061 537,978 591,308 599,557
Percentage of Foreign 51% 49 % 48% 44%
Workers
IBS DEFINITIONS
To date there has been no one commonly-accepted or agreed definition of IBS. However, there are a few
definitions by researchers who studied into this area previously were found through literature. Rahman and Omar
(2006) defined IBS as a construction system that is built using pre-fabricated components. The manufacturing of
the components is systematically done using machine, formworks and other forms of mechanical equipment. The
components are manufactured offsite and once completed will be delivered to construction sites for assembly
and erection. Parid (1997) defined IBS as a system which use industrialised production technique either in the
production of component or assembly of the building or both. Lessing, et al. (2005) defined IBS as an integrated
manufacturing and construction process with well planned organization for efficient management, preparation
and control over resources used, activities and results supported by the used of highly developed components.
Trikha (1999) defined IBS as a system in which concrete components prefabricated at site or in factory are
assembly to form the structure with minimum in situ construction. IBS was also defined as a set of interrelated
element that act together to enable the designated performance of the building (Warszawski, 1999). Esa and
Nurudin (1998) defined IBS as continuum beginning from utilizing craftsmen for every aspect of construction to
a system that make use of manufacturing production in order to minimize resource wastage and enhance value
end users. Junid (1986) defined IBS as process by which components of building are conceived, planned and
fabricated, transported and erected at site. The system includes balance combination between software and
hardware component. The software element include system design, which is complex process of studying the
requirement of the end user, market analysis and the development of standardize component (Junid, 1986).
Chung and Kadir (2007) defined IBS as a mass production of building components either in factory or at site
according to the specification with standard shape and dimensions and transport to the construction site to be re-
arranged with certain standard to form a building.
All the above definitions emphasized on prefabrication, off-site production and mass production of building
components as the main characteristic of IBS. The focal of discussion in the study synergizes the key concept of
IBS as defined as follows: 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
works (CIDB, 2003a).
DEVELOPMENT OF IBS IN MALAYSIA
IBS in Malaysia has begun in early 1960’s when Ministry of Housing and Local Government of Malaysia visited
several European countries and evaluate their housing development programme (Thanoon et al., 2003). After
their successful visit in 1964, the government had started first project on IBS aims to speed up the delivery time
and built affordable and quality houses. About 22.7 acres of land along Jalan Pekeliling, Kuala Lumpur was
dedicated to the project comprising seven blocks of 17 storeys flat there are 3000 units of low-cost flat and 40
shops lot. This project was awarded to Gammon/ Larsen Nielsen using Danish System of large panel of pre-
fabricated system (CIDB, 2003b). In 1965, the second housing project initiated by the government of Malaysia,
the project comprising a 6 block of 17 storeys flat and 3 blocks of 18 storeys flat at Jalan Rifle Range, Penang.
The project was awarded to Hochtief/Chee Seng using French Estoit System (Din, 1984). Among the earliest
housing development project using IBS was Taman Tun Sardon, Penang. IBS pre-cast component and system in
the project was designed by British Research Establishment for low cost housing in tropical countries.
Nonetheless, the building design was very basic and not considering the aspect of serviceability such as the need
of wet toilet and bathroom (Rahman and Omar, 2006). Between 1981 and 1993, Perbadanan Kemajuan Negeri
Selangor (PKNS) a state government development agency acquired pre-cast concrete technology from Praton
Haus International based on Germany to build low cost house and high cost bungalow in Selangor (CIDB,
2003b). The usage of steel structure as part of IBS, first gained attention with the construction of 36-storeys
Dayabumi complex that was completed in 1984 by Takenaka Corporation of Japan (CIDB, 2003b).
Today, the use of IBS as a method of construction in Malaysia is evolving. Many private companies in
Malaysia have teamed up with foreign expert from Australia, Netherlands, United State and Japan to offer pre-
cast solution to their project (CIDB, 2003b). In addition, more and more local manufacturers have established
themselves in the market. Pre-cast, steel frame and other IBS were used as hybrid construction to build national
landmark such as Bukit Jalil Sport Complex, Lightweight Railway Train (LRT) and Petronas Twin Tower. It
was reported that at least 21 of various manufacturers and suppliers of IBS are actively promoting their system in
Malaysia (Thanoon et al., 2003). Nevertheless, the government of Malaysia still feels that the usage of IBS is
still low despite the plausible potential. From the survey conducted by CIDB of Malaysia in 2003, the usage
level of IBS in local construction industry stands at 15% (CIDB, 2003b). The total registered IBS contractors in
Malaysia stand for 1,993 in year 2007 (Table 3 and 4) and registered IBS manufacture in Malaysia until 2007 is
138 producing 347 IBS products available in the market shown in Table 5.
Evidently that most of locally developed products are based on traditional materials such as reinforced
concrete and the most innovative materials are based on imported technology (CIDB, 2007b). There is no
mandatory requirement on any certification or accreditation of components, companies or installers in place.
Whilst, there is no empirical data, there is some anecdotal evidence suggests that there has been sporadic
dumping of sub-standard foreign products in Malaysia (CIDB, 2007b). A mechanism to ensure IBS products
marked to an acceptable standard must be introduced in the manufacturing process. Testing of components,
verify and certify them will limit only safe and acceptable IBS panels are erected and thus CIDB will lead this
roles.
Table 3. Registered IBS Contractor (Active) in Malaysia

(CIDB, 2007b)
NO GRADE SPECIALTIES TOTAL
1 B 01 Buildings and Industrial Pre-casting Work 28
2 B 02 Buildings and Industrial Steel Structure Work 516
3 B 12 Aluminium, Glass and Steel Work 232
4 B 15 Roofing and Steel Cladding Works 108
5 B 19 Special Framework 11
GRAND TOTAL 895
Table 4. Registered IBS Contractor (Active) in Malaysia
(CIDB, 2007b)
GRED NUMBERS
G7 334
G6 52
G5 83
G4 42
G3 191
G2 76
G1 71
TOTAL 849
Table 5. Registered IBS Manufacturer and IBS Products available in Malaysia

(CIDB, 2007b)
NO Material Manufacturer Product Local Foreign Unknown
1 PC Panel,Frame, Box 51 245 27 3 21
2 Steel Frames/Panel 30 45 16 1 13
Components
3 Systems Formwork 29 29 14 3 12
4 Timber Frames 28 28 13 2 13
TOTAL 138 347 70 9 59
IBS ROADMAP
The endorsement of IBS Roadmap 2003-2010 in Malaysia by the cabinet on 29th October 2003 expressed
seriousness of the government and the urgency of IBS implementation. It is a blueprint of total Industrialisation
of construction industry towards achieving Open Building by the year 2010. The roadmap is a comprehensive
document that divided the IBS programme into the five main focus areas that reflect the inputs needed to drive
the programme, each beginning with M. They are Manpower, Materials, Management, Monetary, and Marketing
(CIDB, 2003a). The inputs are then divided into its elements and the activities to be implemented for each
element were then identified and included into the time span of the roadmap in order to achieve the mission
within the stipulated time-frame. About 109 milestones are set to be achieved in year 2010. The content of this
roadmap is focused towards achieving the Industrialisation of the construction sector and the longer term
objective of Open Building Systems (OBS) concept. The key elements of the roadmap are as follows:
• To have a labour policy that gradually reduces percentage of foreign workers from the current 75% to
55% in 2005, 25% in 2007 and 15% in 2009,
• To incorporate IBS/MC in professional courses for architects, engineers and others,
• To incorporate syllabus on IBS/MC in architecture, engineering, building courses in local universities,
• To enforce Modular Coordination (MC) by local authorities through Uniform Building By- Law
(UBBL),
• To develop catalogue of building components and standard plans for housing
• To develop IBS Verification scheme,
• To enforce utilisation of IBS for 30% of total government project (building) in 2004 and gradually
increasing to 50% in 2006 and 70% in 2008,
• To introduce buildability programme for all private building and enforcement from 2008,
• To provide tax incentives for manufacturer of IBS components,
• To offer green lane programme for users of standard plans (designed using standard IBS Components
and MC),
• To start vendor developing programme, training and financial aid,
• To abolish levy for low, low-medium & medium cost houses; and to set 50% levy reduction.
One of the important milestones in the roadmap is the introduction of Modular Coordination (MC) concept.
MC is a concept of coordination of dimensions and space where buildings and components are dimensioned and
positioned in a basic unit or module known as 1M which is equivalent to 100 mm. The system allows
standardization in design and building components (CIDB, 2007a). It will encourage participation from
manufactures and assemblers to enter the market, thus reducing the price of IBS components. In essence, MC
will facilitate open Industrialisation which is the prime target of the roadmaps. The proposed enforcement of
using MC through Uniform Building By-Law (UBBL) would encourage the adoption through standardization
and the use of IBS components. However, until the end of 2007, the UBBL have yet to be amended to include
MC regulations (CIDB, 2007b).
Another important step taken by the government of Malaysia is to introduce incentives for IBS adopter. The
exemption of the levy (CIDB levy - 0.125 % of total cost of the project according to Article 520) on contractors
that implanted some kind of IBS in 50% of the building components was introduced effectively from 1st January
2007. In the first half of 2007, 24 residential projects qualified for the levy exemption. It is a very small
percentage of total 417 residential projects during that period (CIDB, 2007b). It shows that awareness among
developers and contractors on the levy exemption is still very low. IBS Centre established in 2006 at Jalan Chan
Sow Lin, Cheras, Kuala Lumpur will be one-stop centre of IBS related programmes initiated by CIDB, provide
the training and consultancy on IBS and showcase IBS technology through the demonstration project. The
obligation to implement IBS strategies and activities from this centre serves concurrent both to improve
performance and quality in construction, also to minimize the dependency of unskilled foreign labours flooding
the construction market.
IBS ROADMAP MID-TERM REPORT
The IBS Centre has published IBS Roadmap Mid-term report to study the current status of IBS adoption in
Malaysia on October 2007 (CIDB, 2007b). The report has highlighted the followings concerns:
• High rise development and ‘factory-like’ building tend to have higher adoption of IBS than landed
properties and small commercial units,
• Whilst there is no empirical data, there is some anecdotal evidence, suggest that there has been sporadic
dumping of sub-standard foreign IBS product in IBS,
• At presents, common practice shows manufacture of IBS components are involved only after tender
stage of the value chain. IBS need to be addressed in the design stage to be successful adopted,
• There is yet any certification or accreditation of components companies and installers in place,
• Smaller contractors view IBS as threats and not as opportunities,
• Lack of integrated action plan to implement the IBS Roadmap,
• It seems that most locally developed products based on traditional materials such as reinforced concrete
and that most using innovative materials are based on imported technology,
• Until year 2007, vendor development programme have not yet been performed,
• Until year 2007, the certification of product and installers have yet to be implemented,
• The adoption of IBS in Malaysia is client driven,
• Only 54 out of 109 IBS Roadmap milestones have been achieved until year 2007,
• The contractor only use IBS as alternative option, either explicitly or through challenging time and
quality requirements, demanded by clients.
THE BARRIERS TO IBS ADOPTION IN MALAYSIA
Clearly, the benefits offered by IBS are immense and plausible. Notwithstanding these achievements a number
of implementation snags were identified as being potential hurdles to the implementation of the roadmap. These
include the following which have been identified by IBS Steering Committee 2003-2005 (Hussein, 2007):
• Development of standard plans and standard component drawings for common use,
• Apprentice and on-the-job training in the area of IBS moulds, casts and assembly of components,
• IBS testing and evaluation programme,
• Vendor development programme,
• Readiness of designers and consultant practices, quality control, production of standard components in
the field of IBS.
In a meeting of Malaysian IBS Steering Committee held in early 2006 the following concerns were raised
(IBS Steering Committee, 2006):
• Poor implementation of IBS projects by government agencies,
• High cost of IBS components,
• Low standardization of components and design solutions,
• Poor IBS Knowledge Management & Human Capital Development – workers, contractors, designers,
clients, etc.,
• No centralized IBS R&D Centre,
• No specialized resource centre for IBS,
• No dedicated assessment and certification system for IBS products, manufacturers & installers,
• Initiatives by too many parties as “coordinator”.
The two main reasons for the low adoption of IBS in Malaysia as stated in Construction Industry Master
Plan (CIMP 2006-2015) are as follows (CIDB, 2007a):
• Lack of integration in design stage: IBS manufacturers are currently involve only after design stage.
This lack of integration among relevant players in design stage has resultant in need for plan redesign
and additional cost to be incurred if IBS is adopted.
• Poor Knowledge: Client and approving authorities have poor knowledge of IBS compared to architects
and engineers. Familiarity with IBS concept and its benefits is vital to its success because IBS requires
different approach in construction.
According to IBS Roadmap Mid-Term Review, there are three barriers in implementing IBS in Malaysia
(CIDB, 2007b):
• Lack of support and understanding from construction professionals due to lack of professionals trained
in IBS perhaps due uncoordinated and incomprehensible training awareness and syllabus.
• Misunderstanding and misinterpreting regulation and red-taping in getting approval from authorities.
• Perceive customer perception in terms lack of flexibility, leaky accommodation, unfamiliar materials
etc.
The barriers of IBS implementation in Malaysia can be summarized and categorized in several themes,
standardization and quality issues, issues in consumer perception, issues in professional perception, process and
supply chain, technology, training and education, finance and costing, incentive and communication issues.
THE WAY FORWARD
Realizing the implementation of IBS is still to make headway, CIDB through its research arm, Construction
Research Institute of Malaysia (CREAM) has taken the initiative from the problem identified earlier and
continued to conduct three series of workshops session with the industry between 2006 and 2007. After a lengthy
deliberation with the stakeholders, it was concluded that the factors contributing to the delays of IBS
implementation and other issues related to IBS are as follows (CREAM, 2007):
• IBS is not popular among design consultants,
• Lack of knowledge among designers,
• The need for mindset change through promotion and education,
• The stakeholders face a chicken and egg dilemma,
• Lack of support and slow adoption from private sector,
• Proprietary systems make it hard to be adopted by designers,
• Poor quality products available in Malaysia,
• Joints are not standardised making it hard to design as the design will have to be fixed to a particular
manufacturer,
• Lack of push factor for authorities and responsible government bodies by laws and regulations,
• The professionals in Malaysia is lack of technical knowledge about IBS components,
• Volume and economy of production in scale IBS components,
• Monopoly of big boys, limiting opportunities to other contractors,
• Low offsite manufacturing of construction components available in the market,
• Require onsite specialized skills for assembly and erection of components,
• Lack of special equipments and machinery which hampered work. Need more local R&D, support
services, technologies and testing of IBS components,
• Mismatch between readiness of industries with IBS targets by the government,
• Lack of involvement from Bumiputera contractors as an erectors or manufactures,
• To consider IBS design for energy conservation and earthquake design,
• Insufficient capacity building for contractors to secure project in construction (G1-G7),
• Sustainability of construction industry, government to lead during downturn.
The inadequacy of corroborative scientific research undertaken to substantiate the benefit of IBS system as
mentioned in Kadir (2005) and Thanoon et al. (2003) require a new approach to be taken on board. As
highlighted in the Construction Industry Master Plan 2003-2010 (CIMP) the role and functionality of R&D in
Strategic Thrust 5: Innovate through R&D to adopt new construction method, it is pertinent to R&D to path (or
lead) the way of promoting better adoption of IBS in Malaysia. The establishment of Construction Research
Institute of Malaysia (CREAM) initiated by Construction Industry Development Board (CIDB) Malaysia should
be seen as very significant development in the structure of R&D, which was previously at very formative stages
rather organizationally ad-hoc and often confusing. CREAM can be assigned a task of managing the IBS
research (CIDB, 2007a).
The R&D themes and topics for IBS identified through series of workshops organized by CREAM are
aligned to the requirement of IBS Roadmap 2003-2010 (CIDB, 2003a). The initiatives in IBS though lead by
CIDB, participative from contractors, consultants, universities, companies and research institutes are critical. The
obligation to implement IBS serves concurrent both to improve performance and quality in construction, also to
minimize the dependency of unskilled foreign labours flooding the construction market. It is a daunting task as
2010 is just around the corner. The process and mechanism to achieve the target depend on the integration and
acceptance of the players towards IBS. Three years ahead will be a challenging one. A strategic approach will be
the way forward. As the R&D arm for CIDB, CREAM’s R&D output will geared towards industry’s application
and requirements.
CREAM shall take the following actions as a pre requisite to expedite the success of the roadmap
implementation with respect to R&D in IBS (Hamid et al., 2007):
• A long term and strategic approach of conducting research on IBS shall be established.
• Involvement of universities, companies, organizations and research institutes right from the onset of any
IBS R&D projects.
• Participation and inclusion of IBS in JKR building design, i.e. JKR IBS Design must be incorporated in
its Rekabentuk Bangunan Piawai for government quarters, schools and government administrative
offices. (CREAM will discuss this matter further with JKR on any issues related to R&D).
• Malaysian standard joints for IBS (wet or dry) must be designed and made available for use by the
industry.
• CREAM initiatives to lead Centre of Research Excellence (CORE) on IBS and act as One Stop Centre
for R&D are critical as this moves will consolidate the effort to centralize and able to identify issues and
problems first hand from the industry.
• The formation of R&D laboratory and acts as CORE for IBS is urgent and CREAM should initiate and
take the lead.
• CREAM is to apply for a double deduction status foundation to expedite participation from private
entities as they will also in return be benefited in getting tax rebates when contributing research fund to
the industry.
• Open Building System (OBS) must be competitive in terms of cost, performance and quality as
compared to proprietary system and conventional methods in order to be sustainable in the construction
market.
• Not reinventing the wheel on R&D but to focus on IBS applied research.
• Soft issues related to IBS such as marketing, social impact, involvement of Bumiputera contractors in
vendor development programme as highlighted in the roadmap should be taken on board right at the
early stage.
• A complete comprehensive study on IBS solutions encompassing the entire value chain will ensure its
success. These shall include verification, validation and certification of process on IBS components,
fabricator, factory, erector and related skills of specialization.
• A technology transfer model via knowledge management and benchmarking analogy to adapt European
Union (EU), Japan and Singapore best practices in implementing IBS will add value and expedite the
implementation process.
• A comprehensive study on Business Process Re-engineering, Change Management and Total Quality
Management (TQM) that can be agent of chance to transform Malaysian construction industry.
A combination of integrated approach and long term strategic partnering among stakeholders tackling
specific agenda on IBS 5M strategies are the way forward. A well coordinated planned R&D themes and titles
discussed in previous section have to be implemented simultaneously with all players mentioned earlier in
synergic and strategic way.
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Hamid, Z., Kamar, K. A. M, Mohd. Khairolden, G., Maria Zura, M. Z., & Ahmad Hazim,
A. R. (2007) Strategic Planning for R&D on Industrialised Building Systems (IBS) 2007-2010. Construction
Research Institute of Malaysia (CREAM), Kuala Lumpur. (draft report).
Hussein, J. (2007) Industrialised Building Systems: The Challenge and The Way Forward.
Keynote Address at Construction Industry Research Achievement International
Conference. Putra World Trade Centre (PWTC). Kuala Lumpur.
IBS Steering Committee (2006) Minute meeting of IBS Steering Committee. Construction
Industry Development Board (CIDB) Malaysia. Kuala Lumpur (unpublished),
Junid, S.M.S. (1986) IBSs. Proceedings of UNESCO/ FEISEAP
Regional Workshop, Universiti Putra Malysia (UPM), Serdang. Selangor.
Lessing, J., Ekholm, A., and Stehn, L. (2005) Industrialised Housing-Definition and
Categorisation of the Concept. 13th International Group for Lean Construction. Sydney,
Australia.
Ministry of Finance (MOF) (2005) Economic Report Malaysia 2004-2005 (2004).
Malaysia, Kuala Lumpur. (Unpublished)
Parid, W. (1997) Global Trends in Research, Development and Construction. Proceeding of the International
Conference on IBS (IBS 2003). Construction Industry Development Board (CIDB) Malaysia. Kuala
Lumpur.
Rahman, A.B.A, Omar, W. (2006) Issues and Challenges in the Implementation of Industrialised Building
Systems in Malaysia. Proceeding of the 6th Asia-Pasific Structural Engineering and Construction
Conference (ASPEC 2006). 5-6 September 2006. Kuala Lumpur, Malaysia
Thanoon, W.A.M., Peng, L.W., Abdul Kadir, M.R., Jaafar, M.S. and Salit, M.S. (2003) The Experiences of
Malaysia and Other Countries in Industrialised Building Systems in Malaysia. Proceeding on IBS
Seminar. UPM, Malaysia
Trikha, D.N. (1999) Industrialised Building Systems: Prospect in Malaysia. Proceeding of World Engineering
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Warszawski, A. (1999) Industrialised and Automated Building System, Technion-Israel Institute of Technology,
E & FN Spon.
3
EXPERIENCES AND LESSON LEARNT ON IBS CONSTRUCTION IN
MALAYSIA
Mohd Sufian Hashim1 and Kamarul Anuar Mohamad Kamar2
PKNS Engineering and Construction Berhad, Shah Alam, Selangor, Malaysia1
Construction Industry Development Board, Malaysia2
sufian@pecb.com.my
INTRODUCTION
IBS is the term coined by the industry and government in Malaysia to represent the adoption of construction
industrialisation and the use of prefabrication of components in building construction. 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 (Hamid et al., 2008;
CIDB, 2007; CIDB, 2005 and CIDB, 2003). It consists of precast component systems, fabricated steel structures,
innovative mould systems, modular block systems and prefabricated timber structures as construction
components (CIDB, 2003). 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 (CIDB, 2003). The onsite casting activities in IBS utilise innovative and
clean mould technologies (CIDB, 2007; CIDB, 2005 and CIDB, 2003). In the Malaysian context, the
classification by the CIDB is widely used and well understood by scholars and practitioners. CIDB has classified
the IBS systems into five categories as depicted in Table 1 (CIDB, 2003).
The construction industry has started to embrace IBS as a method of attaining better construction quality and
productivity, reducing risks related to occupational safety and health, alleviating issues for skilled workers and
dependency on manual foreign labour, and achieving the ultimate goal of reducing the overall cost of
construction. Apart from this, it offers minimal wastage, fewer site materials, a cleaner and neater environment,
controlled quality, and lower total construction costs (Pan et al., 2008, Hamid et al., 2008 and Pan et al., 2007).
Already utilized in Malaysia since 1960s, IBS is the way forward for the industry stakeholders to make leaps and
bounds progress in the Malaysian construction industry. Sufficient exposure and incentives are pouring in to
encourage industry players to make a paradigm move – from conventional to IBS construction.
Table 1. IBS Classification (CIDB, 2003)

Classification Descriptions
Precast The most common group of IBS products is the precast concrete elements; precast
concrete concrete columns, beams, slabs, walls, 3-D components (e.g. balconies, staircases,
framed toilets, lift chambers, refuse chambers), lightweight precast concrete, as well as
buildings permanent concrete formworks.
Formwork Considered as one of the low-level or the least prefabricated IBS, as the system
System generally involves site casting and is therefore subject to structural quality control,
the products offer high-quality finishes, and fast construction with less site labour
and material requirement.
Steel Framing Commonly used with precast concrete slabs, steel columns and beams, steel
System framing systems have always been the popular choice and used extensively in the
fast-track construction of skyscrapers. Recent developments in this type of IBS
include the increased usage of light steel trusses consisting of cost-effective
profiled cold-formed channels and steel portal frame systems as alternatives to the
heavier traditional hot-rolled sections.
Prefabricated The system consists of timber building frames and timber roof trusses. While the
Timber latter are more popular, timber building frame systems also have their own niche
Framing market, offering interesting designs from simple dwelling units to buildings
System requiring high aesthetical values such as chalets for resorts.
Blockwork The construction method of using conventional bricks has been revolutionised by
System the development and usage of interlocking concrete masonry units (CMU) and
lightweight concrete blocks. The tedious and time-consuming traditional brick-
laying tasks are greatly simplified by the usage of these effective alternative
solutions.
EXPERIENCES AND LESSON LEARNT ON IBS CONSTRUCTION IN MALAYSIA
1. There is a change in paradigm regarding IBS in Malaysia in the past few years. In the past, the majority of
contractors and industry stakeholders still divided either to use IBS or conventional method although the
benefits of IBS are clear and eminent. But this is not the case now, the industry, nowadays has to think of
a system to be implemented in their project (weather it conventional or IBS) due to the increase need of
quality end-product and speed of construction, and coping with the issue of foreign workers. In the case
of public building projects, the industry is instructed to use IBS system. So, the industry both in the
private and public construction projects has no other choice but to be involved in IBS and adopt
industrialisation in construction. (In November 2008, the Treasury Malaysia issued a Treasury Circular
Letter, now referred to as SPP 7/2008, to all Malaysian government agencies directing them to increase
the IBS contents of their building development projects to a level not less than 70 points of the IBS score
and 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). Due to this policy, the cost of constructing in IBS has reduced significantly. The adoption in the
past was normally based on wanting rather than by viability. IBS system in Malaysia is now, mostly
competitive if not cheaper if one compare it to the conventional practices depending on type of projects,
type of systems and volume.
2. The IBS in Malaysia promotes open system or hybrid system and encourages full industry participation
compared to the prefab closed system where only limited industry companies can participate. IBS supply
chain should comprises of modular component-based products that can be produce and interchangeable
between any project thus promote mass customisation at the customers end. Therefore, a company that
can utilize the IBS supply chain will enable it to sell systems rather than selling single products.
Standardising the construction industry is a critical factor in establishing an Open System in Malaysia.
The concept of the OBS is similar to what has happened in the ICT industry whereby through
standardization of jointing parts such as USB ports, consumers can buy computer equipment such as
mouse or scanner anywhere in the world. The equipment can then be easily installed by the users as the
connection from the equipment to the computer has been internationally standardized.
3. One of the important milestones in IBS Roadmap 2003-2010 was the introduction of Modular
Coordination (MC). MC is a concept of coordination of dimensions and space where buildings and
components are dimensioned and positioned in a basic unit or module known as 1M which is equivalent
to 100 mm, as stipulated in MS 1064, and developed in 2000. The concept allows standardisation in
design and building components. It encourages participation from manufactures and assemblers to enter
the market, thus reducing the price of IBS components. Modular need to be adopted to cut down the
waste in IBS. However the implementation of modular coordination requires better design planning.
4. Malaysian construction industry is very good in modifying and adopting IBS technologies captured from
oversea practices. Many private companies in Malaysia in present day have teamed up with foreign expert
to offer solutions to their IBS projects. Many had acquired enough knowledge through technology
transfer to build up own capacity in IBS technologies. Many world-class Malaysian developers have
chosen IBS over the conventional methods for important projects such as the Petronas Twin Towers,
Putrajaya, KL Sentral and KLIA. There is ample evidence that the failures of past construction systems
are due to blind acceptance of foreign products that were not open (flexible) and were unsuitable to our
climate and culture.
5. Successful IBS contractors as observed are not a user of technology or limit its role as project manager
and assembler. Most successful IBS contractors have an in-house manufacturing and design capacity.
They also invest in and sometimes invent systems, and so do not just depend on existing manufacturers.
The also partner with oversea partners to acquire the technologies.
6. One of the major issues of IBS is on changing users’ perception. Users tend to think that IBS buildings is
easy to leak and can not be renovated. However, through the advancement of technologies and better
planning and design, IBS buildings/housings in the present days have improved in term of performance
and can be renovated by users.
7. Some of the foreign systems that were introduced during the late 60s and 70s were also found not to be
suitable with Malaysia climate and social practices. Newer and better technologies were constantly being
introduced than in the market since wet joint systems were identified to be more suitable to be used in our
tropical climate and it was also better to utilised the bathroom types which were relatively wetter than
those in the Europe.
8. IBS in Malaysia is seen as a threat to traditional methods but in reality many IBS technologies like block
works is exist together with conventional practices. The failure of IBS to penetrate the market is due to a
misconception that it will eventually replace the traditional sector, while it actually should work closely in
tandem to promote best practice in construction. The sharing of best practice between the two approaches
is essential for the continued successful development of both construction sectors. IBS should be looked
by the industry as easy, simple and cost effective solutions to the players.
9. Each IBS system has its own advantages and limitations. The selection and implementation of correct
technology in IBS projects is perhaps the key to IBS success. There is a need to realise that precast
concrete IBS is not suitable for every project. If more people were aware of its capabilities and available
technology, they could identify particular system that suited the project. The advantages of IBS systems
in Malaysia are as follows:
a) Pre-cast System
• Precast a panel and building system provides easy standardisation, speedier construction, cost-
effectiveness, high quality finish and enhanced facade design. Pre-cast system is more economical
for high-rise apartment projects. IBS can be beneficial to that sort of building due to the repetitive
nature of the design. No actual parameter to determine the exact period of investment recovery as
this much depends on number of projects and targeting period of recovery. Some estimation goes
that, to break even in setting up a prefabrication factory, the company requires 2,000 units of
housing apartments to be built in a year. In many cases, the capital investment could be recovered
in construction period.
• Precast concrete construction which involves the use of precast elements, has contributed
significantly towards the development of the nation; especially in infrastructure and social
development projects. The Pekeliling or Tuanku Abdul Rahman Flats; constructed in 1960s and
the Putra-Star LRT and KL Monorail projects which began developments in 1990s are some of the
comparative venture period of Malaysia’s construction industry. Precast components come in a
variety of shapes for different types of usage, both architectural and structural. It includes the
traditional precast beams, columns, slabs, walls, staircases, parapets and drains; as well as other
relatively new precast components for toilets, pilecaps, facades, lift shafts and refuse chambers.
Also common are the precast concrete permanent formworks that consist of precast panels that act
as forms for in-situ concrete. It includes the “Half Slabs” and the “Sandwiched/Double Walls”. As
the production of lightweight concrete are getting cheaper, more precast components are also
produced in the form of lightweight concrete panels and blocks that greatly ease transportation and
installation.
• Beside the use of precast concrete panel such as half slabs, hollow cores and plank as composite
slabs, steel decking has been accepted as an alternative in Malaysian construction. Steel decking
offers a variety of savings such as construction period, reduction in floor depth, weight and cost.
• The success story of PKNS Engineering and Construction Berhad (PECB) in operating state of the
art technology on IBS shown that the construction industry in Malaysia is able to adopt advanced,
mechanised and automated IBS technologies. From 1981 until 1991, PECB built and operated a
very modern prefabrication yard at Shah Alam using Praton Haus’s belt conveyor and semi-
automatic precast production. The overall investment was worth in the region of RM 12.0 million
which was considered a relatively huge upfront investment at that time. The high investment in the
technology also requires high skills workforce with high productivity.
• In pre-cast system, proper coordination in installation between panels and services are important.
To address this issue, the company has established a simple and systematic labeling of components.
Systematic numbering and standardised information is created to avoid double handling. Further,
this IBS system can be only benefit if decision to use it can be decided as early as possible not as
afterthought during the project. This practice will allow manufactures, contractors and Mechanical
and Electrical (M&E) specialists to get involve and share their knowledge early during design
stage. The collaborative design team can be established by improving procurement and contract,
establishing a clear statement of needs from clients or integrating the team starting from project
briefing all by client’s initiative.
b) Formwork System
• Formwork system is cleaner, safer and requires less labour than conventional methods, yet it is
flexible enough to cater for immediate changes of requirement and can be reused in many projects.
Some formwork system is economical and efficient type of high-rise building construction. The
initial investment cost for formworks and moulds are much less than a precast system, having
taken into consideration aspects required to complete the shell structure of the buildings.
• Another superb cost saving system, the tunnel form system is a formwork system which builders
may use to cast walls and slabs in one operation efficiently. Tunnel form system simplifies the
whole construction process by enabling a smooth and fast operation that can result in cost
effectiveness, productivity and high quality finished. Tunnel form projects have proven that
impressive results can be achieved in terms of productivity, efficiency, economy and quality. It can
usually be reused for 500 to 1,000 times, and is an effective way to construct buildings that have
repetitive elements or layouts. The system is now one of the most preferred methods of cellular
construction by the contractors in Malaysia whilst clients appreciate Tunnel form’s ability to
deliver projects to budget and on time.
c) Steel Framing System

• Previously, the application of steel framing system is only to commercial and industrial building.
The application for housing is only limited to roof trusses. Just recently, the application of steel
roof trusses, showed their capability in building industry whereby the cost become competitive as
compared to timber roof trusses.
• Besides high-rise buildings, the usage of steel elements is also popular with the construction of
universities, colleges, schools, hospitals and commercial complexes. Undoubtedly, structural steel
offers greater freedom and flexibility to the designers, rapid construction for the contractors and
faster returns on investment (ROI) to the owners.
d) Prefabricated Timber Framing System

• Before the arrival of foreign and modern influence, the indigenous Malay and orang asli tribes of
peninsular Malaysia and their related Bumiputeras tribes in Sabah and Sarawak had already
developed their traditional dwelling using timber structure.
• Timber structure system involved the design and construction of buildings and structures using
prefabricated wood and wooden products especially in structural or load bearing elements. There
are two types of prefabrication of timber which is ready-cut plus shop fabrication of joints (column
and beam) and structural panels where there are only walls and floors without column and beam.
• Although cost and availability of timber product is often seen as the barriers of the use of timber in
construction. Timber building frame systems have their own niche market, offering interesting
designs from simple dwelling units to buildings requiring high aesthetical values such as chalets
for resorts.
e) Block Work System

• IBS system in Malaysia does not limit to high advanced technologies and mass-production concept.
The block work system is one of the simplest, flexible and most versatile systems that can be used
by many in the industry. The block work is also some sort of low cost IBS with low capital
investment, where many contractors can be involved in it. IBS block work is the easiest way of
adopting IBS and blockwork system can easily penetrating construction market. However, there is
a need for skilled designers to design blockwork than can capitilise the benefit of IBS. The block
work system depends on modular dimension at design stage, is also comparable to LEGO system.
• Moreover, some engineered block work applies load bearing wall by incorporating the columns
and beams as integral part of the wall for all types of houses (up to 5- storey in high). The amount
that can be saved on a wall can range from 10% to 30% as compared to conventional with
additional less foundation cost. To encourage overall involvement from many in the industry, the
IBS score for blockwork use in project should be increased. The non-load bearing wall using
blockwork system is suitable for fencing and partition. Standard sizing, therefore making
construction site neat, organised and clean.
• The block system particularly engineered block is flexible and can suit and complement other IBS
technologies. The block system is also easily be manufactured and easily be assembled by the
adopters. Nonetheless, the block systems must be in some form of standardisation in term
measurement (modular) and also incorporate industrialisation and automation in factory
environment.
• In early 1970’s, single storey low cost terrace houses were mostly built out of plain wooded frame
and plank sitting on 3 ft high plastered brickwork and taking the advantage of simple raft
foundation due to lightweight super structure. This type of construction today has been classified
as one of IBS system. However, now, the application of this system seems unrealistic due to cost
issue, but as the technology advance and it is easier to be implemented by the industry players, the
system should be promoted as IBS solutions low cost project, where the cost will be reduced when
foundation cost is less substantial.
f) Innovative On-site System

• Some companies also established a temporary production plant onsite. The set-up of the temporary
production plant was highly successful, producing components to a very high standard, at a rate
exceeding demand, and to a lower cost than anticipated. The case clearly demonstrated that IBS
options were not restricted to fixed, long-term facilities, but rather were more about understanding
the concepts of production and manufacture.
BARRIERS TO IBS ADOPTION IN MALAYSIA
• Currently, the incentives for IBS are not sufficient. IBS adoption requires more pull and push factors
from the government. Due to the small profit margin, the change from conventional to IBS was not
feasible, unless, more attractive incentive systems and benefits which can lure the conventionalist to
IBS are in place.
• The availability of cheap foreign labour which offsets the cost benefit of using IBS is a root cause of
the slow adoption in the past. As long as it is easy for the industry to find foreign workers, labour rates
will remain low and builders will find it unattractive to change into simplified solutions such as IBS.
• The limited take up also relates to sheer cost of investment and the inadequacy of market size. Since
the Asian financial crisis in 1997 and global recession in 2008, it becomes apparent that large
investments in central production plants are uneconomical.
• To use a higher level of IBS, the adopters require a huge volume of works to break even on the
investment. Although it creates more value to construction, it is literally a more expensive option due
to the paid up capitals and maintenance of machineries. Inconsistency of volume over time and lack of
business continuity resulted in the investment in latest innovation not being commercially sustainable.
• Low standardisation of components also hinders successful use of IBS. The tailor-made components
which do not fit into another project will increase initial costs due to the cost of the mould and design.
Lack of standardisation was due to a lack of a certification and accreditation scheme on IBS and the
lukewarm response to Modular Coordination (MC) promotion under MS 1064.
• There is a general consensus among practitioners that IBS needs mass production to achieve economic
viability, but currently, in Malaysia, there is no assurance of continuity of production, thus limiting
interest in IBS.
• Supply Chain Management (SCM) and partnering concept has not been fully understood by the
industry. Currently, the cooperation between contractors, manufacturers and suppliers is weak in many
cases. Improving the procurement system and supply chain is the key to achieving IBS success for
contracting companies.
THE WAY FORWARD
The lesson learnt on IBS construction in Malaysia has led to the following recommendations towards the future
improvement of IBS adoption in Malaysia:
• The rising sustainability awareness around the globe has put the construction industry under immense
pressure to improve project efficiency and deliverables. IBS has the potential to promote sustainability
development and green construction. This may be achieved from a controlled production
environment, minimization of construction waste, extensive usage of energy efficient building material,
a safer and more stable work environment, and possibly better investment for long term project
economy. The industry need to seize this opportunity and use IBS as their competitive advantages in
promoting sustainable construction.
• The mass construction workforce, especially the locals, needs to upgrade their skills to be involved in IBS.
The policy on labour focuses on encouraging personnel to acquire skills in more than single trade. This
would add more value by providing a more skilled workforce which would ultimately enhance the
competitive advantage of the industry in facing the issue of adoption from conventional to the IBS. They
must be equipped in design, installation and project management skills which are critical to IBS. A
comprehensive preliminary study should be conducted by the government to identify the skill gaps in the
IBS sector in order to create a comprehensive and systematic training programme. The preliminary study
will ensure that the training fits the needs of IBS organisations and accommodates current skill shortages
in the market, particularly specialist skills such as design and installation, based on information from real
practice.
• A vendor development programme modeled along the lines of the development of the national car
industry should be established to target delivery of building components for the construction. The vendor
program is to be accredited by existing government agencies which can provide a vetting process not only
to guarantee consistent quality but also the achievement of structural capacity, fire rating and other
requirements. The selected vendor are to be provided training, seed capital, components design, and
selected private sector consultant to start up production factories. The location of this vendor’s
manufacturing plant has to be located in the areas with available labour. Based on educated assumption,
the expected investment requirement of RM 1.25 million is considered within the reach of SMEs and
small contractors displaced by the new technology. A system is to be developed such that building
component accredited will be given green lane approval such that technical and non-technical legislation
that hinders implementation of the new technology will be removed. The government can help by
conducting market research to ascertain market opportunities to the vendors. The vendors also need
inventory management consultancy and advice and development of better tools and infrastructures
required for location of manufacturing plant.
• Manufacturers and all players of IBS sectors need to create highest value for IBS to serve the clients best
interest, as we know clients in a private sector are more demanding in term of design esthetic value. With
this regards, we need to move from mass production of components to mass customisation of buildings
where the building design can be tailor-made to specific customer needs. The industry shall need to
encourage automation and robotic to be really reduce the use of workers in construction and
prefabrication. The government also perhaps needs to encourage manufacturers to produce ‘modular
housing’ which move all the work trade at site to the manufacturing floor. We need to move up the level
of industrialisation and encourage innovation, whilst low innovative systems which do contained enough
value like mould systems will be discouraged. Proper incentive and tax holiday need to introduce to cater
the production of innovative IBS.
• Malaysian IBS contractors need to benchmark IBS technologies, lesson learnt and best practices from
other countries. Construction industrialisation is a worldwide agenda. IBS is already successful adopted in
Finland, Sweden, Japan, Germany and Singapore where offsite technologies had eventually modernised
and improved the industry. This research recommended the industry players to find ways to capture and
disseminate technologies, lesson learned, and best practices from successful countries and companies to
expedite our learning curve on IBS and to guide the way forward. The government should launch a forum
on a regular basis of academics and associated practitioners active in IBS for exchange of information and
experience, development of new techniques and advice on promotion and implementation of IBS. An
online portal was also suggested to disseminate international trends, products and processes associated
with the IBS.
REFERENCES
CIDB (2010) CIDB News, first quarters 2010, Construction Industry Development Board (CIDB) Publication
CIDB (2009) Malaysian construction industry outlook, presentation by Business Development Sector of CIDB,
August 2009
CIDB (2008) Malaysian construction industry outlook, presentation by Business Development Sector of CIDB,
August 2008
CIDB (2008) IBS Implementation in Malaysia, Constriction Industry Development Board (CIDB), Kuala
Lumpur
CIDB (2007) IBS Digest at Malbex in IBS Digest, Special Issues on 24th Malaysian International Building
Exposition (Malbex 2007) 19-22 September 2007
CIDB (2007) Report of quality assessment for project in Cambodia and Thailand constructed by Malaysian
contractor 2007, Construction Industry Development Board (CIDB), Kuala Lumpur
CIDB (2007) Implementing IBS Roadmap: Mid-term review of IBS Roadmap 2003-2010, Construction Industry
Development Board (CIDB), Kuala Lumpur
CIDB (2005) IBS Survey 2005: Survey on Malaysian Architects. Kuala Lumpur, Construction Industry
Development Board (CIDB)
CIDB (2003) IBS Survey 2003 - A Survey on the Usage of IBS in Malaysian Construction Industry,
Construction Industry Development Board, Kuala Lumpur
CIDB (2003) IBS Roadmap 2003-2010, Construction Industry Development Board (CIDB), Kuala Lumpur
Hamid, Z., Kamar, K. A .M. Zain, M., Ghani, K., and Rahim, A. H. A. (2008) Industrialised Building System
(IBS) in Malaysia: The Current State and RandD Initiatives, Malaysia Construction Research Journal
(MCRJ), Vol. 2 (1), pp 1-13
Hassim, S., Jaafar, M. S. and Sazali, S. A. A. H. (2009) The Contractor Perception Towards Industrialised
Building System Risk in Construction Projects in Malaysia American Journal of Applied Sciences, 6 (5),
pp. 937-942
Pan, W., Gibb, , F., A. G. and Dainty, A. R. J. (2008) Leading UK Housebuilders' Utilization of Offsite
Construction Methods, Building Research and Information, 36 (1), 56 — 67
Pan, W., Gibb, A. G. F. and Dainty, A. R. J. (2007) Perspectives of UK housebuilders on the use of offsite
modern methods of construction, Construction Management and Economics, 25 (2), 183-194
Rahman, A. B. A, Omar, W. (2006) Issues and Challenge in the Implementation of IBS in Malaysia, Proceeding
of the 6th Asia Pacific Structural Engineering and Construction Conference (ASPEC 2006), 5-6
September 2006. Kuala Lumpur, Malaysia
Sarja, A. (1998), Open and Industrialised Building, International Council for Building Research, E and FN
Spoon, London
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2003
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Construction Industry development Board (CIDB) Kuala Lumpur
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Characteristics of Industrialised Building System in International Conference on Industrialised Building
Systems Construction Industry Development Board (CIDB) Malaysia, Kuala Lumpur, Malaysia, 10-11
September 2003
Trikha, D. N. and Ali A. A. A. (2004) Industrialised Building System (Fist ed.), Kuala Lumpur, Universiti Putra
Malaysia Press
4
OFF-SITE CONSTRUCTION INDUSTRY: THE COMMON PATTERN
Mohamed Nor Azhari Azman1, Taksiah A. Majid1, Mohd Sanusi S. Ahamad1, Mohd Hanizun Hanafi2
School of Civil Engineering, Universiti Sains Malaysia1
School of Housing, Building and Planning, Universiti Sains Malaysia2
syurga7181@yahoo.com
INTRODUCTION
The latest development in technology and global standardization has changed the past practice of the
construction industry. This has affected land resources, social environment and local skills to cater the demand
from the public and private sector. In the early stage of development of the construction industry, construction
technology was imported from overseas in order to accelerate the pace of development and to ensure the increase
in productivity of the construction sector. In order to fabricate mass production and high-quality products,
factors such as the environment, level of workers skills, knowledge competence and resources need to be taken
into account. It is vital to ensure that the technology can adapt to the local condition and the needs of the
construction industry.
In the United State (US), off-site manufacturing in the construction industry is described as Off-site
Construction Techniques (OSCT). However in the United Kingdom (UK), the Modern Methods of Construction
(MMC) is the term used by the government to describe a number of innovations in house building, most of
which are off-site technologies. The term Offsite Manufacturing (OSM) is the term used both in Australia and
the UK construction industry. In Malaysia, the definition used for off-site manufacturing in the construction
industry is known as IBS.
The US and Japan have the biggest construction industry in the world and are well prepared with their global
strategies (Abdul-Aziz, 1994). The three factors that determine the ability of construction industries to enter the
international market are technological advantages that are associated with possessing formidable construction
technologies; sophisticated management systems for scheduling, material tracking, organized sub-contractors;
and financing capability that enables a company to arrange for project financing schedules from international
financiers. Technology is an important tool to push the construction industry to achieve the international level.
This will help construction companies to achieve long-term profitability and acquire a balance growth in the
future. The four countries involved in the studies are US, UK, Australia and Malaysia. The off-site
manufacturing in the US was started by Henry Ford (Gann, 1996). It was a big evolution that became a
phenomena and spread to the rest of the world.
There is still a need to be more creative and innovative in ideas to assist in improving the usage of
appropriate off-site technology suitable to the local condition. As in the olden days, construction materials
performance characteristics is made to adapt to the climatic condition, natural resources and available collective
local skills (Ngowi et al., 2004). The paper is focus to the pattern of off-site construction industry in US, UK,
Australia and Malaysia.
THE SIMILARITY OF PATTERN IN OFF-SITE CONSTRUCTION INDUSTRY
The idea of improving the performance of the construction industry by learning from other industries is not new.
Henry Ford developed the standard production line for car manufacturing which has open a new era of ideas for
of producing houses in factories. The biggest impact of manufacturing system occurred in Japan 1950 after
Toyota’s President, Eji Toyoda, spent three months at Ford’s Rouge plant in the USA (Gann, 1996). This has
resulted in Toyota developing a new approach of lean production, use of plant, management resources, quality
control and relationship between producers and consumers (Womack, 1990; Gann, 1996). The great influence of
the highly successful manufacturing system in Japan has resulted in researchers from US and UK coming to
Japan to learn from the Japanese experience (Webster, 1993; Gann, 1996; Taylor et al., 2003).
Affordable housing also are becoming a vital issue to meet the demand with an increasing population growth
and Sebestyen (1998) claimed that one to-thirds of the building is for residential and one-fifth to one-third of
gross fixed investments was made on residential construction, which is the largest sub-sector. The lack of
housing for the low income group has led to the existence of squatter settlements in major cities in the country.
Thus in the European country, there are 3 million homeless and 18 million have inadequate housing due to a lack
of adequate affordable housing (Edgar et al., 2002). According to Barlow (1999) there is a need to explore the
new methods, techniques and ways of working to deliver affordable house. As reported Doherty et al. (2008),
the homeless phenomena generate the transition of ‘planned’ city to the ‘post industrial’ city, will affect the
behavior of social relations, political practices and cultural traditions in different locales and institutional settings.
The government has encouraged the construction industry to move towards off-site construction technology
which can produce high volume of houses at affordable cost especially low-cost houses. Industrialization of high
rise residential building components is critical to competitiveness and become a new trend of demand for
affordable houses in order to solve the housing problem especially in a big city with limited space for new
development area. Almost all the major cities in Asian countries, residential buildings are characterized with
high rise and high density (Niu, 2004). Thus the construction players have responded to this crisis by adopting
prefabrication and by building a more uniform product (IBS, 2005).
United State (US) has the highest spending capital on construction with seventy-four percent of the total
spent capital in world construction (CMAA, 2010). Yet, they still face problems at the off-site construction
industry as reported in CMAA (2006) where more than 40% of the Construction Management Association of
America (CMAA) experienced construction schedule overruns due to the shortage of skilled craft workers and
resulted in escalation of project costs.
The great challenge faced by the construction industry in UK is to integrate the ‘traditional’ technology with
the appropriate off-site technology. In UK, the strong ‘traditional’ technology that comprises of brick/concrete
block cavity wall methods, timber/precast floors and timber truss roofs (Pan et al., 2007). Thus, the house buyers
are strongly influenced by the negative perceptions of the MMC innovation in houses construction that it will
spoil the authentic ‘traditional’ house image (Edge et al., 2002). This has effect the construction industry and the
innovation building technologies where the industry players faces difficulty in implementing new concepts to the
building system (Pan et al., 2007; Barlow, 1999; Roskrow, 2004). Notwithstanding, the MMC is also known as
OSM (Taylor et al., 2004). UK and Australia have the similarity in applying the OSM in their countries. Goodier
and Gibb (2004) have difficulty in accessing the historic value of OSM in Australia. Thus a vague boundary
exists between the traditional and OSM approaches, as well as data report on the performance of the construction
and manufacturing industries.
In Malaysia, the IBS was initiated in 1964 by the Housing and Local Government after making reference to
the success of several European countries (Thanoon et al., 2003). The players in the industry preferred to use the
conventional method until the Construction Industry Development Board (CIDB) educated the industry on the
essential usage of IBS components and conducted awareness programs on usage of IBS since 1998. As part of
the government policy in encouraging the use of IBS, the government have mandated that 70% of IBS
components should be use in government projects with the value of RM10 million (Treasury, 2008). The use of
IBS system is vital as a means to reduce the number of foreign workers which in turn will reduce outflow of
Malaysian currency. This has created phenomena where construction industries has changed and move to IBS as
shown in Table (1). The trend in the construction industry to move to the manufacturing system is not only
occurring in Malaysia but worldwide. As an example automotive, computers, books and electronic items have
their own modular standard when produced by the respective manufacturer. Therefore, the construction industry
should also adopt the modular standard when manufacturing the IBS components.
Table 1. The Trend of Construction Industry in Malaysia

Phase of Construction Traditional Modern
Method Construction IBS Manufacturing
Scope Project based Product based
Project Specification Short term Long term
Profit from customized Profit in volumes of similar
Profit Earn
solutions products (Gann, 1996)
Possibility of project
On time project completion /
being delayed
Project Duration meeting timeline (Kadir et
(Lim and Mohamed 2000,
al., 2005)
Alaghbari et al., 2007)
Higher mechanization due to
Manually and semi
Applied Technology process repeatability and
mechanization
high quality production
Transportation Requirement Important Very important
Erection Procedure Occasionally required Very important
Crane Requirement Occasionally required Very important
3-D Syndrome (Dirty,
Environmental friendly and
Environmental Awareness Difficult and Dangerous)
recycled waste
(IBS, 2003)
Required a large number Using minimum skilled
Type of Workers
of unskilled worker worker
With regards to the development of technology for the off-site construction industry and the various of off-
site construction industry system, the government and the researchers have come out with a guideline categorizing
the off-site system as show in Table 2. Table 2 also shows the pattern and the degree of technology changes. The
US, UK and Australia have achieved the modular building standard but Malaysia is still in the initial stage to
achieved it. The three countries have the similarity in off-site preassembly but UK and Australia have divided the
off-site preassembly into non-volumetric and volumetric order. Thus, UK and Australia share the same similarity
categorisation of off-site system where most of the Australian researchers referred to UK. Malaysia is still in the
stage of hybridisation system.
Table 2. Categorisation of Off-site System
Countries Authors Categorisation of Off-site System
-Offsite preassembly
US Lu (2009) -Hybrid system
-Panellized system
-Modular building
-Component manufacture and sub-assembly
Goodier and Gibb -Non-volumetric preassembly
UK
(2004) -Volumetric pre-assembly
-Modular building
Blismas and -Non-volumetric preassembly
Australia -Volumetric pre-assembly
Wakefield (2008)
-Modular building
-Pre-cast concrete systems
-Formworks systems
Malaysia IBS Info (2010) -Steel framing systems
-Prefabricated timber framing systems
-Block work systems
-Innovative product systems
CONCLUSION
The vital issue on the awareness of OSCT, MMC, OSM and IBS has a common related pattern that started
seriously early 90’s. The off-site construction industry has gone through a few transitions from the pre-assembly
of components to the modular building system. The establishment of OSCT, MMC, OSM and IBS in the
construction industry will only be possible if the construction industry achieve global standard, in touch with the
latest technology and there is growth in the economy. There should be a common effort to share and exchange
the knowledge on off-site manufacturing among countries in order to ensure that the construction industry will
be able to move to higher level of development.
ACKNOWLEDGMENT
The authors wish to thank the Construction Industry Development Board (CIDB), Malaysia and Universiti Sains
Malaysia (USM) for the providing the data.
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5
IBS: A REVIEW OF EXPERIENCES IN UNITED KINGDOM AND
MALAYSIAN CONSTRUCTION INDUSTRY
Kamarul Anuar Mohamad Kamar1, Mustafa Alshawi2, Zuhairi Abd. Hamid1, Mohd Nasrun Mohd Nawi2, Ahmad Tarmidzi Haron2, and Mohd Rofdzi
Abdullah2
Construction Industry Development Board, Malaysia1 and University of Salford, United Kingdom2
kamarul@cidb.com.my
INTRODUCTION
Camp (1989) defined benchmarking as a search of the best practices for superior performance. Benchmarking in the
context of comparison between two countries is an instrument for increasing national performance through better policy
design and implementation practices. Benchmarking provides an opportunity for learning and stimulates the application
of new solutions and practices. The idea of benchmarking and comparison with other countries to guide IBS
implementation in Malaysia has been highlighted in the literatures (Peng et al., 2003; Hussein, 2007; Hamid et al.,
2008; Kamar et al., 2009). Thus, this paper discusses the experience of Malaysia and UK in the adoption of IBS
construction. The paper discusses the terms, historical background, drivers and government’s initiatives to promote IBS
in both countries. IBS’s perspective in UK and Malaysian construction industry will provide some ground for
benchmarking and technology transfer exercise in the future. This paper is part of on-going PhD research in University
of Salford to benchmark best practices in IBS.
EXPERIENCES IN UNITED KINGDOM
Definition
Modern Methods of Construction (MMC) is a term recently adopted by Housing Corporation and Office of Deputy
Prime Minister (ODPM). MMC is defined as those technologies which provide an efficient process to provide more
products for better quality in less time. It has also been defined in various ways such as prefabrication, offsite, Offsite
Production (OSP) and Offsite Manufacturing (OSM) (BURA, 2005).
Historical Background on MMC Implementation
Serious attempts at a manufacturing approach for housing can be traced back a long way. In the UK, the brick has been
a highly successful standardised component started in the 18th century’s Georgian architecture (The Housing Forum,
2002). Approximate a century later, over 160 000 prefabricated housing units were built after the war (ibid). Later, in
the 1950s and 1960s, the UK government’s slum clearance programme reignited a requirement to build houses quickly
and pre-cast concrete systems found favor for medium and high-rise applications. However, poor detailing and
workmanship has let down many of these systems in the UK (ibid). In the 90s, notable UK government sponsored
reports had been explicit in asserting a need for significant change within the UK construction industry. Sir Michael
Latham’s report had identified a necessity to overcome the industry’s adversarial and fragmented nature through
enhanced supply-chain partnering and collaboration (Latham, 1994). Sir John Egan’s report had similarly highlighted
concern about the industry’s apparent under-achievement, low profitability and underinvestment in capital, research and
training (Egan, 1998). Both reports emphasized the advantages of standardisation and preassembly and stressed the
importance of re-engineering and modular industrialised systems in housing. In the impetus driven by Egan and Latham,
Constructing Excellence and Housing Forum was established to promote the Modern Method of Construction (MMC)
in UK. The government’s own urban regeneration and social housing companies, the Housing Corporation and English
Partnership has been using MMC to build public housing projects since 2002.
The Drivers to MMC Adoption
In the UK, the trend rate of real house price growth over the last 30 years has been 2.4 per cent, considerably higher
than the European average of 1.1 per cent (Barker, 2004). The number of households is predicted to rise by 3 million by
2016, on average 230,000 per year and this has lead to acute need for affordable housing (Barker, 2004; The Housing
Forum, 2002; Pan et al. 2008). In the year 2002, however, the number of new houses completed that year was only in
the region of 145,000, which is far from the predicted target (Barker, 2004). A weak supply of housing would contribute
to macroeconomic instability and hinders labour market flexibility, constraining economic growth (ibid). Barker’s
Report had indicated the slight concern that the current housebuilders with traditional build method would be unable to
cope with this demand (ibid). It was suggested then, the Modern Methods of Construction (MMC) to be used by the
housebuilders in order to address the under supply and poor build quality of housing. In addition to that, several
government-backed reports (including NAO, BURA, Egan and Latham) had suggested that Modern Methods of
Construction (MMC) could be part of the solution for addressing the under supply of housing and wide concerns over
the need to improve the overall performance in construction (Egan, 1998; Latham, 1994; Barker, 2004 and Vanebles et
al., 2004). The National House Building Council (NHBC) estimated that about 10% of new homes in the UK are built
using timber frames, and 5% using other MMC, equivalent to about 25,000 MMC homes in 2003 (POSTNOTE, 2003).
However, recent figures published by Buildoffsite showed that the current level of usage of MMC in housebuilding is
low. The use of offsite-MMC was found to be around 2.1% of all construction or 3.6% of all new build (Pan et al.,
2005).
The Government Initiatives to Promote MMC
The following are the key events of Modern Method of Construction (MMC) initiatives taken by UK government:
• Constructing Excellence was established under Office of Deputy Prime Minister (ODPM) in respond to Sir
Michael Latham and Sir John Egan's reports. Constructing Excellence is a cross-sector, cross-supply chain and
organisation charged with driving the change agenda in construction including the promotion of MMC trough
RandD, benchmarking, workshop series and networking. Housing Forum has been established as the only
housing organisation which provides a network across all housing construction sectors: public, private and social
and through their supply chains. The Housing Forum works closely with Department of Trade (DTI), Housing
Corporation, the House Builders Federation and CITB Construction Skills and others as well as its industry
partners and sponsors to encourage MMC adoption
• Buildoffsite is a group that includes leading clients, designers, constructors, manufacturers and others was
established in 2005. Buildoffsite is exclusively and uniquely focused on off-site construction solutions
facilitation and supporting the government in implementation process (Buildoffsite, 2008). The Buildoffsite
engages a two-way communication to promote offsite and MMC through stakeholder’s events, workshops,
technology showcase and awareness.
• The Office of Deputy Prime Minister (ODPM) has gathered information from 50 leading experts from sector
practitioners and published a National Audit Office (NAO) report on MMC in 2005. This report is an
independent examination to identify how to get the best value when using MMC-offsite (NAO, 2005). Barker 33
cross-industry group was established in 2006 to examine the barriers to greater use of MMC in the provision of
new housing and the mechanism to overcome them (Barker, 2006)
• MMC is fully utilised in the public sector by ODPM’s Housing Corporation (Social House Regulator for
England and Wales) and English Partnership (Urban Regeneration). Large-scale development schemes such as
the Thames Gateway and the seven Millennium Communities initiatives run by English Partnerships are
allowing housing associations to use MMC to promote efficiency in construction (NAO, 2005). In 2004, The
Housing Corporation has stated that 25% of all new grant-aided construction by housing associations should be
by MMC (5000 homes per year which is equivalent to 3% of total new UK housing)
• The government and industry sponsored, Rethinking Construction programme has encourage the use of MMC
through promoting best practice and providing information. Government research initiative such as the £1.5
million Department of Trade Industry (DTI) funded ‘PROSPA’ (Promoting Off-site Production Applications)
programme has been aimed to investigate the views of the UK industry on offsite MMC. Loughborough
University had developed IMMPREST software as an interactive tool to help measure and evaluate the benefits
of using standardised components within construction
• The planning system has an important indirect influence on the MMC market because of its role in determining
the supply of land for house building. The government planning policy is laid down in Planning Policy Guidance
(PPG), one of which (PPG3) is about housing. PPG3 covers issues such as housing density. Nevertheless, the use
of MMC is not currently mentioned and planning guidance would not generally cover such details about
construction type (POSTNOTE, 2003)
• In addition, the UK building regulations do not specify building materials or construction method, but instead set
minimum performance standards. Proposed changes to the building regulations covering energy efficiency,
broadband access and structural integrity are forthcoming. It is important to note that, both planning and
regulation policies adopted and planned in UK may make it cheaper and easier for MMC to meet the regulations
compared with traditional construction (POSTNOTE, 2003).
EXPERIENCES IN MALAYSIA
Definition
In Malaysia, the term IBS is widely used by the government and practitioners. IBS is 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 works (CIDB, 2003). The term also covered the concept of Modular Coordination
(MC) and Open Building System (OBS) (CIDB, 2003).
Historical Background on IBS Implementation
IBS has been introduced in Malaysia since the 60’s by the use of pre-cast concrete beam-column element and panelised
system (CIDB, 2003; Thanoon, 2003). The projects in Jalan Pekeliling, Kuala Lumpur and Rifle Range, Penang had
used Danish System and French Estoit System respectively. However due to some criteria that were not suitable for
local cultural habits, the technology did not take off as planned.
The recent influx of foreign workers in the 90’s, however, has reignited the interest on IBS. IBS research and
promotion was pioneered by Housing Research Centre (HRC), Universiti Putra Malaysia. HRC had organised a series
of national and international colloquiums and seminars on IBS. In 2001, their research on ‘Interlocking load bearing
hollow-block building’ namely the ‘Putra Block’ has won the prestigious ‘Geneva Gold Medal’ award for innovation.
HRC were also engaged with the National Affordable Housing research program with the Ministry of Housing and
Local Government in 2001. In 1999, Construction Industry Development Board (CIDB) Malaysia formed the IBS
Steering Committee in the effort to bring to the fore all the IBS related issues in a framework and IBS Strategic Plan
1999 were published. In 2003, the government, through CIDB published ‘parliament endorsed’ roadmap to guide the
practitioners and decision makers in adopting IBS in Malaysia. Known as the IBS Roadmap 2003-2010, the master plan
is based on the 5-M Strategy (Manpower, Materials-Components- Machines, Management-Processes-Methods,
Monetary and Marketing) with the target of having an industrialised construction industry and introduce open building
concept by the year 2010 (CIDB, 2003). The initiative of roadmap implementation is currently lead by two working
groups; IBS Steering Committee and IBS Technical Committee. CIDB’s IBS Center has taking a role of secretariat to
monitor all the activities.
The Drivers to IBS Adoption
In Malaysia, the influx of foreign workers is a big issue for the construction industry. Malaysia has attracted a huge
number of foreign workers into the country to take up employment on site as unskilled labour doing manual jobs. Total
foreign workers rose from 4% of total employment in year 1990 to about 10.7% in 1997 and 9% in year 2001. As at
July 2004, there are about 1.3 million registered foreign workers, constituting 12% of total employment in the country
(Hamid et al. 2008). According to Construction Industry Development Board (CIDB) Malaysia, 69% (552,000) out of
total 800,000 of registered workers as at June 2007 is foreign workers (ibid). Foreign workers are usually unskilled
when they first arrived in Malaysia and this impacted the productivity and the quality of the construction industry. The
social problems associated with foreign workers, further aggravates the situation (ibid). The local workforce and new
graduates were reluctant to join the industry due to the 3-D syndrome (dirty, difficult, and dangerous) which has been
long associated with the industry (ibid). The availability of manual labours especially the abundant and cheap workers
coming from neighbouring countries has sustained this type of practice and making IBS very unpopular. CIDB’s report
stated that only 15 % of construction projects used IBS in Malaysia in the year 2003 (CIDB, 2003b) and only 10% of
the complete projects used IBS in the year 2006 (Hamid et al., 2008). In addition, less than one - third of total
construction projects (using at least one IBS product) in year 2006 had been reported in IBS Mid Term Review (ibid) as
compared to forecasting IBS project of 50 % in 2006 and 70% in year 2008 as projected by the IBS Roadmap (CIDB,
2003). In a survey in 2005, the majority of the architects claimed to have relatively poor knowledge in IBS (66%).
The Government Initiatives to Promote IBS
The following is the key events of IBS promotion and initiatives taken by the government:
• Through the ‘2005 Budget’ announcement back in September 2004, the government had pledged to construct
100,000 units of affordable houses using IBS. In addition, all new government building projects were required to
have at least 50% IBS content which had been calculated through the IBS Score Manual developed by CIDB
(CIDB, 2007).
• The Construction Industry Master Plan 2006-2015 (CIMP, 2006-2015) had been published in December 2006 as
means to chart the future direction of the Malaysian construction industry. The effort to promote IBS is
highlighted under Strategic Thrust 5: Innovate through RandD to adopt a new construction method (CIDB,
2007b).
• Beginning from 2007 onwards, new incentives for IBS adopter has been introduced. The exemption of the levy
(CIDB levy - 0.125 % of total cost of the project according to Article 520) on contractors that used some kind of
IBS in 50% of the building components has been commenced since 1st January 2007 (Hamid et al., 2008).
• In early 2007, IBS Centre had been established in Cheras to promote IBS in Malaysia and also to play the role of
consultant. The centre is equipped with IBS showhouse and Research and Development (R&D) capacity.
Construction Research Institute of Malaysia (CREAM) was initiated to manage IBS research.
• The new circular of ‘Surat Pekeliling Perbendaharaan Bil. 7 Tahun 2008’ dated on October 2008 had
emphasized on the full utilization of IBS for government’s projects in Malaysia. Among the pressing matters
raised in the circular were the use of IBS component in government projects must not be less than 70% and the
inclusion of IBS component as part of contract documents for all building works. As in February 2009, 320
government projects worth RM 9.43 billion had been carried out using the IBS technology (Bernama, 2009).
• The government would establish a new policy to reduce 50% of current 320,000 foreign workers registered with
the sectors. CIDB had allocated RM 100 million to train skilled workers among locals on IBS and other methods
(Bernama, 2009).
LESSON LEARNED SO FAR
• The move towards industrialisation of construction industry is a global phenomenon and not a local or isolated
initiative. The perspective in UK and Malaysian construction industry will provide some ground for
benchmarking and technology transfer exercise in the future. Malaysia can learn much from UK’s experience in
term of promotion and initiatives and vice versa.
• The introduction of Modern Method of Construction (MMC) and offsite in UK is a response to a shortage
demand of housing and to improve overall construction performance. In Malaysia, IBS has been introduced to
cope with influx of foreign labour and to improve the image of the industry which firmly associated with 3D
syndrome (Dirty, Dangerous and Difficult). In comparison, the adoption of IBS in Malaysia is better structured
and centralised with the establishment of IBS Roadmap 2003-2010. A lukewarm response from the private
sector in Malaysia, however, has forced CIDB to evaluate the accuracy of the problem statements, assumptions
and the timeline of the roadmap.
• The role of the government funded project is vital to ‘kick-start’ IBS adoption. The implementation of MMC in
Housing Corporation and English Partnership’s projects has created a ‘spill-out effect’ to the industry. In
Malaysia, the government has emphasised on the utilization of IBS component in its government projects. This
will spur more investment on component’s manufacturing and create opportunities for small and medium sized
contractors to be IBS installer.
• There is a consensus of opinion that, the promotion of MMC in UK is based on the needs for a quality and
affordable housing. MMC is not highlighted in national policy but it is just as a tool to achieve a vision in
affordable housing. Regardless of the method, the main objective of the government initiatives is to promote best
practice in construction. This will incorporate both modern and traditional method of construction. Promoting
MMC in combination with traditional approaches will help ensure widespread utilisation. IBS and MMC should
not be seen as a threat to traditional methods. Both methods should be able to work in tandem and improve their
processes collectively. The sharing of best practice between the two approaches is essential for the continued
successful development of both construction sectors.
• In Malaysia, however, IBS has been portrayed by the government as a ‘silver bullet’ for all problems in
construction. CIDB’s levy exemption was introduced as an incentive to IBS adopter but not to the best practice
contractor. While the readiness level of the industry is questionable, the construction industry is forced on ‘make
or break’ decision to adopt IBS. IBS should not be seen as an alternative method but rather as a good mainstream
solution, where the contractors have the ability to choose the best option between IBS and traditional or hybrid
that suits the unique characteristics of every projects.
• The failure of IBS to penetrate the market is due to a misconception that it will eventually replace the traditional
sector, while it actually should work closely in tandem to promote best practice in construction. IBS requires
fresh thinking and ‘blue ocean’ strategy to capture new demand, create new market space and offer customers a
leap in value. The blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet
explored.
• Benchmarking the best practice program for MMC and offsite project in UK is worked well under offsite
registration scheme. The scheme has been set up by Buildoffsite, the body that campaigns for the greater uptake
of offsite, in association with Lloyd's Register to standardise and ensure best practice across all aspects of the
offsite process, from the submission of tenders through the awarding of contracts to the specification, design,
manufacture, construction, handover and even the ongoing maintenance of a completed building. By choosing a
supplier registered under the scheme, client organisations can be confident of the assured levels of competence,
methodology and safe working from companies that have standardised the best practice for the delivery of their
products and services. The approach focuses on the way the products and services are delivered rather than
laying down standards for the products and services themselves. This provides the flexibility to cover a wide
range of different approaches whilst still setting a benchmark for best practice.
• As compared to the UK, Malaysia needs to formulate better platform to encourage private sector’s participation
on IBS promotion. Buildoffsite and Housing Forum are well supported cross-industry bodies in the UK, where
the captains of the industry have played prominent roles to promote IBS. Both bodies are promoting IBS in two-
way communication to facilitate the adoption. Although, CIDB and IBS Centre have been established to play the
promoter’s role for IBS in Malaysia, they have been seen by practitioners as authority bodies to implement
government’s policies rather than a facilitator. Perhaps, the IBS Centre should be privatised in the future to solve
the problem. For instant, the delay of Modular Coordination (MC) from the inclusion in Uniform Building by
Law (UBBL) is possibly due to the misconception and failure for the promoting body to understand in depth
each and every problem faced by practitioners and local authorities. The practitioners and the approving bodies
both agrees that they are still not ready for MC while CIDB has work for MC inclusion in UBBL for a long time.
So, the two-way communication is imperative.
• The public housing scheme in UK (Housing Corporation) is under the same ministry department with the
promoter (The Constructing Excellence and Housing Forum), thus giving them the opportunity to promote and
implement IBS at same time. However, in Malaysia, both effort in promoting and implementing (in the form of
local housing project) are under two different ministerial administrations. It resulting a difficulties in
coordinating efforts especially in implementing IBS Roadmap’s recommendations. The government has been
seen by the practitioners, failed to implement what they preach when the majority of public housing projects in
Malaysia were still using the conventional method.
CONCLUSION
Although the different terms are used in both countries, the fundamental idea is to move some construction effort away
from on-site to the manufacturing floor. The benefits of IBS are numerous and far reaching. Reduced construction time,
better site management, reduced wastage are but a few of these benefits which will ultimately produce better products
for the customer. In general, both governments are very supportive to the idea of IBS. Modern Method of Construction
(MMC) in UK has been introduced to cope with the issues of affordable housing and in Malaysia IBS is critical to deal
with influx of foreign workers in the industry. This paper discussed initiatives to promote a greater use of IBS in
Malaysia and UK construction industry.
This paper recommended more ‘kick start’ project to be launch that will provide a ‘spill out effect’ to the industry.
The new policy to use of IBS component in government projects must not be less than 70% is very interesting to watch
according to local and international observers. If the implementation is successful, it will re-launch the full adoption of
IBS in this country but if the result is otherwise, it will be devastating to manufacturers and installers. The
implementation could be difficult in some ways and some project can be in delay and fail if they are not incorporate
with IBS principal. Shifting to IBS seems to be an uphill task since the construction stakeholders in the country have
been exposed and trained in conventional building system for decades. As such, many factors and variables should be
taken on board; practitioner’s readiness, manufacture continuity, escalation of material prices and current economic
condition. The quality and performance of projects under the government’s supervision should not affect in negative
way by the introduction of IBS. Most important, we should avoid another Gong Badak’s stadium disaster, this time due
to readiness and lack of trained professional in IBS.
On the other hand, the promotion of IBS should be in tandem and complement with traditional method. IBS should
be promoted in ‘Blue Ocean’ and not become threat to traditional build. CIDB and IBS Centre should find way to
encourage more private sectors’ participation in IBS promotion activities. The Buildoffsite’s promotion and Lloyd
Registration Scheme in UK can be a good example to follow. The IBS Roadmap spanned eight years from 2003 until
2010 and Malaysia is now at the brink of the final years of its implementation. Although the administration
infrastructures are well in place, the market has yet to embrace the technology as seen by the lukewarm response on the
ground. Perhaps, Malaysia has to look and learn from other countries to be successful. This paper has provided some
perspectives on IBS in both UK and Malaysia, and provided some ground for future benchmarking and technology
transfer exercise.
REFERENCES
Baker, K. (2004) Review of Housing Supply: Delivering Stability: Securing our Future Housing Needs HMSO, London
Barker 33 Group (2006) Modern Method of Construction Barker 33 Cross Industry Group, London 6 April 2006
Bernama (2009) Shift to IBS Technology, Abdullah Urges Contractors, 19 March 2009, Agency Berita Nasional
(BERNAMA)
Buildoffsite (2008) Buildoffsite Yearbook 2008, Buildoffsite, London
BURA (2005) Steering and Development Forum Report: MMC Evolution or Revolution, British Urban Regeneration
Association (BURA) Report, London, United Kingdom
Camp R C (1989) Benchmarking -The Search for Industry Best Practices that Lead to Superior Performance, ASQC
Quality Press
CIDB (2003b) IBS Survey 2003 - A Survey on the Usage of Industrialised Building System in Malaysian Construction
Industry, Construction Industry Development Board, Kuala Lumpur
CIDB (2007) IBS Digest at Malbex in IBS Digest, Special Issues on 24th Malaysian International Building Exposition
(Malbex 2007) 19-22 September 2007
CIDB (2007b) Construction Industry Master Plan 2006-2015 Construction Industry Development Board, Kuala Lumpur
Egan, J. (1998) Rethinking Construction in the Egan Report, Department of the Environment, Transport and the
Regions, London
Hamid, Z. A., Kamar, K. A. M., Zain, M. Z. M., Ghani, M. K. and Rahim, A. H. A. (2008) Industrialised Building
System (IBS) in Malaysia: The Current State and RandD Initiatives Malaysian Construction Research Journal
(MCRJ), 2 (1), 1-11.
Hussein, J. (2007) IBS: The Challenges and Way Forward In Construction Industry Research Achievements
International Conference (CIRAIC 2007) (Ed, Hamid, Z. A.) Construction Industry Development Board (CIDB),
Kuala Lumpur April 2007
Kamar, K. A. M., Alshawi, M. and Hamid, Z. A. (2009) Barriers to Industrialised Building System (IBS): The Case of
Malaysia in BuHu 9th International Postgraduate Research Conference (IPGRC) (Eds., Alshawi, M., Ahmed,
V., Egbu, C. and Sutrisna, M.), Salford, United Kingdom, pp. 471-484
Latham, M. (1994) Constructing the Team - final report HMSO, London
NAO (2005) Using modern methods of construction to build homes more quickly and efficiently National Audit Office,
London November 2005
Pan, W., Gibb, A. G. F. and Dainty, A. R. J. (2005) Offsite Modern Methods of Construction in Housebuilding
Perspectives and Practices of Leading UK Housebuilders In Buildoffsite Report 2005 Loughborough University,
pp. 14
Pan, W., Gibb, F., A. G. and Dainty, A. R. J. (2008) Leading UK Housebuilders' Utilization of Offsite Construction
Methods Building Research and Information, 36 (1), 56 — 67.
Peng, L. W., Kadir, M. R. A., Jaafar, M. S. and Salit, M. S. (2003) The Experience of Malaysia and Other Countries in
IBS In Proceedings in International Conference on IBSs, Construction Industry Development Board, Kuala
Lumpur 10-11 September 2003
POSTNOTE (2003) Modern Method of House Building In POSTNOTE Number 209, Parliamentary Office of Science
and Technology, London, United Kingdom
Coordination (MC) in Malaysia Construction Industry in Engineers (Board of Engineer Malaysia) March 2003
Thanoon, W. A., Peng, L. W., Kadir, M. R. A., Jaafar, M. S. and Salit, M. S. (2003) The Essential Characteristics of
Industrialised Building System in International Conference on Industrialised Building System Construction
Industry Development Board (CIDB) Malaysia, Kuala Lumpur, Malaysia, 10-11 September 2003
The Housing Forum (2002) Homing in on excellence - A commentary on the use of offsite fabrication (OSF) methods
for the UK housebuilding industry The Housing Forum, London 1-79
Vanables, T., Barlow, J. and Gann, D. (2004) Manufacturing Excellence: UK capacity in offsite manufacturing In The
Housing Forum Constructing Excellence, London
6
EXPLORING THE LEVEL OF KNOWLEDGE IN IBS SYSTEM AMONG
THE CONTRACTOR IN PENANG
Siti Hafizan Hassan, Nadira Ahzahar, Janidah Eman, Mohamad Zain Hashim
Faculty of Civil Engineering, Universiti Teknologi MARA Pulau Pinang
ct_hassan@yahoo.com
INTRODUCTION
IBS is not new in Malaysian construction industry. Significantly, the usage of prefabricated, composite construction
method and cast-in situ are the examples of IBS. But the usage and implementation of IBS in Malaysia is still low
compare to the conventional construction method.
IBS should be accepted as alternatives to labour-based and conventional approach construction since it can give a lot
of benefit to construction industry especially in Malaysia. By implementation of IBS, the construction communities are
assured of low site workers required due to minimal construction work. Other benefit of IBS are the quality of end
products also can be controlled, timber formworks can be reduce or eliminate and the completion of construction
projects will be faster compare to the conventional approach system. The term IBS is often misinterpreting as a systems
that limited for the construction of buildings only. In fact, IBS is the system that cover all types of structures such as
bridge and drainage because the word ‘buildings’ is termed as or related to ‘constructing’. The definition of IBS that
used by Construction Industry Development Board Malaysia (CIDB) is the construction systems in which components
are manufactured in factory, positioned and assembled into a structure with minimal additional site works (IBS, 2003).
The concept of IBS is not new and it was started since 1624 when panellized timber houses were transported from
England to North America. The Industrial Revolution of the 1700s provided the construction industry with
technological increase. The construction of the first cast iron bridge in England known as Iron Bridge revolutionized the
way structures were built). Then, various superb iron-based structures were constructed including Eiffel Tower in Paris.
The race to build tall structures began through the development of steel and other materials. In fact, steel frames are
often combined with pre-cast panels in building tall structures (IBS, 2003).
The desired of prefabrications and industrialised production are rapidly increased due to housing shortages after
Second World War. The natural populations of city and industrial centres are growth in addition of large scale of
migration. Because of that situation, prefabrication and industrialised production become the only solution for
reconstruction at the higher construction speed (Trikha and Ali, 2004) Malaysia, the flats build along the Jalan
Pekeliling, Kuala Lumpur and Jalan Rifle Range, Penang become the early building using pre-cast concrete elements to
build these high rise low cost flats in 1966. Following these pilot projects, Perbadanan Kemajuan Negeri Selangor
imported pre-cast concrete technology from Germany and built numerous housing projects ranging from low cost
houses to high cost bungalows. These successful projects followed by the rapid creation of numerous beautiful and
quality structures including Bukit Jalil Sports Complex, Petronas Twin Towers, Light Rail Transit (LRT) and tunnels
(IBS, 2003).
From the study done by Trikha and Ali (2004) the features and attributes of a building system to be accepted as an
IBS must have the as following:
• Prefabricated elements; a building system is accepted as an IBS when its primary elements are prefabricated
either completely or partially through mechanized processes.
• Minimal in-situ construction; in IBS, the elements and components have to be connected to build structural
envelope but in-situ construction work such as concreting or welding should be kept minimal by simplifying
details of connection.
• Standardization; elements and components in IBS should be standardised and it is essential distinguishing
features of IBS.
• Speed construction; most of IBS claim saving in the completion time to the extent of seventy five percent as
compared to conventional systems. An IBS must lead to speedier construction.
• Labour saving; since IBS minimal the construction works, it is significant reduce the requirement of labour for
prefabrication and erection of elements at site.
Advantages and Disadvantages of IBS
The quality, speed of construction, and cost saving are the main emphases given in the building construction industry in
Malaysia. These factors are very important ones from the points of view of the Seventh Malaysia Plan in terms of the
very large number of buildings envisaged. The savings in labour cost and the savings in material cost are also the major
advantages of the Malaysian IBS. The control in using materials, such as steel, sand, and timber, will result in
substantial savings on the overall cost of the project (Badir et al. 2002). Besides reduced dependency on labour, the
simplified construction solutions also offer better control of quality, increased productivity and faster completion, less
wastage, neater and safer construction sites and cleaner environment; which lead to a lower total construction cost.
RESEARCH METHODOLOGY
Questionnaires
Data was collected through questionnaires given to the project participants at the selected project site. The
questionnaire was constructed based on the review of literature. Nine questions that related to the IBS characteristics
and the benefit of using IBS were chosen to get information from the selected contractors. The entire questionnaire was
distributed to the selected respondent in Pulau Pinang. All the respondents were approached at the construction site
within Pulau Pinang. A total of 35 respondents gave their response. The questionnaires were distributed to the Project
Engineer and Site Engineer in the contractor company (G5).
Ordinal Scale
Measurements with ordinal scales are ordered in the sense that higher numbers represent higher values. When items are
classified according to whether they have more or less of a characteristic, the scale used is referred to as an ordinal scale.
The main characteristic of the ordinal scale is that the categories have a logical or ordered relationship to each other.
These types of scale permit the measurement of degrees of difference, but not the specific amount of difference. This
means that data can be interpreted in term of differences in the distance along the scale. Example of the ordinal scales
that is used in the questionnaire for this research is:
(1 = Not agree, 2 = Less agree, 3 = Considering agree, 4 = Agree, 5 = Strongly agree)
Data Analysis and Presentation
Because the data that is obtained from the field survey is in the form of an ordinal scale, it will be analysed based on the
mean response of respondents so that the data can be categorized among the ordinal scale of the mean response. The
result and findings will be presented in the scale of 1 to 5 and a summary table which will indicate the categories and
ranking of the mean response. The ranking will compare the factor from the most preferable factor to the least
preferable factor.
RESULT AND DISCUSSION
From the survey that has been done, it shows that 42.9% of respondent agreed on the CIDB (2003) definition on IBS
(Table 1). And remaining of them are considering agree (51.4%) and less agree (5.7%) on that definition. From the
result, it shows that most of the contractor in Penang aware of the IBS system, but in term of implementation it will
takes some time for them to change from the traditional method to the IBS.
Table 1. Definition of IBS

Cumulative Percent
Frequency Percent Valid Percent (%) (%)
Less agree 2 5.7 5.7 5.7
Considering agree 18 51.4 51.4 57.1
Agree 8 22.9 22.9 80.0
Strongly agree 7 20.0 20.0 100.0
Total 35 100.0 100.0
Table 2 indicates 17.1% of respondent strongly agree that IBS system must have prefabricated element either partially
or completely through mechanized process. Results also shown that 34.3% agree, 40% considering agree and 8.6% of
them less agree on that particular feature. This may be due to uncertainty and confusion on the type of IBS used in
Malaysia. According to CIDB, types of IBS classification are as follows:
Type 1: Pre-cast Concrete Framing, Panel and Box Systems
Type 2: Steel Formwork Systems
Type 3: Steel Framing Systems
Type 4: Prefabricated Timber Framing Systems
Type 5: Block work Systems
Table 2. IBS System must have Prefabricated Elements

Cumulative Percent
Less agree 3 8.6 8.6 8.6
Agree 12 34.3 34.3 82.9
Total 35 100.0 100.0
In IBS system, in-situ construction work should be kept minimal by simplifying details of connection. Table 3 shows
11.4% of respondents strongly agreed that in-situ construction works in IBS systems should be kept minimized, and
31.4% respond as agree, 51.4% is considering agree and 5.7% is less agree.
Table 3. Minimal In-situ Construction Work

Cumulative Percent
Less agree 2 5.7 5.7 5.7
Agree 11 31.4 31.4 88.6
Total 35 100.0 100.0
Standardization also is one of the features of IBS. Standardization is IBS essential features compare to the conventional
method of construction. Table 4 shows 11.4% of respondents were strongly agree on standardization as IBS feature,
57.1% of them agree, 28.6% is considering agree and the rest is less agree.
Table 4. Standardisation
Cumulative Percent
Less agree 1 2.9 2.9 2.9
Agree 20 57.1 57.1 88.6
Total 35 100.0 100.0
The study also found that the respondent opinion on environmental friendly features is as follows; 11.4% were strongly
agreed, 51.4% were agreed, 25.7% considering agreed, 8.6% is less agreed and 2.9% of them not agreed at all (Table 5).
Table 5. Environmental Friendly

Cumulative Percent
Not agree 1 2.9 2.9 2.9
Less agree 3 8.6 8.6 11.4
Agree 18 51.4 51.4 88.6
Total 35 100.0 100.0
Table 6 shows that 25.7% of respondent strongly agree on labour saving features in IBS. IBS system use only skilled
and semiskilled labour and the role of unskilled labour totally eliminated. That simple concept was agreed by 48.6% of
respondents, 17.1% of them considering agree and 8.6% it is less agree. Azman et al. (2008) indicate that respondents
agree that IBS is perceived easy to use. Respondents agree that the installation of IBS components will require fewer
workforces.
Table 6. Labour Saving
Cumulative Percent
Less agree 3 8.6 8.6 8.6
Agree 17 48.6 48.6 74.3
Total 35 100.0 100.0
Involvement of Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM) systems in design and
manufacturing of IBSs components were respond as strongly agree by 20% of respondents as shown in Table 7. Results
also show that 22.9% is agree, 51.4% is considering agree and 5.7% of respondent were less agreed.
Table 7. Modern Design and Manufacturing Method

Cumulative Percent
Less agree 2 5.7 5.7 5.7
Agree 8 22.9 22.9 80.0
Total 35 100.0 100.0
Systematic quality control is one of important characteristics of IBS. Table 8 indicates 22.9% of respondent strongly
agreed on that IBS characteristic, 37.1% were agreed, 31.4% was considering agreed and 8.6% was less agreed.
Table 8. Systematic Quality Control

Cumulative Percent
Less agree 3 8.6 8.6 8.6
Agree 13 37.1 37.1 77.1
Total 35 100.0 100.0
Table 9 shows the highest percentage of IBS advantages is good quality control with 48.6 % of respondents agreed that
IBS systems can lead good quality control in their project. The lowest percentage is reduce used of heavy machine.
Only 5.7% of respondents agreed on that particular advantage. The quality, speed of construction, and cost saving are
the main emphases given in the building construction industry in Malaysia. These factors are very important from the
points of view of the Seventh Malaysia Plan in terms of the very large number of buildings envisaged. The savings in
labour and material costs are also the major advantages of the IBS. The control in using materials, such as steel, sand,
and timber, will result in substantial savings on the overall cost of the project (Badir et al., 2002).
Table 9. Ranking the IBS Advantages Correspondents

Advantage of IBS Percentage
Good quality control 48.6
Faster completion 31.4
Easy installation 31.4
Reduce time 28.6
Higher quality 28.6
Provide safer site 20.0
Reduce labour cost 14.3
Reduce material cost 14.3
Potential of transfer management and technical skills 14.3
Reduce used of heavy machine 5.7
CONCLUSION
The respondent’s background and experience was investigated and analysed in this study. Most of respondents are site
engineer and project engineer and most of them have 4-10 years experienced in industries. Most of respondent are
having 4-10 years experience. Based on the questionnaire and statistical analysis carried out in this study, respondents
agree and aware of IBS in terms of definition, features and concepts of IBS. In term of the application of IBS as the
future system in Penang construction, the contractor G5 is not ready yet. Hence, the enforcement by the government in
using the IBS element are seen as the vital method in encourages them towards IBS construction in Malaysia.
REFERENCES
Azman, M.N A., Majid, T.A., Zakaria, S.A.S. and Zaini, S.S.(2008), ‘The Industrialised Building System (IBS) Survey
Report 2008- Educating the Malaysian Construction Industry’, Second International Conference on Computer
Research and Development, 615-619
Badir, Y.F., Kadir, M.R.A., and Hashim, A.H., (2002) Industrialised Building Systems construction in Malaysia. J.
Architectural Engineering, 8(1), 19-23.
Muhd Rahim, Salihuddin Hassim and Mohd Razali Abdul Kadir (2002), A Survey on Construction Cost Comparison
Between Conventional and Industrial Building System for Housing Project, Department of Civil Engineering,
UPM, Serdang, Selangor.
IBS, (2003). Survey on the Usage of Industrial Building System in Malaysian Industry, IBS Survey 2003, Construction
Industry Development Board (CIDB).
Trikha, D.N. and Ali, A.A.A. (2004), Industrialised Building Systems, Universiti Putra Malaysia Press Construction
Industry Development Board (CIDB).
7
A STUDY ON THE TREND OF THE USE OF IBS COMPONENTS AND THE
SETTING UP OF IBS MANUFACTURING FACTORIES IN THE
MALAYSIAN CONSTRUCTION INDUSTRY
School of Civil Engineering, Universiti Sains Malaysia1,
School of Housing, Building and Planning, Universiti Sains Malaysia2.
INTRODUCTION
Appropriate technology and global standardization has changed the past practices of the construction industry. This has
affected the land resources, social environment and local skills to cater for the demand on various types of homes. In
order to meet this demand the local authority must have precise and detailed knowledge of the needs of the lower
income group to build affordable homes. There is a need to accelerate the development of construction industry and to
ensure that the level of productivity of the construction industry is raised; thereby the need to import the construction
technology from overseas especially from the United States of America (USA), the United Kingdom (UK) and
Australia as reported by Badir et al. (2002) and Hashim et al. (2009). Sometimes the advanced technology does not suit
with the local condition on factors pertaining to the environment; level of workers’ skills knowledge and competence;
venerable resources and competent manufacturer to fabricate the mass production as well as high-quality products.
Affordable homes are becoming a vital issue to meet the demand with an increasing population growth. Sebestyen
(1998) claimed that one-third of the building constructed is for residential and one-fifth to one-third of gross fixed
investments was made on residential construction, which is the largest sub-sector. With the industrializing of
construction sector, houses can be produced in mass production. The Industrialisation is also characterised by modern
design methods that use scientific knowledge on structures, building physics, fire, and computer technology (Abdul-
Aziz, 1994). Low cost houses in Malaysia can be classified into three (3) categories as shown in Table 1 (SPNB, 2010).
Table 2 shows three (3) categories of hardcore poor, poor and vulnerable poor of households’ position by states. An
analysis on the three categories of the total poor households shows that 229,723 may have difficulty to buy low cost
house. The vulnerable poor households may be able to own an affordable house if both parents are working.
The government has encouraged the construction industry to move towards IBS (IBS) which can produce high
volume of houses at affordable cost especially low-cost houses. Government agencies such as Jabatan Kerja Raya (JKR)
and Construction Industry Development Board (CIDB); and researchers have played vital roles to educate the main
players of the construction industry in the form of policies, financial incentives, strategy guidelines, workshops and
seminars to increase the awareness among the end users and clients. Industrialisation of high rise residential building
components is critical to competitiveness and has become a new trend in order to solve the housing problem and meet
the demand for affordable homes especially in big cities with limited space for development area. Almost all major
cities in Asia, residential buildings are characterised with high-rise and high density (Niu, 2004). According to Barlow
(1999), there is a need to explore the new methods, techniques and ways of working to deliver affordable houses. As
reported by Doherty et al. (2008), the homeless phenomena generate the transition of ‘planned’ city to the ‘post
industrial’ city. Thus the construction players have responded to this crisis by adopting prefabrication and by building a
more uniform product (IBSD, 2005).
Table 1. Categorization of Low Cost Houses

(SPNB, 2010)
Type of House Floor area (ft2) Price (Peninsular) Price (Sabah & Sarawak)
Low cost 700 From RM35,000 From RM 50,000
Medium low cost 750 From RM50,000 From RM 70,000
Medium cost 800 & above From RM80,000 From RM100,000
Table 2. Poor Households Position by States (As at 30 September 2009)
(MOF, 2009)
State Hardcore Poor1 Poor2 Vulnerable Poor3 Total
Johor 1,502 2,542 5,555 9,599
Kedah 2,228 3,827 6,384 12,712
Kelantan 4,108 7,719 13,718 25,807
Melaka 474 1,157 2,925 4,556
Negeri Sembilan 394 801 3,408 4,618
Pahang 973 1,859 5,766 8,628
Perak 2,099 4,324 7,434 14,107
Perlis 439 1,225 3,290 5,129
Pulau Pinang 645 1,922 8,240 10,817
Sabah 18,295 15,746 13,820 47,862
Sarawak 12,537 14,528 18,740 45,805
Selangor 1,261 2,554 6,210 10,025
Terengganu 4,377 9,322 14,194 28,015
F.T. Kuala Lumpur 126 271 860 1,257
F.T. Labuan 61 206 514 781
F.T. Putrajaya 0 0 5 5
Total 49,519 68,003 111,063 229,723
Poverty Income line
1
Household with monthly income below RM430 in Peninsular Malaysia and below RM540 in Sabah and Labuan as well as
RM520 for Sarawak.
2
Household with monthly income below RM720 in Peninsular Malaysia and below RM960 in Sabah and Labuan as well as
RM830 for Sarawak.
3
Household with monthly income above the Poverty Income Line and below RM1,500 in urban areas and RM1,000 in rural
areas
The Malaysian construction industry is undergoing a paradigm shift from using conventional technology to a more
systematic and mechanized system that utilizes the latest information and communication technology. IBS has become
a vital component in the industry to move towards global competition and update the new industrial trend. The
advantages of using IBS in construction works are the reduction of unskilled workers, using optimum site materials,
reducing environmental problems, maintaining the purity of construction sites and better quality control. Other added
values of using the IBS in construction works is that the task becomes more organized and completion time of
construction is reduced.
Even though, Malaysia is moving towards mass production of building components through IBSs technology, but
still faces constraint in terms of allocation for resources and material for site construction. IBS manufacturer plants are
also finding ways to achieve a state where machines have high efficient ability and are able to perform repetitive tasks
using standardised components. The government had enforced rules that require the construction industry to use IBS
components. However, the problem is that there are few IBS manufacturing plants in Northern Peninsular Malaysia,
Western Peninsular Malaysia, Sarawak and Sabah. This paper aims to analyze the trend of IBS manufacturing plants in
Malaysia and identify the main factors for setting up the best practice of IBS manufacturers in terms of appropriate
technology in order to enhance the construction speed, quality and mass volume.
METHODOLOGY
The design of the pilot survey is a vital procedure to enhance the validity and reliability of the survey instrument. The
respondents of the pilot survey will help to strengthen the content, scope, question structure and response scales. The
approach used in the study was by interviews. The semi structured interviews were set based on the literature review
from Oppenheim (1992), Naoum (1998) and Fellows and Liu, 2008. Qualitative approach is applied in the research,
where the use of interview technique could generate a deeper depth of the research field but the scope covered is
restricted to the knowledge and experience of those involved only. The key person involved in the interviews are four
from the IBS manufacturing players, two academician and one from the government agency.
THE TREND OF IBS
The main function of the IBS is to create synergy, by generating partners in the industry to assist in training, giving
exposure on use of IBS techniques, encouraging the setting up of new IBS factories locally, updating on the latest
technology, and enhancing current issues on IBS in the local state and international level (CIDB, 2003). The
conventional construction method consists of extensive cast in situ activities being widely used and the huge quantities
of unwanted materials cause difficult in controlling wastage in construction sites. Therefore, the prefabrication method
using IBS is being widely used in European countries, Japan and Singapore as well as Malaysia (Tam et al., 2007).
Through the Industrialisation of the construction industry, huge amount of work is shifted offsite, resulting in less
labour is used on site, efficient use of materials and less wastage; and a tidier and cleaner construction sites (IBS, 2003).
The IBS components can be divided into a few categories and has undergone several changes following the new
trend of technology. Table 3 describes the trend of IBS since the early 60’s until 2009. The evolution of IBS
categorization relate with the expansion of IBS manufacturing. Table 4 shows the number of IBS manufacturing in
2009. The data sourced from CIDB shows that all the IBS manufactures registered with the CIDB list companies
involved in IBS. The current total number of IBS manufacturer in Malaysia is 102. In recent years, there are suppliers
and manufacturers who are among the 21 which were actively involved in the dissemination of IBS in Malaysia (Badir
et al., 2002). Majority of the IBS originated from the United States, Germany and Australia has a market share of 25%,
17% and 17% respectively. Malaysia produced about 12% of the IBS systems (Kadir et al., 2005). The growth of IBS
has increased almost five times as reported by Azman et al. (2009). The highest number of IBS manufacturers can be
found in the area of Selangor (49) followed by Kuala Lumpur (26) and Terengganu (5). Pulau Pinang, Melaka and
Sabah is in the fifth place and each has three IBS manufacturers. Perlis, Kedah and WP Labuan do not have any IBS
manufacturer and this contribute to the reluctance of the contractors to use the IBS method due to the increase in
transportation cost and miscellaneous cost. Similarly, the state of Pahang, Kelantan and Perak are still in the initial state
to explore the use of IBS. Meanwhile Melaka and Negeri Sembilan have no problem to source the IBS components
from the other states namely Selangor and Kuala Lumpur. The tremendous amount of emphasis for building
construction activities has met the expected outcome of the Eighth Malaysia Plan. Yet, the government still requires an
additional of 100,000 units of affordable homes to use IBS (IBSD, 2005).
Table 3. Categorisation of IBS Component

(Azman et al., 2009)
IBS Introduced (year) Categorization of IBS IBS Component
Early 60’s Badir et al. (2002) i. Frame System
ii. Panel System
iii. Box System
Early 90’s Badir and Razali Full prefabricated construction on site and off site:
(1998) i. Precast concrete framing, panel and box systems
ii. Load bearing block
iii. Sandwich panel
iv. Steel frame
2003 CIDB (2003) i. Pre-cast concrete framing, panel and box systems
ii. Formworks systems
iii. Steel framing systems
iv. Prefabricated timber framing systems
v. Block work systems
Table 4 shows the number of IBS manufacturers grouped according to the classification. The highest number of IBS
manufacturers are in the metal framing systems category (i.e 24 numbers) followed by precast concrete and timber
framing manufacturers with 21 and 16 manufacturers respectively. The lowest number of IBS manufacturer is block
work systems (with 9 manufacturers). In the analysis, it was found that metal framing systems have become more
popular compared to the precast concrete due to the time frame, cost effectiveness and quality impact of the completion
project. The technology and expertise in the IBS construction industry have move forward to the fast-track lane. For
future research work, it will be useful to study the demand of IBS components for each classification and to forecast the
future expansion of the Malaysian construction industry.
Table 4. The Number of IBS Manufacturers in 2009
(Orange Book, 2009)
Metal
Precast Formwork Timber On Site Blockwork
State Panel Framing Total
Concrete Systems Framing Manufacture Systems
Systems
Perlis 0 0 0 0 0 0 0 0
Kedah 0 0 0 0 0 0 0 0
Penang 0 0 0 0 0 2 1 3
Perak 1 0 0 0 0 1 0 2
Selangor 6 7 9 9 5 11 2 49
WP
K.Lumpur 6 2 2 4 5 5 2 26
N. Sembilan 1 0 0 0 0 0 0 1
Melaka 2 0 0 1 0 0 0 3
Johor 1 0 1 0 0 2 0 4
Pahang 1 0 0 0 0 0 1 2
Terengganu 1 0 0 2 0 0 2 5
Kelantan 0 0 0 0 0 1 0 1
Sabah 0 1 0 0 0 1 1 3
WP Labuan 0 0 0 0 0 0 0 0
Sarawak 2 0 0 0 0 1 0 3
Total 21 10 12 16 10 24 9 102
THE SETUP OF IBS MANUFACTURING FACTORIES AS AN INDUSTRIALISATION SOLUTION
Historically, the construction industry in Malaysia consists of various processes, involving many parties and different
stages of work. It involves the participation of various parties from various sectors in order to ensure the efficiency of
the construction work carried out. According to Bannet and Grice (1990), the conventional construction approach, is
based on the rigid separation of design and construction. The design team prepares detailed drawings, specification and
Bill of Quantities. The tender documents are prepared and the contract will be awarded to the successful
tendered/contractor. The contractor will then manage the construction projects by using the subcontractors. According
to Alaghbari et al. (2007) research on the main factors causing the delay in construction in Malaysia are as follows:
• Financial difficulty, being the most influencing factor causing the delay in construction projects in Malaysia
usually faced by the subcontractors and labourers /workers;
• Delay in the delivery of materials due to poor coordination and weak site management and, as a consequence,
construction errors due to the site and coordination problem were the subsequent factors causing delay in the
construction projects in Malaysia.
Although, Malaysia had initiated the usage of IBS since the 60’s, the response from the construction industry to
overcome the delay in construction projects as mentioned by Alaghbari et al. (2007) by using IBS was poor. The
response from the construction industry changed when the government enforced the ruling in 2008, where use of a
minimum of 70% IBS in government projects will received 50 percent levy from the government. The IBS’s Report
(2008) also indicates that the awareness of the construction industry on IBS knowledge and its application increased
between 2003 and 2008. The scenario of construction industry in Malaysia has changed by the implementation of the
IBS technology initiated by the Construction Industry Development Board (CIDB) Malaysia. Prefabrication (IBS) has
been successfully employed in the manufacturing of houses and multi-story industrial buildings (Ngowi et al., 2004).
The Industrialisation may eliminate various processes and gives focus on the four main IBS players consisting of the
client, designer, manufacturer and contractor as shown in Figure 1. The best concepts regarding the centralization of the
construction industry to achieve the international standard requirement should have three main fields in one company;
the designer, manufacturer and contractor. They are able to control the quality of work and ensure cost effectiveness.
The location of the manufacturer is important in order to make the critical decision on fixed investment of the best site
selection (Eddie and Heng, 2004). On the selection of manufacturer location, the problems may involve a different set
of criteria or objectives. According to Owen and Daskin (1998) on the site selection mathematical models; static and
deterministic models have five basic purposes which focus on:
• How to minimise the average distance travelled
• How to achieve maximum coverage,
• How to determine a centre that can maximum coverage and minimise the distance travelled
• How to deal with multiple objectives and;
• How to locate undesirable location.
The models is a good guide for the future site selection conditions under two core uncertainty situations; planning
with known model input parameter and planning imperfect information of input parameter (Eddie and Heng, 2004).
Furthermore, for the advanced industrialised construction industry, its development has been classified into three (3)
generation of industrialisation (Ismail, 2006), as shown in Figure 2.
Figure 1. Successful IBS Players
Figure 2. Three Generation of Industrialisation (Ismail, 2006).
From the qualitative survey, the main factors identified for the setting up IBS manufacturers are as follows:
• Appropriate technology
• Open manufacturing plant
• Transportation of IBS components and erection
• Design and build
• Skilled workers
Appropriate Technology
The appropriate IBS technology to be use for the construction industry in Malaysia is the hybridization technology
which is a combination of the small partial conventional method and the mechanization technology. It also reflects the
latest IBS classification, which is the innovative product system (IBS info, 2010). According to Sebestyen (1998), the
usage of mechanisation such as mobile concrete mixers and tower crane provided the best solution for high rise
residential buildings in France and Denmark as well as Hong Kong. Kamar, et al. (2009) mentioned that classification
of IBS should be expanded to cater the scope of volumetric (modular) and hybrid construction. IBS is not to be seen as
a threat to traditional methods. Both methods should be able to work in tandem and improve their processes collectively.
The sharing of best practice between the two approaches is essential for the continued successful development of both
construction sectors. Currently the most popular type of manufacturing in Malaysia is off-site which is a significant
distance from the site. Offsite construction however, is remote from the building site prior to installation in their
manufactured or assembled form. Thus the offsite can be divided into pre-assembly and on-site assembly. The relation
is best shown in Figure 3 (Kamar et al., 2009).
Figure 3. IBS and Other Terms to Describe Industrialisation in the Method of Construction
(Kamar et al., 2009)
Open Manufacturing Plant
Countries like Malaysia, with a tropical climate and temperature ranging from 22 -35 C, has an advantage in
applying the Open Manufacturing Plant. The types of IBS manufacturing system available in Malaysia are the Open
Manufacturing System and Closed Manufacturing Plant System. The Open Manufacturing System is factories that do
not have a building but possess heavy machineries, workers, place to locate raw material and an office. The
conventional manufacturing systems have workers, capital and plant. The uniqueness of the Open Manufacturing
System for the precast concrete system is its ability to obtain the natural curing concrete with a minimum grade of 30 in
a 24 hours’ delivery period and much suited to the tropical climate. The conventional construction works in Malaysia
apply a normal concrete grade of 25. This procedure could not be applied in the IBS system because the concrete grade
of 25 requires 48 hours of curing time before the precast component can be lifted and erected. Otherwise the precast
component - may break upon lifting. The machine used by the IBS manufacturer is two 10 tonnes mobile cranes and
one batching plant concrete. There are two main production systems focusing on IBS components consisting of linear or
skeleton system, and planar or panel system. While the three dimensional or box system is excluded due to low demand,
the panel system can be joined to form a box system to save cost on the mould. The Open Manufacturing system saves
cost by 10 times compared to the normal factory system based on the interview with the IBS manufacturers.
Transportation of IBS Components and Erection
The significant value for each component of IBS precast concrete should not exceed more than 7 tonnes to ensure that
the crane can easily erect and transport the material to the site. In Malaysia it is difficult to find heavy duty crane. The
limitation radius of transporting IBS components to site is 50km. Meanwhile, the study by Warszawski (1999) on the
suitable distance from the new potential development area to the fabrication plant should be the distance with a variance
from 50km to 100km.
Apart from the effective distance to transport the IBS component to the site, it is also important to have the precast
concrete in partial sizes where can be ‘plug and play’ to become large scale precast concrete. The main reason why the
IBS manufacturer chooses to produce partial size of precast concrete is to enhance the effectiveness of erection, easy
transportation to the site construction and save cost on hiring the appropriate crane. Figure 4 shows the IBS system
sequence of works.
Figure 4. IBS System Sequence of Works
Design and Build
Figure 5 shows the construction project delivery by using the IBS system. The best practice tender award is design and
build using the IBS system. The Design and Build method would be able to control the whole project flow especially
during the construction period with less change in the design stage. The design-build still produce the conventional
method of drawing, and the IBS drawing will be produced while the earth-work and pilling section were conducted on
site. Under the IBS method, the M&E drawings need to be inserted in the early stages. The process requires
consultation with client to finalize the design. The effectiveness of the IBS drawing helps to eliminate the redundant
work in conventional works especially in the superstructure stage. In normal situation, even in design-build contract
using conventional method of construction, there are construction adjustment need to be done during the substructure
and superstructure of construction stage. This process delays the milestone project and incurred increment of the project
cost. In contrast to IBS drawing system, once the concrete have been put to cast based on the final drawing, it is not
viable to make any more adjustment except if the client agree with the additional cost imposed for the extra renovation
work. That is why design and prefabrication need to be accurate at the IBS drawing design stage. The piling and the
substructure work need to have a good setup and precise panel marking to avoid the displacement of structure when the
component structured are installed. Basically the substructure of the project will used conventional method due to the
limited repetition mould usage. It is also the best time to prepare the fabrication mould for the superstructure which uses
highly repetitive mould.
Design- Earth
Build work
Pilling
Substructure
Design IBS Shop Fabrication Superstructure

Drawing + M&E Mould
Construction Period Erection

IBS Manufacturing
Figure 5. Construction Project Delivery Using IBS System
Construction Workers
As reported by Nadim and Goulding (2009); Blismas and Wakefield (2008); and Pan et al. (2007), the construction
industry in UK and Australia are facing prominent shortage of skilled workers especially in the remote areas and high
growth capital cities. Associated with the difficult situation, the traditional tradesmen also find difficulty to fulfill the
requirement for higher onsite precision and to deal with the low tolerance of the tasks. The same situation also
happened in Malaysia where the construction industry players foresee the need to train the unskilled workers to skilled
workers to fulfill the demand. Although Malaysia can easily attract foreign workers to work here, but due to the huge
number of foreign workers working in Malaysia affecting the employment opportunities for the locals. By using the
IBS method, Malaysia was able to reduce the number of foreign workers in 2006 by 4% as shown in Table 4 and to
educate the industry that with the appropriate use of technology and systematic work, the use of IBS can gain the same
productivity but with better outcome.
Table 4. Percentage of Foreign Workers to Total Construction Workforce
(MOF,2005)
Item 2003 2004 2005 2006
Local Workforce 224,877 272,053 334,704 309,528
Foreign Worker 231,184 265,925 264,853 281,780
Total 456,061 537,978 599,557 591,308
Percentage of Foreign Worker 51% 49% 48% 44%
CONCLUSION
The trend or change in the pattern of the IBS industry has gone through a few transitions from the conventional method
to the hybridization stages. The government has introduced the IBS in the 60s but the response from the industry was
poor as mentioned in IBS survey (2005); and the dramatic transformation in the use of IBS in 2008 only occurred after
the government enforced the use of IBS in the construction industry for the government projects. The metal framing
system is the most popularly use IBS in the construction industry based on the statistical analysis and also verification
from the IBS survey 2003 and IBS survey 2008. The government needs to be responsive to this phenomenal change and
provide more capital investment for automation and robotics technology in order to make Malaysia ahead in the
transformation of the IBS construction industry. In addition, Slaunghter (1997) have done the analysis based on the
research on 85 construction works using automation and robotics technology in Japan, European, US, Australia and
Israel. The research examined the trend in the development of construction technologies and the attributes of the
technologies that usually requires a higher degree of customisation through the manipulation of standardised materials
into nonstandard sizes or other adjustments. The flexibility to meet the unique requirements for each construction
structure is achieved by modifying the standardised materials rather than producing other sizes through multi task
machines.
Although technology is vital to accelerate the development of a country but it required the appropriate technology as
one of the major factor in setting up IBS manufacturing, based on the qualitative survey. The other factors are open
manufacturing plant which is more mobile and easy to move to the nearest project. The major component of the IBS
manufacturing is still mobile to move to potential development area. The IBS manufacturing also need to have the
capabilities to transport the IBS component economically, with breaking the size into part as well as having good skills
in erecting the IBS components. Even though, the IBS players have the ability to run the practicality onsite, but they are
also required to convert the conventional drawing to IBS drawing which is among the major challenge in using the IBS
system. The best approach is to have the full control onsite by using the design and builds approach of tender award.
Malaysia has a lot of foreign workers and managed to reduce the number of unskilled workers. Skilled workers are
important in the IBS industry to ensure better precision works.
In conclusion, the IBS technology must be affordable to the construction industry especially for the small
contractors; to reduce the knowledge gap between the designer and contractor to apply it under the Malaysian condition;
ability to suit to the climatic condition in Malaysia which is heavy rain and hot weather; the concern of maintenance
cost; and future research should be continued to educate IBS players.
ACKNOWLEDGMENT
The authors wish to thank the Universiti Sains Malaysia (USM), IBS Centre and Construction Research Institute of
Malaysia (CREAM) for supporting the Industrialisation Building System (IBS) research.
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8
CONCEPTUAL SPATIAL SITE SELECTION FOR ONE STOP CENTRE
FOR IBS MANUFACTURING PLANT IN PULAU PINANG
School of Civil Engineering, Universiti Sains Malaysia1
School of Housing, Building and Planning, Universiti Sains Malaysia2
INTRODUCTION
The IBS was introduced by the Housing and Local Government in 1964 after referring to several European countries.
The outcome of IBS method in the European countries gives good quality control production and effective mass
production. The government carried out two pilot projects in 1966. The first project was the Tunku Abdul Rahman Flats
located in Kuala Lumpur consisting of 3000 units of flats with 40 storeys. The project used the Danish System using
large panel industrialized prefabricated system. The second project was the Rifle Range Road Flats located in Penang
comprised of 3699 units of flat and 66 shop lots along the Rifle Range Road (Kadir et al., 2005; IBS, 2005). The
previous Seventh Malaysia Plan (1996-2000) has targeted 800,000 units of houses but only 20% was achieved (Ismail,
2001). The population in Malaysia is increasing and the government has to fulfill the demand for housing facility
programs to be builds such as offices, schools, shopping centers, hospitals, etc (Badir et al., 2002). This demand can be
met by means of the advance technology used in the Industrialize Building System (IBS). In the early 90’s the
government gave good indication on the use of IBS massively in government project especially in the housing sector as
indicated in the Eighth Malaysia Plan (2001-2005). It has targeted to build 600,000 to 800,000 houses.
The growth of development project in Malaysia has to take some time to complete (Waleed et al. 1997). It was
estimated that a housing project can be completed on the average of one house per year per worker (1
house/year/worker). Friedman and Cammelleri, (1993) discovered that the cost of labor has increased up to 30%
compared to 10% a few years ago. Likewise, the required quality cannot be achieved because of the poor quality control
at the site construction and the waste of using the conventional method for construction work. This has contributed to
pollution problems to the environment in the form of air and water pollution, and construction waste. In order to
overcome the present problems, the mass production of housing under high quality control is required.
IBS ADVANTAGES AND SUPPORT
The main function of the IBS is to create synergy, by generating partners in the industry to assist in training, giving
exposure on use of IBS techniques, encouraging the setting up of new IBS factories locally, updating on the latest
technology, and enhancing current issues on IBS in the local state and international level (CIDB, 2003). The Malaysian
construction industry is undergoing a paradigm shift from using conventional technology to a more systematic and
mechanized system that utilizes the latest information and communication technology. IBS has become vital component
in the industry to move towards global competition and update the new industrial trend. The advantages of using IBS in
construction works are the reduction of unskilled workers, using optimum site materials, reducing environmental
problems, maintaining the purity of construction sites and better quality control. Other added values of using the IBS in
construction works is that the task becomes more organized and completion time of construction is reduced.
The IBS component can be divided into a few categories and has undergone several changes in following the new
trend of technology. Table 1 described the trend of IBS since the early 60’s until 2009:
Table 1. Categorisation of IBS Component
No IBS Introduce in Categorisation of IBS IBS Component

1 Early 60’s Badir et al. (2002) i. Frame System
ii. Panel System
iii. Box System
2 Early 90’s Badir and Razali (1998) Full prefabricated construction on site and off site:
i. Precast concrete framing, panel and box systems
ii. Load bearing block
iii. Sandwich panel
iv. Steel frame
3 2003 CIDB (2003) i. Pre-cast concrete framing, panel and box systems
ii. Formworks systems
iii. Steel framing systems
iv. Prefabricated timber framing systems
v. Block work systems
GOVERNMENT SUPPORT
The government has introduced new incentives to encourage the contractor to use the IBS method whereby the
government will exempt levy from the contractor for project, which uses 50% of IBS components. (CIDB, 2008) This is
a positive step to encourage change from the conventional method to modern method. The contractor needs to take into
account the cost of transportation, fabrication of IBS components, factory installation and manpower expertise required
for implementation of the project. An issue that need to be tackled is regarding the expected demand for IBS
components and transportation of the IBS components to the construction work sites particularly in the Northern region
(Pulau Pinang, Kedah and Perlis), Western region (Kelantan, Terengganu and Pahang) and Borneo region (Sabah and
Sarawak) of Malaysia.
Effective for 1st September 2008, the Public Works Department of Malaysia require contractors to use a minimum of
70% IBS method for procurement of government tender projects with a total of RM6.9 billion (CIDB, 2008). The
enforcement of the use of IBS method augurs well for the future development of the country with focus given on the use
of the latest technology and giving opportunity to the contractors to acquire knowledge of IBS involved with the
government tender project. This phenomenon will take time and the government has begun the training on the use of
IBS methods to the contractor conducted by the Construction Industry Development Board (CIDB) agency.
Not all government projects need to use the IBS method as there is still some weakness in the system to deliver the
IBS component to the construction site as stated in the government circular letter. The government circular letter has
given the exception for the contractor to use the IBS method as stated below (Treasury, 2008):
• For project, value below RM10 million are exempted from using the IBS method with the permission of JKR.
• For project situated inland where it is difficult to transport the IBS component
• Renovation works on the existing building and not involved with the new construction building
The most developed areas in Malaysia are Selangor, Kuala Lumpur, Pulau Pinang, Johor and Perak. These states
have a high number of IBS manufacturers. The data source from CIDB shows the list of companies manufacturing IBS
registered with CIDB as shown in Table 2.
The highest number of IBS manufacturer can be found in the area of Selangor (36) followed by Kuala Lumpur (23)
and Johor (4). Pulau Pinang is in fouth place with two metal framing system IBS manufacturer and one blockwork
system IBS manufacturer. Perlis, Kedah and Kelantan do not have any IBS manufacturer and this contribute to the
reluctance of the contractors to use IBS due to the increase in transportation cost and miscellaneous cost. Similarly, the
state of Pahang, Terengganu, Sabah and Sarawak are still in the intial state of exploring the use of IBS. Meanwhile
Melaka and Negeri Sembilan have no problem to source the IBS components from the neighbouring states of Selangor
and Kuala Lumpur.
In future, if we can identify the suitable location for IBS one stop manufacture centre in Pulau Pinang, this will
enable the contractor to change from using the traditional method to modern method and Pulau Pinang could be the
centre for the Nothern region requirement for Peninsular Malaysia.
Table 2. The Number of IBS Manufacture 2009
Manufacture
Manufacture
Type
Blockwork
Formwork
Total IBS
State
Concrete
Framing
Framing
Systems
Systems
Systems
On Site
Timber
Precast
Metal
Panel
Perlis 0 0 0 0 0 0 0 0
Kedah 0 0 0 0 0 0 0 0
Pulau Pinang 0 0 0 0 0 2 1 3
Perak 1 0 0 0 0 0 0 1
Selangor 6 3 6 9 2 9 1 36
Kuala Lumpur 4 2 2 4 4 5 2 23
N. Sembilan 1 0 0 0 0 0 0 1
Melaka 1 0 0 1 0 0 0 2
Johor 1 0 1 0 0 2 0 4
Pahang 0 0 0 0 0 0 1 1
Terengganu 0 0 0 1 0 0 0 1
Kelantan 0 0 0 0 0 0 0 0
Sabah 0 0 0 0 0 1 0 1
Sarawak 1 0 0 0 0 1 0 2
Total 15 5 9 15 6 20 5 75
The current total number of IBS manufacturer in Malaysia is 75. In recent years, there are 21 suppliers and
manufacturers, which were actively involved in the dissemination of IBS in Malaysia (Badir et al., 2002). The majority
of IBS originated from the United States, Germany and Australia, with a market share of 25%, 17% and 17%
respectively. Malaysia produced about 12% of the IBS systems (Kadir et al., 2005). The growth of IBS has increased
almost three times as reported by Badir et al. (2002). The Five-Year Plan under the Eighth Malaysia Plan gave a
tremendous amount of emphasis on building construction activities. Yet, the government has an additional 100,000
units of affordable homes to use the IBS method (IBS, 2005).
Figure 1 below extracted from Table 1, shows the number of IBS according to the classification groups. The
highest number of IBS manufacturers is the metal framing systems (20) category followed by precast concrete and
timber framing manufacturers with each having 15 manufacturers, respectively. The lowest number of IBS
manufacturers are the panel and block work systems (5 for each category). This research will be useful to study the
demand of IBS components for each classification and to forecast the future expansion of Malaysia’s construction
industry. In the analysis it was found that metal framing systems have become more popular compared to the precast
concrete due to the time frame, cost effectiveness and quality impact of the completion project. The technology and the
growth expertise in the industry have moved forward to fast track the construction work phenomena.
Figure 1. The Number of IBS Classification Component

GIS SUITABILITY MODEL FOR IBS ONE STOP CENTER
The main purpose of this study is to carry out Geographical Information System (GIS) spatial site selection to identify
potential locations for IBS One Stop Centre in Pulau Pinang taking into account the needs for IBS classification
component in the industry. This research will identify several factors which has direct impact on the site selection of a
new IBS location. Literatures have shown that optimal site selection using GIS is successfully being performed to
determine various site location problems. Mohammad (2009) applied optimum site selection to locate new hospital in
the urban area of Tehran by combining GIS analysis with the Fuzzy Analytical Hierarchy Process (FAHP). Eddie and
Heng (2005) used the GIS approach to find the new location of shopping mall in Hong Kong by deriving four criteria
viz. (1) minimum distance, (2) maximum demands coverage, (3) maximum incomes coverage, and (4) optimal center.
Various other research works has applied geographical information systems (GIS) to solve or support spatial reasoning
problems in different contexts, such as locating convenience stores and other facilities, site selection, screening
potential landfill sites, supplier selection and local park planning (Mohammad, 2009). The possibility of using GIS in
identifying potential location for IBS One Stop Center can be clearly seen. A similar approach will be used where the
GIS-based land-use suitability modeling is applied. It has commonly applied to urban/regional/environment planning
and management applications (Jacek, 2004). The study will concentrate on the scope of land-use suitability with respect
to information science perspective and social science perspective.
The use of land-use suitability modeling with regards to the objective of the research has been achieved in previous
research done by McHarg (1969), Hopkins (1977), Brail and Klosterman (2001) and Collins et al. (2001). Cova and
Church (2000) as mentioned in Jacek (2004) found two different context of land suitability analysis, i.e. the distinctions
between the site selection problem and the site search problem. The goal of the site selection is to identify the most
suitable site for some activity given the set of potential sites. The first step involves the need to define the parameter
analysis spatial layer, such as size, location, distance and potential area. Then the next step is to rank or rate the
alternative sites based on the parameter given and ensure the boundary spatial layer to explicit the best site for
allocation. The explicit site search analysis helps to determine the site suitability and define the spatial characteristics
(shape, contiguity, and/or compactness) as according to Diamond and Wright (1988), Brookes (1997), Cova and
Church (2000), Aerts (2002) and Xiao et al. (2002) in Jacek (2004).
The proposed land-use suitability model will generate potential sites for the IBS One Stop Center based on several
criterion factor for example, road and rail road characteristic, proximity from the new potential development area,
population census, proximity from the existing infrastructure, and topography.
The justification made for the road railroads proximity characteristic has been mentioned by Cheng and Connor
(1994). The research was to identify the potential area for the construction site layout. The Arcsite GIS software was
integrated with database management systems (DBMNSs), which are able to identify the suitable areas to locate
temporary facilities. Meanwhile, the study by Warszawski (1999) on the suitable distance from the new potential
development area to the fabrication plant should be the distance with a variance from 50km to 100km. The conceptual
spatial site selection parameter for the IBS One Stop Center is described in Figure 2.
Selection Parameter Data Layer Suitable Areas Spatial Model
Site must be on the roads that
1. Lanes ≥ 2
2. Width ≥ 7m
3. Traffic condition is medium or Buffer
high
Site must be within 50-100km of

potential area for new construction Buffer
works
Intersect
Site must be have medium or high
population
Buffer
Site must be no closer than 10m to

the railroads
Buffer
Land-use must be
1. New development area
2. Open Space
3. Accessibility is easy to access Buffer
Figure 2. Spatial Site Selection for the IBS One Stop Center
The proposed study will incorporate the population census data in the site selection criteria. This is required to
identify the total people per square kilometer (people/km2) in each sub catchment area of Pulau Pinang that are divided
into five district viz. Timur Laut (TL), Barat Daya (BD), Seberang Perai Utara (SPU), Seberang Perai Tengah (SPT)
and Seberang Perai Selatan (SPS). Table 3 summarises the density population district in Pulau Pinang for the year 1980,
1991 and 2000.
Table 3. The Density Population District in Pulau Pinang in the Year of 1980, 1991 and 2000
District Total Population Density Population (per km2)
Area (km2)
1980 1991 2000 1990 1991 2000
TL 391,400 395,714 444,923 131.49 2,977 3,009 3,410
BD 76,390 122,764 169,442 168.17 454 730 1,008
SPU 199,449 224,647 259,823 261.54 763 859 993
SPT 161,975 236,270 313,607 237.99 681 993 1,318
SPS 71,558 84,771 125,654 240.19 298 353 523
Pulau Pinang 900,772 1,064,116 1,313,449 1,039.38 867 1,024 1,264
(Source: Department of Framework Malaysia, 2002)
The GIS map in Figure 3 shows the data of density population of Pulau Pinang for the year 2000 which consist of
five districts namely Timur Laut (TL), Barat Daya (BD), Seberang Perai Utara (SPU), Seberang Perai Tengah (SPT)
and Seberang Perai Selatan (SPS). The GIS data also shows the road map, rural building and rail track.
Figure 3. GIS Data of Pulau Pinang

IBS: Multi Usage
Holdings Berhad
IBS: Tong Yong Sdn Bhd
IBS: Visage Industries Sdn Bhd
Existing Development Area
POTENTIAL AREA FOR DEVELOPMENT
Potential Area for Re-development
Area Committed for Development but Not Develop Fully

Potential Area for Development Situated Out Side the Development Corridor
Suggested Re-Use Land
POTENTIAL AREA FOR RESERVATION AND RECLAIMATION

Permanent Agriculture Area
Agriculture Area
Paddy Field
Forest
Mangrove Forest
Figure 4. The Potential area for Development in Pulau Pinang

Source: The studies structure planning state of Pulau Pinang 2005-2020
Figure 4 described the potential area for future development in Pulau Pinang based on the structure planning from 2005
– 2020. The map also shows the location of three existing IBS manufacturer in Pulau Pinang:-
• IBS blockwork system: Multi Usage Holdings Berhad located in Weld Quay, Barat Daya (BD).
• IBS metal framing system: Tong Yong Sdn Bhd located in Bukit Minyak, Seberang Perai Selatan (SPS).
• IBS blockwork system: Visage Industries Sdn Bhd located in Bukit Minyak, Seberang Perai Selatan (SPS).
The potential area for development which as in Figure 4 can be divided into four categories, namely:-
• Potential area for development
• Area committed for development but not develop fully
• Potential area for development situated outside the development corridor
• Suggested re-use land
The potential area for the development has 11 shaded areas as shown in Figure 4. A detail study will be carried on
the relevant factor and reasons why the area was chosen by the Department of Planning Development. There will be
series of interview session with the authority and preparation on the set of quantitative analysis survey on the site
selected for potential development area in Pulau Pinang. The outcome of the study will give strong justification and the
model derived will be used for studying other potential area.
CONCLUSION
Geographical Information System (GIS) can be a computer aided tool to analyse the results with more accessible
information, visualization of data, higher quality of data and established procedures for repetitive analyses. This
research will also establish and determine the physical and social factors for IBS One Stop Center. It will definitely help
in manufacturing new location and knowing the flow of transporting IBS component from IBS manufacturer to the site
construction. The research finding will benefit the government or private sector in fulfilling the demand of IBS
component where the number of IBS manufacture in Northern Peninsular, West Peninsular and Borneo region are still
few.
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9
UNDERSTANDING THE MANAGEMENT AND INTEGRATION OF
SUPPLY CHAIN CONCEPTS: DRIVING MALAYSIA’S CONSTRUCTION
PROJECTS THROUGH IBS
Ani Saifuza Abd. Shukor , Mohammad Fadhil Mohammad, Rohana Mahbub and Faridah Ismail
Graduate Centre Department, Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA (UiTM)
asaswan74@yahoo.com
INTRODUCTION
In recent years, the Malaysian industrialised building system (IBS) has been challenged to achieve supply chain
integration to enhance the performance delivery of construction projects. At the same time, the supply chain
management (SCM) concept has been recognised as a tool for achieving better integration amongst the construction
players. Thus, in the scenario of competitive business trends, managing and integrating the supply chain has received
increasing interest in delivering a successful construction project. However, understanding SCM has become a major
hindrance in a developing country such as Malaysia. Various interpretations of the concept of SCM can make it quite
challenging for organizations to achieve and support the entire SCM approach. Great confusion also arises because
SCM is viewed from a number of perspectives for several reasons. To improve the management and integration of
supply chain, understanding SCM is very important. The current research conducts a thorough review of recent
literature on the philosophy and concepts of SCM and its application in a number of selected sectors. It likewise
presents the results of a questionnaire survey on the understanding and purpose of SCM. To realise the importance of
the implementation of the SCM concept, literature review offers an analysis of the various definitions of SCM adopted
by different sectors and attempts to relate it to the IBS construction industry’s concept and approach. The questionnaire
survey is adopted to underpin the variables for understanding SCM and its purpose from the IBS players’ standpoint.
We highly recommend evaluating the development of SCM definitions and concepts because it will partly influence the
establishment of a suitable definition and understanding of SCM within the construction industry. In turn, it will benefit
both the academia and the Malaysian IBS construction project delivery.
DEFINITIONS AND CONCEPT OF MANAGEMENT AND INTEGRATION OF THE SUPPLY CHAIN
Fragmented and disconnected IBS construction supply chains are the leading causes of low performance and
productivity in the construction industry. These issues are attributed to the industry’s involvement in a variety of
separate and interdependent parties in the entire process. In the new global economy, the management and integration of
supply chain has become a central issue to enhance project delivery performance. Several studies have defined the
supply chain (SC) and emphasised the linkages of organizations or activities to demand and supply flows that are
supported and accomplished by people (Christopher, 1992; Mabert and Venkataramanan, 1998; Trent, 2004;
Samaranayake, 2005; Simchi–Levi et al. 2007).
Numerous studies have also attempted to explain SC and its management. In the earlier period, a large and growing
body of literature investigated the definition and scope of supply chain management (SCM) across the industry. In the
context of logistics, much debate about the distinction between logistics and SCM has emerged. Research done by
Lambert and Cooper (2000) shows that a big part of the academia and most industry players’ view of SCM is not
considerably different from the contemporary understanding of logistics management. In another study, Varma (2006)
found that SCM and logistics are frequently used interchangeably. However, the view of logistics has been
reconceptualised and modified by the Council of Logistics Management in 1998, stating that logistics management is
only a part of SCM. Further associated studies by London (2004) have also illustrated that SCM is more than simply
logistics. Varma (2006) expressed the same argument, citing the SCM definitions from nine books and journal articles,
which consider SCM as having a larger scope than logistics.
In the context of purchasing organizations, the Institute for Supply Management (2000) defines SCM as the
identification and management of specific supply chains that are critical to a purchasing organization’s operation; in
addition, purchasing personnel may view SCM as a strategy for managing suppliers (Giunipero et al. 1996). However,
the Unionist perceives purchasing as part of SCM, which also indicates SCM as a complete substitute for purchasing
(Larson and Halldorsson, 2002). As the definitions reach a wider scope, Christopher (1998) views SCM as the
management of upstream and downstream relationships with suppliers and customers to deliver superior customer value
at low cost to the supply chain. Similarly, Lambert and Cooper (2000) define SCM as the management of multiple
relationships across the supply chain, and Harland (1996) describes SCM as the management of supply relationships.
These perspectives on SCM are more concerned with ‘relationship management’.
Furthermore, one of the contentious issues in SC literature is the difficulty in defining the boundaries of the supply
chain concept, given the huge variety of interpretations (London, 2004). For example, Mentzer et al. (2001) classified
SCM into three categories, whereas Harland (2001) grouped SCM’s use into four categories and described a four-stage
supply chain classification that outlines the four main uses of SCM. London (2004) further characterised SCM into four
major themes (Table 1).
Literature proposes several techniques for implementing SCM. To deal with these challenges, those SCM categories
have given an idea of viewing the direction and coordination concepts of SCM. Therefore, to achieve the output and
enhance performance, the complexity and relationship of the chains are very important. The complexity of SC may vary
significantly from organisation to organisation and from one activity to another. In general, SCM as the management
and coordination of the optimised supply chain, and by fulfilling its preconditions and goals, should involve all
stakeholders, including the ultimate customer (Vrijhoef, 1998; Mentzer et al. 2001; Trent, 2004).
SCM represents a new way of managing the business and relationships with other members of the supply chain. The
key word and basic principle of SCM is ‘integration’. Over the years, SCM has been recognised as an approach through
which such integration can be reached. Thus, in reference to all the above-mentioned definitions, the management and
integration of supply chains is vital to the process of delivering a product or service. Therefore, to tackle the scenario of
disconnected IBS supply chains, Malaysia needs to establish an appropriate and agreeable meaning of SCM among the
supply chain players to develop a common understanding, values, and concepts, and, ultimately, to accomplish the
missions and goals of IBS project delivery successfully
Table 1. Categories and Dimensions of Supply Chain Management

(Mentzer et al. 2001 and Harland, 1996)
Mentzer et i) SCM as a Management Philosophy

al.( 2001) As a management philosophy, SCM drives supply chain members to customer
classified SCM orientation. They also stressed that management philosophy should have the following
into three characteristics:
categories. a) A system approach to view the SC as a whole, and to manage the total flow of
goods inventory from the supplier to the ultimate customer.
b) A strategic orientation towards cooperative efforts to synchronise and converge
intra - and inter - firm operational and strategic capabilities into a unified
whole; and
c) A customer focuses to create unique and individualised sources of customer
value, leading to customer satisfaction.
ii) SCM as a Set of Activities to Implement a Management Philosophy
In adopting the SCM philosophy, firms must establish management practices that permit
them to act or behave consistently with the philosophy. A set of activities is necessary to
carry out the philosophy. In this context, the philosophy of SCM turns into SCM
implementation. SCM activities include: integrated behaviour, mutually sharing
information, mutually sharing risks and rewards, cooperation, the same goal and the
same focus on serving customers, integration of process and partners to build and
maintain long-term relationship.
iii) SCM as a Set of Management Processes
A process is a specific ordering of work activities across time and place, with a
beginning, an end, clearly identified inputs and outputs, and a structure for action
(Cooper et al. 1997)
Harland (1996), i) The internal SC that integrates business functions involved in the flow of
classified, materials and information from inbound to outbound ends of the business
SCM’s use into ii) The management of dyadic or two - party relationships with immediate
four categories: suppliers
iii) The management of a chain of businesses, including a supplier, a supplier’s
suppliers, a customer and a customer’s customer, and so on
iv) The management of a network of interconnected businesses involved in the
ultimate provision of product and service packages required by end customers.
London (2004) Identified the following four major themes in considering Day’s contribution:
distribution; production; strategic procurement and industrial organization economics.
These themes view the movement and activities of supply chains.
MALAYSIAN INDUSTRIALISED BUILDING SYSTEM
The IBS is widely adopted across the globe. It offers a potential alternative for driving further enhancement in the
construction industry. IBS is a move to transform the construction industry into a purely service industry that deals with
components manufactured in factories. Various research projects have identified the major benefits of IBS (Blismas and
Wakefield, 2009; Blismas et al. 2006; Badir et al. 2002; Gibb, 1999). The use of IBS assures valuable advantages in the
context of the local construction scenario. Two IBS pilot projects in Kuala Lumpur (Tuanku Abdul Rahman Flats) and
Penang (Rifle Range Road Flats) mark the beginning and development of IBS in Malaysia. The introduction of IBS is
one of essential strategies for moving Malaysia’s construction further up the value chain. Thus, with the impact of
globalisation, the utilisation of IBS in the Malaysian construction industry looks forward to change. The Construction
Industry Development Board (CIDB) has taken the initiative by promoting the IBS Roadmap (2003–2010) as the
strategic direction for the industry to shift forward. The IBS Centre has been set up as a one-stop centre to streamline
the Malaysian construction industry toward industrialisation. A series of support and initiatives have been designed to
expedite the vision of the Malaysia construction industry to move forward and enhance the performance of IBS.
However, despite much encouragement, certain construction chain players are still reluctant to get involved in and
implement IBS. In other words, the IBS construction approach is not fully exercised. The usage of IBS is currently
much lower than it could be. The root of the problem has to do with supply chain and procurement challenges (Abd.
Shukor et al. 2009a). These practices are characterised by a difficulty in establishing integration and cooperation
between the parties involved (CIMP, 2007; Faizul, 2006; Rashid, 2009). The innovative management and procurement
in IBS has not yet been fully realised by the industry players, especially in terms of exploring good SCM, in which case,
‘integration’ is the essence of SCM’s basic principle. Chee (2003) and Abd. Shukor et al. (2009b) point out that SCM
remains largely unexplored in Malaysia’s local industry. Therefore, due to the adversarial and fragmented
characteristics of IBS construction supply chains, the Malaysian construction industry should change to pave the way
for improvement. The application and understanding of supply chain integration and its management should be
addressed and understood by all the IBS players to enhance IBS performance.
METHODOLOGY
The present study is based on a literature review and questionnaire survey. The first phase involves an extensive review
of the emergence and development of SCM through definitions, concepts, and issues of cross sectors. In the second
phase, a questionnaire is prepared for the construction industry supply chains (clients, registered Class A/G7
contractors, consultants, suppliers, and manufacturers). Data analyses were undertaken using Statistical Package for
Social Science (SPSS). The descriptive technique was used to analyse the demographic of the respondents; the
frequencies of the respondents are expresses in percentage score. Out of 132 questionnaires distributed, 44 were
completed and returned, representing a 20% response rate. Out of the 44 returned, 27 questionnaires came from those
who engage in and practice IBS. To test the reliability and the appropriateness, the questionnaire was pre-tested by
experts from the industry players and members of the academia who were selected from doctorates of similar and
different specialisations. Their comments and observations were considered to improve the questionnaire. The results
from the analysis of these findings will hopefully make a head-way in establishing a better understanding of SCM and
achieving greater integration within the IBS supply chains.
RESULTS AND DISCUSSION
Construction research that focuses on the supply chain concept is a relatively new field, especially in developing
countries, as the Malaysian construction industry exemplifies. The concept of SCM is eminently known as a
management tool and practice in many industries. The success of SCM techniques is evident in various industries,
including automotive, retailing, food, information technology, and manufacturing (Morledge et al. 2009; McGeorge and
Palmer, 2002). SCM has been practised and implemented in these industries for many years. It has enhanced their
performance and competitiveness (Fearne and Hughes, 2000; Green et al. 2005; Tummala et al. 2006; Lee and
Billington, 1995; Lummus and Vokurka, 1999; Liker, 2005; Davis, 2005).
Findings from the literature illustrate that despite SCM’s various definitions, the same issue emerges (Vrijhoef,
1998). Interestingly, Vrijhoef summed up the many definitions of SCM and addressed the common themes: embracing
an integral perspective across the supply chain; enhancing customer responsiveness; adopting flow management of
materials and information; optimal co-ordination and configuration of the supply chain process; supply chain analysis
and improvement, including the reduction of inventory and costs and rejection of intra- and inter-organisational
boundaries; and achieving partnership arrangement.
To align with the research objective, specific analyses were identified: in reference to the definition and the concepts
of SCM in mainstream management (almost manufacturing), obviously, there is a need for a mechanism through which
these different functions and activities can be integrated. Therefore, from this mainstream management definition, SCM
can be applied in the construction industry scenario, where an effective and efficient industry through integrated
activities and managed supply chain relationship is necessary to ensure project delivery success. However, the
organisation should clearly define the concept before implementing the SCM as a whole. The adoption of the concept
would be inaccurate if it is used without considering the nature and the characteristics of the industry.
The philosophy of SCM has long been seen as a factor in improving the performance of supply chains. However,
despite the popularity of SCM, there remains considerable confusion about its meaning both in the academia and in
practice (Mentzer et al. 2001). Figure 1 demonstrates the respondent’s type of organisation. A total of 26% of the
respondents consisted of contractors; 19% QS consultants; 15% manufacturers; and 7% clients; architects, government,
and engineers each comprised 11% of the respondents. The proportion of the respondents’ positions in the organisation
is shown in Figure 2. The highest percentage (44%) labelled, ‘Others’, represents the executive level, followed by
director (19%), and technical staff (15%); senior manager and project manager each has 11%. Majority of the
respondents are from the top management level and involved in organisational decisions. Thus, the data and views
expressed by the respondents are noteworthy because their position signifies their capacity to provide reliable
information. Pryke (2009) points out the need for a single actor with the authority to deal with all the other actors within
the supply chain to successfully manage any supply chain.
Figure 1. Type of
Organisation
Figure 2. Position in the Organisation
Table 1. Understanding of SCM Terms
Understanding Percent (%)

Integration and coordination among various function and 81
activities
Synchronisation of information, product and funds flow 44
Strategic management of the supply chain relationships 41
Improved customer focus and value 26
Reduction of costs 22
Purchasing and logistics only 11
Others 7
Table 2. Purposes of the SCM Practice
Purpose Percent (%)

Further integrate processes and activities 81
Create greater value 63
Develop longer-term relationships 33
Satisfy customers 30
Implement new system development 30
Achieve a better concept 19
Others 7
Understanding the concept and philosophy of SCM is very crucial in the success of SCM implementation. Table 1
depicts the respondents’ understanding of SCM. Majority of the respondents (81%) understand SCM as the integration
and coordination among various functions and activities. The next highest proportion (44%) recognises SCM as the
synchronisation of information, product, and fund flows. A total of 41% of the respondents acknowledge SCM as the
strategic management of supply chain relationships; 26% indicate that SCM is a way to improve customer focus and
value; and the remaining 22% claim that it is a tool for cost reduction. Purchasing and logistic. Table 2 shows the
purposes of SCM practice. The two most important reasons for practising SCM are the following: to further integrate
processes and activities, and to create greater value. The next three important reasons are to develop longer-term
relationships, to satisfy customers, and to implement new system development.
Based on the survey findings, the main reasons for practising SCM are to integrate processes and activities, and to
create greater value. These reasons are in line with their understanding of SCM. Generally, most of the companies agree
that the concept and implementation of SCM gained from the practice of SCM in the construction process and
implementation will be enhanced and give value for money to their organisations, thus enhancing the productivity and
performance of the IBS construction industry. Moreover, Pryke (2009) noted that the supply chain and its management
are the main focus of creating value for clients, achieving integration of systems, and perhaps even realising improved
profit levels industry-wide. This shows that the main features of SCM in projects that are undertaken in the IBS
Malaysian construction industry are more concerned with ‘integration’. Literature reveals that integration is the essence
of SCM. The positive integration of supply chain has become a major factor in delivering successful construction
projects. Therefore, proactive roles and actions on the establishment of SCM understanding and integration of IBS
supply chains should be viewed as a way to enhance performance. The government should tackle IBS construction
supply chain problems and pursue innovative approaches to realise its overall vision of IBS project delivery success.
Along with these objectives, the construction supply chain management, with emphasis on ‘integration’, must be
viewed as ‘bringing together a series of different organisations consisting of IBS key players (client, designer contractor,
and specialist/manufacturer), which is linked by a flow of practices, information, financial, and contractual relationships.
This is to allow them to work together toward design and construction practices within the context of the project
procurement delivery arrangement approach with the same common goals and objectives’
CONCLUSION
The current study has established the definition and explored the understanding and purpose of SCM. The presented
literature and evidence have shown that the characteristics and the nature of the construction industry supply chain
constitute the main challenge to the implementation of SCM on a wider scale. Future empirical studies should
extensively examine these areas, especially the integration of supply chain players with the procurement process and its
implementation. Finally, the current study is a part of an ongoing main research that will eventually attempt to further
enhance the process and implementation of the supply chain integration in the industrialised building system in
Malaysia’s construction projects. The results of the main research will hopefully provide the basis of a valuable
framework to support the Malaysian Construction Industry Master Plan and strengthen the value chain in the Malaysian
construction industry.
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10
INTEGRATION OF ISSUES AND PROBLEMS OF CONSTRUCTION
SUPPLY CHAIN MANAGEMENT IN IBS
Ani Saifuza Abd. Shukor, Mohammad Fadhil Mohammad, Rohana Mahbub, Faridah Ismail, Faridah Muhammad Halil
Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia.
asaswan74@yahoo.com
INTRODUCTION
The construction industry represents one of the most dynamic and complex industrial environments. The
competitiveness in global market; will eventually contribute positively to the competitiveness of the supply chain. The
challenge for the construction industry is not only in knowing their supply chain tiers but how their supply chains are
taken up as well as managing these chains. In the scenario of globalisation and changing business trends, managing the
entire supply chain has become a major factor in delivering a successful construction project especially in a developing
country such as Malaysia. However, the fragmented and adversarial nature of the construction industry will extensively
influence the performance and the characteristic of construction supply chains. Numerous issues and problems in
construction supply chains should be addressed extensively in order to enhance the productivity. Due to the uniqueness
of the characteristics of construction supply chains which is relatively disconnected and fragmented, there is a need for
a change within the industry to enable improvement to take place.
The application of the supply chain concept into construction is now being advocated as a management strategy to
improve the performance of the industry. Supply Chain Management (SCM) brings the revolutionary philosophies and
approaches to manage the business with sustained competitiveness. The successful of the SCM across industries have
been approved for many years. The successful factors such as the integration process, organization and people
relationship, mutually beneficial, cross-sharing information, customer view, innovation and ICT, product customisation
and performance measurement that emerge from modern manufacturing concepts have seen a number of tremendous
excellent deliveries (Abd Shukor et al., 2009). Therefore, those major innovations are developing to suite in the
construction industry nature to enhance the construction industry performance. This new way of management could be
linked to the Malaysian construction industry current and future trend in view to improve the quality of construction
industry performance which is in line with the Malaysian government’s industrialisation programme called the IBS. The
introduction of the Construction Industry Master Plan (CIMP 2006-2015) and the IBS Road Map (2003-2010) have
been a significant contribution factor and impact to the development of the Malaysian economy. However, it is facing
an uphill task to establish the integration and togetherness between parties in the construction supply chain (Rashid,
2009; CIMP, 2007; Faizul, 2006)
Kamar et al. (2009) in their study had mentioned that one of the most critical factors in establishing the appropriate
framework on the implementation of the IBS construction approach to contractors is known to be implementing the
SCM. However, SCM could not be successfully implemented due to the lack of planning and management of all
activities including procurement, conversion, logistics and coordination project management. Rashid (2009) in his
analysis also mentioned about the problem of incorporating a successful supply chain in the IBS is due to the miss-
match between the design capabilities. The fragmented and adversarial relationship among players involved causes
wasteful delays. Furthermore, among other problems encountered are the lack of planning and the importance of
manufacturer’s involvement at the early design stage. As a whole, the performance and the productivity of the
Malaysian construction industry has been reported to be quite slow and inefficient in comparison to other industries.
Therefore, in order to persuade the construction industry to engage in a more strategic and systematic approaches in
IBS construction, the problems which relate the Malaysian construction industry and the IBS approach must be
addressed and analysed. The purpose of this paper is to discover and highlight major issues and problems within the
construction industry and will attempt to relate these to the problems of the IBS. The key problems of the SCM in
construction industry will also be analysed. The results from the analysis will hopefully make a head way on enhancing
the performance of SCM in the IBS construction particularly in enhancing the integration among the supply chain
stakeholders in IBS construction approach.
CONSTRUCTION INDUSTRY: THE NATURE AND CHARACTERISTICS
The construction industry is one of the major pillars and an engine in the national economy. An analysis of the key
characteristics of the construction industry indicates that the problems facing construction can be categorised into five
broad areas (Morledge et al., 2009)which are; fragmentation, adversarial relationships, project uniqueness, separation of
design and production and competitive tendering. The Egan report identified the fragmentation of the UK construction
industry as the main hindrance of construction industry performance in developed countries. In addition, the weakness
is caused by the increase of organisational complexity and contractual adversity which influence the efficiency and
effectiveness of construction project teams (Dulaimi et al., 2001). Uniqueness, immobility and variety of construction
output from these fragmentations are factors towards low performance and this is partly because of the way demand and
supply systems in construction have traditionally been organised (Vrijhoef and Ridder, 2005; Morledge et al., 2009).
In the construction industry, the lack of continuous work amongst chain players is because of the adversarial attitude
of the construction teams and activities. Thus, the industry had become less transparent and trusting, with marked self-
interested and increasingly moving towards the adversarial culture. The interdependence and interfaces of the
construction industry structures are aggravated by the traditional rigid separation between parties (between client and
contractors; between designers and builders; between contractors and suppliers) (Nicolini et al., 2001). Both integration
and effective collaboration among the main contractors, sub-contractors and the suppliers are difficult to achieve
(Akintoye et al., 2000). Wong et al. (2004) also addressed the problems encountered in Hong Kong that are similar to
those experienced in other countries. The same problems are also experienced in Singapore and Australia (Dulaimi et
al., 2001). Unfortunately, developing countries such as Malaysia is currently facing similar problems. The industry
should change to enable improvement to take place.
The Malaysian construction industry is considered to be an engine of growth in the national economy. The
construction supply chain links within the industry stimulates domestic demand and creates significant effects to the
Malaysian economy. The efficiency and performance of the construction industry is to move forward and to adopt
innovative approaches. Industrialisation in the construction process has always existed and been looked upon as an ideal
solution. In line with the era of globalisation and sustainable construction, the Malaysian construction industry is in a
period of change with the introduction of new technologies, construction processes, methods of construction and
demands for better product, efficiency and effectiveness of projects and services delivery through the introduction of
Construction Industry Master Plan (CIMP 2006-2015) and IBS Road Map (2003-2010). Even though the re-
introduction of the IBS construction method has long being introduced and has promised to solve and improve the
current construction process, these practices have characteristically gain low acceptance among the relevant parties and
is facing a difficult task to establish the cooperation and coordination between the parties involved. In order to be in line
with the research purpose, specific problems were identified in this paper and analysed using the matrix mode.
SUPPLY CHAIN MANAGEMENT (SCM) IN CONSTRUCTION INDUSTRY
SCM is a concept that originated in the manufacturing industry. It was developed in Japan’s number one profitable car
maker known as the Toyota Motors. The secret of Toyota’s success is generally considered to be the “Toyota
Production System”. In materialising this system, Toyota has attached the special importance to “Just in Time” (JIT)
production. According to Shingo (1988), the first signs of SCM were noticeable in the JIT delivery system as part of the
Toyota Production System. JIT system is the backbone of the Toyota production system. It was driven by the need for
fastest time to the market, earlier and fastest fulfilment of orders and lower cost. SCM then spreaded to other
manufacturing industries and has been successfully used in various industries such as food, manufacturing and oil and
gas industries for decades (Morledge et al., 2009). SCM brings the revolutionary philosophy and approach to manage
the business with the sustained competitiveness. It requires adopting a global systems perspective, rather than the
traditional and often shortsighted views of a single stakeholder. In the construction industry, traditional managerial
approaches emphasizes: management of individual projects; separation of design, installation, and operation functions;
uniquely engineered facilities and components; competitive bidding. These practices characteristically fail to capture
the advantages in synergies and leverage that may be obtained by taking a multi-project perspective (Construction
Industry Institute, 2009).
Previous interpretations and concept of SCM have been extensively debated within the research community. Many
definitions have been produced for SCM. Murphy (2008) in his review explained Supply Chain (SC) as a term for the
sourcing, materials handling and logistics processes that a product goes through from manufacturing to selling point,
and beyond. Christopher (1992) defined SC as the network of organisations that are involved through upstream and
downstream linkages, in the different process activities that produce value in the form of products and services in the
hands of the ultimate consumer. In context of the research, following an extensive literature review, Abd Shukor et al.
(2009) defined SCM as “an integrated and collaborated network chains whether upstream or downstream, inter or
intra organization with the same goals and objectives for long term relationship integration”. Based on the above
definition, it is inevitable that SC is vital in the all process of delivering product or services especially in the
coordination and integration of all supply chains networking. Therefore, the concept of SCM and managing SC is very
crucial and important in construction industry. In addition to that, an effective supply chain management within the
construction process involving all parties is necessary to ensure the successful delivery of a project. In the context of the
current Malaysian construction industry works, especially in the IBS; clients, consultant, main contractor, subcontractor
and suppliers need to improve their performance in relation to the procurement process and project delivery through
SCM to stay competitive. All issues and problems pertaining to the process and implementation of the IBS should be
analysed and strategised in order to draw deeper attention among supply chain players in the IBS in order to maintain a
sustainable competitive advantage in the long run.
IBS
Internationally, the industrialisation concept has been recognised as one of the driving factors towards the efficiency
and improvement of construction process. Therefore, industrialisation as experienced by many industries is a
streamlined process that encourages efficiency and economic profit. In order to accomplish the visions of the Malaysian
Construction Industry Master Plan (CIMP), it would be necessary to shift the image, processes and purpose of the
construction industry where necessary as per the paradigm shifts that took place in the Singapore construction industry
(Figure 1). IBS is recognised and believed to be the key to the vehicle for driving further enhancement in the
construction industry. In line with this paradigm, the introduction of IBS hopefully will expedite the CIMP vision and
eventually contribute to the performance of the Malaysian construction industry. Many terms had been used to describe
the real meaning of IBS. According to Warszawski (1999), IBS is a set of interrelated element that act together to
enable the designated performance of the building. Leesing, et al. (2005) defined IBS as an integrated manufacturing
and construction process with well planned organization for efficient management, preparation and control over
resources used, activities and results supported by the used of highly developed components. While CIDB (2003)
defined IBS as the components that are manufactured either in a factory, on or off site, positioned, or assembled into
place with minimal additional site work. Looking at the definitions, IBS emphasises largely on manufactured
components and involves integrated construction process.
IBS has shown potential benefits in increasing efficiency and productivity, not only the pure service provision
process but also the support services. Therefore, to enhance the level of adopting IBS to any approach aimed at creating
industrial structures in the construction industry, it must be looked at not only on the core issues but extended beyond
the overall aspects of management. One of the approaches taken by the Malaysian government to increase the level of
IBS usage is by demanding more IBS approach to be used in the construction industry. This can be seen by referring to
9th Malaysian Plan Report and Treasury Circular, where all public projects must adopt or to contain up to 70% of IBS
construction approach in its projects. Therefore, the establishment of the IBS provision for the process and
implementation framework must take place especially in the integration among construction supply chains, where it is
known to be one of the prominent problems in IBS construction.
3D: Dirty, Demanding, Dangerous 3P Industry: Professional, Productive,

Progressive
Labour intensive industry Knowledge Based Industry
Largely on-site construction process Largely Manufactured components
Low cost through Low wage (Cost Low Cost through High Productivity
Perspective) (Revenue Perspective)
Fragmented &adversarial Integrated & Collaborative
For Domestic consumption Wealth generation/quality Lifestyle
Figure 1. Necessary Paradigm Shifts in the Singaporean Construction Industry

(Dul, 2008; Dulaimi et al., 2001)
RESEARCH METHODOLOGY
The methodology chosen for this research combines literature review and questionnaire survey. The literature search
and review was the first phase of the research where the secondary data comprises relevant books, journals articles,
thesis and dissertation, conference proceedings and reports. It attempts to review and evaluate issues and problems of
SCM within both the construction industry generally and IBS specifically (a matrix between construction industry and
IBS was developed). For the questionnaire survey, the exploratory research method was used for the study, which
involved a quantitative data gathering stage. According to Kumar (2005), ‘exploratory research’ is undertaken with the
objective either to explore an area where little is known or to investigate the possibilities of undertaking a particular
research. Therefore, to explore and understand the current trends and issues within the research area, a small-scale
preliminary study is undertaken to decide whether it is worth carrying out a detailed investigation (Kumar, 2005).This
exploratory study approach also creates the basis for the researchers to conduct an extensive preliminary work to further
describe the situation of SCM scenarios in the Malaysian construction industry. Preliminary Survey was initiated to
discover key problems within the Malaysian construction industry. Before proceeding to the final field work survey, a
pilot study has been carried out by interviewing relevant parties which include respondents who were selected from
doctorate holders of similar as well as different specialization, PhD candidates and industry players to test the relevance
and appropriateness of the questions and to justify the reliability of the measurement scale of each variables.
A seven-page questionnaire, accompanied by a cover letter, was sent to managing directors of selected firms. The
letter indicated the objectives of the research and requested that the questionnaire must be completed by a Senior
Manager/Executive or Manager of the relevant department. The sample of the study was sent to a randomly selected
Clients, Contractors (Registered Class A/G7 Contractors), Consultants, Suppliers and Manufacturers who are also
known as the stakeholders in the construction industry. A total of 132 questionnaires were distributed to construction
practitioners in Malaysia. Out of 132 questionnaires distributed, 29 were completed and returned which represents 22%
in the response rate.
DATA ANALYSIS AND RESULTS
Synthesis and Matrix Analysis
The main research was conducted literally to find out key problems in the construction industry in general and the IBS
in particular. It is important to look at the overall problems in order to focus on important factors or issues that should
be appropriately included and look into in a detail manner during the progress of the research. Through the extensive
literature review conducted, it was found that many writers and authors had explored all the possible factors
contributing to the problems in the industry either in an eclectic or in list form. The Researchers have however,
classified and themed up possible problems into 16 significant themes (Table 1). The number in the box indicates the
ratings of the issues. Supply chain and procurement were found to be the cause of the overall root problem in the
construction industry (Conventional method) and in the IBS in particular. Sustainability, Awareness & Readiness, R&D,
Assessment, Process and Programme and Project Management problems seems to be the primary causes in IBS issues.
In relation to construction methods and standardization, apparently the key problem is meeting the government and
industry needs to adopt innovative approaches and standardization of components in order to enhance their performance
in a competitive global market. Thus, the active involvement and application of the IBS is vital to ensure a successful
delivery and completion of projects. The results have shown that both the industry and the IBS stakeholders need to find
a close working relationship to overcome the problems encountered. The findings also indicate that the supply chain
and procurement were the major root problem in many projects. Therefore, there is an important and relevant need in
carrying out the research on SCM particularly in the context of the IBS. In order to look at the overall results of the
survey, the analysis below will depict the detail problems of SCM in the procurement process.
FINANCE/COST/VAL
STANDARDIZATION
ECONOMIC SCALE
LOGISTICS & SITE

SUSTAINABILITY
CONSTRUCTION
PRODUCTIVITY
SUPPLY CHAIN
&PROCUREMENT
REGULATORY
AWARNESS &
ASSESSMENT
PERCEPTION
MANAGEMENT
NITIATIVES/
/TECHNOLOGY
READINESS
KNOWLEDGE/
CULTURE/
OPERATIONS
METHODS
/DEMAND
QUALITY
PROJECT
SKILLS/
CI PROBLEMS
TRAINING
R&D
UE
IBS PROBLEMS
5
CULTURE/PERCEPTION
3
SKILLS/ KNOWLEDGE/
17 4
TRAINING /TECHNOLOGY
5
FINANCE/COST/VALUE/PRODUCTIVITY
10
5
QUALITY
11
2
ECONOMIC SCALE/DEMAND
2
SUSTAINABILITY
1
AWARNESS & READINESS
3
R&D
6
20
SUPPLY CHAIN &PROCUREMENT
17
PROJECT MANAGEMENT
3
1
STANDARDIZATION
1
INITIATIVES/REGULATORY
7
1
CONSTRUCTION METHOD
ASSESSMENT
2
2
LOGISTICS & SITE OPERATIONS
2
PROCESS & PROGRAMME
Table 1 Construction Industry and IBS Matrix
Survey Analysis
Data analyses were performed using Statistical Package for Social Sciences (SPSS). The descriptive technique was used
to analyse the demographic of the respondents and the frequency of use by the respondents are expressed in percentage
score. Figure 2 illustrates exhibit the percentage of the respondents’ position in the organization. The survey found that
27.6% of the total 29 companies are Director and ‘Others’ respectively, respondents coming from ‘others’ represent
General Manager, Business Development Manager, Chief Designer, Resident Architects and Quantity Surveyors,
Marketing Executive and Quantity Surveyor. The other respondents are Senior Manager and Project Manager with
10.3% respectively. The remaining 24.1% is Technical. Thus, this research can be considered accurate as more than half
of the participants are experienced respondents who have high power authority in decision making processes and
strategy in their organizations. In order to successfully manage any supply chain, we need a single actor with the
authority to deal with all the actors within the supply chain (Pryke, 2009).
As shown in Table 2, the vast majority of the organizations were established companies with more than 10 years of
existence (79.3%) in the Malaysian construction industry, the second highest are companies with between 5 to 10 years
(13.8%) and only 16.7% of the organization were less than 5 years of establishment. This also shows that their
responses were very relevant to the study. As shown in Figure 3, when asked whether SCM has always been carried out
during the procurement process for project within the last 10 years, 44.8% of respondents stated that Strategic
Procurement has always been an issue to their respective companies especially when using the SCM approach. The
remaining 37.9% and 10.3% indicated that Production and Distribution were their main problems respectively.
Figure 2. Respondents Current Position
Figure 3. Issues and Problems in the SCM Organization
Figure 4 illustrates a range of procurement stages that may encounter prominent problems that can make it difficult to
implement the SCM approach successfully. The highest tendency of problems that may occur in SCM is during the
stages where both the Initiation and Construction took place which comprises 41.4%. This is followed by Design
(translation of requirement) 34.5%, Tendering and Funding where both have similar percentage (20.7%) and lastly
Statutory approval (obtaining permission) (13.8%). The range of problems occurred in the stages of ‘Initiation’ were
caused by the failure and misunderstanding of client needs, lack of management and understanding, wrong specification,
changes in requirement and uncommon practices and policy set out by client that discourages the implementation of
SCM. The problems encountered in ‘Construction’ stage on the other hand were communication in terms of flow of
information, conventional mindset, problems in terms of coordination between various works and traders,
subcontractor’s performance and lastly regarding the funding factors where the process of payments were not in order.
Thus, these would directly affect the performance of the SC productivity. The same problems went to the ‘Design’ stage
whereby among the prominent problems encountered were the lack of coordination in design management among
Architects and Engineers.
Figure 4. Areas of SCM Problems in Different Stages of Procurement
The ‘Tendering’ stage encountered problems regarding the limitation of offers approval whereby the process involved
too many paper works while the ‘Funding’ stage predominantly involved budgeting and payment problems especially
from the banking sector. Lastly, the respondents were also faced with problems of obtaining necessary permission
because different authorities implement different guidelines and requirements, thus, this will give affect on the
inefficiency of the process and implementation. Surprisingly, they also mentioned that the lack of understanding on the
IBS processes as one of the problems encountered in the statutory approval. Even though ‘Statutory obligation’ was
rated the least problems but the lack of understanding on IBS processes will tremendously affect the effectiveness,
performance and success of stakeholders in the Malaysian construction industry in adopting the IBS approach which in
at the end of the day, will have an adverse affect on the overall CIMP aims and objectives.
Table 2. Cross-tabulation between Types Organization & Company’s Years Establishment
Company's years of establishment Total

Less than More than
Type of organisation 5 years 5 to 10 years 10 years
Government 0 0 100% 100%
General contractor 0 33.3% 66.7% 100%
Supplier 0 0 100% 100%
Consultant architecture 0 0 100% 100%
Consultant Civil & Structural 0 0 100% 100%
Consultant M&E 0 100% 0 100%
Consultant PM 0 50% 50% 100%
Consultant QS 16.7% 0.0 83.3% 100%
Building Components Manufacturer 0 0 100% 100%
Others (Developers) 16.7% 0.0% 83.3% 100%
TOTAL 6.9% 13.8% 79.3% 100%
CONCLUSION
This paper has attempted to establish the dominant problems within the construction industry and to ascertain whether
these problems are relative to the process and implementation of the IBS in Malaysia. The results from the analysed
data have shown that both the industry and the IBS stakeholders had failed in their attempt to find a close and successful
relationship in addressing problems encountered. The findings also indicated that the supply chain and procurement
were the cause of many problems in the process and implementation of IBS in the country. This directly reveals that the
research on SCM in the IBS approach is as important and relevant to the construction industry as to the IBS
stakeholders.
Moreover, the findings in the survey have also shown that Strategic Procurement to be the problematic area with
many issues which require much attention in the process and implementation of SCM. In order to support the CIMP and
strengthen the value chain in the Malaysian construction industry, more extensive empirical research works on these
areas are also needed especially in integrating the supply chain players in the procurement process and implementation.
Finally, the study presented in this paper is part of an ongoing main research which will eventually attempt to further
enhance the process and implementation of the Supply Chain Management in the IBS construction approach in
Malaysia. The results of the main research will hopefully provide an insight into the introduction of an innovative
construction project management and will also form the basis of a valuable framework to be adopted by the public and
private sectors IBS stakeholders in Malaysia.
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11
AN INTEGRATION TEAM APPROACH FOR IMPROVING
SUSTAINABILITY IN THE IBS MALAYSIAN CONSTRUCTION PROJECT
Mohd Nasrun Mohd Nawi, Angela Lee, Mohammed Arif and Ahmad Tarmidzi Haron
University of Salford, United Kingdom
mohdnasrun@gmail.com
INTRODUCTION
The importance of the construction industry to national social-economies is no subject for debate. Its contribution to
Gross Domestic Product (GDP), impact on economic activity, government revenue, benefits of investment and
employment is significant (UKCG Report, 2009). In general, construction industry refers to a wide range of activities,
such as civil and structural engineering construction projects such as building work, bridges, dams, hydraulics, airports,
sewerage treatment facilities and demolition activities. Whereas the construction process itself requires a lot of activities
starting from the establishment of the client’s brief or customer requirements to eventual construction, erection or
installation, and life-cycle operation and maintenance. The overall process needs an alignment and must be complied
with the environmental policy for the protection of future generations.
According to World Commission of Environment (1987), sustainable development is defined as the process of
meeting basic needs of the public and promoting the balance of environmental protection, economic development and
social development for better life without compromising abilities of future generations. On the other hand, practice
activities contribute to the sustainable development is called sustainable construction. These may consist of processes
which enhance the quality of life and customer satisfaction, offer flexibility and potential to cater for user changes in the
future, provide and support desirable natural and social environments and maximise the efficiency of resources use.
(GRI, 2005 and Government, 2000).
In a run for achieving vision 2020, there is also no exemption for Malaysia as a developing country to implement
sustainable development. Many initiatives have been taken such as the introduction of Green Building Index,
Construction Industry Master Plan, enforcing new or modern construction method such as Industrialised Building
System (IBS) and many more. This section focuses on IBS as an alternative towards sustainable development process
by discussing in a more detail from the perspective of team working collaboration and integration approach towards IBS
sustainable construction implementation in the Malaysian construction industry.
OVERVIEW OF MALAYSIAN IBS CONSTRUCTION INDUSTRY
In an attempt to develop a sustainable development in construction process, the Malaysian government has taken the
initiative of implementing a new or modern construction method called Industrialised Building System (IBS). IBS
(which also known as offsite manufacturing in UK construction industry) is a construction technique in which
components are manufactured in mass production under a controlled environment (on or off site), transported,
positioned and assembled into a structure with minimal additional site works (CIDB, 2003). Similarly, Hassim et al,
(2009) stated that the industrialisation process is essentially an organisational process-continuity of production implying
a steady flow of demand; standardization; integration of the different stages of the whole production process; a high
degree of organization of work; mechanization to place human labor wherever possible; research and organized
experimentation integrated with production. The benefits that can be gained by implementing the system are reduction
in the construction duration, decreasing cost, labor and wastages on site, and minimizing the effect of risk (Hassim
2009; Kamar et al 2009; Nawi, 2007; Thanoon et al, 2003 and IBS roadmap, 2003). These are among the reasons why a
lot of countries such as Sweden, Holland, Norway, Japan, including Malaysia have chosen to use the IBS in their
construction industries (Thanoon et al, 2003).
IBS in Malaysia has a long history where it has been introduced over 40 years ago. Although it has a well-
documented benefits and strong support from the government, the velocity of IBS implementation and usage are still
considerably slow and behind the government target. Investigation made by researchers identified that one of the main
barriers of IBS implementation in is related to the poor integration and communication among stakeholders involved
during the design stage (Kamar et al., 2009; Chung, 2006; Haron et al., 2005; and Thanoon et al., 2003). This barrier
relates to the problem of fragmentation that has been well criticized by previous authors thus contributed to the issues of
delays, increased lead times, increased costs and late supply of materials (Blacud et al., 2009; Abadi, 2005; Masterman,
2002; Love and Sohal, 2002; Dainty et al, 2001; Kamara et al., 2000; Ofori, 2000; Egan, 1998; and Anumba et al, 1997).
Therefore, this paper will discuss on how the collaborative or integrated team working approach particularly for the
design and construction of a project; can assist in order to overcome the problem of lack of integration and
communication during the design stage of Malaysian IBS construction project.
CURRENT PRACTICE OF MALAYSIAN IBS DESIGN AND CONSTRUCTION PROCESS
Currently, most of the IBS project developments in Malaysia are still based on the traditional approach (Nawi & Lee,
2010; CIDB, 2009; Nawi et al., 2009). The process starts by the client firstly specify their requirement for the
development. The architect, after that translates the requirement into the architectural design which is then given to the
structural engineer to determine the structural integrity by delivering structural analysis and design. The outcome, in a
form of structural design combined with architectural design and specification are passed to the quantity surveyor to
carry building cost estimation and determine the bill of quantity. Subsequently, all these documents are passed to the
main contractor who will then take the responsibility to erect the building structure and liaise with the manufacturer.
This conventional approach is known as ‘over the wall’ syndrome and is shown in Figure 1 (Evbuomwan & Anumba,
1998). This practice tend to make each party to work in an isolation and do not allow the manufacturers and contractors
to be involved in the design stage thus creates problems for whole the supply chain process (such as delays, late supply,
etc) and constructability related issues. As highlighted by Blismass and Wakefield (2008), this traditional design
process is unsuitable to Offsite Manufacturing (or IBS construction) and poses a substantial barrier to its adoption. In
addition, this type of method also has been heavily criticised as one of the main hindrances towards an effective
communication and integration between the design and construction team in the IBS project (Kamar et al, 2009; Hamid
et al, 2008; CIMP, 2007; Nawi et al, 2007b; Che Mat, 2006, Love et al., 1998). As mentioned by Mendelsohn (1997),
the reality of construction is that probably 75 percent of the problems encountered in the field are generated in the
design phase. As a result, the issue of fragmentation among various functional disciplines will arise during the IBS
project development process. It will create problems such as:
• the fragmentation of different participants in the construction project;
• prevalence of costly engineering changes, design iterations, rework and unnecessary liability claims;
• the lack of communication between each of the disciplines involved in the development process;
• lack of true life-cycle analysis of the project;
• constructability, supportability and maintainability issue are considered late in the process;
• fragmentation of design, construction and maintaining data; and
• Loss of information about design intent
Figure 1. Over the wall syndrome
Previous researches have continuously addressed the problems related to fragmentation within the construction industry
which separate the design process from construction (Latham, 1994; Egan, 1998; Egan, 2002). This poor performance
has been blamed on the adversarial relationships between parties in the construction process.
Figure 2. An integrated project team
THE NEED FOR AN INTEGRATED PROJECT TEAM DELIVERY
As highlighted before, the traditional construction delivery process is the root cause for the problems of fragmentation,
including the isolation of professionals, lack of co-ordination between design and construction, and as it is carried out in
a sequential manner it leads to time delays (Abadi, 2005; Masterman, 2002; Dainty et al, 2001; Egan, 1998; and
Anumba et al, 1997), poor communication, conflicts and misunderstanding between design consultants and contractors
(Blacud et al., 2009; Love and Sohal, 2002; Kamara et al., 2000; Ofori, 2000; Gunasekaran and Love, 1998). Following
these problems, many industry-led reports (Bourn, 2001; Egan, 1998; Egan, 2002; Latham, 1994; Strategic Forum for
Construction, 2003) have all called on the industry to change from its traditional modus operandi and perform better
through increased collaboration as part of the integration element. Recent follow-up reports such as the UKCG (2009)
and Egan (2002), challenged the construction industry to create a fully integrated service capable of delivering
predictable results to clients through processes and team integration. Implementation of integrated practice approach
can create a lot of benefits such as; could bring together various skills and knowledge, and removes the traditional
barriers towards an effective and efficiency delivery of the project (Baiden et al., 2006; Achieving Excellence in
Construction, 2003; Akintoye, 1994; Fleming and Koppelman, 1996). The detail explanations of growing for improving
construction project delivery processes towards integrated practice will be highlighted in the next section.
DEFINITION OF GROUP, TEAM, TEAMWORK AND INTEGRATION
In the literature many authors continually refer to teams as groups and groups as teams, neither perceiving nor implying
any distinctions between them (Fisher et al., 1997). The distinction between the both terms are often unclear, although
the terms ‘team’ and ‘group’ have been used to describe rather different entities (Brannick and Prince, 1997). Hayes
(2002) argues that even both of the terms share some common characteristics such as membership, norms and cohesion,
they however are fundamentally different.
In a ‘group,’ members tend to be responsible and accountable for their own performance (Brannick and Prince, 1997;
Katzenbach and Smith, 1993). Purposely, a group is created in general and in line with organisation. Baiden (2006)
clearly defines a group as a collection of individually skilled people put together for a purpose and members share
information to reinforce individual performance towards achieving their goals and thus their performance is usually a
function of what its individual members achieve. The group then develops into a ‘team’ when it is tasked with a specific
and clear purpose and a common goal (Baiden, 2006; Kezsbom, 1990).
In general, such authors suggest that a team is simply a group, but with something extra. For example, a team is
defined as a collection of individuals who are interdependent in their tasks (Parker, 1990) who share responsibility
for outcomes (Sundstrom et al, 1990), who see themselves and who are seen by others as an intact social entity
embedded in one or more larger social systems (for example, business unit or the corporation), and who manage their
relationships across organizational boundaries (Cohen and Bailey’s, 1997).
Bringing people together however does not necessarily ensure that they will function well as a team (Baiden, 2006).
Therefore, it must be a synergetic process in which the efforts of the team members surpass individual efforts (Scarnati,
2001) which means team members need to work with each other (inter-dependence) to succeed (Wilson and Pirrie,
2000). Those behaviors of members that engender information sharing, co-operative efforts by individuals working
together and coordination of activities within the team are collectively called ‘teamwork’ (Baiden, 2006; Dickinson and
McIntyre, 1997).
According to Nesan and Holt (1999), teamwork is one of the most widely recommended tools to improve quality of
interface problem resolution and decision-making process in an organization. It is because teamwork enables effective
tackling of complex problems by a pool of expertise, knowledge, skills and experience through the playing of
multiple roles and leadership (Baiden, 2006; Harris and Harris, 1996; Ingram et al., 1997). Towards a successful
teamwork in an organization however, it must be supported by major culture changes, organization structure and a
working system as well.
Term of ‘integration’ is always being used and has evolved over time in order to describe groups, teams, and
teamwork in the construction industry practice. In the construction industry, the word ‘integration’ has been widely
used to describe the concept of freely exchanging information between different participants in the construction process
through actual examples have been limited and localized (Vincent and Kirkpatrick, 1995). Previous researchers
identified integration in difference ways. Howell (1996) and Jafaari & Manivong (1999) identified integration as the
merging of different disciplines with different goals, needs and culture in order to undertake a single task. It is
alignment of various processes to conformity with each other (Dainty et al., 2001). Other researchers identified
integration as collaborative working and process for improving team culture and attitude among professionals
disciplines (Austin et al., 2002), working in coherent manner (Moore and Dainty, 1999) and management of project
activities in comprehensive, collaborative, structured and concurrent style (Love et al., 1998; and Evbuomwan and
Anumba, 1998). Based on those literatures, it could be summarised that integration in the scope of this study can be
defined as a integrative design development by bringing all multidisciplinary teams and functional background working
in structured, consistent and simultaneous approach in order to achieve more efficient and high performance of
construction project.
APPROACHES TOWARDS TEAM WORKING INTEGRATION
Attempts at team integration in the construction industry have been largely focused on improving project procurement
and the product delivery processes (Baiden et al., 2003). An integrated procurement approach gives clients a single
point of contact for both design and construction besides creates an opportunity to implement constructability principles
early during design stage of project (Masterman, 2002; Trigunarsyah, 2006). In the constructability principle, it
considers contractors’ role early in the design thus results on more constructible design and greater amount of cost
savings, labor savings and less substance wastages (Jergeas and Put, 2001; Trigunarsyah, 2006). Further, Russell (1994)
highlighted that early involvement of construction knowledge and experience approach can reduce the likelihood of
creating designs that cannot be efficiently built, thereby reducing design rework, improving project schedule, and
establishing construction cost saving. For example, early involvement of contractor (ECI) has been selected as a
contract delivery strategy towards integrated team and becoming more popular for a number of major construction
projects especially in infrastructure (Edwards, 2007).
In addition, studies by Anumba et al., (2002); and Love & Gunasekaran (1998) discussed that design and construct
strategies and partnering arrangements have been used to integrate the project delivery team in the traditional
construction industry practice. Integrated forms of procurement, such as design and build, that bring together the design
and construction phases of projects, have also been introduced (Bourn, 2001; Stutz, 2000; Mohammed, 1999; Bowron,
2002). Similarly, IPD Guide (2007) introduced a new integrated project delivery approach namely as ‘Integrated Project
Delivery’ (IPD) purposely to integrate people, systems, business structures and practices into a construction process.
Contrast to the traditional construction practice, the team members in IPD are demanded to work together in
concurrently either in making a decision process or when trouble arises throughout of design, fabrication, and
construction phases.
On the other hand, the product delivery process has also been integrated to reduce the number of distinctive parties
to a single all-inclusive party (Baiden, 2006). The several separate and phased processes involved have also been
merged into system capable of delivering the same product in a single process. Those related approaches to improve
team integration has been highlighted by previous researchers through the concept of concurrent engineering (Kamara
et al., 2000; Evbuomwan and Anumba, 1998; Broughton, 1990); lean thinking (Huovila, et al., 1997; Matthews and
Howell, 2005); ‘using a boundary object’ (Fong et al., 2007; Forgues and Koskela, 2009); and integrated supply chain
management (Khalfan and McDermott, 2009; Vrijhoef and Lauri Koskela, 1999).
CONCLUSION
This study focuses on how collaborative and integration approach can contribute for overcoming the barrier of IBS
implementation in the Malaysian construction project. Successful transitions from conventional to integrated team
working approach however requires some transformation in the current IBS design process for overcoming the
prevalent barriers when implementing this approach. The results from the previous studies proved that team integration
approach created an opportunity for early conflict resolution, incorporation of constructability, manufacturability,
maintainability, safety and risk analyses at an early stage of project. This practice has been recognised that significantly
contributed to the enhancement level of sustainability and the overall project performance.
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Supply chain management, 78, 95
INDEX Technology, 35
UBBL, 19, 46
UK, 48
Vendor, 20, 32
Volumetric order, 38
Affordable housing, 36, 42

Article 520, 45
Automation, 9
Benchmark, 33
Benchmarking, 41
Block work, 30, 58
CIDB, 37, 44, 56
CIMP 2006-2015, 87, 88
CMAA, 36
Collaborative, 102
Construction industry, 35, 37, 45
Contractor , 33, 49
Degree of technology, 38
Formwork, 29
GIS, 74
High rise, 36
Hybrid system, 27
Hybridisation, 38
IBS, 1, 3, 4, 6, 7, 8, 10, 44, 47, 48, 93, 97
Classification, 3
Definition, 3, 12, 41
Degree of industrialisation, 9, 10
IBS Roadmap 2003-2010, 18, 44
IBS Roadmap Mid-term report, 19
Industrialisation, 9
Innovative, 25
Integration, 81, 84, 101, 102
Just in time, 89
Lesson learnt, 26
Malaysia, 8, 11, 48, 97
Manufacturing system, 37
MC, 19, 27
Mechanization, 9
MMC, 3, 6, 35, 41, 42, 45
Modular block, 25
Modular housing, 33
Non-volumetric, 38
OBS, 18
ODPM, 41
Onsite assembly, 7
OSC, 3, 7
OSCT, 35
OSM, 3, 7, 35
OSP, 3, 7
Preassembly, 3, 7
Pre-cast System, 28
Prefabricated timber framing system, 30
Prefabrication, 3, 6, 7, 8, 9, 10
Public works department, 68
Quality, 53
R&D, 45
Reproduction, 9
Robotics, 9
SCM, 87
Steel framing system, 30
INDUSTRIALISED BUILDING SYSTEM (IBS):
CORE CONCEPTS AND ISSUES
The real advantages of Industrialised Building System (IBS) can only

be realised through a thorough understanding on the principles
underpinning manufacturing, whilst also appreciating constrains and
pitfalls that comes with a fragmented construction industry. This book will
add to existing knowledge on IBS by mapping up issues surrounding IBS
implementation and help practitioners by highlighting the best possible
ways to implement IBS.
About the Editors
Zuhairi Abd. Hamid is Executive Director of Construction Research Institute of Malaysia (CREAM),
Construction Industry Development Board (CIDB), Kuala Lumpur, Malaysia
Mohamed Nor Azhari Azman is Lecturer of Faculty of Technical and Vocational Education, Universiti
Pendidikan Sultan Idris (UPSI), Perak, Malaysia
Kamarul Anuar Mohamad Kamar is Manager of Construction Research Institute of Malaysia (CREAM),
Construction Industry Development Board (CIDB), Kuala Lumpur, Malaysia
Zulkefle Ismail is Senior Lecturer of Department of Civil Engineering, Politeknik Sultan Idris Shah, Sabak
Bernam, Selangor.
Ani Saifuza Abd. Shokor is Senior Lecturer of Faculty of Architecture, Planning and Surveying, Universiti
Teknologi MARA (UiTM), Shah Alam, Malaysia
Mohammad Fadhil Mohammad is Associate Professor of Faculty of Architecture, Planning and Surveying,
Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia
Taksiah Majid is Associate Professor of School of Civil Engineering, Universiti Sains Malaysia (USM),
Penang, Malaysia
Faridah Ismail is Senior Lecturer of Faculty of Architecture, Planning and Surveying, Universiti Teknologi
MARA (UiTM), Shah Alam, Malaysia

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Core Concepts and Issues Final

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INDUSTRIALISED BUILDING

Zuhairi Abd Hamid

Copyright © 2011 by Construction Research Institute of Malaysia (CREAM)

ABOUT THIS BOOK

Mohamed Nor Azhari Azman

REVISITING CURRENT IBS DEFINITION

OTHER TERMS USED TO DESCRIBE IBS

“IBS is an innovative process of building construction using concept of mass-production of

IBS AND THE DEGREE OF INDUSTRIALISATION

Table 1.Composition of Foreign Workers by Country of Origin (%)

Indonesia 53.3 65.7 69.4 68.4 64.7 63.8 66.5

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Table 2. Percentage of Foreign Workers to Total Construction Workforce

DEVELOPMENT OF IBS IN MALAYSIA

Table 3. Registered IBS Contractor (Active) in Malaysia

Table 5. Registered IBS Manufacturer and IBS Products available in Malaysia

IBS ROADMAP MID-TERM REPORT

THE BARRIERS TO IBS ADOPTION IN MALAYSIA

THE WAY FORWARD

Construction Industry Development Board (CIDB) (2007a) Construction Industry Master

Table 1. IBS Classification (CIDB, 2003)

c) Steel Framing System

d) Prefabricated Timber Framing System

e) Block Work System

f) Innovative On-site System

BARRIERS TO IBS ADOPTION IN MALAYSIA

THE WAY FORWARD

THE SIMILARITY OF PATTERN IN OFF-SITE CONSTRUCTION INDUSTRY

Table 1. The Trend of Construction Industry in Malaysia

EXPERIENCES IN UNITED KINGDOM

Historical Background on MMC Implementation

The Drivers to MMC Adoption

The Government Initiatives to Promote MMC

Historical Background on IBS Implementation

The Drivers to IBS Adoption

The Government Initiatives to Promote IBS

LESSON LEARNED SO FAR

(1 = Not agree, 2 = Less agree, 3 = Considering agree, 4 = Agree, 5 = Strongly agree)

Data Analysis and Presentation

RESULT AND DISCUSSION

Table 1. Definition of IBS

Table 2. IBS System must have Prefabricated Elements

Table 3. Minimal In-situ Construction Work

Table 5. Environmental Friendly

Table 7. Modern Design and Manufacturing Method

Table 8. Systematic Quality Control

Table 9. Ranking the IBS Advantages Correspondents

Table 1. Categorization of Low Cost Houses

THE TREND OF IBS

Table 3. Categorisation of IBS Component

THE SETUP OF IBS MANUFACTURING FACTORIES AS AN INDUSTRIALISATION SOLUTION

Figure 1. Successful IBS Players

Figure 2. Three Generation of Industrialisation (Ismail, 2006).

Open Manufacturing Plant

Transportation of IBS Components and Erection

Design and Build

Design IBS Shop Fabrication Superstructure

Construction Period Erection

Figure 5. Construction Project Delivery Using IBS System

IBS ADVANTAGES AND SUPPORT

No IBS Introduce in Categorisation of IBS IBS Component

Figure 1. The Number of IBS Classification Component

Site must be within 50-100km of

Site must be no closer than 10m to