The current construction industry supply chain is organized along the labour intensive lines with the bulk of work is undertaken in-situ. It involves a combination of formwork preparation, ready mixed concrete usage and extensive sub-contracting. The IBS Supply Chain will transform the industry into a value chain similar to the manufacturing industry. By applying IBS, most of the on-site processes will be taken out from the construction site and put under a factory controlled environment where quality can be controlled and monitored.
The IBS Supply Chain promotes Open System and encourages full industry participation compared to the Prefab Closed System readily available now where only limited industry companies can participate. As can be seen in figure 1, IBS Supply Chain comprises of Modular Component-based products that can be produce and interchangeable between any project thus promote mass customization 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.
Market Potential
Houses of the future should be similar to products like cars or computers today. It is built mostly in a factory with parts that is easy to replace or maintain. The construction industry can be transform by following what other sectors are already doing; standardize and accessorize.
Standardising the construction industry is a critical factor in establishing an Open Building System (OBS) 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.
IBS gives the ability for companies from just being a simple plain brick contractor that is driven by projects to a component builder manufacturer that is driven by consumers. Modular components or also known as volumetric components can be configured into wide variety of end products and the design can be based on customer’s individual needs through unique combinations of the modular components. Mass customization will allow companies to penetrate new markets and capture customers whose demands could not be met with standard products. Developers and contractors who embrace the IBS methodology can even upgrade their capability to export houses in countries that are in need of fast permanent shelters.
