Set in 2019, this case describes the challenges faced in the adoption of DfMA (Design for manufacturing and assembly) concept by Singapore’s construction industry. Use of DfMA increased productivity manifold, requiring less time for completion and less manpower, in addition to providing a safer and healthier work environment.
The transition entailed a significant shift in the way different stakeholders such as developers, consultants, architects, contractors, vendors and the government operated in the domain, as the design and construction processes using DfMA were more akin to factory production and manufacturing industry than to the prevalent construction industry. Consequently, the existing ecosystem in the industry was not suited to the new technology and lacked supportive services and economies of scale. In addition, Singapore’s easy access to low-cost migrant labour from regional countries had made the labour-intensive methods far more lucrative for the developers and contractors.
In particular, the case presents the journey of two avant-garde companies - Teambuild, and LHL in their quest to adopt Prefabricated Prefinished Volumetric Construction (PPVC) and Mass Engineered Timber (MET), two lead DfMA technologies in their projects, supported by Building and Construction Authority (BCA) of Singapore. BCA, as the key enabler for proliferation of DfMA technology, provided support to organisations keen to adopt it by subsidising training programs and co-funding technology adoption.
However, despite a few landmark successes, the majority of the industry was risk averse and preferred to continue with the cheaper and conventional construction method that they were well-versed in. Going forward, it was important to create additional value and better interfaces for the stakeholders in order to bring down their associated tangible and intangible transaction costs.
Through this case study, students will understand the challenges faced in adopting new technologies in traditionally labour-intensive industries. It illustrates the imperative need of a collaborative ecosystem comprising diverse capabilities to sustain and enhance the penetration of a new technology in a well-established industry that has no short-term incentives to adopt change. Students will also learn about the role of industry leaders in implementing change in pursuit of future readiness.
Inspection copies and teaching notes are available for university faculty. To receive an inspection copy and teaching note, please email cmpshop [at] smu.edu.sg with your registered faculty email ID and a link to your contact information on the faculty directory at your university as verification. An inspection copy and teaching note will then be sent to your faculty email account.
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· Teaching Note (SMU-21-0022TN)
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SMU Faculty/Staff can download the case & teaching note on iNet with your SMU login ID & Password via the following links:
· Teaching Note (SMU-21-0022TN)
For purchase of the case and supplementary materials via The Case Centre, please access the following links:
For purchase of the case and supplementary materials via Harvard Business Publishing, please access the following links:
(Please note you are purchasing the case only.)
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