Applicability of Manufacturing Industry-Based Performance Measurement Metrics (PMM) for Offsite Construction: A Literature Review

Ginigaddara B. and Perera S.

Chapter 13 in Building a Body of Knowledge in Modern Methods of Construction and Offsite Construction, 2025, pp 345-365 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Offsite construction is an integration between construction and manufacturing processes with features representing both industries in onsite and offsite work activities, respectively. The inherent limitations of construction sector such as higher dependence on labour, skill shortage, poor labour productivity, high site wastage and poor environmental credential paved a path for the increased adoption of offsite construction. It is the process of manufacturing buildings or building elements in a factory production line to be transported and erected onsite. As such, the influence of manufacturing processes into offsite construction is inevitable. In the same vein, compared to traditional construction, manufacturing industry based PMM can be more relatable to offsite construction. Therefore, this research aims to evaluate the applicability of manufacturing industry based PMM for offsite construction through a critical literature review. An extensive list of PMM in construction and manufacturing industries were first identified and the selected PMM were critically analysed to separate out PMM that are relevant to offsite construction. With respect to being one of the most common practices of continuous improvement, lean manufacturing principles were adopted to evaluate PMM in a systematic approach. This research analysis identified how construction and manufacturing industries have their own unique PMM. A majority of manufacturing PMM that relates to offsite construction were recognised under the lean principles, value stream mapping and creating a flow. In addition to the existing PMM in construction, manufacturing specific efficiency measures such as first-pass-yield, cycle time, capacity utilisation, along with quality measures such as fault detection and diagnosis are some PMM that can be incorporated into offsite construction. The research provides original contributions to knowledge by comparing PMM in construction and manufacturing industries using lean manufacturing principles. In addition, this study explores how manufacturing PMM can be applied to offsite construction which is a close cousin of manufacturing. These research findings can also be used by industry practitioners in offsite construction to improve their productivity and efficiency levels. The research is limited to a critical evaluation of literature and thus further research could focus on case studies and gathering of empirical data to evaluate PMM in offsite construction.

Keywords: Modern Methods Of Construction; Offsite Construction; Prefabrication; Digital Technology; Sustainability; Circular Economy; Supply Chain; Procurement; Health & Safety; Risk; Capacity and Capability; Offsite Manufacturing; Preassembly; Innovation (search for similar items in EconPapers)
JEL-codes: D24 L7 L74 M11 (search for similar items in EconPapers)
Date: 2025
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