Risk management framework to guide off-site manufacturing process : a Chinese perspective

In China, demands for housing and infrastructure have increased significantly in recent years. However, such problems as extra costs, time overruns, and low quality still afflict the Chinese construction industry. It is imperative that the researcher find an alternative and novel method to solve the problem. Off-Site Construction (OSC) methods are often introduced to address quality, cost, and delivery (QCD) problems in the current situation. Many such OSC organisations have been established in China over the past decade, providing good practice for Chinese OSC industry development. In order to implement the OSC method successfully, the process and features of the OSC method need to be elucidated. It is also necessary to understand the differences arising between traditional construction methods and those of OSC, the application of which may result in unique risk factors arising within the OSC approach. Previous articles presented many risks associated with OSC projects. However, only a few articles have thus far considered the risk factors that influence off-site manufacturing (OSM) processes, and there is currently no risk response method for OSM. Therefore, this research aims to develop a risk management framework to reduce the negative effect(s) caused by OSM risk in China. In this research, a mixed-methods approach, combining qualitative method and quantitative method was employed. Through the review of article, an introduction to OSC and OSM was presented. Semi-structured interviews were conducted as part of the qualitative research process. Thirty participants were interviewed. Based on the interview data, 3 sub-types, 13 groups, and 77 risk factors were identified and defined for the OSM process in China. As a consequence, a risk influence diagram reflecting the relationships arising between risk factors and QCD was developed. In order to identify the significant risk factors for the OSM process, a questionnaire survey was then developed based on the 77 risk factors identified from the interviews. 436 OSC practitioners participated in this quantitative research aspect and the researcher was able to identify the significant risk factors by evaluating the probability and impact of each risk via a five-point Likert Scale. The questionnaire identified 28 significant risk factors that could cause QCD problems to arise within OSC projects. Based on the interviews and questionnaire data, a risk management framework was developed. In order to validate the significant risk factors and response methods, the OSM risk management framework was validated by case studies conducted for 2 OSC organisations. After the case study process had concluded, the OSM risk management framework was refined and presented. This research identified 3 risk types, 11 risk groups and 28 risk factors for OSM risk management. The significant OSM risk factor in China is caused by high initial cost, consultant lack of OSC experience and contract bidding problems. The risk management framework was divided into 4 groups: principles, framework development, process, and participant. The proposed OSM risk management framework seeks to help OSM organisations in China deal with risks pertaining to the OSC projects. This framework could help to identify those risk factors within the OSM process that may adversely affect QCD on the OSC project and presents the proposed response methods for each significant risk factor. Based on the type of organisation, the appropriate risk response method can be chosen from avoidance, transfer, reduction and retention. Thus, this framework is suitable for Chinese OSM organisations in helping them to understand the major barriers pertaining to the current situation. It may also have the potential to become a risk management guide for global OSM organisations.