Prefabrication involves assembling components of a structure in a factory and transporting them to the construction site. It has advantages like reduced cost, material, and time compared to traditional construction. Precast concrete components like walls, beams, slabs are produced in a controlled factory environment and assembled on-site. Prefabrication requires planning for transportation, lifting equipment, installation, and connections between components. While it offers benefits, it also has challenges like handling of large precast units and achieving monolithic joint connections.