PREPARED BY: ELVIANNEY MICHAEL 2020970663 PREPARED FOR: PROF. TS. DR. NOR HAYATI DETROIT RENAISSANCE CENTER MEM677 PROJECT MANAGEMENT CASE STUDY
NAME OF THE COMPLETED PROJECT & PROJECT PHOTO PROJECT ANALYSIS FIVE PROJECT MANAGEMENT CHALLENGES IDENTIFICATION AND ANALYSES ANALYSIS OF PROJECT MANAGEMENT LIFE CYCLE AND RELEVANT PMBOK FORMULATION AND PROPOSAL OF SOLUTION FOR THE CHALLENGES FACED BY THE COMPANY TABLE OF CONTENT REFERENCES 01 02 03 04 05 06
NAME OF THE COMPLETED PROJECT & PROJECT PHOTO CHAPTER 1 DETROIT RENEISSANCE CENTER UNITED STATE
DETROIT RENAISSANCE CENTER 7 TOWERS OF THE DETROIT RENAISSANCE CENTER Design Architect: John C. Portman Jr. Image of the early construction, 1974. Detroit Renaissance Center map Overview Layout
PROJE 2CT ANALYSIS DETROIT RENAISSANCE CENTER DETROIT RENAISSANCE CENTER CHAPTER
Introduction The Detroit Renaissance Center also known as the GM Renaissance Center and nicknamed the RenCen is a modernarchitectural style, mixed-use complex, comprised of seven inter-connected, highrise buildings, located on the International Riverfront of Detroit, Michigan, United States. It is developed on a 32-acre site breathtaking and located on Jefferson Avenue on Detroit’s riverfront, consisting of six 39-story office towers and a 73-story hotel rising from the center [1]. The building is the tallest all-hotel high-rise in the Western Hemisphere and the tallest building in Michigan since its completion in 1977. The RenCen is composed of three interconnected buildings. Detroit Renaissance Center aims to make Detroit a better place to work, visit and live and restore Detroit's riverfront. It is an economic and psychological boost for the city. The completion of this project has helped solve the unemployment of the people in Detroit that is available through the facilities [2]. Timeline of the Project 1967: Plan announcement for the threephase project of Detroit Renaissance. 1971: The Detroit Renaissance announced the first phase of construction and received primary financing. 1973: The construction began. 1976: The first tower opening. 1981: Phase II of the project added two additional office towers. 1996: The Renaissance Center was purchased by General Motor for $73 million. 2004: GM completed an extensive $500 million renovation of the Renaissance Center. 2015: $500 million renovation of the Renaissance Center. 2018: Completion of extension of the People Mover station, berms reduction, addition of 70-by-80 foot exterior video screen and display screen renovation.
Building Structure The complex is designed in the modern architectural style with glass as the main material. Towers 100 and 200 front Jefferson Avenue while towers 300 and 400 are on the main Wintergarden Street entrance facing the Riverfront. Famous for its cylindrical design, the central hotel tower's diameter is 188 feet and the smaller cylinders on the sides of all the towers house the elevators. When the GMRENCEN first opened, there was very little signage and getting around was confusing. People have come a long way and now offer various wayfinding tools including colour-coded towers, kiosk maps and an app. Significant and Uniqueness The $500 million renovation of the Renaissance Center completed in 2003 has helped improve Detroit's economy. The project constituted a substantial investment downtown. More than 10,000 people work in the complex daily and nearly 2,000 state workers now occupy GM's former office building. There is much uniqueness in the GMRENCEN, one of which is the canvases that hang on the walls overlooking the GM Wintergarden that represent the colourcoded towers all have ties related to GM’s various commitments including their history and sustainability. Other than that, the GMRENCEN keeps warm from a renewable energy source. An underground pipeline attached to the building delivers process steam made from solid city waste from nearby Detroit Renewable Energy that heats and cools the building.
CHAPTER 3 FIVE PROJECT MANAGEMENT CHALLENGES IDENTIFICATION AND ANALYSES DETROIT RENAISSANCE CENTER
1. POOR COMMUNICATION AND DECISION MAKING Projects can be successful only if the team has well-defined and measurable goals to work toward. The Detroit Renaissance Center’s function was to solve the unemployment of the people in Detroit that is available through the facilities such as shopping centers, restaurants, brokers, banks, and others. However, the project fails to achieve its objective which is to increase the nation’s economy. Ford officials claim that the Renaissance Center's failure is the result of a four-year auto industry depression that has hurt the city's economy, but others believe there is a fundamental flaw in the center’s plan where it gave more office and retail space to a city that simply did not need it and that already had among the cheapest rental rates in the nation. The people of Detroit kept coming up with reasons why it should not be done, however, Mr. Ford decided to ignore it and proceed with his initial plan [2]. 2. ARCHITECTURAL DESIGN FAILURE John Portman was the principal architect for the original design. His design brought renewed attention to city architecture [3] since it resulted in the construction of the world's tallest hotel at the time. Although the Renaissance Center building's design is quite intriguing, visitors may find it confusing due to its repetitious layout but the unignorably structure also drew its critics even before its construction. Charles Blessing, then director of the Detroit City Planning Commission, disapproved of it early on, objecting to the very elements of the design that observers lament to this day where its isolation from the rest of downtown, its failure to integrate with other planned riverfront projects, and its stark contrast with the existing texture of the city. An architect criticized the building design mentioning that the building fails to do the crucial thing that all good urban buildings must do which is related carefully to its surroundings. Since it first opened, the Renaissance Center has undergone several rounds of renovation to solve the confusing, inward-focused complex of the building [4]. The Renaissance Center does not have a front door. Massive heating/cooling berms added to the fortress-like appearance and effectively kept people from the city out. People would just drive in to work and drive out, never having to socialize or feel like they were in Detroit [5]. 3. FAILURE TO ACHIEVE THE GOAL One way to almost guarantee project failure is to begin work without clear project objectives and goals. The Renaissance Center's original plan called for eight such buildings to surround the first towers but only 7 of them are constructed. One of the new structures is only 70 percent occupied and the other is empty and this has threatened to undermine the project's goal of strengthening downtown [2].
Henry Ford II was trying to bring a renaissance back to Detroit, but it did not work as well as had been planned. Instead of bringing lots of companies back to the city, it ended up pulling companies from other buildings in the city of Detroit and leaving them abandoned [5]. 4. BUDGETING PROBLEM Mr Ford set out in 1971 to build what became a $357 million office and retail complex named hopefully the Renaissance Center. The total outlay which eventually mounted to $300 million may represent the largest civic investment ever made by a private corporation. But the soaring cluster of modernistic buildings of four glasssheathed octagonal 39-story office towers surrounding a cylindrical 73-story hotel was not enough. Six years after its doors opened, the Renaissance Center has fallen victim to the same problems it was expected to solve. As a financial investment, it is a fiasco, so much so that Ford now reluctantly admits that its huge investment in the project is practically worthless. While the office space in the four towers is 95 percent filled, those tenants have been hard to recruit and pay rents that are too low to cover costs. And despite its grandeur and good intentions, the Renaissance Center has also failed to spur additional development downtown, so once again Detroit's skyline is static. Some real estate experts believe that the project's financial problems are so great that the Ren Cen, as it is called by Detroiters, will end up hurting the city it was meant to help [2]. 5. FAILTO MEET RETURN ON INVESTMENT (ROI) Certainly, successful project delivery depends on meeting and delivering the requirements of the project. According to project management principles, to achieve success, we need to be in agreement with the stakeholders regarding the project goals, objectives, and success criteria. If the people impacted by a project do not support and engage in the change, then the particulars of that change including new processes, systems or job roles are not realized [6]. Rumors that General Motors might abandon the headquarters building it acquired in 1996 have been circulating ever since the automaker started considering bankruptcy, early this year, and senior officials refused to rule out such an option after emerging from court protection. For all its spectacle, the Renaissance Center appears to have done essentially nothing to reduce Detroit’s loss of industry, investment and appeal which saw the 1950 population high of 1,850,000 falls to 701,000 in 2013, when the city declared bankruptcy [4].
CHAPTER 4 ANALYSIS OF PROJECT MANAGEMENT LIFE CYCLE AND RELEVANT PMBOK DETROIT RENAISSANCE CENTER
DE T R O I T R ENAI S SAN C E C ENT E R 3 ATRIUM EVENT SPACE HOTEL RESTAURANT 1. INITITATION The goal of project initiation is to get the project off to the best possible start by speaking with essential stakeholders and acquiring the necessary information to begin planning the project in further detail. The project initiation procedure will allow the Project Board and Authority Group to determine if the project should proceed to the implementation stage based on the anticipated benefits and whether it is aligned with corporate or programme strategy [7]. The idea of constructing the Detroit Renaissance Center was first conceived by Henry Ford II, the Ford Motor Company Chairman of the time. In 1970, to bring his idea to life, Ford teamed up with other business leaders to form the Detroit Renaissance. This was a private non-profit development organization which Ford headed to stimulate building activity and revitalize the economy of Detroit. Henry Ford II sold the concept of the RenCen to the City and community leaders. Detroit Mayor Roman Gribbs touted the project as a complete rebuilding from bridge to bridge, referring to the area between the Ambassador Bridge, which connects Detroit to Windsor, Ontario, and the MacArthur Bridge, which connects the city with Belle Isle Park. The project charter was developed and the stakeholder for the project are include John Portman & Associates, Morris E. Harrison & Associates, Tishman Construction, and other associates. The project charter is a document that officially starts a project or a phase. It formally authorizes the existence of the project and provides a reference source for the future. The charter gives direction and a sense of purpose to the management from start to end. The primary purpose of a project charter is to authorize the project manager to start the approved project and allow the project manager to use organizational resources to accomplish the objectives of the project.
DE T R O I T R ENAI S SAN C E C ENT E R 3 2. PLANNING The purpose of the Planning stage is to analyze the project in terms of work breakdown, cost, resources, and timing. At the end of this stage, all team members should be clear on the sub-tasks and deliverables of the project, the time constraints they are working to and the roles and responsibilities that are expected from them. Software Project Plan defines what the work is, and how this work can be completed. This plan is developed at the beginning of the software project and is continually refined and improved as the work processes. It can be useful to management as a framework for reviewing and controlling the process of developing the software [8]. The Detroit Renaissance Center project was handled by Henry Ford II, and the project receive primary financing from the Ford Motor Company. The resources were planned where the first five towers were covered with 2,000,000 square feet (186,000 m2) of glass and used about 400,000 cubic yards (310,000 m3) of concrete. This did not include the additional glass used for the atriums. It also cost $337 million to construct, employing 7,000 workers. The heating and cooling systems for the buildings were housed in two-story concrete berms facing Jefferson Avenue. During the planning phase, risks, milestones, summaries, and budgets are defined at a high level, and project documents are also developed with enough detail. The PMBOK Guide for this phase works with a framework to reduce errors and encourages project success via risk, time, cost, quality, and human resources management.
DE T R O I T R ENAI S SAN C E C ENT E R 3 3. EXEXCUTION The project execution phase is often the longest and most complex stage in the project life cycle. If a project manager is not careful, the team might get off track, run into communication problems, or stop following the carefully outlined procedures. It entails following the project charter's specifics to provide the project outcome to clients or internal stakeholders. Project planning occurs first, followed by project execution. No matter how carefully the project is planned, it will fail unless ideas are adequately implemented [9]. Early plans for the Renaissance Center showed a significantly more sprawling complex than the one Detroiter’s recognize. In addition to the present seven towers, eight more small towers like Towers 500 and 600 were proposed on both the east and west sides of the site. Only seven buildings were constructed due to some reasons such as budget, time, and resources. Additionally, a residential section with a series of terraced balconies would extend from the structure’s podium to the riverfront. The PMBOK state that a few processes need to be done during the execution phase to make sure the project plan is on track. The project manager needs to direct and manage project work, perform quality assurance, acquire project team, manage communication, and lastly conduct procurement to ensure the project execution phase is a success. BEFORE DURING DURING AFTER
4. EXECUTION The purpose of Project Monitoring and Control is to provide an understanding of the project’s progress so that appropriate corrective actions can be taken when the project’s performance deviates significantly from the project plan. A project’s documented plan is the basis for monitoring activities, communicating status, and taking corrective actions. Progress is primarily determined by comparing actual work product and task attributes, effort, cost, and schedule to the plan at prescribed milestones or control levels within the project schedule. All the PMBOK were covered during the controlling and monitoring phase except the Project human resource management since the quantity of the human resource is usually fixed and does not require additional or reduction of manpower. The project manager of Detroit Renaissance Center has successfully controlled and monitored the project in terms of time management since the construction was able to be finished as planned which took only 4 years even though the building is quite high and has become the tallest building in Michigan. 5. CLOSING The closing process is the last step of a project. Every project has an endpoint in which goals are accomplished and the results are shared with stakeholders. At this point, the project should be closed, and the team members should return to their regular duties. The closing stage is the last stage of a project in which, the final report is prepared, budgets are closed and the project team or project-related tasks are terminated [10]. After the Detroit Renaissance Center construction is done in July 1976, the project and procurement were successfully closed then the building is managed by Western International Hotels. On April 15, 1977, Henry Ford II and Detroit mayor Coleman Young unveiled a plaque commemorating the private investors whose funds made the project possible. Later that evening, 650 business and society leaders attended a benefit to celebrate the Renaissance Center's formal dedication. DE T R O I T R ENAI S SAN C E C ENT E R 3
DETROIT RENAISSANCE CENTER DETROIT RENAISSANCE CENTER CHAPTER 5 FORMULATION AND PROPOSAL OF SOLUTION FOR THE CHALLENGES FACED BY THE COMPANY
DE T R O I T R ENAI S SAN C E C ENT E R 3
DE T R O I T R ENAI S SAN C E C ENT E R 3
REFERENCES [1] Sharp, S. (2014, September 26). The Renaissance Center of Detroit. https://www.academia.edu/8506867/The_Renaissance_Center_of_Detroit [2] 1.Sharoff, Robert (2005). American City: Detroit Architecture. Wayne State University Press. ISBN 0-8143-3270-6. [3] Knecht, B. G. (1983, July 3). RENAISSANCE CENTER: FORD’S COSTLY AND FAILING BID TO REVIVE DETROIT. The New York Times. https://www.nytimes.com/1983/07/03/business/renaissance-center-fords-costlyand-failing-bid-to-revive-detroit.html [4] Marshall, C. (2020, September 23). The Renaissance Center: Henry Ford II’s grand design to revive Detroit – a history of cities in 50 buildings, day 42. The Guardian. https://www.theguardian.com/cities/2015/may/22/detroit-renaissancecenter-henry-ford-ii-grand-design-history-cities-50-buildings-day-42 [5] Architecture, F. (n.d.). Detroit Wild City: Reborn Center or Dying Heart? Failed Architecture. https://failedarchitecture.com/detroit-wild-city-reborn-center-or-dyingheart/ [6] Koseda, J. B. (2019, January 21). What Are The Real Reasons Projects Fail ROI. https://www.linkedin.com/pulse/what-real-reasons-projects-fail-roi-judy-kosedabsc-ccp [7] University Project Office toolkits, “In this toolkit: Project Initiation Activities,” Univ. Proj. Off. toolkits, pp. 1–7, 2021, [Online]. Available: https://intranet.birmingham.ac.uk/it/projects/documents/public/Toolkit---ProjectInitiation-v1-August-2012.pdf [8] Dr.S.S.Riaz, Ahamed. (2010). Project Planning: An Analysis. International Journal of Engineering Science and Technology. 2. [9] Kumar, Gaurav & Bansal, Ashu. (2010). Project Monitoring and Control (PMC). [10] Küçük, Özge. (2014). The Last Process Of Project Management: Closing And Needs To Be Done. https://www.researchgate.net/publication/303694136_The_Last_Process_Of_Projec t_Management_Closing_And_Needs_To_Be_Done