BHAVNA FURNITURE E-COMMERCE

WEBSITE
A Project Report
Submitted by

SHUBHAM BAGDARE (N003)

SONAKSHI DARAK (N006)
MADHUMITA JOSHI (N015)
ADITYA KHANDELWAL (N235)
DEVESH MUNGAD (N250)

Under the Guidance of

Prof. Pramod Kumar Singh

MBA (Tech.)
COMPUTER ENGINEERING

At

MUKESH PATEL SCHOOL OF TECHNOLOGY

MANAGEMENT & ENGINEERING
March, 2022

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 Table Of Contents
Sr Particulars Pg no
no
Table of Contents 2
Abstract 3
1 Introduction 4
1.1 Motivation 4
1.2 Problem Statement 4
1.3 Objectives 4
2 Project Life Cycle 5
3 Project Feasibility 8
4 Work Breakdown Structure 9
5 Organizational Structure 11
6 Project Scheduling 12
6.1 CPM Tabular Form 12
6.2 CPM Graph 14
7 Gantt Chart for Resource Allocation 15
8 Earned Value Management for Budget 16
Estimation
9 Conclusion & Future Scope 17

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 Abstract
Before the pandemic, Bhavna Furnitures had been operating as a B2B furniture supplier
mainly to educational institutes and business was booming. However, due to the
lockdown they had to convert to a B2C model as their primary customers were not
operating. Initially, the work-from-home scenario created a problem for Bhavna
Furnitures who felt that the transition would be tough. Nevertheless, their product
catalogue was large and customer service was very good. Locals began to buy furniture
from them and with rising popularity, people from nearby regions also started to visit
their showrooms.
Initially they were only operating through whatsapp and printed catalogues but with the
lifting of lockdown for the foreseeable long-term future and increased popularity in B2C
space, they found it would be prudent to create a website for their catalogue. This project
report is a study on the same, where the aim is to create a website for their business
within stipulated time and cost. The website must be attractive, simple to navigate, user
friendly and must be able to display entire catalogue in all available variations. The
application will help to improve customer base size, automate buying and viewing
process and allow the organization to invest into high profile clients more immersively.

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 Introduction

1.1 Motivation
Online business helps to improve customer relationship as well as market base. It allows
to display entire inventory without having to store it in showrooms, as they can be
shipped directly to the customer on ordering. The motivation is to improve customer
experience through the website.

1.2 Problem Statement

Create a website which will display complete inventory, is simple for customer to use
and shifts physical tasks to virtual activities for Bhavna Furnitures.

1.3 Objectives
There are multiple objectives which can be further broken down:
1) Build a website that:
a) Displays entire inventory properly.
b) Doesn’t crash or glitch.
c) Is easy to navigate and user friendly, intuitive to go through.
d) Has a robust payment gateway.
2) Build website within stipulated time frame.
3) Build website within designated budget including research, developing, testing,
debugging, production and deployment.

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 Project Life Cycle

A Project Management life cycle is a five-step framework planned to assist project

managers in completing projects successfully.

The primary competency of a project manager is to gain a thorough understanding of

project management stages. Knowledge and planning for the five Project Management
steps will help to plan and organize the project so that it goes off without any hitches.

It is simpler for a project manager to handle all the current details of the project when the
project is broken down into various phases. Each phase of the cycle is goal-oriented
having its own set of characteristics and contains product deliverables, which are
reviewed at the end of the Project Management steps.
For our project the ‘Monitoring and Control’ phase will come after deployment and will
be perpetual. Hence, the 4 phases of project lifecycle consist of the following activities:

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1. Project Initiation:
The goal of the initiation phase is to define the project at a broad level in terms of what
needs to be done and achieved in order for it to be successful. This is where the
stakeholders, the goals, objectives and deliverables are identified and the resources and
the money needed to do the project are determined at a high level. Project Feasibility is
also determined here. The activities here include:
• Information Gathering
• Client Requirements Research
• Project Outcomes and Expectations

2. Project Planning:
The Project Planning phase is most critical and requires complete diligence as it lays out
the project’s roadmap. It involves defining the work to be done and figuring out how to
accomplish it. The activities here include:
• Website Breakdown
• Software and Hardware Requirement Gathering and Procurement
• Workflow and Process planning: We have hired 8 developers for this project.
• Budgeting and Scheduling
• Milestone setting

3. Project Execution:
This is the stage where planning is turned into action. The project team is built. Specific
people and other resources are assigned to the tasks identified in the project plan. The
project work is carried out in the required sequence in order to complete all of the work
in the most efficient manner possible. The key outcome of the Execution phase are the
various deliverables that are produced in line with the defined project plan. The activities
here include:
• Basic Layouts
• Content gathering and inputs
• Prototype Assembly
• Coding (Frontend and Backend) and Integration
• Testing and Review

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4. Project Completion:
This is the stage where the project reaches its conclusion as the all the promised
deliverables have been achieved. This stage is reached when the website is successfully
deployed.

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 Project Feasibility

Project Feasibility is the study of feasibility or profitability of a given project. Generally

measured through Benefit Measurement Methods, it gives an idea of whether the current
project will be profitable or loss making within given period of time and up to what
degree. Based on total initial cash outflow and subsequent earnings after tax (cash
inflows per year), we can use various methods to calculate feasibility of the project. We
have used a PBP (Pay Back Period), DCF (Discounted Cash Flow), NPV (Net Present
Value) and Cost-to-Benefit ratio methods.
The cash inflows only show the inflows due to the website impact i.e. online bookings
and customers who came through online presence. This cash flow doesn’t consider other
customers of the business who have either been present before or come through other
channels.

Expected Inflow Expected Outflow

Year due to Project. (Maintenance). Net Cashflow PVIF DCF
Year 1 1600000 80000 1520000 0.909091 1381818
Year 2 1900000 100000 1800000 0.826446 1487603
Year 3 2300000 1200000 1100000 0.751315 826446.3
Year 4 2800000 1400000 1400000 0.683013 956218.8
Total 5820000 4652087

Cost to Benefit
Ratio 4.273956745
PBP 2.117391304
Discount Rate 10%
DCF 4652087
NPV 882086.6061

Our PBP is 2.11 years which means that the cost incurred in this project is recuperated
within 2 years and 2 months.
On a rate of 10%, DCF cash flows for the next 4 years are still very profitable.
As NPV is positive, it shows that the Net Present Value of the project is profitable.
All these factors indicate that the project is highly feasible and should be
sanctioned.

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 Work Breakdown Structure

The Project Work Breakdown Structure is an outcome-oriented analysis of the work involved in the
project and defines the total scope of the project. It is a foundation document in project management
because it provides the basis for planning and managing the project schedule, budget and requests for
changes. The WBS is developed in the form of an inverted tree structure, organized by objectives; it
looks like an organizational chart which helps the project team visualize the whole project and all its
main components.
The WBS is a hierarchy of all project work, it is a vertical breakdown, moving from the project goal
to the tasks or subtasks. This decomposition process allows a good level of confidence in estimating
the final project schedule and budget. It shows all the work that needs to be accomplished. The WBS
contains 100% of all the work in the project.
At the top level is the project goal, the second level contains the project outcomes, the third level has
the project outputs and activities. Depending on the size and complexity of the project, the WBS may
contain a fourth level that describe the tasks. In our case, it is not required.
With the WBS, the project manager was able to describe the outcomes of a project in a way that was
clear to the project team, while at the same time captured the order and sequence of the work necessary
to produce those outputs. It also helped in resource and personnel allocation
The components of our project WBS, from left-to-right, in order of execution are:

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Gathering Info:
• Purpose
• Customer Info
• Software and Hardware Gathering
Planning:
• Website Breakdown
• Sitemap
• Low Fidelity Wireframe
• Medium Fidelity Wireframe
• High Fidelity Wireframe

Design:
• Page Layout
• Breadcrumbs
• Link management
• Review Management
• Approval

Content:
• Research
• Gathering and Filtering
• Writing/Typing

Coding:
• Backend Dev
• Frontend Dev
• Assembly
• Integration Testing

Testing:
• Alpha Testing
• Beta Testing
• System Testing

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 Organizational Structure
Organizational structure refers to the structure in which the various members of the
organization work under the hierarchy. There are multiple forms of it, where a team can
have a single leader or dual leader or multiple leaders. Leaders here not only refer to
Project Heads, but also other heads of other departments who need to co-ordinate with
such members for smooth functioning of the company.
For the purpose of this project, we have chosen 8 developers who are efficient in all
facets of coding. They will have an internal head for technical work. Apart from this they
will report to various other managers which can be seen below.

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 Project Scheduling – CPM

CPM Tabular Form:

The critical path method (CPM) is a technique where you identify tasks that are
necessary for project completion and determine scheduling flexibilities. A critical path in
project management is the longest sequence of activities that must be finished on time in
order for the entire project to be complete. Any delays in critical tasks will delay the rest
of the project. CPM revolves around discovering the most important tasks in the project
timeline, identifying task dependencies, and calculating task durations.

Advantages of CPM:
• Improves future planning: CPM can be used to compare expectations with actual
progress. The data used from current projects can inform future project plans.
• Facilitates more effective resource management: CPM helps project managers
prioritize tasks, giving them a better idea of how and where to deploy resources.
• Helps avoid bottlenecks: Bottlenecks in projects can result in lost valuable time.
Plotting out project dependencies using a network diagram, will give you a better
idea of which activities can and can’t run in parallel, allowing you to schedule
accordingly.

The description of each activity along with duration and developers required (resources)
is given in the below table. This is used to create the CPM activity flow chart, which
gives us the critical path and duration to completion.

Duration Resources
Activity Description Predecessor (Weeks) ES EF LS LF Slack (Developers)
Information
A Gathering - 2 0 2 0 2 0 2

Software and
Hardware
B Procurement A 2 2 4 2 4 0 2
Wireframes and
C Sitemap B 3 4 7 4 7 0 3

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 Design: Page
D Layout C 5 7 12 7 12 0 4

Review, Changes
E and Approval E 4 12 16 12 16 0 4

F Content Research C 2 7 9 11 13 4 2

G Content Writing F 3 9 12 13 16 4 3

H Assembly E,G 2 16 18 16 18 0 5
Frontend
I Development H 8 18 26 18 26 0 4
Backend
J Development H 6 18 24 20 26 2 4
Final Product
K Integration I,J 3 26 29 26 29 0 6

Final Testing,
Review and
L Deployment K 4 29 33 29 33 0 5

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CPM Graph:

Based on previous table, the above CPM workflow is derived. The Critical Path
comprises of activities A-B-C-D-E-H-I-K-L.
The total time to completion is 33 weeks. The slack for the other activities is provided in
the previous table.

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 Gantt Chart for Resource Allocation

Resource Allocation Gantt Chart (Developers)

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Developers Required

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
Weeks

A B C D E F G H I J K L Developers

As we can see, the Gantt Chart is used for Resource Allocation, which in this case are the
various developers for the website development. Most resources are used during the
execution phase where Coding is done. Similarly minimal resources are used in the first
few weeks of project planning.

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 Budget Estimation

Earned value management (EVM) is a project management methodology that integrates

schedule, costs, and scope to measure project performance. Based on planned and actual
values, EVM predicts the future and enables project managers to adjust accordingly. We
will use the Earned Value Management Technique to evaluate how far ahead or behind
we are in terms of schedule and budget.

Firstly, we have a summary of entire actual costs as follows:

Planned Actual
Description Value Value Earned Value
Information Gathering 60000 40000 65000
Software and Hardware
Procurement 780000 970000 650000
Wireframes and
Sitemap 135000 150000 60000
Design: Page Layout &
Review, Changes and
Approval 540000 600000 300000
Content Research &
Content Writing 195000 165000 50000
Assembly 150000 175000 145000
Frontend + Backend 840000 1000000 1200000
Final Product
Integration 270000 350000 350000
Final Testing, Review
and Deployment 300000 320000 450000
BAC =
Total 3270000 3770000 3270000

While the above are actual recorded costs, for the purpose of Earned Value Management,
we will take the current timeline to be at the point where we will start with the ‘Coding’
phase, i.e. developing the Frontend and Backend of the project.
Based on given data,
• Scheduled Work which is the budgeted cost of work scheduled (PV) = ₹ 18,60,000
• Earned Value which is the budgeted cost of work performed (EV) = 12,70,000
• Actuals which is the actual value of work performed (AV) = ₹ 21,00,000
• Budget At Completion which is the designated budget at completion (BAC) = ₹
32,70,000

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 Earned Value Management (EVM)
4000000 3770000

3500000 3270000

3000000

2500000
Value

2100000
2000000
1860000

1500000
1270000
1000000

500000

0
1 2 3 4 5 6 7 8 9
Time by Activity Completion
Planned Value Actual Value Earned Value

Based on above costs we can calculate various metrics, which are given below:
• Cost Variance (CV) = EV – AC = ₹ -8,30,000.00
A negative CV means that we have overrun our costs by a huge margin. This is
because the EV currently is very low and will shoot up once our actual coding of the
website is done, which is a major chunk of the project.
• Schedule Variance (SV) = EV – PV = ₹ -5,90,000.00
A negative SV means we have again overrun our scheduled time by a monetary value
of -5,90,000 rupees. This is again because our major monetary value will be obtained
during coding phase.
• Cost Performance Index (CPI) = EV/AC = 0.6048
A value less than 1 shows that we are only doing work worth 0.6048 rupees for every
1 rupee spent.
• Schedule Performance Index (SPI) = EV/PV = 0.6828
This value shows that we have done work only worth 0.6828 rupees for every 1 rupee
worth of work that was planned to be done.
• SV% = SV/PV = -31.72%
Cost is overrun by 31.72%.
• CV% = CV/EV = -65.35%
Schedule is overrun by 65.35%.

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• Projected Estimate at Completion (EAC) = BAC/CPI = ₹ 54,07,086.61
Based on current actuals, the final projected cost of completion is expected to be this
value. As we can see, this is much higher than what was actually needed in the end
(although, that also was more than our previous estimations).
• Completion Variance (VAC) = BAC-EAC = ₹ -21,37,086.61
This is the cost variance between BAC and EAC and gives an idea of how much we
overspent or saved in the project by the end.

We can see that by this stage we were severely lagging in schedule and costs both. This
is because the major part of this project is completed when the actual coding is
completed and integration of both components is done to build a working model which
can then be tested and refined. A working website will then be deployed which can be
accessed by customers.
Based on previous projections, the website will generate considerable profits for the
company.

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 Conclusion and Future Scope

Through this Project Management Scheduling and Monitoring method, the Project for
building an e-commerce website for Bhavna Furnitures was completed successfully.
The task of building a modern, engaging website which helps to improve customer
interaction and relationship, with the intent of boosting Bhavna Furnitures’ business was
achieved. With careful planning and monitoring, scheduling and budgeting, the project
was completed within deadlines and without compromising on quality.

The advantages of this website can be seen in the revenue projections. With this website,
Bhavna Furnitures can focus on their core channel of B2B business without worrying
about B2C segment marketing or reach. For future purposes, the company can also create
an app or integrate VR services in their website to give a more comprehensive customer
experience. Social media can also be used to boost sales.

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