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Problem 2 [40 points] The Stone River Textile Mill was inspected by OSHA' and found to be in violation of a number of safety regulations. The OSHA inspectors ordered the mill to alter some existing machinery to make it safer (e.g., add safety guards): purchase some new machinery to replace older, dangerous machinery; and relocate some machinery to make safer passages and unobstructed entrances and exits. OSHA gave the mill only 35 weeks to make the changes; if the changes were not made by then, the mill would be fined $300,000. The mill determined the activities in a PERT network that would have to be completed and then estimated the indicated activity times, as shown in the table below. Construct the PERT network for this project and determine the following: (a) Draw an AON Network Diagram with the following information: expected activity times, earliest and latest activity times, and activity slack [20 points] (b) Critical path, expected project duration and variance [15 points] (c) The probability that the mill will be fined $300,000 [5 points] HINT: Round the time estimate t (or t.) to zero decimal point; it will simplify your calculations. Round the variances to two decimal points. Remember: a is to, m is tm. bis to tis te. Use the following legend to draw the Network Diagram. Activity Early Early Slack Name Start ES Finish EF Duration Latest Latest Start LS Finish LF Time Estimates Activity (Weeks) Activity Description Predecessor a m b Order new machinery Plan new physical layout un C Determine safety changes 1 3 in existing machinery Receive equipment Hire new employees Make plant alterations Make Changes in existing machinery Train new employees de 3 Install new machinery d. e. f 4 Relocate old machinery d. e, f. g un Conduct employee safety h, i. J N N orientation