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 some 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 that would have to be completed and then estimated the indicated activity times, as shown in the table below.Activity DescriptionImmediate Predecessor(s)Time Estimates (Weeks)OptimisticMost LikelyPessimisticambAOrder new machinery---123BPlan new physical plant---258CDetermine safety changes in existing machinery---135DReceive equipmentA41025EHire new employeesA3712FMake plant alterationsB101525GMake changes in existing machineryC5914HTrain new employeesD, E237IInstall new machineryD, E ,F146JRelocate old machineryD, E, F, G2510KConduct employee safety orientationH, I, J222Expected project duration and varianceThe probability that the mill will be fined $300,000.Show detail breakdown

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Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter12: Contracts And Sales:introduction And Formation

Section: Chapter Questions

Problem 1QAP

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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 some 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 that would have to be completed and then estimated the indicated activity times, as shown in the table below.

Activity	Description	Immediate Predecessor(s)	Time Estimates (Weeks)
Optimistic	Most Likely	Pessimistic
a	m	b
A	Order new machinery	---	1	2	3
B	Plan new physical plant	---	2	5	8
C	Determine safety changes in existing machinery	---	1	3	5
D	Receive equipment	A	4	10	25
E	Hire new employees	A	3	7	12
F	Make plant alterations	B	10	15	25
G	Make changes in existing machinery	C	5	9	14
H	Train new employees	D, E	2	3	7
I	Install new machinery	D, E ,F	1	4	6
J	Relocate old machinery	D, E, F, G	2	5	10
K	Conduct employee safety orientation	H, I, J	2	2	2

Expected project duration and variance
The probability that the mill will be fined $300,000.
Show detail breakdown

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