Homework 2

Instructions

- This assignment is to be completed in teams. Each team must upload only one copy (with the names of the team members
printed on the top left end of the document) on Moodle for grading. Late submissions will not be considered under any
circumstance.
- Use MS Word to type your answers to the questions and the drawing tools in MS to draw the PERT network. Any other tool
used to draw the network will not be accepted.
- Plagiarism and cheating (including sharing answers) are forbidden. Any team that plagiarizes and/or cheats will receive a
0.00 grade for this assignment.

Problem 1

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.

1. Construct the PERT network for this project using the table above.

2. Calculate t, ES, EF, LS, LF, S, and 𝜎 2 of each activity in the network and present the results in a table similar to the one on slide 44
of the PowerPoint (chapter 3).

3. Determine the critical path, the expected duration and variance of the project.

4. What is the probability that the mill will be fined $300,000?

Problem 2

The following table provides the information necessary to construct a project network and project crash data:

1. Construct the project PERT network.

2. Determine the maximum possible crash time for the network, and crash the network the maximum amount possible.

3. Compute the normal project cost and the cost of the crashed project.