A particular workstation has a capacity of 1,000 units per day and variability is moderate, such that V = (c_a^2 + c_e^2 )/2 = 1. Demand is currently 900 units per day. Suppose management has decided that cycle times should be no longer than 1.5 times raw process time.

If capacity is not changed, what value would be needed for V in order to meet the cycle time and demand requirements? What percentage decrease does this represent (compare CVs, not SCVs)?