Cost of Delay: Theory & Practice cover image

Cost of Delay: Theory & Practice

Discussing the theory behind Cost-of-Delay and some of the practical considerations of adopting and utilizing this tool.

Profile image of Donald Reinertsen
Jun 30, 2016 • 83 min read
4.78 (9)
Prioritization
Risk Management
Cost of Quality
Cost of Delay

Summary

In software, "faster" delivery is often thought as better - as used in the first-to-market examples. But is it more important than "cheaper", "higher performance", or "lower risk"? To answer this, we must quantify what we should rationally pay to save a month of cycle time. Cost of delay (or CoD for short) is used to quantify the cost and benefit of pushing delivery out, and so is used as a prioritization tool in SAFe.

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