Cost of delay

Cost of Delay is a metric that quantifies how time affects outcomes by measuring the change in value over time, expressed as $/time. It helps prioritize decisions and evaluate trade-offs in product development by integrating delay costs over specific periods. Don Reinertsen emphasizes its importance for assessing queues, capacity, batch sizes, and variability, noting that 85% of product managers lack this knowledge. Intuitive estimates vary widely, highlighting the need to quantify it. In finance, delays reduce investment returns due to lost interest, with longer delays incurring higher costs. For example, delaying Alberto's $6,000 investment at 10% for 8 months costs up to $600. Cost of Delay also informs scheduling algorithms like WSJF (CD3), which prioritizes tasks to maximize value delivery within available capacity.