TechWorkRamblings

by Mike Kalvas

202309011333 Quantify your cost of delay

#new

If you're only going to quantify one thing, quantify the cost of delay.1

We simply have no business trading money for cycle time if we do not know the economic value of cycle time.

Cost of delay is the measure that returns the most value while building an economic framework for a project. It will lead to our ability to quantify other important variables such as the cost of queues, batch sizes, and variability.1

How to quantify it? #wip #thread (should be answered later in the book)


  1. Reinertsen, D. G. (2009). The principles of product development flow: Second generation lean product development (pp. 31). Celeritas Publishing. 2