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Project Management & Agile · Intermediate

Cost of Delay (CoD)

The economic impact of delaying delivery of a piece of work.

Definition

Popularized by Don Reinertsen, Cost of Delay quantifies what is lost per unit of time when value is delayed. It is the numerator in WSJF.

Example

Delaying a holiday feature by a month loses $200k in sales.

Exam tip

CoD helps decide sequencing economically.

Related terms