What does a week of delay cost?

Cost of DelayThe economic value lost for every week a piece of work sits unshipped — the price of waiting, in money per week. puts a price on time — the revenue you forgo, and the risk you carry, for every week a piece of work sits unshipped. Pin that number down and “we’ll get to it” turns into “this costs us X a week” — the figure that drives WSJFWeighted Shortest Job First — a backlog-ordering rule: do the work with the highest cost of delay per unit of effort first..

It earnseuros peronce shipped — forgone every week it’s late.
€10k/ weekcost of delay
Late byIt will have cost
1week
€10k
2weeks
€20k
4weeks
€40k
8weeks
€80k
13weeks
€130k
26weeks
€260k

A steady cost of delay accumulates one week at a time — the whole case for shipping the urgent thing now rather than “soon”.

The work itself takesweeks to ship.
€2,5kcost of delay ÷ duration

Dividing cost of delay by how long the job takes gives its WSJF score (Reinertsen’s CD3Cost of Delay Divided by Duration — the economic form of WSJF: the value-lost-per-week-of-effort you rank a backlog by.) — the economic priority you rank a backlog by. Higher means do it first. Rank a whole backlog in the WSJF trinket →