- [Flow principle E3 states](/books/the-principles-of-product-development-flow#e3-the-principle-of-quantified-cost-of-delay-if-you-only-quantify-one-thing-quantify-the-cost-of-delay)—_"If you only quantify one thing, quantify the cost of delay."_
- Cost of delay (COD) determines the financial impact on the company if it releases a product on the market earlier or later. When a product arrives on the market X months earlier, revenues also roll in X months earlier.
- The figure below shows the economic impact of a prioritization sequence. Considering each feature takes 3 weeks to finish and generates \$10,000 once released, the second scenario generates \$60,000 ($$40,000 from A and \$20,000 from B) for the company.
![Prioritization sequence has an economic impact.](/images/originals/cost-of-delay-sequence.png)
- COD is the more eye-opening measurement that a company can infer because if you can't quantify the cost of a queue on the [critical path](z/critical-path), you can't quantify the benefit of reducing it.
- You can evaluate the following costs using COD:
- the cost of queues
- the value of excess capacity
- the value of variability reduction
- the benefit of smaller batch sizes.
- [The Principles of Product Development Flow](/books/the-principles-of-product-development-flow)
- [Rethinking Agile](/rethinking-agile)