Cost of Delay Divided by Duration
Updated 2026-08-09
INTRODUCTION
English translation pending.
CORE DEFINITION
CD3, Cost of Delay Divided by Duration, is an economic-value-based prioritization method. Its core formula is CD3 equals Cost of Delay divided by Duration, where Cost of Delay is the economic loss incurred per week or month of deferred delivery, and Duration is the time needed to complete the work item. The priority rule is that a higher CD3 value means higher priority. CD3 converts vague notions of importance into a quantifiable economic metric, helping a team select, among many backlog items, the work that produces the greatest value fastest and maximizes return on investment.
SCAFFOLDING EFFECT
Reduce cognitive load
- Quantify importance: replace vague gut feel with a delay cost expressed in actual money. - Rank by value per time: divide delay cost by duration to expose the true priority. - Recalculate dynamically: re-score the backlog whenever the market or the estimates shift.
Anchor fast decisions
Built on economic value ordering. Dividing the delay cost by duration yields value per unit time, so giving priority to high-CD3 items maximizes the overall flow of return on investment.
MINIMUM ACTION
In progress 0/1Practice this model in one real situation:
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Cost_of_delayverified
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