a simple cost of delay calculator
This is a cost of delay calculator which is supposed to give out values in CD3 style and find the best ratio for a project, feature or endeavor of Effort and Value.
For this it utilizes 3 main methods:
- Cost Reduction function: For Process improvement. To find out how a process improvement will impact the monetary metrics and divide it through effort
- Cost Avoidance: For events to happen that have cost attached. Taking into account deadlines and probabilities and divide them through effort.
- Revenue increase: for increasing sales or marketshare (or both) and divide through effort
- Revenue Protection: For protecting market share or staying competitive this takes the loss and can also take the probability that this happens into account and divide through effort.
All these values are broken down to a week to make them comparable.
It can prioritise items on the basis of the value/efficiency ratio.
The concept is based on Donald G. Reinertsens theory of cost of delay.