kostnadavforsinkelse

kostnadavforsinkelse, or cost of delay, is a concept used in project management and decision analysis to quantify the economic impact of postponing a decision, delivery, or project by a given amount of time. It reflects the value that is lost as time passes and helps compare options with different speeds to market or completion dates.

Calculation and components: Cost of delay is typically expressed as a rate of money lost per unit of time (per day, week, or month). Components commonly included are revenue foregone from a delayed launch, incremental operating or holding costs, penalties or contractual costs, erosion of market share or customer goodwill, and the broader opportunity costs of tied-up capital. In practice, the rate is estimated from historical data, market projections, and scenario analysis, recognizing uncertainty and the time horizon of the decision.

Applications and methods: In backlog prioritization, cost of delay is used to rank items by urgency, often by dividing an item’s estimated value by its development effort or risk. More advanced use cases apply real options thinking or portfolio optimization to balance speed, value, and risk across multiple initiatives.

Limitations: Estimating cost of delay can be difficult and sensitive to assumptions about demand, prices, competition, and time horizon. There is a risk of double counting benefits or omitting downstream effects. It should be used alongside other decision metrics to support robust prioritization and strategic planning.

See also: Opportunity cost, time value of money, backlog prioritization, agile decision-making.