Use case priority matrix for system
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That can also be pretty difficult to determine, especially early on, when it’s hard to say who will do the work or what capacity allocation can be applied. The next item in the equation, the denominator in WSJF, is the job duration. Calculating relative Cost of Delay Estimating the Job Duration Teams compare backlog items relative to each other using the same modified Fibonacci numbers as in ‘estimating poker.” Then the (relative) CoD is calculated as follows: Figure 2.
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Three primary components contribute to the CoD: However, since it can be challenging to determine the total cost of delay for things that haven’t ever been implemented, SAFe uses a proxy for CoD, which estimates the size of the job relative to other jobs in the backlog. In SAFe, the ‘jobs’ are the Features, Capabilities, and Epics that live in their respective backlogs. Applying the WSJF algorithm delivers the best overall economics Estimating the Cost of Delay (Note: As shown in Figure 1, Reinertsen uses the actual monetary values for the Cost of Delay and estimated length of job duration, whereas SAFe applies relative estimation using a modified Fibonacci sequence, described later in this article.) Figure 1. Doing the weighted shortest job first delivers the best economics, by a very large factor. The areas shaded in blue illustrate the total CoD in each case. If you only quantify one thing, quantify the Cost of Delayįigure 1 shows the impact of correctly applying Reinertsen’s WSJF.Using decision rules to decentralize decision-making and control.As applied in SAFe, the model supports some additional principles of product development flow, including: Jobs that can deliver the most value (or CoD) in the shortest duration provide the best economic return. For example, if a prospective feature would be worth $100,000 per month, and there was a delay of three months, the total CoD would be $300,000. CoD is the money that will be lost by delaying or not doing a job for a period of time. WSJF is calculated by dividing the Cost of Delay (CoD) by the duration. Reinertsen describes a comprehensive model, called WSJF, for prioritizing jobs based on the economics of Lean product development flow. WSJF also conveniently and automatically ignores sunk costs, a fundamental principle of Lean economics. Backlog priorities are continuously updated based on relative user and business value, time factors, risk reduction and opportunity enablement, and relative job size. To that end, SAFe applies WSJF to prioritize backlogs by calculating the relative Cost of Delay (CoD) and job size (a proxy for the duration). In such a flow context, it is job sequencing, rather than theoretical, individual job return on investment, that produces the best result. In a flow-based system, updating priorities continuously provides the best economic outcomes. In SAFe, WSJF is estimated as the Cost of Delay (CoD) divided by job size.
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Weighted Shortest Job First (WSJF) is a prioritization model used to sequence jobs (eg., Features, Capabilities, and Epics) to produce maximum economic benefit. Don Reinertsen Weighted Shortest Job First If you only quantify one thing, quantify the Cost of Delay.