When basing decisions on economics, how are lead time, product cost, value, and development expense used?

Basing decisions on economics in a Lean-Agile context involves understanding various parameters that affect the efficiency and effectiveness of product development. Lead time, product cost, value, and development expense are critical metrics that help teams evaluate the economic impact of their decisions and prioritize work accordingly. These parameters enable organizations to make informed choices about which features or projects to pursue based on their potential return on investment, risks, and overall value to the customer and the business.

For instance, lead time helps to assess how quickly a product can be delivered to the market, while product cost and development expense provide insights into the financial implications of developing a product. Value, on the other hand, can help identify the benefits a product delivers to stakeholders. Together, these factors contribute to a holistic understanding of the economic framework necessary to optimize development strategies.

The other options emphasize different aspects of decision-making but do not align with this economically focused approach. Limiting work in process (WIP) pertains to workflow efficiency rather than directly addressing economic parameters. Considering sunk costs is generally not advisable in economic decision-making, as it can lead to irrational choices based on past expenditures rather than future value. Recovering money already spent also diverges from the focus on optimizing current and future investments rather than attempting