Saw this question on BURN RATE on Oliver Lehmann. What is it and how do we calculate it?. Thanks for any help.
Mon, 10/04/2010 - 05:08
Burn rate = AC/EV
Where CPI is cost performance index.
A project was assessed and the following Earned value data have been found: PV: $750,000 EV: $750,000 AC: $900,000 What is the Burn rate of the project?
Burn Rate =900,000/750,00=1.2
Mon, 10/04/2010 - 14:50
Fri, 01/23/2015 - 14:12
ok So Burn Rate Formula is AC/EV ?
What is Burn rate in other word ?
What it is usefull for ?
Sat, 01/24/2015 - 22:02
its the rate you are burning through your money. Its common term for CPI, The CPI stands for Cost Performance Index, which is equal to Earned Value / Actual Cost. You'll need to know CPI. For the Earned Value questions
Sun, 01/25/2015 - 19:08
I tought the burn rate was also CPI or EV/AC
But Oliver Lehmann Q87/175
A project was assessed and the following earned value data have been found: PV: $750,000 EV: $750,000 AC: $900,000 What is the burn rate of the project?87
Answer : 1
Monitoring and controlling Answer: 1 Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 647,
Can you help ?
Tue, 01/27/2015 - 22:36
in that question the burn rate is .83 Oliver is wrong. You get what you pay for I guess. I only used prep question I paid for.
Wed, 01/28/2015 - 18:18
If I Google, i found many answer different answer from Burn rate
Thu, 01/29/2015 - 01:50
Doesn't matter, What matters is what the earn value formulas are, what they mean and when to apply each.
Fri, 01/30/2015 - 13:23
ok but, if the exam ask what is the burn rate.. you are in trouble..
I am wondering if burn rate is EV/ac or AC/ev
Admin can help on this one ?
There is many contradictions on the internet, Lehmann says AC/EV
Fri, 01/30/2015 - 15:56
ok, I did some checking for you, and talk to a few other PMPs I work with. The consensus was PMI would mostly have Burn Rate = 1 / CPI
for butn rate. AC/EV isn't consider as the propert formula. the Lehmann answer would be correct. It was also assume they would not test on the term burn rate, but good to know.
Sun, 02/01/2015 - 17:33
ok but be carefull here
You said Burn Rate = 1/CPI and AC/EV is'int correct
This is the same thing !! 1/CPI or AC/EV = SAME !
AC = 5
EV = 6
CPI = 6/5 = 1,2
1/CPI OR 1 / 1,2 = 0,8333
AC/EV OR 5/6 = 0,8333
SO burn Rate is NOT CPI, BURN Rate is like Lehman says AC/EV OR 1/CPI
Sun, 02/01/2015 - 22:56
Yes, Burn rate is not CPI, it is the inverse of CPI. Lehman is correct
Sat, 05/16/2020 - 10:10
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