TOPIC: Burn Rate and CPI.

I got this question on Google Group for PMP:

Qs. 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?
A. 1.20
B. 1.10
C. 1.00
D. 0.83


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I didn't find any reference to Burn Rate in the PM Promula Guide which I purchased some time ago.

It was mentioned that Burn Rate is the reverse of CPI. Could you please update the formula guide to include such terms.

Also, after reading the Formula Study Guide PDF, in page 2 it mentiones that CPI is EV / AC, then in page 8 it is AC / EV.

Please clarify this matter.

Tarek.

Tarek,

Based on our information and feedback from our students who have taken the exam, the Burn Rate has not come up as part of PMP Exam question. Therefore we did not include it in our formula guide. No need to make you learn something that isn't required.

As soon as students inform us that they encountered a new formula on the exam, then we will include it.

Hi Cornelius,

I am really excited, and can't wait to attend the Exam.

Thanks for the quick reply.

So, for now, I only need to know that CPI = EV / AC, regardless of how it is explained in term of ratio, becuase I got a little confused about how it was described in terms of ratio between page 2 and 8.

Tarek.

So are we to use burn rate = 1/CPI or it is CPI itself?

The burn rate is the inverse of the CPI (i.e., 1/CPI). Or you can calculate it is AC/EV.

Cheers,

Tracy