Burn Rate
Definition
Burn Rate refers to the rate at which a project or organization is spending its budget over time. In project management, tracking the burn rate allows the project manager to assess whether the project is on track to be completed within budget. If the burn rate is higher than planned, the project is at risk of running over budget. If it is lower than planned, the project may be running behind schedule or the budget may have been over-estimated. Burn rate is typically expressed as a dollar amount per week or per month.
Contextual Usage
The line producer reviews the weekly budget report: "Our burn rate for the first two weeks of production was $450,000 per week, which is exactly on budget. But this week we had two days of weather delays, which pushed some work into overtime, and our burn rate jumped to $580,000. If we don't recover those days, we're going to be significantly over budget by the end of the shoot."
About this section
Creative Operations (or "Creative Ops") is the discipline of designing, managing, and optimising the systems, processes, and workflows that enable creative teams to produce high-quality work efficient...
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