It is very important to keep close track of your project deadlines and how fast your team is going through the hours that are allocated a project. This will help ensure that you are always on track and within budget. Having an easy way to track a project's burn rate is a great visual way to keep everything in line and organized.

 

 

The burn rate is an overview of how fast your team is burning up the hours in any given sprint or time period. You can break this up in any way that makes sense to you - whether it’s by developer, by project, or a combination of both. When you have a set target of hours to hit and you’re tracking how fast you’re burning through them, you can tell if you are on track to finish your project in regards to your budget. If you are constantly tracking you will see red flags as early as possible and you can avoid issues building up over time. 

If a project is on track you should finish each day of the project with a burn rate of 0. Hours consumed after you hit 0 means you’re consuming hours more quickly than anticipated. This could mean the project is going “ into the red” and you might run out of hours or finish over budget or it could mean that you’re consuming the hours quickly and you’re going to finish the project early.

If midway through your project, it starts looking like your burn rate is consistently too high, you may need to reassess the amount of work required to get the project completed. 

 

Check out our other posts on tracking your project's burn rate and creating your own burndown chart in Excel to learn more!