Case Study 2:
The EAC Early Warning
Proactive Financial Acumen & Process Improvement
Situation: I was managing a global study where the monthly "Actuals vs. Planned" spend looked perfectly fine. However, as part of my standard controls, I ran a detailed, bottom-up Estimate at Completion (EAC). This new EAC calculation immediately flagged a major problem: it projected we would end the study 18% over budget.
My Approach:
-
Analysis: I immediately launched a variance analysis and isolated the problem to our central lab vendor. "Scope creep" from frequent, unbudgeted, out-of-scope activities was creating a massive future liability.
-
Root Cause: I investigated deeper and found the real root cause: a high rate of hemolyzed blood samples, mostly from our Eastern European sites. This was a double-hit: it compromised our lab data and triggered expensive re-collections.
-
Solution: I identified that improper centrifugation at the site and temperature variations during transit were the key contributors. I immediately worked with the vendor to deploy a two-part solution: rapid, targeted retraining for site staff on correct centrifugation and adapted shipping protocols with better insulation materials .
Result: The impact was immediate. The hemolyzed sample rate dropped to almost zero. The unbudgeted costs stopped, and my re-forecasted EAC was back within a 3-5% variance. We ultimately completed the study under the total approved budget.